What To Do With Your Coins In Economic Meltdown???

Right on. I would guess the % of banks open and running is higher than 95%.

 

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Cartoon Network had better shows than what they have now.

 

Wow... I'm really amazed at some of the threads posted here (I'm not sure these "doomsdayers" are 100% serious). Get your guns, your food and head for the hills.... the sky is falling! I just have a hard time understanding the "survivalist mentality" (ever since my next door neighbor built a fallout shelter back in the late 1950's). I think the Y2K "meltdown" was another scenario that generated alot of hype, everything was going to fail then also. So go ahead and pack up your MRE's and load your weapons... I'm going out and buy coins instead!

 

The Sci-Fi Channel used to be all Sci-Fi too!

Ribbit

 

I'm by no means a specialist at this but my biggest fear would be that even if everything did turn to hell.. how do we know that precious metals would be all that precious anymore? As it stands 1 fluid ounce = 1/128 gallon so that means that the price per ounce of gas is $.03. So with silver being at $13.00 an ounce, seems to me that we've got a long way to go before people start trading coinage to survive.

The bigger question would be that in a time of struggle, would the value of an ounce of silver be what it is today?

 

Isn't there a prophecy in the Bible of precious metal being thrown at the head of every street in the last days?

Yikes!

1000 ounces of gold for a Hershey Bar please.

 

historically precious metals have retained value (more or less) when fiat systems fail. In post WWI Germany, silver and gold were still worth a lot while the fiat paper money became obsolete within a week or so and new higher denominations were introduced...problem is, these were emergency fiat systems...what fiat systems and paper money were reserved for in societies that based their money on precious metals...so we dont even base our monetary system on gold or silver any more...in essence our monetary system, because of fractional banking and the fact that it is backed by only the word of the government, is in a constant state of inflation...

But if you think about it...a silver dime in the 30's and 40's would buy you a meal...sell that dime today and it will still buy you a meal....while a fiat dime will buy you nothing....not even a phone call to a person to complain to about it all.

Oh...and I wont be doing anything with my coins but I am a bit lucky that the industry I am in needs to operate regardless of the economy...though I might sell some gold Krugerrands if gold shoots up again...if it goes down enough I will buy more.

 

That's a very good point Drusus, but isn't it a shame that a current 2008 dime won't buy you anything.

 

as my chinese fortune cookie states:

It is not the strong but the responsive that will survive.

 

ah yes, it all makes sense now.

 

MAGMAN thank you. Now explain it all to me. Remember 'victory gardens' and ' food ration stamps'? Guess I'll have to get a scale so I can weigh the gold that is cut from my coins when my paper runs out. Maybe I won't last that long? zg

 

<<If you want to do a little reading, read up on the history of the weirmar republic. Their situation was very similar to the current US situation.>>

No it wasn't. I say that as a fact and there is no parallels that can be drawn between the defeated Germany between the wars and the current US.

For what its worth, the idea that the Iraqi action is in any way similar to WWI would be laughable if I didn't know that you were serious.

 

I dont think of my stash or thoughts as doomsday at all, in the least. I just have what I call diversification of my assets. And emergency prepardness, thats all, as I choose not to live in fear and dont buy the " chicken little / sky is falling " thing one bit.

 

<<2. The value of you money severely drops, money becomes worthless.>>

Nonsense.

Money is valued based on one thing and one thing only, it is the only form of payment that the government accepts for TAXES, TRARIFS, and FEES.

 

Gas went from $2.00 to $4.00 in 2 years, so did many daily goods and services. The VALUE of your money dropped.

Simple. More money, same goods. It's called inflation, and in some cases hyper-inflation.

Ask the Mexicans about the last time they devalued the Peso and came up with the Neuvo Peso.

 

I forgot who's quote this is "He who is prepared has his battle half won"

 

To Truly Answer You Question

I would do what every other smart guy has done over the centuries.

Buy the coins from the panicked and poor population.

:hail:

 

Good point, Jack. There seems to be, as there always has been in this country, a sense that this is America and things like that don't happen here. Things like super inflation and money so devalued as to be basically worthless. But, to anyone who knows history, many civilizations much older, grander, and seeminly more stable than ours have fallen due to these exact same reasons. Those who think it can't happen here are those who are ignorant. When an economy has a complete collapse, I guanantee coins, whether they be gold or silver, will be just as worthless as the rocks their materials were pulled from. Thats not doomsday talk...just fact based on thousands of years of recorded history.
Guy~

 

yeah, kinda like post WWI Germany, our money has not so slowly become more and more worthless (although not near as quickly as in Germany). Its not near as bad as then but I could see it becoming that bad (hope it doesnt)...we havent started printing higher denominations yet and eliminating the lower value ones but I think its going to get to that soon...its inevitable when you have congress giving out huge sums of money, then, on top of that...giving tax breaks instead of actually trying to balance the give and take...we have to give this much so lets take it from here...balancing cuts with spending...we need to free up larger amunts of money. Huge sums of new money flooding the economy everyday making each dollar worth that much less.

In post WWI Germany those who had gold were able to save much of their money when the Reich mark was finally axed and the Rentenmark was introduced...problem it, if you had 500,000 Reich mark...by the end of hyperinflation they were worth half the price of a loaf of bread and it did even come close to making up the value of even one single Rentenmark....in essence, if you didnt have silver and gold, you lost almost all of you money in the switch...

BTW, I cant think of any civilization where gold and silver became worthless....just because I cant think of it doesnt mean it didnt...how about one example? Paper money and other fiat types of money, yes...even at the hieght of devaluation in Rome...Gold was still highly valuable...as civilations fell, the ones who took over still wanted and valued the gold...

 

Gold is still fairly high. It does fluxuate but at least you have an alternative.