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Do you think gold is a safe investment in times of geopolitical trouble, threats of war or other international crises?

11 Comments

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Yes, currency can fluctuate in value depending on how much the government would like to set its price at. In the Philippines, the occupying Japanese forces during WW2 introduced a new currency called "Mickey Mouse" money where you would need a wheel barrow's worth to buy what you need. Just refer to Robert Kiyosaki's Youtube video on buying gold, that'll explain everything.

However, I also have to say no because while gold is valuable, it's essentially just a shiny piece of metal and you really can't do anything practical with it (look up Water-Diamond Paradox). Feel free to correct me though. I've heard from survivalists and preppers that an alternative to gold are basic and essential commodities like food, tools, medicine and even services (time to learn practical skills) can be used to pay in an event.

I also know that in very rural parts of the world, including Japan, people often barter with one another instead of using cash.

0 ( +0 / -0 )

Stick with US Treasuries for now. If the world is truly ending you won't be able to carry and protect your gold anyways.

-1 ( +0 / -1 )

"If the world is truly ending you won't be able to carry and protect your gold anyways."

And that is where me, my horse, cart, and cross bow will come into employ.

4 ( +4 / -0 )

I read that during the Gold Rush, the miners didn't get rich rather the merchants. You could give a lot of money just for an egg. Seeing how I like chickens I may as well build a hen coop for the apocalypse.

1 ( +1 / -0 )

Sure it is. When currencies fail, gold will store value. If you are worried that it won't hold value when the world turns to chaos, that's probably true - but if things are that bad, gold will be the worst of your worries. If things are that bad, nothing will have value - and anything that does have value will be taken from you.

But for an ordinary currency collapse, it's good as gold.

2 ( +2 / -0 )

commanteer is right, if things have gone so bad that gold has no value then most of us will be dead or will be shortly. Otherwise, gold has a long history of retaining value, people still have a psychological attachment to it. Fiat currency is backed by a politicians promise and the perception it is worth something, though that value has been continuously trashed by politicians world wide since Tricky Dickie took the US Dollar off the link to gold. For example, since the UK came off the gold standard the pound's value has been devalued by politicians to such an extent it is now worth about 3 farthings.

A gold sovereign is still a gold sovereign.

1 ( +1 / -0 )

Probably safer than a cryptocurrency in those circumstances.

0 ( +0 / -0 )

Somehow I feel it is better to hedge your bets. If you have extra wealth, put some of it into gold and some elsewhere. Then you can pick and choose what has highest value, and what to exchange, at any particular time.

0 ( +0 / -0 )

Productive land and farming skills are the only real valuables in times of troubles. Follow that with gold, lots of bullets and guns.

-1 ( +0 / -1 )

The price of gold is as highly manipulated as currency prices are. Electronic trading of gold means that more "gold" is traded every day than banks and governments actually have in their vaults. It can be as good a hedge as anything else, but, as with anything else in the markets, you're betting on a rigged system. Gold is only valuable in times of real trouble if another party will accept it. If times are bad, and I've got ten chickens that feed my hungry family, a hundred ounces of gold isn't going to convince me to sell. Gold isn't edible.

0 ( +0 / -0 )

Some of the disagreement here comes because people have widely varying ideas of what future troubles might look like - everything from standard economic depression to Mad Max scenarios. If it's the latter nothing will offer much protection - except a small army to back. Even then, armies lose to other armies. Farmers starve when there are wars - their crops and animals are stolen or destroyed. They are forced to give up farming....

If people are demanding 100 ounces of gold for a chicken, then those chickens will just be taken by someone or some group that is better armed and organized than the chicken farmer.

Nobody is prepared for that scenario. Short of that, though, gold is a good hedge.

0 ( +0 / -0 )

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