The fiscal cliff

[rufus]

I see gold is off a tad. Now might be a good time to jump into metals, if one has anything left after paying income taxes.

 

[hemet dennis]

I see gold is off a tad. Now might be a good time to jump into metals, if one has anything left after paying income taxes.

Don't catch the gold bug. Cash is best.

 

[bakerjw]

Actually I prefer silver. A 1 ounce silver coin will always maintain a barter value of at least $15.00.

 

[rufus]

The government/fed can print more money. The can't print more gold or silver.

 

[hemet dennis]

The government/fed can print more money. The can't print more gold or silver.

But what can you do with gold and silver ? What value does gold or silver have ?

 

[bakerjw]

If there is a collapse, which IMHO would occur in a state of hyperinflation, an ounce of silver would probably equate out to around $15.00 of pre-inflation dollars. If I am selling some hens, then likely I'd barter with a potential buyer and we'd come to an agreement of perhaps 2 hens and a dozen eggs for a 1 ounce silver coin. Hard coinage will still maintain a value to some degree when paper becomes worthless.

Now if someone who bought their 1 ounce silver coins for $40.00 an ounce expects it to be worth the $40.00 that they paid, they will come to a startling conclusion that they paid too much if they are in the previous scenario.

Gold? That's only an investment to offset inflation. In a bartering environment, you can't take a 1 ounce gold coin to a farmers market to buy produce. To buy a cow, horse, etc... it might come in handy, but not for everyday bartering.

 

[rufus]

Yes, an ingot of gold or silver will become a liability because you cannot bust it up to buy a loaf of bread and a jar of peanut butter. Yet, plenty of people will kill you for that ingot. Small denomination coins of silver are the best bet.

The copper penny (US Cent) is another option. Last time I checked it was worth a little more than two cents. The good about hoarding copper pennies is that the bulk discourages theft. The bad is that it is real hard to run with 800 pounds of coins.

 

[hemet dennis]

Yes, an ingot of gold or silver will become a liability because you cannot bust it up to buy a loaf of bread and a jar of peanut butter. Yet, plenty of people will kill you for that ingot. Small denomination coins of silver are the best bet.

The copper penny (US Cent) is another option. Last time I checked it was worth a little more than two cents. The good about hoarding copper pennies is that the bulk discourages theft. The bad is that it is real hard to run with 800 pounds of coins.

That would be a good workout.

 

[hemet dennis]

So Apple is paying a good size dividend but a lot of there money is offshore and if they bring it here to pay the dividend then they will have to pay U.S. taxes on it. So how will they pay the dividend you ask ? Well they will take out a loan and pay the interest instead of the taxes.

 

[hemet dennis]

So if you have an extra $100 billion just sitting around I know of someone that would like to borrow it.