Just a question.

Pm's are priced in us dollars. In the unlikely event the country goes under, will the price of pm's too?

If SHTF, would my gold (I don't own any) be worth money in other countries?

 

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If the US dollar (USD) ever collapsed, then gold would be worth plenty of Chinese Yuan Renminbi (CNY).

 

Tim,

I'm unclear exactly what you are asking.

My answers would be:

PMs are priced in British Pounds or Euros for example in England or Europe.

And yes, any gold you own would have value.

If "the country" you mention is America any PMs you own would have value just as they do now.

 

Many people purchase PM's in case paper money ever became worthless, i.e. U.S. dollar. So, if the U.S. dollar ever failed, your PM's would be worth some other currency as explained by others.

 

unlikely? The U.S. has 16 trillion in debt, 121 trillion in unfunded liabilities and 1 trillion + yearly deficits. If that's sustainable then I don't know what isn't

 

Sovereign governments do not go except via either revolution or war. On the other hand the currency of a government can fail without destruction of the country itself. It's unlikely we will see a revolution because the sports and high fructose saturated adults in this country are dumbed down and pacified and no country can win a direct war with the USA. So this is really about currency collapse.

Zimbabwe is a good recent example. Its fiat currency failed when they got to the point of printing 100 trillion dollar notes and as a result the government simply shutdown its central bank. People with Zimbabwe money got some pretty notes with only some novelty value. People who had converted to gold, silver and/or another currency were protected.

North Korea dealt with a similar problem a couple of years ago by doing a 100 to 1 currency revaluation and placing a limit on the amount of currency that could be converted. Given how that society is setup it caused widespread harm to the average person. Holding foreign currency was almost a capital offense and gold is illegal too. This sort of solution only pushed the problem to the future.

Iceland told the banksters to eat the loss. For extra credit they even tossed the ones they could get their hands on, into jail. Despite dire warnings from the IMF and just about anyone else, their economy is doing quite well these days. They are the only country to have gotten it right so far. If you had your assets in gold, they were protected and you can convert it back now.

The USD is also headed down the same exact road, but due to the scale of the USD in comparison, the effects and how they might try to stop a currency collapse are unknown. A collapse of the Federal Reserve doesn't mean a collapse of the government but there are huge vested interests in keeping it going at any cost. Now that American Idol - President's Edition has concluded, they will be back to dealing with this very issue, and IMO, total gridlock in the government will be suspended long enough to kick the can, yet again, down the road a couple of more years. But keep this in mind. If you have assets in the system, they are coming for them, one way or the other. They have no choice. PMs outside of the system are the best counter to it, IMO.

 

The most important gold market place for Europe is in London (LBMA). They publish their fixings twice a day - in USD, GBP and EUR. Guess that, if there was any need for it, they could just add another currency or leave one out.

Christian

 

If the country literally goes under, the gold will hold its value but might also make you a target. So if you expect this to happen, don't let anyone know you own it until it is clear that it can be exchanged for whatever replaces the dollar.

I think this is a very low probability event. If you look at the history of currency collapses, it is never in the world reserve currency. It always takes place in a weak country and currency.

 

For those living a few hours from the border, Maples make sense in the Doomer Scenario.
LOL "Canada here I come!"

I don't think "the country will go under" but the Paper will ... eventually (circa 2018-2022.) Remember when Lehman Bros. failed in 2008? Spot Gold abruptly tanked -25% (I don't know what happened to retail Gold prices, however) so much for the decoupling thesis. So it's perfectly reasonable to presume that AGAIN hedge funds' institutions' liquidating GLD positions will likewise tank Spot Gold. And then a unholy chain of counter-party failures will end mkt trading: Paper Gold may indeed race to zero, effectively, at that time. GLD is the canary in that coal mine.

Real hording will begin in earnest then. A total disconnect between 'make-believe' manipulated mkt prices and a nascent underground PM market (bullion trading at extraordinary premiums) will suddenly emerge. Retail premiums over "Spot" ... TO-THE-MOON.

I also suppose sharply rising retail premiums in PMs will be evident weeks or months in advance of the USD failure. (I believe that after GLD, the US Bond Mkt must fail as a prerequisite.) Watch coin/bullion premiums for any early-warning signs.

 

I can buy PMs, usually gold is easier though, in Ukraine - prices are in USA $ - but payment is in Hryvnia currency used in Ukraine. It is how things are priced for larger priced items, always in Euro or Dollars because most sensible people keep their funds in those currencies and not in UAH. Similarly I can buy gold in Russia or China where it is priced in dollars but I can pay in rubles or yuan.

 

Gold is money, and nothing else. Don't worry about currency prices in such a scenario. Gold (and silver) will be the de facto currency.

 

Along with booze, cigarettes, and anything else people really, really want.

 

Duplicate post. OK to delete.

 

If you want to accept something that I can create with a little elbow grease, that's fine. I'll stick to what only the universe can create.

Also, that JP Morgan quote is often misinterpreted. It's not saying that nothing else is money. It's saying that gold is nothing but money.

 

Gold is not money, it is a commodity. Money is an idea.

Also, you may want to eat your gold while others will want to drink my whiskey.

 

Nah, I'll drink my water, and if I run out I might buy more with whatever gold and silver I have laying about, since, well at least gold is (one kind of) money by definition. That's not really debatable if you live in reality. I'm taking a flyer on silver

Whiskey however doesn't fulfill the durability rule of a unit of account. It will last a long time, but it's a liquid. Nor does it pass the fungibility rule. I mean, are you really going to trade me some Elijah Craig for some Wild Turkey? I like Wild Turkey and all, but Mr. Craig was the father of bourbon. Regardless, I'm sure you would get a mighty return on it when you go to sell it.

 

I'm sure that if the time came, people would not be too choosy. For the most part, should paper fail, PM's will take over as the common means of exchange, however, I do believe other commodities will also have a place in a system that will move closer to barter should paper fail. :smile

 

Wouldn't it be worth its weight in gold? Lol seriously though you would use it just like the dollar today very similar to how it was done back in the old days when the money you spent was actually worth something.

 

Yeah and most likely more value. :thumb:

 

What will the premiums over spot be paid in if there is no currency?