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

Not to be a doomsdayer but.....

Still feel safe with safety deposit boxes?

Sell for cash or hold?

Opinion on safes... Which ones do you reccomend?

How useful will 90% Silver be if the dollars goes the way of the lemming?

Buy, sell, or hold common gold coins?

How do you think a severe economic downturn effects you coin collecting habits?

 

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I see no reason (yet) to feel insecure about safe deposit boxes. I'm more worried about the dollars I have that are mere bits in a computer system...

It's hard to gauge a good time vs bad time to sell in an economic downturn. I try not to invest too much in the first place to avoid having to sell to "make expenses."

If everything goes absolutely down the toilet, bullion that has only decorative qualities probably won't be worth much to the population in general. Nor would money. When food becomes scarce, I wouldn't trade a can of beans for gold. I can't eat gold (well, not for nourishment, at least). I would happily trade my gold coin for a can of beans if it means I'm eating that day. But that's in extreme circumstances.

Buy sell or hold depends on the % you have invested. If you're worried about making expenses based on your buying habits, then quit buying until things blow over. Then if you need to, sell.

Of course if the prices drop really low buying remains a satisfying option... like a few weeks ago when gold careened down to about $750. I had to buy.

 

Ewomack, you seem to be envisioning a complete collapse of SOCIETY, not the economy. (In which case the best trade good would be whiskey. Lol) There's a reason its called "hard times" not "impossible times". Maybe its just because I'm young and naively hopeful.

Anyway, to the original question. I question how much good it would even do to sell your coins. If there is a truly severe economic downturn, people won't have as much disposable income to spend on coins, causing the coin market to practically evaporate, making your common collector coins near worthless. Silver and gold will still be silver and gold and, therefor, worth as much as bullion value.

My own collecting habits would probably change dramatically. If I'm just not making money, how can I spend it on coins? But if I do happen to be making money when the rest of the market is flopping, well. I would get an awfully nice collection.

 

Rhoggman, nobody can really protect themselves or their coins from that sort of situation. My father and uncle both told me that after World War II, the two best things to own in Japan and Germany for barter were cigarettes and bars of soap. Gold and silver coins were nearly worthless because they are non-functional in a busted economy. Anyone with enough spare resources to purchase your coins will also have the resources to have fled to a more prosperous country.

 

Hang tough, this too will pass and the sun will rise again! It just may take awhile.

 

For those whom suggest they would not trade their gold for a can of beans etc. you would be amazed at what you would do if necessity dictated it. real hunger knows no bounds of needs for grand pianos, violins, art, gold etc. Just ask anyone that survived the Siege of Leningrad and other such situations.

 

This is a good thread. I have thought about this also. I am torn between selling my collection now while money still has value,(keeping the silver of course) or still spending my discretionary income to continue to collect. Nobody knows how bad things will get, or if the bailout will even work.

 

If you are counting on your collection to fund your retirement, you may want to sell only as a means of protecting a very important asset (basic risk management). They can always be bought back later. If your collection is more of a hobby and not part of your expected income (reselling), then I would hold.

As far as 401(k) accounts, I have moved my money into money market funds 100%. While that is not a certain guarantee with money in T-Bills, at least it is better protected than stocks. This is the first time I've ever done this, but the market is very unstable right now and we are in brand new territory with the government's involvement in private markets. Whatever I lose short term in potential upside having been invested in stocks is more than worth the risk insurance I'm getting by going conservative now.

P.S. I did that on Monday.

 

Those who collect cuurrency will be able to burn it to keep warm and those who collect coins will be able to melt them down over the currency collectors nice fire and make bullets out of them to shoot the idiots that caused the meltdown.

Ribbit

Ps: Where's Spock when you need him? :whistle:

 

My stash list:

Canned goods and water, plenty of both
Gold coins in small increments, 1/10 oz, 1/4 oz etc
$1000 face US 90%
gun and ammunition ( plenty )
large amount of cash in $20 denominations
Euros
generator and batterys

thats it folks.

