5 reasons why Gold will unfortunately be worthless AFTER the collapse of the dollar.
Posted by ShrugInArgentina 11 years, 2 months ago to Economics
A few might be looking fowad to the price of gold reaching ten thousand dollars per ounce, but what will they be able to buy with those dollars?
I may trade two or three chicken eggs for a cup of rice or beans at that point, but I doubt that any of my neighbors will accept gold in exchange for anything to eat at that point.
If they will, I'll just cut off some of the links of the "manly" gold chain I wore in the &1980'.
I may trade two or three chicken eggs for a cup of rice or beans at that point, but I doubt that any of my neighbors will accept gold in exchange for anything to eat at that point.
If they will, I'll just cut off some of the links of the "manly" gold chain I wore in the &1980'.
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Bottom line, if gold is worthless after a crash, then it's worthless now. There would be no reason to mine the quantities we do just for electronics, and jewelry. Governments wouldn't be buying it up.
But, lets take his 5 points
1) What will the value of gold be worth?
It'll start at about what the last know value was before it all fell in.
2) who's gonna mint gold coins?
There's plenty already in circulation. If you have gold/silver, you're management. If you don't, you're labor.
3) Currency?
We've been demanding a return to the gold standard for years. Who needs funny money.
4) Dollar is the current World Reserve currency.
It won't be then. Whoever decides to back their dollar with gold/silver will emerge as the new reserve. OR, we can just leave it gold/silver.
5) no manufacturing because no paychecks.
What? Just pay in gold and silver, or goods. It's not like employment and commerce began with the advent of checking accounts.
Gold I can put in my pocket. A chicken, not so much.
If someone has a something to trade, you might not have anything they need (food wise), but gold/silver are always exchangeable.
and
...how many tens of millions of people "woldwide" died viollent deaths...
And, nonetheless, before it was "over" and the world began to recover, how many tens of millions of people died violent deaths?
If you live in NYC and there is no food in the stores, and not likely to be for any time in the future, what good will any amount of gold or silver do you?
They also camt to the point (in the "old kingdom") that individuals "traded" their "most valuable possessions" (some made of gold) for a handful of grain.
And that was before they ate the children.
Human's will trade. Trade existed before civilization did, and in fact led to civilization. Money is only a facilitator of trade. Throughout history, gold has always proven to be the best and most accepted form of facilitator.