[whaknstak]

Or precious metals. Why do you buy it, and how will it benefit you in an economic downturn?

 

[NightKnight]

I have heard of people doing that before, but in a total economic collapse with devalued currency, how would it reasonably be determined what the value of said gold would be?

 

[NuffDaddy]

I don't, but doesn't the value of gold generally stay the same? The monetary value may fluctuate but that is based on economic state of the country. Gold should theoretically hold it's actual value no mater what the economy is.

 

[NightKnight]

Gold was worth $19.39 per oz from 1792-1833. From 1833 until 1932 gold mostly stayed in the low $20 range. From 1933 on it was in the $20-$30 range.... until the 70s, when it grew to $459 in 1979. In the early 80s it dropped to the $300 range, and mostly stayed there until 1997 when it dropped into the $200s again. In 2002 it went back above $300 again. It has been inflating greatly and is currently worth over $1600 an oz.

 

[NightKnight]

Here is the info I used for my previous post. I threw it into excel to make a graph too:

http://onlygold.com/tutorialpages/prices200yrsfs.htm

 

[NuffDaddy]

Gold was worth $19.39 per oz from 1792-1833. From 1833 until 1932 gold mostly stayed in the low $20 range. From 1933 on it was in the $20-$30 range.... until the 70s, when it grew to $459 in 1979. In the early 80s it dropped to the $300 range, and mostly stayed there until 1997 when it dropped into the $200s again. In 2002 it went back above $300 again. It has been inflating greatly and is currently worth over $1600 an oz.

The reasoning for that though isn't because the gold isn't actually worth more. The $ is just worth that much less. With your $19.39 in 1800 you could have probably baught close to the same amount of stuff as you could in 2000 with $200. Now I have no idea what is causing this ungodly spike in it's value right now. Probably has something to do with investors buying a bunch of gold creating a false shortage causing the prices to go up to then sell it for a hight price. Same principal applies to oil rights. That's why gas prices fluctuate so badly.

 

[NightKnight]

The reasoning for that though isn't because the gold isn't actually worth more. The $ is just worth that much less. With your $19.39 in 1800 you could have probably baught close to the same amount of stuff as you could in 2000 with $200.

Yep. Using an inflation calc I found online, $20 in 1800 would buy you the same amount of stuff as $265 would in 2012.

 

[NuffDaddy]

That's crazy. In 200 years the $ is worth 10X less. What is it going to be worth in another 100 years?

 

[whaknstak]

Here's my take. I hear people collecting gold in the event of an economic downturn. while great in theory, when it hits the fan and people are starving and desperate, the economy has collapsed, and the dollar has been destroyed, goal will be nothing but a shiny peace a metal. People will be more concerned with life sustaining necessities like food water clothing and ammunition. If you buy an ounce of gold today for 1700 dollars when the economy collapses, how are you going to use it as currency? Are you going to break a gold Krugerrand into 8 pieces to buy some flour ? Do you really think you will get 1700 dollars worth of goods for that ounce of gold? If I had any gold right now I would sell it and buy food and ammo because like the housing market in 2007 , gold is hyperinflated and it's going to come down hard.

 

[whaknstak]

That's crazy. In 200 years the $ is worth 10X less. What is it going to be worth in another 100 years?

I doubt very seriously the dollar will be around in 100 years

 

[NuffDaddy]

Gold will always be worth something. In actuality gold is the world currency. Money is just an easier way to divide up the gold. If the economy crashes and the dollar value plummets that will just make gold worth an ungodly amount of paper money. The value of gold never truly changes as I said in an above post.

 

[NuffDaddy]

That's crazy. In 200 years the $ is worth 10X less. What is it going to be worth in another 100 years?

I doubt very seriously the dollar will be around in 100 years

I have to agree with you. I wouldn't be surprised if it happens in our lifetime.

 

[wheelie]

I collect copper thought the year. Pays for a winter vacation for the wife and I every year. I own my own heating and cooling company so it is mostly a-copper. $2.99 per pound

 

[NuffDaddy]

Scrapped some copper tubing a while back. Got $65 for it when I paid $50 for it from Lowes.

 

[THS Sporting Center]

I own a business that deals in precious medals and I strongly recommend buying silver for the bullion. Paper money is only what you believe it to be worth. If you have a Silver troy oz you have something of value recognized in any developed country. Doesn't matter what language you speak you have currency that can't just be print up with out a stock market value attached to it. small gold coins are very nice but extremely expensive. That makes gold not as attractive for most individuals. By the way there is NO investment stones {diamond and jewels} that you can buy and make money on reasonable. The diamond business operates on a mark up up to 1000% yes 3 zeros.

 

[Deezey]

I collect gold....unfortunately I have to stand in a cold stream or river and use a shallow green plastic dish. Sometimes a small shovel and swearing may be involved.

 

[NightKnight]

http://www.cnbc.com/id/100640665

 

[whaknstak]

Its been hyperinflated for too long. Its like the housing boom, it can't go up forever. I have been saying for over a year, its going to crash, hard.

 

[THS Sporting Center]

If by some wild chance it get even close to 1000. I will buy what ever I can scrap together.

 

[THS Sporting Center]

Its not like housing which was a domestic lending problem. Gold is a international item that ties to the US dollar. I still believe that it will go past $2000 a troy oz in the near future {year or so maybe}

Its been hyperinflated for too long. Its like the housing boom, it can't go up forever. I have been saying for over a year, its going to crash, hard.