Assume that even in this
depressed economy, you can afford to blindly stockpile gold like many
other people are doing. But have you considered realistically what the
end game is for gold itself?
When the economy crashes what happens to your gold?
But this is what you've prepared for, and tied up thousands of your
hard-earned dollars to buy gold. When the hard crash hits, the proverbial
rubber meets the road.
If you find a store which still has food on the shelves, how will you
use gold to buy food and perhaps even water? Bring a hacksaw with you
to saw off a piece? Have you considered why any merchant will take gold?
What will he do with it? He won't take it because he can't do anything
with it than you can. Even a pawn shop won't take an item they cannot
sell or has no demand. This is a universal rule of buying and selling.
Do you expect a grocery store owner to re-package your gold, put a price
tag on it and sit it on the shelf beside a loaf of bread? People will
steal the bread, and leave the gold behind when the crash happens.
If the world economy crashes how will gold be valued? Gold value has
always been tied to a popular currency like dollars, like it or not.
If no one can express gold value in dollars/per ounce, how can the value
be declared? Euro is already in trouble and could also crash, so that
won't help. Trying to express the value of gold/ounce without using
any well known currency is like trying to describe the voltage in your
wall outlet without using the word "volts." You simply can't do it.
How will you get change from a store owner, if the piece you sawed off
is too large? Or your gold coins are too valuable for the item you want
to buy? You will have to accept dollars and coins.
Will you carry a digital scale around with you everywhere you go to
make change - IF you can find a merchant who will take it?
Will you carry and use a firearm to protect yourself when your god-fearing,
friendly neighbor who turned rabid because he's starving to death just
like you? It's one thing to shoot a paper target on a target range while
learning to use a firearm, and quite another to kill a human being up
close. And just how many people will you need to kill? Will that ever
end? Will martial law authorities allow you to protect yourself or even
carry a weapon?
Whenever you use a saw it always creates dust. How would you collect
that dust and what can you actually buy with it?
You may laugh at these questions, but starvation is serious business.
Here are the logical, real reasons the value of gold will drop like
a rock when the crash hits:
Like any precious metal, gold must be changed into whatever the new
currency is to actually use it or you will starve. Even the Romans used
coins. Will gold/currency conversion work for you or against you after
the new currency comes out, when you enter a bank to change your gold
into the new currency? it will work against you - you will be at their
mercy yet again and they know it. Why? Banks and governments already
know you bought your gold using a defunct currency and no one will be
buying gold anymore. Likewise, the value of gold per ounce must likewise
be diminished. The price of anything, no matter what it is, is always
connected to demand, regardless of what anyone else thinks the value
* Banks have always found a way to make money from hard times, and exchanging
gold into any new currency will be no exception. It's no secret banks
tell all governments what to do.
* Price will plummet just like real estate did (and still is doing.)
Yet everyone believed and was certain real estate could never go down.
* Instead of buying gold, everyone will be focused on buying food, drinking
water and shelter wherever they can find it and will need to use the
current currency to do it.
* Only the new or current currency will be accepted as payment for public
utilities. Imagine trying to survive a cold winter without electric,
gas, oil or wood.
* No one will use whatever the currency is they have left to buy even
one ounce of gold.
* Food and water will ultimately become more valuable than gold.
* You could suddenly find yourself with thousands of dollars tied up
in gold and still starving to death. Just like sailors in lifeboats
say - "Water, water everywhere and not a drop to drink."
These are the cold, gold facts sellers of gold never talk about. Perhaps
these people live in a fantasy world? When the crash finally comes,
these people won't be around to answer for their BS.