Gold sure has been touted of late, and it is the next bubble. Well, one of the next bubbles.
But is gold “right”? It really depends on what problem you are trying to solve.
It has been seized before by the US government. Remember, if you have it, they want it. Whether it is cash, gold, or time.
And if you have it in any form that isn’t physically in your safe at home, do you really “have it”?
To be safe, Rickards says you should take out your gold out of the banks before governments freeze physical holdings.
Sellers of gold, like Goldline for instance, say you should buy collectable coins, which were exempt from past seizures. But those are generally over priced and who knows if they will really be marketable.
I think practically about what problem I’m trying to solve. Gold cannot solve inflation, the government will keep you from using it to solve inflation. They have before, they will again. Well, it can, but only if you time getting off the train right. But that is true of any inflation protection device.
Gold is basically an alternate currency. That is GOVERNMENT’s domain, and they jealously guard it. You go around buying stuff with gold and… well, eventually, you will get a visit from your local Fed.
I see two scenarios… one is that the government will forbid the use of gold, and shoot me if I’m found spending it. Or send troops to come get it. The other is that others know I have gold and come over to steal it from me. Unless, of course, I’m part of the government. KGB officers, for instance, seemed to have plenty of US dollars even though they were denied “regular” Soviet citizens.
Assuming you are concerned about such “end of time” matters, or you have enough money to just be “safe not sorry”, then I’d recommend this instead of gold:
– food for a year
– water for a year, including filtration
– ammo for a year. Basic gun maintenance stuff as well.
– basic medical supplies for a year
– 2 major trauma kits, these handle gun shots and other major bleeding wounds
– basic hand tools and construction supplies. Hammers, nails, hand saws, screws, so forth.
– tarps. Light and when forced to evacuate, you’ve got shelter.
This is what I’ve got, except for the trauma kits, which I’m still trying to decide on which to get.
Those wanting an inflation hedge would use their money wiser to fund political efforts to restore a Constitutional low involvement government. After all, anything you can think of, a government with no rules can take.