Never understood the fascination with gold. You can't eat. You can't use it. You have to convert it back to fiat to spend it. Not easy or quick to do either, you've got to ship it to a dealer, wait for your check (weeks), then cash it at a bank. Gold is simply useless for the average person, it's not even a good store of value since you must "time" it's purchase and sale quite right or you'll loose money. And then you've got that ridiculous hassle to convert it back into fiat in order to actually use it.You can't eat it? Check (more or less). Can't use it? Check (again, more or less) You have to convert it back to fiat to spend it? Not by a long shot. There are many places around the country where you can spend gold or silver today (example). Yeah, you'll probably have to bargain and not just plunk down whatever the price tag says, but... so? Not easy or quick to do either, you've got to ship it to a dealer, wait for your check (weeks), then cash it at a bank? Again, nope. Talk about timing your purchases for yield and converting it back to fiat are all based on treating gold as if it were an investment, like stocks. It sounds like the weekend, cable news, stock market shows.
Who cares what the prices of gold is? It's fabricated, manipulated and subject to all sorts of intervention, including confiscation. Gold bugs just don't get it. It's useless for all practical purposes for the average Joe. Sells at junk jewelery prices too in a collapsed economy. It's not "worth" anywhere near what everybody claims. It's a pain in the ass.
And we diverge more from here.
Look, I would never suggest that people buy gold and ignore other aspects of their "preps", but I do think gold has its place. The biggest drawback I see to gold is how dense in value it is. You can easily carry around $10,000 in one hand. The bad side of that is: so could anyone who robs you. With a one ounce coin being worth $1500 today, you'd have to shave off grams of it to spend it, but to call it "useless for all practical purposes for the average Joe", is just plain wrong and ignores not just lots of history but also current events. The gold producers have responded to the need for grams of gold by producing "cards" of five or 10 one gram pieces scored for easy separation (here, for example).
As recently as back in 2009, they said folks in Zimbabwe were buying their food with gold. The rate in that link was that 1 gram of gold would buy 10 loaves of bread. When Argentina had their currency collapse, Ferfal reports that even junky gold jewelry was still usable as barter material. When something has been a dependable fact for 2500 years, it's not crazy to think it will continue, so I think gold will still make good barter material.
It has been said that an ounce of gold buys today about what it did at any point in the past. Stephen Harmston, former economist at Bannock Consulting, wrote that “across 2,500 years, gold has retained its purchasing power, relative to bread at least” which is seemingly proved when one considers that “It is said that an ounce of gold bought 350 loaves of bread in the time of Nebuchadnezzar, king of Babylon, who died in 562 BC” which is roughly what it buys today, a stretch of 2,500 years. Likewise, you'll hear that an ounce of gold would buy a good toga and sandals in pre-Christian Rome, and buys a well-tailored suit and shoes today, or you'll hear that a $20 gold piece bought an 1851 Colt Single Action Army revolver, and today buys a good grade gun."Who cares what the prices of gold is? It's fabricated, manipulated and subject to all sorts of intervention, including confiscation." That's true of any commodity. You don't think fuel prices are manipulated - as best as the traders can? You don't think food prices are manipulated and food isn't subject to confiscation? There are tons of prepper horror stories about the Feds raiding homes to seize food for redistribution.
It's hard to care less than I do about whether you choose to buy gold or not. I don't particularly "care" about having gold at all, I just think something with thousands of years of history of being valued is a likely to be valued in various future scenarios. I think commodities that people recognize are what will be used for barter and trade. That includes pre-1964, American 90% silver coins, in the easily recognizable dimes and quarters, and other silver pieces that people recognize. People are likely to hear the price of silver regularly and will know American Silver Eagles are money. A commemorative silver round from a silver caster that only insiders know is less likely to be recognized. You will likely have to bargain over every silver dime you spend to determine what they're worth.