Gold a risky buy; It does not have the backing of the FRN

[Ronald]

But what would a block of gold have bought you in New Orleans after Katrina? If the economy collapses then it would seem that a chicken would have more value than a block of gold.

Right now, I think PM's are more of an asset protection plan than a currency. God help us if it ever gets to the point where we're trading PM's for food.

 

[CarmelHP]

But what would a block of gold have bought you in New Orleans after Katrina?

How big a block are we talking here?

 

[RockofStrength]

But what would a block of gold have bought you in New Orleans after Katrina? If the economy collapses then it would seem that a chicken would have more value than a block of gold.

True, but that is why people who intend to use gold after a collapse also stock food, ammunition etc. Gold and silver are useful means of barter once a trade economy starts back up amongst the survivors. Like I said, gold is valuable in any civilization that is beyond the subsistence phase of its existence.

 

[John Galt]

What good is fiat money if it takes $50 to buy a loaf of bread, no matter who or what it's backed by? I did a project recently where I took a picture of a $20 gold piece next to a $20 bill. Both were worth equal amounts from roughly the beginning of our country to the 1930's. Now, it takes about 90 - $20 bills to equal the exact same weight, exact same size, EXACT SAME coin! Has gold gone up or has the dollar lost that much purchasing power? Our "full faith and credit" government is destroying our currency.

 

[Brandon]

But what would a block of gold have bought you in New Orleans after Katrina? If the economy collapses then it would seem that a chicken would have more value than a block of gold.

in that analogy i would take the gold. soggy chicken does not sound good.

 

[jbombelli]

Wait until we have spiraling, out of control inflation, it takes $20,000 to buy a loaf of bread, you're still only making $40,000 / year, and an ounce of gold is worth a couple million bucks.