5 reasons why Gold will unfortunately be worthless AFTER the collapse of the dollar.

Posted by ShrugInArgentina 10 years, 10 months ago to Economics
44 comments | Share | Flag

A few might be looking fowad to the price of gold reaching ten thousand dollars per ounce, but what will they be able to buy with those dollars?

I may trade two or three chicken eggs for a cup of rice or beans at that point, but I doubt that any of my neighbors will accept gold in exchange for anything to eat at that point.

If they will, I'll just cut off some of the links of the "manly" gold chain I wore in the &1980'.

SOURCE URL: http://www.dailypaul.com/243383/5-reasons-why-gold-will-unfortunately-be-worthless-after-the-collapse-of-the-dollar


Add Comment

FORMATTING HELP

All Comments Hide marked as read Mark all as read

  • Posted by RobertFl 10 years, 10 months ago
    The writer didn't seem to think this out very well. Perhaps he needs a world history lesson.
    Bottom line, if gold is worthless after a crash, then it's worthless now. There would be no reason to mine the quantities we do just for electronics, and jewelry. Governments wouldn't be buying it up.
    But, lets take his 5 points

    1) What will the value of gold be worth?
    It'll start at about what the last know value was before it all fell in.
    2) who's gonna mint gold coins?
    There's plenty already in circulation. If you have gold/silver, you're management. If you don't, you're labor.
    3) Currency?
    We've been demanding a return to the gold standard for years. Who needs funny money.
    4) Dollar is the current World Reserve currency.
    It won't be then. Whoever decides to back their dollar with gold/silver will emerge as the new reserve. OR, we can just leave it gold/silver.
    5) no manufacturing because no paychecks.
    What? Just pay in gold and silver, or goods. It's not like employment and commerce began with the advent of checking accounts.

    Gold I can put in my pocket. A chicken, not so much.
    If someone has a something to trade, you might not have anything they need (food wise), but gold/silver are always exchangeable.
    Reply | Mark as read | Best of... | Permalink  
    • Posted by ShruginArgentina 10 years, 10 months ago
      And gold you cannot eat.

      If you live in NYC and there is no food in the stores, and not likely to be for any time in the future, what good will any amount of gold or silver do you?
      Reply | Mark as read | Parent | Best of... | Permalink  
      • Posted by RobertFl 10 years, 10 months ago
        In the event of such a collapse, the city dwellers will eat each other. Besides, FEMA will be there first to take them off to the FEMA camps.
        You are likely correct, in the city, only marauders will succeed. Until the run out of other peoples money (aka food). Good thing the entire US population doesn't live in cities.
        City dwellers are dependent on gov't resources, either by welfare, or infrastructure to survive.

        The question becomes, if gold/silver has no value, what does??? If nothing does, then it doesn't matter, curl up into a ball and die. There is nothing a city dweller, especially, can stock pile that would save them from such an event. Even bullets, won't save you for long. You can't eat bullets either. You can't take you 100 pounds of stored food and leave the city. you'd have a better chance take a pound of gold/silver with you and fleeing to a more civilized area, where your g/s might buy something.

        So, if someone lives in the city, what should they do to preserve their wealth, and safety?
        Reply | Mark as read | Parent | Best of... | Permalink  
  • Posted by Zenphamy 10 years, 10 months ago
    The author appears to be talking about more than just the collapse of the dollar, he's talking about a collapse of world, and I don't think he understands what money is.

    Human's will trade. Trade existed before civilization did, and in fact led to civilization. Money is only a facilitator of trade. Throughout history, gold has always proven to be the best and most accepted form of facilitator.
    Reply | Mark as read | Best of... | Permalink  
    • Posted by ShruginArgentina 10 years, 10 months ago
      I'm sure we can agree that the ancient Egyptians had a civilation.


      They also camt to the point (in the "old kingdom") that individuals "traded" their "most valuable possessions" (some made of gold) for a handful of grain.

      And that was before they ate the children.
      Reply | Mark as read | Parent | Best of... | Permalink  
  • Posted by MattFranke 10 years, 10 months ago
    The purpose of gold is a safe long-term storage of wealth. To say that gold will be worthless, is nonsense. Agreed, many people are confused as to how gold would actually have value in a collapse scenario, but I would as long as you find someone who values it.
    I think that anybody who is smart will know that smaller amounts would be much more practical like 1/10th OZ gold, and silver dollars, quarters and dimes for smaller trades.
    A patriot I knew, once made a point that the value of gold is not much different than it has been in history before paper currency. For example in the western days, a gold coin would fetch you a good rifle and a nice suit. Comparatively, an ounce of gold will get you about the same today. Though, I would probably opt for a cheap suit and a better rifle.
    Reply | Mark as read | Best of... | Permalink  
    • Posted by $ WillH 10 years, 10 months ago
      To say that gold or any other metal absolutely will have value in a post collapse world is also nonsense. Gold will have value if there is an economic collapse that leaves society more or less intact dominated by small local economies. Gold will be absolutely worthless of society falls totally. Sure, it may gain value once a new society emerges again, but in the interim at least there will be little to no value when compared to guns, ammunition, shelf stable food, clean water, spices, etc.

      Gold is an excellent hedge against inflation and a proven worthwhile investment within our current society. It is a poor investment when it comes to surviving the collapse of our society. Diversification of one’s investments would ideally include both precious metals and survival oriented goods, services, foods, and training.
      Reply | Mark as read | Parent | Best of... | Permalink  
  • Posted by CircuitGuy 10 years, 10 months ago
    The worth of any medium of exchange comes from people's willingness to serve one another in exchange for it. There's nothing magic about USD or precious metals, except that people without mutual coincidence of wants will put their effort into helping one another in exchange for money or other store of value.
    Reply | Mark as read | Best of... | Permalink  
  • Comment hidden by post owner or admin, or due to low comment or member score. View Comment
  • Posted by Robbie53024 10 years, 10 months ago
    Not sure I buy the reasons presented. Even during the Great Depression businesses continued to run. While the economy here may collapse, that won't be the case world wide. There will still be industry, and commerce. And despite food being incredibly important, so will capital goods, and a means of storing value and payment will still be required.
    Reply | Mark as read | Best of... | Permalink  

FORMATTING HELP

  • Comment hidden. Undo