Selling Precious Metals in a time of crisis

I have been thinking a lot lately (for the past 6 months) about allocating a large share of my saving into the purchase of PM's.

The main reason I want to do this is because I think there is trouble ahead for the world financial system.
Every major economy is in major debt. I have read somewhere that it is impossible for the US(and I'm sure many other countries) to pay back their debts.
There has to be some sort of reset ahead/new financial system.

From my research there seems to be some people who think there will be a deflation and some think hyper-inflation.
I tend to go with the hyper-inflation scenario with this video a good reference claiming that it is inevitable with history to back his story.

http://www.youtube.com/watch?v=vZO5kcQVK68


Hyper-inflation is a much more panicked situation. So my biggest question is during a scenario like this or a similar panic when the gold price
may be at its peak how do you offload it or why would you if the currency is worthless.

Sure people say I will buy real estate for gold. Everything that i have read on this forum till now says banks will not take
gold for the purchase of real estate. Its not like if you give someone gold they give you the keys to their house.
So I tend to think that while the panic ensues you have to have a sell plan or you will miss out on getting the full value for your investment.

Can someone please clarify what they may do in such a situation as at the end of the day gold is an investment
your not going to hold it forever?

Also what are the differences in buying gold VS silver, coins VS bullion in regards to buying and selling?
All i know is that you can buy either coins or bullion with bullion being closer to the spot price.

I joined this forum and thought there may be a sticky explaining this ^ but i haven't found much.

 

Firstly - Welcome

Secondly - Uncool User name

Thirdly - most of my "wealth" (snigger) is in PM's. Being forced to exchange PM's for fiat for whatever reason sucks, but when no-one is really interested? That sucks royally.

I personally like the idea of Harry Browne's Permanent Portfolio (or similar). When one of your assets is down another will be up & you rebalance, selling what's popular at the time and buying what's not, or taking the profits and investing them in under appreciated assets.

YMMV

 

In a crisis, people won't be looking to buy your gold, they would be looking to take it, and any necessities you may have without a care in the world for you

 

First: Welcome. (Pity about the name)

Second: There are differing views, however for clarity, gold is not an investment. It is a store of wealth/value.

Third: Typically, in Australia, banks do not sell real estate. Private individuals/businesses sell real estate and some, depending on negotiation, can exchange for gold/silver. A good argument for this is covered under the Australian Constitution Section 115.

 

This, exactly.
In the extrememly unlikely event that the economy melts down, youll be too busy running for your life from people chasing you with caveman-style wooden clubs to worry about bullion.

My love still goes out to all the other preppers, do what you gotta do!

 

I have to agree no one can eat silver or gold if there is catastrophic events and everything fails, great security and land and farming skills will be most prized, food and medicine will be currency not gold and silver or pieces of paper with numbers on them.

but in normal times gold and silver is a punt like any other share as price for the most part is governed by the stock market.

one question that interests me is all these countries in debt who do they owe the money too?

must be someone really rich out there.

 

I agree in a SHTF scenario gold and silver will just be dead weight

only in a hyper inflation scenario will it be useful and we wont see one of those for a long time -- I am 30 and dont expect to see anything like that in my life time.

 

"one question that interests me is all these countries in debt who do they owe the money too?"

Banks, Superannuation Funds, Investment funds, Old Codgers!


OC

 

Sorry to hear that you have less than six months to live. I have enjoyed hating you.

 

"great security and land and farming skills will be most prized, food and medicine will be currency not gold and silver or pieces of paper with numbers on them."


I would much rather have a ASE worth say $20, than a $20 note, any day! That coin would buy 10Kg of rice or equivalent, and probably much more.

And an ounce of gold tracked German hyperinflation all the way to 100 TRILLION Marks an ounce in late 1923. I expect it will do the same this time, at least.


OC

 

Hi Sammy

Is that another quote to put in my signature?

Sammy says we will have a hyperinflation scenario in Australia within 6 months?

Or do you mean the USA

either way it aint going to happen in 6 months.

and I dont know why you "hate" me. Dont hate the player hate the game. But this game you are a bad player, so I can see how it could be frustrating.

 

PMs are a store of wealth not an investment. Sadly many many soon to be retirees chose to store their wealth in investments. Yes this is where a great deal of the worlds debt is owed.

When this baby boomer generation starts trying to retrieve the wealth they believe they have stored I these in investments its game on.

I believe gold will not have its day because the SHTF and people are trading gold for food etc. I believe those adult children changing their parents nappies listening to how mum and dad lost it all will drive the real change in how PMs are viewed by general public. There's going to be generations leaning from this mistake.

How do we make the most as this unfolds? Accumulate quality items... tools, cars, art etc. And rest assured when my generation comes to retire everyone will be wanting to hold real wealth not investments.

 

Yep, GFC2 by Christmas. I've always said that I'm bearish on the economy.

 

"There's going to be generations leaning from this mistake."


And paying!

This happened in the 1930s where many families are still effected by the disruption to schooling, housing, employment prospects and so on, all the way through to today.

I remember the 2 previous generations lived entirely differently to me. Clothes were kept longer, food left overs kept in the fridge for a sandwich, plates cleaned with a slice of bread, and gardens full of vegetables. Chooks and even rabbits in the backyard.

Agree entirely about real wealth, and not 'investments'.

it will be a different world.


OC

 

I too have a feeling this is on the verge of happening, a GFC, not hyperinflation.

Just a feeling, but I'm all in cash at the moment waiting.

 

These debts will never be paid. Just like fiat currency, there is no REAL value in it. Im not sure what happened in Germany
back in the day but because of the hyper inflation they could probably have paid their debt back with one back note.

How can this be capitalised on for people holding gold and/or silver, thats what I'm asking in my original post?

Rinchin: Of course PM's are an investment, anything that stores your wealth is an investment, unlike other investments however because it is physical and limited, not just a computer generated printout.
If you saw gold hitting $5k by the end of the year you wouldn't treat it as an investment and sell it, hoping to buy back in on a drop?

Court Jester: Why would you say u will never see a Hyper-inflation in your time?

I don't think any of my original questions have been addressed, all I'm hearing is that everyone here is holding onto their gold until retirement???

 

Better hope for your sake(and mine currently) that its not a hyperinflation, because the last 7-8 yrs of savings will be wiped out.

 

I think of it primarily as a central bank insurance rather than as a store of wealth. The latter is a bonus if it manages to do so.

 

Yep. It's like that 2nd gas bottle for the barbie. It's there, it's not actually doing anything or gaining anything, but it's security if that 1st bottle runs out halfway through cooking that juicy porterhouse.

 

we'll never see hyperinflation, the amount of money that would have to be printed and circulated is so astronomical it borders on impossibility.

Steady inflation, so long as wages keep up, isn't a problem.