Friday, May 28, 2010

They Say Ketchup is a Vegetable. Is a Dollar Money? Is Gold Only Good for Fishing Sinkers?

They say that all the gold ever mined, in the history of the World, would only fill up two Olympic sized swimming pools. If that's the case and the World's paper currency failed, leaving gold as a primary means of storing wealth, even a very small quantity of gold would make one very wealthy. Ironically, this is the same argument used by some to explain why such a thing could never happen.

Still, having a little bit of gold couldn't hurt. That's why so many people are buying it and the prices keep going up.

Right now, you'd have a real hard time buying anything with gold and whenever you exchange money for gold or gold for money you pay a Hell of a premium.

What's a boy to do.


Buck said...

I never really understood the 'end of paper money' people. Well, not the people, but their idea that a merchant would accept gold for say, ammunition. The ammo seller can't eat the gold; why wouldn't he want something more... immediately useful if society has gone into the toilet?

What scenario breaks paper money but not society itself?

Contrary said...

Buy land, not gold.

Gold would only be useful if the economy collapses into a barter society. I don't see that happening but you never know.

Rural areas have always used the barter system. The guy who puts in the septic system for a guy who builds an additional bedroom for your house for the guy who loans you a tractor with an attached brushhog to clear some brush, etc. etc.

W.C. Varones said...

Barter is messy. You have to have two people who need exactly what each other have.

Mediums of exchange solve this problem. Gold and silver are perfect for the role of medium of exchange if paper collapses.

I will be happy to provide you with ammo in exchange for silver and gold when the time comes.