Should You Be Buying Gold

I was talking to a friend the other day about prepping and some of things we each had been doing and they asked what my position was on buying gold.  As with anything, there are pros and cons to buying gold.

If you are one of the people who expect to use your gold or silver as bartering methods for when society collapses, then I am sorry to say I do not share your views on gold.  Gold is good medium for investing in something tangible, but if society goes the way of the Dodo bird, who is going to want your gold?

For gold to have any real value, it has to be desired.

You desire to buy gold because you feel that its value is stronger than the US Dollar.  I get that and in some ways fully agree with you.  When you buy gold, you exchange your dollars for the metal based on what the current desire for gold is at the moment.  When you sell your gold, someone gives you dollars or something else in trade based on what the desire for the gold is at that time, along as the desire for what you are getting in exchange for your gold.

If society has collapsed and you are looking to acquire food, water or some other supplies, the value on your gold is not going to be very high.  Who is going to want a piece of gold that has no real survival benefits to it in exchange for something that will guarantee life?  No one really.  If they desire the gold that much, they will let you die from not having the supplies you need to keep you alive and just take it afterwards.  Collapse of society remember.

If you are buying gold to hedge a against the falling dollar or some economic collapse, then gold can be useful if there is still a working economy somewhere in the world.  if we all go caput at the same time, your gold has little value again as people are focusing on wanting to live.  If the US economy tanks due to years of mismanagement then gold could be beneficial if you wanted to trade it to something like the Japanese Yen if that economy is still thriving.

This stance revolves around the idea that the federal government will not just go into your house and take the actual gold so it can pay down its debt.  If that happens, then you are probably better off with food and water provided that FEMA doesn’t confiscate that too.

I hold that the global economy will not end anytime soon, so I primarily buy gold in the forms of stocks and securities.  I am not opposed to actually owning physical gold and will buy it from people who are needing money, but I would prefer to have my gold in a form where I can quickly convert it to another form of barter, such as a stable currency when the time comes.

We have seen so many people buy gold in the last few years based on fear and they have taken a beating as the price of gold continues to drop.  While these people have not technically lost any money since they still own the gold, the potential buying power is significantly less.  Do not be one of those people and sink all of your money into gold as a hope for preventing the worse from happening.  The only ones who are going to benefit by that are the ones selling you the gold.

Emergency Essentials/BePrepared

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