The attempts to get you to buy gold are off the charts! EVERY "conservative" TV and radio station has a different gold company running the ads, with the hosts claiming "X is the only company I trust". It seems like whenever there is a huge push for something like this, it is all part of a behind-the-scenes plan to rip off the average joe. My feeling is that if the SHTF and the economy collapses, what good will $100,000 in some gold company stock/fund do you? Is anyone else going to buy your $5,000 /oz gold? My theory is that this huge gold push is to drive the price of gold up to a point where the big boys DO sell out, make a killing, and leave everyone else scrambling to get out before it drops below what they bought in for. Please post your thoughts on this. Thank you.
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Yea, I've not been sure what to make of the "gold rush phenomenon" either. Convert cash to gold/silver, they say. OK, but I can't buy groceries for my family with gold bars. I definitely get the concept. But it just seems too big for my brain to wrap around. What about the 90% of people in the workforce? Their employers pay them in dollars. How exactly would that system go away and employees be paid in gold and silver? If a furnace breaks down this winter and a repairman is needed, he probably won't accept gold as payment.
Bad money is always used and good money hoarded during periods of currency debasement. Look at any example in history.
Gold/BTC will be hoarded right now. Period. It will not be used as a currency. It will remain that way until the bad money completely collapses, at which point you finally start to see things denominated in the new currency. So what is the new currency?
My guess is that at some point, Trump will finally terminate Federal Reserve Notes (bad money) and change the meaning of the USD to something backed by a basket of reserve assets including Bitcoin and gold. At that point, gold and Bitcoin will enjoy price stability in the new currency, and goods and services will be denominated in them by proxy (i.e. the gold+Bitcoin backed USD). You will then see people finally exchanging their gold/Bitcoin for USD the same way people change any foreign currency. That marks the final phase in a historical currency replacement where the bad money (Federal Reserve Notes) is no longer accepted by anyone.
Note the above scenario only works because the Trump government will be viewed as stable by the entire world. If instead the USA were in a civil war and no legitimate government was available, then people really would start getting paid and offering services directly in gold grams and Satoshis.
Incredibly insightful. Thx for the info