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Discussion Starter · #1 ·
With a background in economics, maybe I take the ability to spot this stuff for granted. Though it doesn't take a Warren-Buffet-level of financial understanding to see that the global economy is in bad shape, I tried to simplify it a bit on my blog. Let me know what you think, if you agree/disagree or what you would add.

The Coming Financial Collapse [2016] | TheSurvivalist
 

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Yep, I still have a drawer full of German marks the currency before the Euro...... totally worthless, not even to collectors.
 

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You asked for it... I agree 100% with your assessment, but I think you could be more direct on what to do.

I see so many articles, posts, comments, etc that tout "The sky is falling" but leave you hanging. After a while, you just get really depressed because the sky IS falling and you have no answers.

Those of us here do our best to prepare, but what are you preparing for? EMP? Flood? Act of God Storm? Nuclear attack? Dollar Collapse?

I would suggest:

1. Get all of your money out of the bank. Cash in hand is worth more than Cash in the bank... after the fall, gas will be 100+/gallon and they won't take credit cards or checks.

2. Get your money out of cash (keep some for the first few days/weeks after the fall while it still has some value... 10%? hard to pin a number on this when your savings is $50k and mine is $5k... whatever you are comfortable with, assuming you'll be wrong at any amount). What this means is buy gold and silver. As the economy corrects, you'll need a store of value.

3. Diversify your stores between Junk Silver, Silver and Gold. I would also suggest that you get your silver and gold in a "recognizable" form like American Eagles or Canadian Maple Leaves. "GoldDigger" bars marked .999 fine oz probably aren't going to get you as far as American Gold Eagles marked the same. Junk silver dimes will be the new dollar bill.

One final note, and this one is hard to describe, but you tried and I will to. You mention that a gumball couldn't be bought for 1k riechmarks. So that starts the perspective. After the fall of the economy, 1oz of gold, currently around $1200 will sky rocket in value to $40,000+. This isn't because of some magic of gold, but because the dollar will be FALLING that fast. It takes $1200 to buy 1oz of gold now because the dollar has some value. When the value starts to go away, the amount of dollars to buy gold increases, not the value of gold.

Gold has always been worth the same amount give or take a few pennies here and there.

In 1930s you could take 20 gold coins worth $20 each and buy a ford truck. You could also take 20 $20 bills and buy a ford truck. Today you can take those same 20 gold coins and buy a new ford truck. See where you get with $400 at the dealership.

The value of your house isn't going up so much as the value of the dollar is going down.
 

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Diversify your stores between Junk Silver, Silver and Gold. I would also suggest that you get your silver and gold in a "recognizable" form like American Eagles or Canadian Maple Leaves. "GoldDigger" bars marked .999 fine oz probably aren't going to get you as far as American Gold Eagles marked the same. Junk silver dimes will be the new dollar bill.

QUOTE]

Gimble, I have already done as you suggest for similar reasons, however, explain in more detail your reasoning in the statements above.
 

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Gimble, I have already done as you suggest for similar reasons, however, explain in more detail your reasoning in the statements above.
Lets say you and I want to do business. You have a pallet of chicken feed worth about $300 USD today. I have this:

2016 Republic of Kiribati Silver Coins From the Crypt 4-coin Set | Silver Coins & Other (All Other Areas South Pacifi | APMEX

Can we do business? Do you believe me when I say that is 2.23oz of silver? What if I had 4 sets (16 coins)?

How about if I show you 15 of these:

2016 Silver Kangaroo Coin for Sale | Buy 1 oz Silver Coins

or if I show you 15 of these:

2015 Silver American Eagles for sale | Silver Eagle Coin US Mint

The real problem is out in the wild.
 

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Specifically why do you think a Silver Dollar or Canadian Maple will have more marketability than a 1oz bar specifically marked as such that you call Gold digger bars. 1 oz Silver Bars for Sale | Buy APMEX .999 fine Silver Bar

Junk silver is in my stores as well as many predict these 90% coins are the immediate short term barter. You state the new dollar? Why the value in a 90% silver product that has no markings?....... one would have to know the pre 1964 minting facts.
 

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You'd be surprised what people know when they want to eat. They learn quick.

I say the junk silver dime will be the new dollar only because of its value. 1 junk silver dime will buy you what one fiat dollar will. That's the only reason. Its recognizable.

So you are helping with my point but you dodged my question ;-) The apmex bar is a source that I know and trust... do you trust them?

What if I brought 30 of these: Buy 1/2 oz Atlantis Poured Alien Skulls Online l JM Bullion?
 

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No I wouldn't buy such a foolish collectors items or trust it as a trade item.

But I, like you trust Silver.com, Apmex, JM Bullion, Providence, and only buy Eagles, Maple Leaves, clean bars like I attached (only small weights) and of course junk dimes, quarters and half dollars.
 

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Discussion Starter · #10 ·
One final note, and this one is hard to describe, but you tried and I will to. You mention that a gumball couldn't be bought for 1k riechmarks. So that starts the perspective. After the fall of the economy, 1oz of gold, currently around $1200 will sky rocket in value to $40,000+. This isn't because of some magic of gold, but because the dollar will be FALLING that fast. It takes $1200 to buy 1oz of gold now because the dollar has some value. When the value starts to go away, the amount of dollars to buy gold increases, not the value of gold.
Gold has always been worth the same amount give or take a few pennies here and there.

