The utility of Gold Bullion during a Global Crisis

[Borachio]

What do you think of investing in Gold Bullion right now?

Do you think there is really a catastrophic global financial collapse just waiting round the corner?

Eek!

 

[Cutlass]

Don't.

 

[Borachio]

Don't what? Invest in Gold Bullion. Or don't ask the question.

Investing in gold is dodgy I know. I worked out I'd lose 25% immediately, for the sort of amounts I'd be looking at practically.

But still, if I couldn't get cash out of an ATM, and nobody would accept it if I could, what would be a good idea?

I, myself, favour investing heavily in human capital. But that's another issue.

Or do you mean, don't invest because it's a bad idea for the world economy?

 

[Cutlass]

Gold is at twice the sustainably price now. If you invest now and hold for 10 years, you will lose half or more of your initial investment.


The only time to buy gold is when the price is very low and the economy is booming.

 

[Borachio]

Ah yes. Quite right. Normally this is so.

But suppose an imminent global collapse arrives bam! In the next say 12 months. Which no one can be sure is impossible.

A little gold for the local exchange mechanism might be highly useful.

 

[Cutlass]

Unless you have enough to hire a platoon to protect you, you won't have enough to stop someone from taking it from you.

 

[G-Max]

In a global catastrophe, your wisest investments will be food and bullets. After that, there will always be people who are willing to trade useful stuff for shiny bling, but people will not always be willing to trade useful stuff for scraps of paper with drawings of dead presidents.

 

[Borachio]

Unless you have enough to hire a platoon to protect you, you won't have enough to stop someone from taking it from you.

How would they know I had it?

In a global catastrophe, your wisest investments will be food and bullets. After that, there will always be people who are willing to trade useful stuff for shiny bling, but people will not always be willing to trade useful stuff for scraps of paper with drawings of dead presidents.

People are more likely to spot I have loads of food than gold.

Bullets and guns are fine to a point. Then you run out of bullets. Then I suppose it's knives and bows and arrows.

Having a gun is just going to attract attention. And make people think you've something worth taking. Or is it you who will be doing the taking?

 

[peter grimes]

Ah yes. Quite right. Normally this is so.

But suppose an imminent global collapse arrives bam! In the next say 12 months. Which no one can be sure is impossible.

A little gold for the local exchange mechanism might be highly useful.

Why do you think there is a threat of an imminent global collapse?

I remember in late 2006 a lawyer friend of mine attended a conference that essentially laid out how the mortgage default implosions was going to happen. They listed several scenarios, and advised the attendees to start getting acquainted with Bankruptcy, Trusts & Estates, Leins, and so forth. Sure enough, 18 month later it all started to happen.

So do you have anything comparable to report?

 

[Cutlass]

How would they know I had it?

The first time you went to spend it, you'd give yourself away.

 

[Borachio]

No, because I say to the person sotto voce keep this under your hat, or down your sock.

They're not going to say anything because that would attract attention to them.

Mind you, I might have to pick my business partners carefully.