About a year ago gold was at about $1,700. "Nah, too high," I said. Yesterday, I bought an ounce (4 1/4 ozs) at $2,731 (including commission). Last night, I was sitting at my computer, beating myself over the hear that I didn't buy at $1,700. Then it hit me - In six months, I would be sitting at the same desk, beating myself that I didn't buy at $2,731. So, today I bought another four quarter ounces at $2,778 (including commission).

The federal government is going into debt ten billion dollars a day . . . over three trillion dollars a year.

"If something cannot go on for ever, it will stop." Herbert Stein, economist.

I couldn't afford gold, so I bought silver instead.

Jeanette Isabelle

Good choice. .999 silver 'Walking Liberties' are going for $36 plus change at Apmex. (Probably a bit lower at a local shop.)

https://www.apmex.com/product/186167/1-oz-silver-round-walking-liberty

I have one-troy-ounce silver rounds, but none is the Walking Liberty design.

Jeanette Isabelle

I guess I'm a contrarian, but I'm skeptical of buying precious metals. They just sit there accomplishing nothing while you hope for the best and fear the worst.

I am inclined to think that the only meaningful investment is access to fertile soil, access to a woodlot, and the skills and tools to make good use of them. This has been true for most of human history, and I think it still holds true.

My 2c.

Yeah, what are you going to do with the gold and silver in an unrestfull society. You can´t eat it and hardly use it to pay for goods.

You can't eat paper currency, either.

OK, that is missing the point. You also can't eat a knife, you can't eat a shovel, you can't eat a bag of fertilizer, you can't eat a bow & arrow, and you can't eat a Costco membership card. But sometimes those objects might be quite valuable in attempting to obtain food, and sometimes they might be totally useless.

The important analysis to be done is, "Under what circumstances will paper money become worthless, credit cards useless, investment vehicles fail, banks close, AND society will converge on a functioning alternate store of value based on the rarity of certain precious metals. Sounds like a TEOTWAWKI situation to me.

You calculate the odds of that situation (which are not zero, true), compare that against the odds of other situations that you might want to prepare for, and calculate what you might do about it, and then make your bet. What scenarios are you actually defending against, and what is the likelihood that your proposed defense is going to work?

Everyone makes their own decisions. And who, actually, is going to want to trade something practical for your silver coin? For me, I'd rather store canned goods than silver dollars. Even in a disaster situation, I think that would be a better medium for barter.

Now it is true that there are entirely rational financial advisors who suggest that a small position in precious metals (say %5) can serve as a useful inflation hedge in a balanced portfolio. They almost never suggest taking physical possession however, but gaining exposure via suitable financial instruments (e.g., gold mining stocks).

Finally, there is the hobby aspect, which I am the last one in the world to deny. I have no rational survival justification whatsoever for my 20 flashlights, 20 pocket knives, or dozen different cell phone chargers. I just like 'em. If you like gold or silver coins, that is a perfect reason to own them. I used to collect stamps in my day, I liked those too. But they weren't a practical financial survival tool.

You can't eat your home fire insurance policy, either. Gold is a financial hedge, not a survival supply.

My philosophy is to buy stuff that we WILL need in an emergency (short or extended). So, we have a well-stocked pantry. Last year, I built a brick fireplace in the backyard with spaces underneath, filled with coal and other fire-cooking stuff. Also added more water tanks and more storage cabinets. I believe if we had to stay put (bug-in, as in Covid scenario) we will not suffer much.

INHO, this is more reasonable that buying gold. YMMV

@Chisel is the wise one here. A well stocked pantry is more valuable and usefull than 1000 pound of gold in an emergency.

The key is to diversify. We can't predict everything we might need in the future. For instance, if you need a tank of gas, an attendant may be more inclined to accept silver as payment than a loaf of bread.

Jeanette Isabelle

Ah! I misunderstood. I understand it is possible to trade in gold without taking actual possession. If you time it right (good luck or foresight) you can use it as a pendulum to temper the shocks of the investment market and currencies that seem to be based on faith and fumes.