Minus the political shifts towards a 'multipolar' world (prior to the onset of the final bloody form of the Hegelian dielectic), the weakest point in the present system is certainly the U.S. Dollar. Indeed there are many angles for speculative currency attack. And there are many weak points at which this may simply happen by accident. Assuming we see such an external speculative attack, what can we expect?
1) A currency failure will happen rapidly (likely overnight to 8-12weeks). The dollar will devalue against gold and oil. We are talking 50% decline or more.
2) Gold will go into backwardation (aka Spot Price above Near-Futures Price). This is the single most important indicator.
3) The Gold price will vault upwards -- and ultimately trading will halt in USD.
4) Oil will likely vault upwards as well, but this analysis is difficult. The gold:oil ratio is a useful indicator.
Where will capital flow during a time of a systemic crisis? Since 1971, capital has moved up this chart. Now it is reversing. Capital will flow into government bonds , treasury bills, physical cash, and ultimately its final home , gold.
There are all sorts of other things that may occur under conditions of currency failure, but you can find these sorts of analysis elsewhere. Use your imagination, as Hannah Arendt might suggest. Or google teotwawki and crack open a beer. The point here is that our present system is very fragile and cannot last much longer in its present form. It is far too unstable. There will be a collapse , and out of this a new system will emerge. The only guarantee of your purchasing power is in physical gold coins which you have in your possession. This is why the Zerohedge Dog, Scooby, keeps 20% or more of his assets in physical gold coins, and at least another 10-20% in physical cash with which to pay his bills.
The world is changing ,and to cope with the new reality requires both discernment and imagination.
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Silver. Silver. Silver. The only downside vs gold is sheer volume. Investigate the cost ratios. Silver under $20 per ounce is like stealing it.
ReplyDeleteLong before gold is $3000 silver will be $48.00. No disrespect to the gold people, but this is the case. More people can buy silver, and they shall when the SHTF.
How high do you think silver will go if when dollar collapses?
ReplyDeleteWhile the dollar is around as a unit of measurement, most likely $1000 or more an ounce. PMs are the next bubble. If you have a fixed mortgage now a couple of ounces will be able to make your monthly future payments. In other words, what you buy now - say $32 for two ounces of silver would be your future mortgage payment.
ReplyDeleteThose who prepare now in a serious manner will do very well in a collapse. There were a select few in Zimbabwe and Argentina who saw their monetary collapse coming. They are living like royalty now. Imagine what you could live like in Zimbabwe if you had just one 10-ounce gold bar or a sack of silver.
Most people here don't have materialistic cravings or lofty goals, but those that prepare now will not only survive the economic implosion, but will thrive.
Most reasonable place I've found so far for silver. Any other sites appreciated. bullion.nwtmint.com
ReplyDeleteA good place to purchase gold and silver with low mark up Apmex.com
ReplyDeleteOver the past 3 years or so, I have purchased several thousand $$ at apmex.com. I even had their silver rounds checked, and they were authentic. They seem to be the easiest to deal with, as they take credit/debit cards and ship immediately. I buy only silver rounds or bars, & some grams of gold, no coins.
ReplyDeleteWhen I receive my monthly income from my (declining) telecom business, I always try and buy even 1 or 2 ounces. If I had an extra $5K, I would immediately use it to purchase silver rounds or bars.
Better buy now, time is short.
I agree, APMEX.com is the by far the easiest place to buy silver. I had absolutely no problems and bought hundreds of ounces through them. Their prices are very competitive. I usually check what the going rate is on ebay where if your lucky, you can get some pretty good deals.
ReplyDeleteBe careful on Ebay. I actually had a seller with great feedback sell me a Mexican 1.2 ounce gold coin for $1,200. Picture was great, details were in order. Everything fine. I get the coin and it is a miniture plastic replica coin worth maybe a penny.
ReplyDeletePaypal was able to get me back about half of my money, but the bitch ran off with the rest. She had pics of Jesus and 'God Bless' all over the ad - a nice touch.
I would stick with Ampex or a good local dealer. Silver coins are rarely counterfeit.
If you buy a 10+ ounce Gold bar buy it from a reputable dealer or only purchase if tested by a coin shop.
Notice the 'spread' on silver or gold items. For instance if you are going to buy a 10-ounce gold bar and it sells for $9860 and they will buy it back for $9600 that is reassuring. If short term you need to get back into Fiat toilet paper you can without much of a loss if price stays stable.