Redeeming Gold...
 

So I'm new to the site and the whole precious metal thing, but I wanted to start investing in gold for a future recession and this might be a dumb question, but if I purchase a number of gold/silver coins and a major recession hits in the future where banks default and go belly up and I don't have access to any bank accounts with paper money... how does one use the Gold coins or whatever to get money to pay for things etc...? Wouldn't it be pointless having the coins or metals if there wasn't a place locally or what not to redeem their higher value?

Any helpful advice would be greatly appreciated. Please be kind and don't rake me over the coals for my ignorance in this matter

Thanks.

Re: Redeeming Gold...
 

Welcome aboard. If, you look at Au/Ag as an insurance policy, that question whould not be relevant. Banks can close, your nearest pm dealer will not.
When paper "money" stops working, people will revert to what always worked before,,,bartering. Pm coins will be part, of that "new market".

Re: Redeeming Gold...
 

You're asking many good questions in which have been discussed to great lenghts on this forum. Seach the threads and you will find many points of view.

The bottom line is.... nobody knows for absolute certain. Gold/silver coins are always good for bartering with particularly in hard/difficult times so, if a magor bank crisis is what you are most concerned with, you should stock up on as many small denomination that you can.

Magor stores will probably not accept them since they are mostly corporate Conglomerate but smaller local stores owners and many individuals may.

I know I would.

Re: Redeeming Gold...
 

In my neck of the woods, a lot of stores have china owners. They ALL gladly take Au/Ag off your hands, and ship it to China.

Re: Redeeming Gold...
 

Buy a fire proof safe. Keep lots of cash in it. maby 5k or so or what ever you feel safe with.

Also, keep some rolls of silver eagles and a few 10th & 1/4th ounce gold coins in there too.

If you dont have money on you, then its not really yours is it? Its the banks. If something were to happen like an electronic terrorist attack or something like that, and they lose electronioc records, then what? They lost your money.

Re: Redeeming Gold...
 

In the history of monetary collapses and paper value going to zero, has there ever been a point when there was no available currency with which to make transactions? I don't think so.

Individual banks may fail, but the banking system won't go belly up. I think in the worst case SHTF scenario, any bartering is not likely to be exclusive. (In other words, there may be bartering for a truer, more stable exchange of value, but their will still be a parallel currency exchange, even if it is volatile.)

Re: Redeeming Gold...
 

[QUOTE= this might be a dumb question
Thanks.[/QUOTE]

Only stupid question is the one you don't ask. Welcome.:coolbeer:

Re: Redeeming Gold...
 

Welcome to GIM. If things are so bad that you have to use your Au/Ag you will not have a need to convert it to paper (FRN or Amero). I agree with previous posters, in that type of situation we will become very community oriented and people will see the value - of coors the gubermint may try to curb that activity (you know make some law to make us into criminals when we are just trying to survive the chaos they created).

Only true comfort, knowing God is aware of this nightmare that is befalling the US. The way all wayward empires end. Frustrating part, all the potential and yet buring out at so young an age. Past empires have lasted much longer than we have (empire has such a negative conotation to me). Sorry to get off on tangetn - I saw a show about Hamilton and Adams and Jefferson and the Federalists last night - got me thinking that I thought the criminal politician was a 20th century phenomenon - I learned something - of coors it was PBS so not certain of the accuracy. I need to learn our history more.

I still think the people have more control than they understand, vote with your wallet! The only vote that may acctually count.

Re: Redeeming Gold...
 

Ummm.... Why wait for a major recession to hit to use them? I use them now. Of course you usually have to find someone other then an American to barter with.

Re: Redeeming Gold...
 

Except in the direst of circumstances, there will usually be some form of currency in circulation, even if it's value is being changed frequently or if it is being reissued in different forms (like the Weimar hyperinflation, and the current Zimbabwe debacle).

The important thing to keep in mind about PMs is not so much the chance of having to trade them directly, which can always be done, but how they will have retained the purchasing power through the long term of the sweat-equity that you put into them when you purchased them, when they are finally placed on the barrel-head against an amount of circulating currency of fickle or variable worth(lessness) that is intended to be used in the short term.

Re: Redeeming Gold...
 

I'm sure when the U.S. dollar inflates like a balloon and everything starts going south, your local coin shop will become a very popular place. Likely you'll see PM buyers, traders, sellers everywhere.

Re: Redeeming Gold...
 

I agree...

http://farm1.static.flickr.com/138/3...21c1c122_m.jpg

Re: Redeeming Gold...
 

Is that right? I happen to live in Chinese neighboorhood