Message:

<p>[QUOTE=&quot;Lucky Cuss, post: 1867831, member: 44086&quot;]What a lot of people seem not to realize is that coin collecting, and even bullion stashing, are leisure pursuits that are feasible only under relatively stable economic conditions.</p><p>&nbsp;</p><p>I can see two inflationary scenarios that would destroy the present vitality of these hobbies, both arising out of our persistently rising national debt.</p><p>&nbsp;</p><p>One would be an episode of straightforward upward pressure on prices (or downward pressure on the dollar, if you prefer to look at it that way) that largely slips way from the government&#039;s ability to restrain as to its severity. It&#039;s tempting to rub your hands together at the prospect of precious metals appreciating by a few, or even several multiples of their current levels, but if necessities like food and energy take a corresponding hike up, what are you really getting out of that situation? If you&#039;re dissipating your hoard (provided you can find a ready buyer) just to meet your basic expenses, all you&#039;ve done is maintain a portion of your purchasing power, not gotten rich. I&#039;d like to think a Weimar-like currency death spiral wouldn&#039;t develop, but regardless, if the intrinsic value of silver and gold items becomes the overriding consideration, I can envision numismatic and collectible premiums becoming severely depressed, and in many instances, disappearing entirely.&nbsp; The actual utility of things becomes paramount during such a severe disruption.</p><p>&nbsp;</p><p>The other thing that could happen, and this could either be a result of or encompass the devaluation event described above, would be that the dollar ceased to be the world&#039;s reserve currency. That would render any rough patch a more permanent condition, and might even compel the substitution of a &quot;new&quot; dollar or other unit as legal tender, much as what regularly happens with Latin American economies. In any event, the yuan or the euro (or even some amalgamated worldwide creation) becoming the benchmark denomination in which commodities and exchange rates are calculated would force the U.S. to confront its fiscal circumstances in much the same manner as a household with all its credit cards and other borrowing maxed out, and unable to get another card, credit limit increases, or interest rate reductions. Belt tightening would be the order of the day, with government benefit programs having to be cut regardless of the human cost or protests to the contrary, and with an overall slash in the in everybody&#039;s standard of living virtually certain. Greece is your model in this dire case, but we&#039;d be Greece on steroids, so to speak.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in