How Much Of One's Cash Assets Should Be Put Into Precious Metals?

[Glenn B]

when shtf doesn't matter what you got.
Your ability to defend will be everything.
Access is everything

Now wait just a minute there: "...ability to defend is everything" - "Access is everything".

If one of them is everything then by process of elimination the other one cannot be aything!

Which one is it?

 

[Glenn B]

My father and a few of his old friends were talking about the Great Depression of the 30's, which they all lived through. They remembered two of the most valuable trade items were alcohol of any kind, but whiskey of any kind was best, and makeup for women. They were all too poor to afford any of that but it was popular with anyone who had something to barter for it.

That was not so much due to The Great Depression, that was because of Prohibition. The booze was a commodity most folks craved and the cosmetics helped women obtain it.

 

[glenbo]

Thanks for the history lesson. Next time I feel like I need to be corrected, I'll ask for your help.

 

[Robertsgt40]

There's a reason silver was removed from coins in 1965. The fiat dollar will have its Weimar moment. The manipulation of prices for real metals is obvious. A 7% inflation rate(more likely 15%) will destroy the currency, which is by design. I suggest reading "CREATURE FROM JEKYLL ISLAND" by G. Edward Griffin

 

[Grumps21]

That was not so much due to The Great Depression, that was because of Prohibition. The booze was a commodity most folks craved and the cosmetics helped women obtain it.

Thanks for the history lesson. Next time I feel like I need to be corrected, I'll ask for your help.

Technically you are both right. The 21st amendment was ratified Dec 5th 1933 which repealed prohibition. Prior to that date @Glenn B gets the nod. After that date, I’ll raise my glass to @glenbo

 

[pronstar]

There's a reason silver was removed from coins in 1965. The fiat dollar will have its Weimar moment. The manipulation of prices for real metals is obvious. A 7% inflation rate(more likely 15%) will destroy the currency, which is by design. I suggest reading "CREATURE FROM JEKYLL ISLAND" by G. Edward Griffin

One thing the dollar has going for it?
Other currencies are in even worse shape

Sometimes being the less-shitty option is sufficient.
Is that the case now?
Time will tell…


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[Markbo]

I like the 1 gram & 1/10 of an ounce portioned out in card form of gold. When food gets stupid enough to cost an ounce, I will have been robbing people of they food.

Then you will be a great candidate for a lead poisoning death.

 

[HKSig]

There's a reason silver was removed from coins in 1965.

1965 to 1970 Kennedy halves (for circulation) are 40% silver.

 

[Vaquero]

2 1/2" id oil field pipe is bringing
$2.90 a foot.
2" I'd is bringing $1.90 per foot.
My metals are now "precious".

 

[Lost Spurs]

I was at a local coin shop today and they had this if you want desertification.

1/10 rhodium.

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[Glenn B]

Thanks for the history lesson. Next time I feel like I need to be corrected, I'll ask for your help.

Any time you get it wrong again, and I see it, I will correct it for you. You mean that much to me with your last response.

 

[Glenn B]

Technically you are both right. The 21st amendment was ratified Dec 5th 1933 which repealed prohibition. Prior to that date @Glenn B gets the nod. After that date, I’ll raise my glass to @glenbo

Should be giving me the nod on the cosmetics in whatever decade or century. Cosmetics are still helping ugly women get free drinks today.

 

[Olgater]

Easier to pay for goods and services with fiat currency than gold.

Gold is good but it is only profitable when sold, a hedge is only something that can be traded for your needs something that can be bordered ?

 

[ZX9RCAM]

Gold is good but it is only profitable when sold, a hedge is only something that can be traded for your needs something that can be bordered ?

The same with any investment, no?

Welcome to the Forum!

 

[gll]

The same with any investment, no?

Welcome to the Forum!

Not every good times investment has value in a barter economy... Beanie Babies, Hummels, and fine art come to mind. Gold might be included, too.

When the electricity goes, pvc fittings might be good! Every time it freezes, there is a shortage at my local hardware store... next closest 50 miles. That means, if you don't have them hoarded, and SHTF, you are SOL.

 

[TheDan]

The same with any investment, no?

No, investments generate cash flow. Buying something you expect to hold value is using it as a store of value or a hedge. Buying (or selling) something you expect to go up (or down) in value is speculating.

 

[gll]

No, investments generate cash flow. Buying something you expect to hold value is using it as a store of value or a hedge. Buying (or selling) something you expect to go up (or down) in value is speculating.

So, if I buy gold as a store of value, expecting it to go up in value, then sell it to generate cash flow, what is it?

 

[ZX9RCAM]

Not every good times investment has value in a barter economy... Beanie Babies, Hummels, and fine art come to mind. Gold might be included, too.

When the electricity goes, pvc fittings might be good! Every time it freezes, there is a shortage at my local hardware store... next closest 50 miles. That means, if you don't have them hoarded, and SHTF, you are SOL.

Agreed, but it only has value at time of sale/barter.

 

[pronstar]

An investment pays us to own it, and it’s ongoing. When it costs more to own than the cash it generates, it becomes a liability and we dump it.

If I invest in a rental property, it generates cash every month.

If I invest in a truck for my business, it’s generating cash when I deliver goods to my customer.

If I invest in a machine, it generates cash by producing product that I can sell.

If I buy gold, I can put it on a table and stare at it, but it’s not actively generating cash. It’s just a thing that has intrinsic value to other humans.

We can place bets that it will gain or lose value, but it’s not actively performing a function that generates cashflow.

I depreciate a machine asset over its useful life. I don’t depreciate gold, because it has “stored” value.


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[TheDan]

So, if I buy gold as a store of value, expecting it to go up in value, then sell it to generate cash flow, what is it?

Selling something is exchanging it for (or perhaps converting it to) cash; not generating cash flow.