Gold!

[Triple_sod]

I remember hearing a story about the American gold rushes. Of all the people that rushed out and staked claims in the gold fields most of them came away broke, lost their life savings looking for gold. The people who really made money were the ones selling picks and shovels.

Maybe now would be a good time to be a gold dealer.

Oh definitely look at all these 'cash for gold' outfits we got when the ecconomy went down and gold prices went up...

Always makes me laugh on sites like infowars, those adds ''fiat currency is worthless pieces, when the collapse come gold is the only way to preserve your wealth'' (so send us some worthless fiat currency and we'll send you some gold) they're laughing all the way to the bank....

[nickdutch]

Always makes me laugh on sites like infowars, those adds ''fiat currency is worthless pieces, when the collapse come gold is the only way to preserve your wealth'' (so send us some worthless fiat currency and we'll send you some gold) they're laughing all the way to the bank....

Yep
Or the claim that the Illuminati have too much money and power, so lets give all the money and power to the "info-warriors". (thus attempting to set up another Illuminati) Its irony in the most extreme

(PS., I don't believe in the Illuminati!!)

[KalPrep]

Sure there are extremes but think of it in the current climate. If SHTF, what will people use as currency? That £20 note in your pocket or things with tangible value. Of course there are people taking advantage of the fear to turn a profit, such is a capitalist economy. However, those who are savvy understand that our currencies are no longer underpinned by tangible assets, they are paper promises and when those who made the promises can't keep them, tangibles will be the only way to trade.

I am in no way an expert, I am doing a lot of reading and throwing away a much FUD as I am learning reasonable, sensible grounded advice. This is what makes it tricky. Like I said before, I don't believe in placing all my eggs in one basket, so I will invest in various things including gold and silver so I am prepared for a wider variety of situations.

[PeteM]

What are your thoughts on buying gold? Not sure I fully trust the banks at the mo and having done a bit of reading on the subject even the 'experts' suggest that 10-20 per cent of your wealth should be in gold/silver/platinum. I'm not talking about the gold you buy by certificates but actual gold that will be sent to you that you physically keep for the long term.
Also does anybody keep a sum of cash cached in case of atm network breakdowns etc?

You every reason not to trust banks. The sooner we have as little to do with them, the better. However, I'd also be wary of "the experts". Many financial "experts" have both long derided gold as a barbaric relic (as their fallen hero, Keynes described it) or simply ignored its utility.

Certainly a proportion of wealth ought to be kept in gold (that's physical gold which you own and can access easily) as well as silver. It is real money, it represents real wealth and its ability to maintain value is astonishingly long-lived.

It's important to think of gold correctly, however. It is not "an investment". It's utility is as a store of value against central bank inflation which deliberately steals the value of paper money, and also as a money of last resort when paper money no longer carries confidence.

Fiat money has been greatly eroded in the last forty years expecially, hence gold's relative rise against it. States are in such debt that central banks will continue to print. Ben Bernanke has been printing incredible amounts of dollars this last year, the Bank of England will continue to do so as and when required (often), Japan has embarked on printing yet again. It's for very good reason that the Chinese and Indians are buying more and more gold.

So although gold has been in a bull market, its long term fundamentals as a store of wealth are sound.

If anyone is looking to buy gold with TEOTWAWKI in mind, small coins would be easier to trade with rather than, say, ounce bars and above.

[TeeDee]

[Grunter]

http://www.creditwritedowns.com/2011/01 ... ments.html

...and on the other side of the coin this is an interesting alternative view, although even the author states investment in gold,silver etc is still worthwhile.
I have also been reading about buying hard foreign currency to store and the strongest apparentlly are the danish krone,swiss francs,singapore dollars and chilean peso's.
Nothings ever simple is it?
And if the link worked I've learnt something new today...

[Grunter]

Woo Hoo it works

[TeeDee]

http://www.creditwritedowns.com/2011/01 ... ments.html

...and on the other side of the coin this is an interesting alternative view, although even the author states investment in gold,silver etc is still worthwhile.
I have also been reading about buying hard foreign currency to store and the strongest apparentlly are the danish krone,swiss francs,singapore dollars and chilean peso's.
Nothings ever simple is it?
And if the link worked I've learnt something new today...

