Skip to comments.Precious Metals are true currencies: Marc Faber
Posted on 03/04/2011 8:14:49 PM PST by TigerLikesRooster
Precious Metals are true currencies: Marc Faber
LONDON (Commodity Online): Global investment analyst Marc Faber says the best and true currencies available in the world today are not US dollar or Pound, but precious metals such as gold, silver, platinum and palladium.
Faber, who is famous for his prediction of the US stock market crash in 1987, said that commodities, especially gold and silver will be the wise investment options for people in the wake of rising inflation and troubled economies around the world.
Faber, who is the publisher and editor of Gloom, Boom & Doom Report, said that if there is a war, gold and silver would be desirable investments to hold.
Faber recommends investors to accumulate gold in response to money supply inflation policies of the U.S. Federal Reservepolicies that have contributed to rapidly escalating commodities prices since the introduction of these unprecedented monetary measures in March 2009.
(Excerpt) Read more at commodityonline.com ...
You have enough food for 2 weeks
Some guy comes up and offers 3 pounds of pure gold for it
You...Accept? I think not.
But ... I have enough food for two and a half weeks. I’d take it. Maybe it’s just me, but I think I could barter my two weeks of food back using just one of the three pounds of gold. Who knows ... maybe even more food than that, for less gold than that.
Third option for what? currency?
here’s a few logical options:
luxuries like perfume, deoderant, toothpaste, toilet paper
Tobacco and water.
Got Coal? Got Portland!
It keeps well ~ and is portable with modern transport equipment.
Tobacco is attractive because it’s easily portable. It’s also already established as currency in prisons. Drugs are also attractive for the same reasons.
I left out spices, pepper, salt, sugar in my original list
ONE CARET = ONE HANDFUL (roughly a meal for 2 or 3 people).
What you want are items far more portable than gold ~ so you can hide the stuff after you make the sale.
Discussing this throws me off.
I always have a tough time getting change when I use precious metals to pay for my groceries.
I would not even let the guy know that I have the two week supply...though I have much more.
Just look at what fueled the black market in Europe after WW2 and you will know what becomes real “currency”.
One thing not on your list. Sex. For half the population that will be used as barter for necessities.
OK, help me understand a gold standard.
If the gov’t only issues money backed by gold, then how does wealth get created? i.e. everything can be redeemed back to a GOVERNMENT vault? Just trying to understand, our fiat currency is certainly not working either.
Gold became currency only becuase it was rare and therefore relatively hard to counterfeit. Any amounts dug from the ground belonged first to the crown (or whatever despot was there at the time).
Today... a gold-backed dollar is just wildly impractical, and counterproductive. The money supply is best managed according to the productivity of an economy, not the amount of some shiny yellow metal that can be dug up out of the ground.
It really just doesn’t make sense.
Sometimes I have trouble envisioning that a total society collapse could happen in America.
We are simply too well armed.
The life expectancy of a thug-type looter, murderer, rapist, general ne’er do well might be measured in weeks or even days.
That doesn’t mean that commodities like food and gasoline and tobacco could near almost priceless values.
But I would bet that some kind of equilibrium could be reached fairly soon.
In the suburbs, most people would probably just starve, on account of being yuppies who just aren't equipped to survive. (I'm a 'burb-dweller, but I prefer to think that I'd make it :) )
Out in the country, things would probably be all right, especially in conservative states where I could forsee local government and even more so upstanding citizens keeping order.
I have an old dollar bill “Silver Certificate”. How would I cash it in, or does it have rarity value? After WWII I had relatives stuck in Germany. My mother used to send Care Packages with cigarettes, silk stockings, cans of sardines, chocolate, sewing kits, etc.
Obtain time machine. Set dials for 1964. Activate.
Don’t forget seeds :)
I live in the burbs too.....so many people with garages stuffed with JUNK....or BARE....ours....well...let’s just say...I was a Girl Scout for 10 years. One of our neighbors gave GHW Bush his Security briefing when he became President....I think he’d help us keep order....I do worry more about the 4-5 prisons around us...
So far it’s worth one dollar. Coin shops have them on sale for a little more than a dollar but no one ever buys them. you cannot get silver for them anymore. I believe Nixon canceled that.
It requires massive amounts of fuel to make, and a fair amount to transport. Hm.
Does it keep well? I know a bag of concret will set in my garage after a month or two, lol. Maybe that’s after lime is mixed in?
Actually, 1968. But who’s counting. Silver certs were kinda cool, but even back in the day a kind of arbitrage formed because even then a silver dollar was worth a bit more, esp. rare or rarer dates and mintmarks.
I think maybe one had to go out east somewhere to do this, not every bank had bags of dollars laying around. Towards the end, the government was redeeming them with little bags of silver “shot” bullion, useful perhaps, for dispatching massed assaults of Vampires with Remington 870. But by 1968 the bills were no longer redeemable for anything.
You guys have 10 years worth of Snickerdoodles and Thin Mints in your garage? :)
Yeah, but it is hard to make change.
Sacks take care of that problem! And fork lifts!
A Saturn 5 is “portable” too - with the right equipment. No, “portable” means what one can carry, naked, running from hordes of screaming zombies.
Apparently, not me. (;>)
For modern man “portable” takes on a whole new meaning.
LOL! Its really Business 101, and an MBA will be of no use in that situation!
I live in the country...can't even get high speed Internet...and the “neighbors” tend to watch out for each other...I even heard of a plan to remove road signs if everything would collapse so that the city folk would not be able to find their way around in the “country”.
If there were a collapse, I would hope to bug out into the boonies myself.
U need to put down ¨Patriots¨and look instead at ferfal.
A complete collapse is not necessary or even likely in the event of a currency collapse. Some social unrest may be likely but a financial convulsion does not mean we are all going to be in our bunkers killing off motozombies trying to steal our food.
Plus even if that happens, commerce will eventually return, and when it does, gold and silver have always from the dawn of time been tradeable commodities.
I personally have over 15,000 rounds of .22 ammo, 3,000 rounds of 7.62x39 AK stuff, 2,000 rounds of 5.56. 5,000 rounds of 9 mm and lots more of other stuff. I have 20 cases of MREs and 60 case of the #10 cans of dried food the Mormons have, so I do respect a SHTF scenario. I am also in a partnership with about 20 other families with a retreat outside town with some (very loose at present) plans to occupy and have a small community there if things get very very bad.
HOWEVER, that is not the likely scenario, and a person with hard currency (or commodities) is likely to become very wealthy in the event of a currency collapse. There are billionaires in Russia who are not mafia folks at all, but were able to pyramid their worthless rubles into marks/dollars/pounds when it all went south.
The only possibilities are NOT life as it has always been and John Wesley Rawles.
especially ngm (non genetically modified) seeds.
I could easily forsee a time when they would literally be more valuable than gold