In 1930s you could take 20 gold coins worth $20 each and buy a ford truck. You could also take 20 $20 bills and buy a ford truck. Today you can take those same 20 gold coins and buy a new ford truck. See where you get with $400 at the dealership.
Thank you, this is exactly what I was looking for. I'll have to incorporate the way you explained the valuation, you did a much better job then I did. As far as gold and silver, I don't think it will hurt, but honestly I would focus more on practical trade goods. I can see batteries being worth their weight in gold, same goes for food, medical supplies, tools, etc. I think a barter system will take the place of the current economy until we can figure out a more effective method then the one in place. I'm working on a separate, more in-depth "how to" on that though, any advice on that would be awesome!

Thank you again for your input!
 

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What do you have that uses batteries? Out side of the remote controls for my TVs that aren't much of a priority and a few flash lights... most things "of interest to the masses" are rechargeable... perhaps a few car batteries, solar panel and an inverter? You could exchange time on the inverter for goods.

I always find trade in goods to be difficult. I've done it, but its basically a dollar equivalency exercise. That being said, I have some food stuffs and some bic lighters and other sundries that I'd barter with if I had to. I'm hopeful of the junk silver value
 

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I wish I was more astute in finance. I know the basics and I am covered if the economy doesn't go to hell in a hand basket. ( 401K, savings, Cash on hand and the like. ) I have some silver and gold but not much. I have been stocking trade and barter items as well so I may get along. Getting into the stock market or buying silver and gold on my own just makes me nervous. I am always afraid I will do the wrong thing. That's why I am not a millionaire I guess. I more of a steady saver and cautious. I stay up on the markets and know whats going on but anything in depth is beyond me. Maybe because when I sit down and start to get into it in depth I am immediately bored to tears. I do know it won't continue as it has. It is a house of cards with nothing backing it up. It will eventually come crashing down. No doubt.
 
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Prepared One:

To get a background on what we are talking about regarding currency watch this 5 part series:
(this is #1 and then there are 4 following it). He runs goldsilver.com, but he doesn't really push buying gold or silver from him in the videos, its more about education. Mike has been around for a while.

Now that you have the background out of the way, if you're still interested in the market but don't know where to look, I'd suggest an index fund -- one that invests in the dow jones or S&P 500. You can easily follow your earnings on any news cast: when they say the dow is up, you're up... when they say the dow is down, you're down. Couldn't be more simple. Next I'd suggest you do what's called Dollar Cost Averaging. You buy the same $$ amount every month regardless of its price... some months you get 1, others you get 1.2 others you get .8... but it works its way out in the end. That's the absolute basics.

Next I'd recommend a book called: http://www.amazon.com/Will-Teach-Yo...6&sr=8-1&keywords=I+will+teach+you+to+be+rich. Ramit has an easy going style and he lays the info out in a straight forward manner.

But before you do all of that, Save up $1000 and then pay down all your debts. If you have to touch the $1000, suspend your debt paydown until you get $1000 again and start over. This comes from Dave Ramsey.

I'm not an expert, but I've done a lot of studying and research. From what I can see, the experts don't know that much either. Most 401(k)s are not performing as well as a simple index fund... and on top of that you have fees and early withdrawal penalties.
 

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You all know that a great chinaman once made a very simple statement and it's just as true today as it was almost 70 years ago. All power stems from the barrel of a gun!

Have all the trade goods you want all the gold and silver. No way to protect it - like a government with armies - then the first bunch you decide to trade with that want your gold and to keep what they have will cap you silly azz and go on to the next rube
 

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Gee, I sure am glad I didn't buy into the gold hoopla a couple years ago and put all my available cash into gold at over $1600/ounce when "they" said it would be $3,000+ in a very short time.
Not when it's down to $1200 or lower now.
In fact, I sold my silver coins when the silver market was the highest. It was all pure profit, too. It originally cost me only face value, back in the 50's & 60's.
 

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It's simple common sense. Do you need a degree in anything to read the writing on the wall??
 

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Gee, I sure am glad I didn't buy into the gold hoopla a couple years ago and put all my available cash into gold at over $1600/ounce when "they" said it would be $3,000+ in a very short time.
Not when it's down to $1200 or lower now.
In fact, I sold my silver coins when the silver market was the highest. It was all pure profit, too. It originally cost me only face value, back in the 50's & 60's.
I am buying back in. I started in 2003. Sold all in 2010.
I am buying back in slow but sure.
 

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You all know that a great chinaman once made a very simple statement and it's just as true today as it was almost 70 years ago. All power stems from the barrel of a gun!

Have all the trade goods you want all the gold and silver. No way to protect it - like a government with armies - then the first bunch you decide to trade with that want your gold and to keep what they have will cap you silly azz and go on to the next rube
Maybe, but you get your ass capped on a full stomach and in the comfort of your home and not on the streets. Seriously, but the same could be said for any preps you have. One should know to keep as low a profile as possible.
 
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