 

Well geez, now I know where to go when it all goes to hell.

 

LOL. I forgot the dirt in northern AZ and the first aid kit

 

Remember the movie about those creatures in a small desert town that would tunnel underground? Kevin Bacon was in it, and one of the other actors portrayed a survivalist - that's Jack!

What about the dynamite, Jack?

Ribbit

 

That's my idea of smart.....

I too have often wondered if 90% silver, and gold would be of any value in a severe recession. It is a safe bet though, and if nothing else it will help preserve wealth why other assets go to 0zero.

 

I agree. If I was starving and someone wanted a 1933 St. Gauden's for a plate of beans, I would hand it over. Then I would have to worry about how I would pay for my next plate.

But true, this does suggest a breakdown of society rather than the economy, but it does help put 'valuables' in perspective.

In any case, bullets will only help you for so long in a complete collapse. You'll run out eventually, or someone will just lob a bomb at your "fortress." In complete collapse gangs would form and a lone person with a gun would stand no chance. But this isn't a thread about that... sorry...

Keep the coins for now unless you really need the cash. I sold a bunch of stuff some years ago out of desperation and I still regret it. I could have found the money elsewhere but I went for the quick sale. I got my money but lost a chunk of my collection. Oh well...

 

Gold and silver bullion/coins
Water
Food-canned and MRE's
Firewoood for the wood stove
Batteries/Flashlights/Candles
Generator/Gasoline
SHOTGUN, MOSSBERG pump action 12 gauge loaded with alternating slugs and buckshot.

 

Tremors, (1990), Michael Gross was the survivalist actor. Think I've watched that one 10 times or more...

 

You guys sound like a dooomdsay crowd.
The media and politicians are scaaaaaaaring the bejezus out of you guys. All these end of days scenerios.
Rich people make bad investment speculations driven by greed and de-regulations now that they dont have money king paulson and co-king bernarke ask us to pay the bill wtf

the facts

unemployment is at about 6.6 it was almost 8.9 when JFK was pres.
95% of homeowners are paying thier mortgages.
95% of Banks are still open and running.

Try booking a flight for next week it all booked.
Take a trip to Disney world and tell me how many thousands of people you see.

The sage of Omaha dropped 5billion on a gamble you think he's thinking beans and guns?

get a grip people​

 

I keep seeds, legumes, soap/water, crank style weather radio/TV(wonder if tv will work when all goes HD), firstaid kit, rope and shaker flashlight.
If u think about it, even in a total collapse, we will be ok. There will always be wealthy, middle and lower class. Everything will balance out. Animals are food, lots of overlooked plants are food, knowledge=food. You ever see an Amish or a cowboy complain about not having electricity or oil or running water? Price of bread could go down to a nickel a loaf or sky high. Wages will adjust to that. It's all relative. We are just testing/setting limits right now. Save the collection! Those "junk coins" selling around melt will probably get melted at some point and new rarities will appear. I don't think coin collecting will ever completely die, it just may a have a really long down cycle. The population will catch up. Collect with your kids, not for them and all is well. Thus ends my rant.

 

You may be correct, however if banks fail (keep in mind the FDIC only insures $100,000 of your banking assets) and the value of the dollar drops the domino effect begins.

1. banks fail, you lose your money.

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

My granfather lost EVERYTHING in the great depression and never trusted banks and the government thereafter. The same thing happened to my mom's family in europe during WW2.

A wheelbarrow full of money wouldn't even buy a loaf of bread.

I remember the gas crisis in the seventies, gas rationing and waiting in line at the pumps for several hours with dad to fill his tank.

The US is owned by foreign investors, if the US enters a depression and the foriegn investors exit, the economy will drastically fall. Americans do not own the US anymore, foreign investors do.

Ask the people who lost their ENTIRE NEST EGG in the recession in the late fall of 2001 how they feel. Many people lost everything they had invested. My dad personally lost $50,000.