Swiss Franc I would think is best.

[TwoDo]

Swiss Franc I would think is best.

Careful there. The Swiss, when faced with the destruction of their export market due to the strength of their currency, have printed money to weaken the franc. The last episode was in late 2011.

Also, all is not sweetness and light with the banks in Switzerland. They have two very large banks (UBS Warburg and Credit Suisse) whose risk taking make RBS look like a paragon of common sense. Those two banks have potential obligations way in excess of Switzerlands abilities to bail them out. If they run into trouble the sensible Swiss _may_ decide to pull and Iceland and let them go under or the _may_ decide to pull an Ireland and bankrupt themselves bailing them out. It could go either way - personally I think they will shrug their shoulders and let them go under - but your should be aware of the risk if you decide to bet on the Swiss franc.

Now, the Norwegian Kroner. That might be something to take a look at. Norway still has lots of oil and a stable, honest, judicial system. Think Saudi Arabia without the corruption.

Another option is the Singapore dollar. The Canadian dollar interesting as well - but there are persistent rumours that their banks are overexposed to certain risks.

[Moony]

My two cents on this topic:

A) As mentioned previously, note that in the UK gold (in coin or bar form) is legally considered an "investment" and is therefore exempt from VAT and Capital Gains Tax.
This effectively makes it 20% cheaper than silver.

B) Unfortunately as the most common form of investment (a Sovereign coin) is now about £300, this high value doesn't make it a brilliant "barter coin" post SHTF (try buying a bottle of water with only a £300 note in your pocket).
Half and quarter- sovereigns are less common but may be slightly more useful for barter-currency, though you will tend to pay a slightly higher premium for these (the price you pay over-and-above the actual value of the gold content at market prices).

C) Silver coins (in the UK this normally means the "Brittania") are about £30 at time of writing, making it a more useful barter-coin, but you'll pay a far higher premium for them now, and you will not find any serious financial advice considering them a good investment. Similarly gold that is not legally "investment gold", (i.e. gold rings, jewellry etc) attract the taxman and fits in the same usefullness catagory as silver.

Edit for additional info:

1) Current UK/European anti money-laundering legislation means that any gold purchase will be notified to the relevant authorities. Should you purchase more gold than a certain threshold (can't remember the exact figure off the top of my head, but it's several thousand pounds worth in 12months), you may well attract the attention of HMRC/the Police. Shouldnt bother you if you've got nothing to hide, but some paranoid types might welcome the heads up.

2) Similarly the seller may well do a credit check on you before sending your order. I know this only because I happened to check my own credit report which lists everyone who has made enquiries in the previous 12 months. I was under the impression they had to tell you before carrying out a credit check on you..oh well maybe it was in the small print, no big deal, but again due to the opportunities gold represents to criminals you'll find sellers are real carefull !

3) In case you see "proof" sovereigns being sold and are not sure what they are, well basically they are extra shiny, polished sovereigns with a higher standard of finish. They are not "worth" any more than a normal "bullion" or "un-circulated" sovereign, but attract a higher premium because they look nicer, they tend to be sold in posh presentation boxes etc. The actual gold content is no different and as such does not generally represent a good deal unless you are buying for a special present.

4) Gold is valued on the international markets in US$. This means the market value of your gold is not only determined by demand and supply of gold, but also the value of the dollar. This increases the risk of gold as an investment.

5) If you do buy gold be sure to check the premium you are being charged. This is the difference between the gold's market value and the price they sell a coin to you. A good seller will update prices daily. Premiums might vary from 5-15+% depending on the seller, the rarity of the coin (there is a big difference in the number of coins struck each year), and how many coins you want to buy. As always for the prepper, Bulk Buys save alot of money !

Disclaimer: I ain't a financial advisor ! if seriously considering investing your hard earned cash, see a professional !