Gyroscopic Investing

smurff wrote: Hear, hear.  (or is it "Here, here?")

I like to think of it as "Here! Hear!", as in "Focus your mind on this point--HERE--and once focused on that point, HEAR what is being said."

But I think that "hear, hear" is the way things started, as in "Listen up, you have just heard/are about to hear something important."

Tortoise wrote: How would using one or two 1-oz silver coins be like pulling $500 out of one's pocket?  Historically, a 1-oz silver coin has been able to purchase a small amount of groceries, much the same way a 1-oz gold coin has historically been able to purchase a man's suit (give or take, of course).  Yes, in a SHTF situation, a 1-oz silver coin may very well be "worth" $500, but then a bag of groceries will probably be "worth" a similar amount.  Flashing gold coins, however, is a different matter.  That's something that should probably always be avoided in crowded places--even when times are good.

I was just thinking that in an extreme SHTF situation, deflation would be totally rampant, as all fiat money would be worthless.  Therefore, the money supply (precious metals) would be so low that the value of goods that money would purchase could skyrocket.  Sure, a 1 oz. silver eagle right now may only buy you $35 worth of groceries, but in a SHTF situation, I wouldn't be surprised if a 1 oz. silver eagle could feed your family for a week or two.

Tortoise wrote: ...
How would using one or two 1-oz silver coins be like pulling $500 out of one's pocket?  Historically, a 1-oz silver coin has been able to purchase a small amount of groceries, much the same way a 1-oz gold coin has historically been able to purchase a man's suit (give or take, of course).  Yes, in a SHTF situation, a 1-oz silver coin may very well be "worth" $500, but then a bag of groceries will probably be "worth" a similar amount. 

That is my thinking as well.  If we get to the point where we need to use silver as a medium of exchange, that bag of groceries might come at a very dear price. 

In any event, if currency is worthless, the populace will revert to something else, they will not wait for the government to create new pieces of paper.  Eventually that would happen, but we would likely create a new government (or governments) first.  I considered junk silver, but agree with HB's later thoughts on the subject that it has likely been too many years to expect them to be recognized.  Silver coins are IMHO one feasible alternative that might enable you to get by for a short period of time.

Again, this is all survivalist stuff that hopefully we never need, but I don't mind having a little insurance just in case.

After asking a few people whose parents lived through the 30's Depression and WW2 their view was:

"Gold and Silver are great for preserving wealth so it can be used after a crisis, however when the SHTF you want food to trade"

They got out of Europe with enough gold coins to start their life again, however they said when things got real bad, having enough canned food put away / traded is what really helped. Did say though that the coins were useful for bribing officials!

So in my view, the gold PP is more an investment rather than protection during a crisis.

Hal

PS They also said showing gold/silver in public was not a good idea!  Hope I never have to find out if they are correct.......

Pkg Man wrote:
That is my thinking as well.  If we get to the point where we need to use silver as a medium of exchange, that bag of groceries might come at a very dear price. 

That's why, as best as you can, it's a good idea to not find yourself in the position of needing to use 1 oz. gold or silver coins to buy groceries.  Stock up on things you normally eat when food and drinks (including water) are on sale, keep the pantry full at all times, and put the freshest stuff at the back of the shelf to keep rotating.  And do the same thing with medicines, prescriptions, water filters, toilet paper, paper towels, dish soap, shower gel, shaving cream, etc. etc. etc.  The stock should be stuff you use and replenish everyday; it will add stress onto an already stressful SHTF situation if your kid's digestive system has to suddenly become familiar with strange foodstuffs or you discover an allergy to an unfamiliar shampoo's fragrances.

Minimum, 3 month supply of all.

Hal wrote: After asking a few people whose parents lived through the 30's Depression and WW2 their view was:

"Gold and Silver are great for preserving wealth so it can be used after a crisis, however when the SHTF you want food to trade"

They got out of Europe with enough gold coins to start their life again, however they said when things got real bad, having enough canned food put away / traded is what really helped. Did say though that the coins were useful for bribing officials!

So in my view, the gold PP is more an investment rather than protection during a crisis.

Hal

PS They also said showing gold/silver in public was not a good idea!  Hope I never have to find out if they are correct.......

Great stuff, Hal.  I have a feeling you're right - the 20 cans of beans in my cupboard are probably worth more than silver, in case your family is hungry.  We also have a couple big bags of rice, although I wonder how hard it might be to boil water if fuel is at a premium.

smurff wrote: ...as best as you can, it's a good idea to not find yourself in the position of needing to use 1 oz. gold or silver coins to buy groceries.  Stock up on things you normally eat when food and drinks (including water) are on sale, keep the pantry full at all times, and put the freshest stuff at the back of the shelf to keep rotating.  And do the same thing with medicines, prescriptions, water filters, toilet paper, paper towels, dish soap, shower gel, shaving cream, etc. etc. etc.   The stock should be stuff you use and replenish everyday; it will add stress onto an already stressful SHTF situation if your kid's digestive system has to suddenly become familiar with strange foodstuffs or you discover an allergy to an unfamiliar shampoo's fragrances.

Minimum, 3 month supply of all.

Good point.  It's probably a good idea to have both food/water/supplies and some precious metals on hand for emergencies, because in a really bad situation one's neighborhood could potentially become unsafe.  One might even need to travel by foot.  In that case, it's nice to have the option of grabbing some gold and silver, packing up a few essentials, and heading somewhere safer.  Yet another example of not keeping all of one's eggs in one basket.

At some point, we should probably start a thread to brainstorm about what a SHTF situation would really be like.  Largely speculation, sure, but I think it's an interesting thing to discuss.  We have certain preconceived notions about what a breakdown in the social order would really entail, and many of them are based on movies we've seen, fictional books we've read, or naive notions based on free-market economic theory.  It'd be fascinating to ground the discussion in reality by hearing more accounts like Hal's of how various real SHTF situations around the world have played out, as well as how long they lasted.

the book about the collapse in Argentina is a great source for realistic, based on actual events, survival strategy http://www.amazon.com/Modern-Survival-M ... 9870563457