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Thread: Debt default good for silver price?

  1. #1

    Default Debt default good for silver price?

    wondering what people think.

  2. #2

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    Quote Originally Posted by rwh63 View Post
    wondering what people think.
    In my opinion, you need to stop thinking Ag=$$$'s or Au=$$$'s. A debt default will crash our economy and $$$'s won't be worth bread. As for myself, I don't buy PM's in the hope of getting $$$'s, I buy to have something when $$$'s are worth nothing other than tinder.

    https://www.britannica.com/event/hyp...eimar-Republic

    https://en.wikipedia.org/wiki/Hyperi...eimar_Republic

    https://www.dw.com/en/1923-how-weima...ion/a-64184767
    Now there's no more oak oppression
    They passed a noble law
    Now the trees are all kept equal
    By hatchet, axe and saw.

    I will not comply.

    The Tea Party... quietly plotting to take over the world,
    and leave you the hell alone!

  3. #3

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    Quote Originally Posted by t00nces2 View Post
    In my opinion, you need to stop thinking Ag=$$$'s or Au=$$$'s. A debt default will crash our economy and $$$'s won't be worth bread. As for myself, I don't buy PM's in the hope of getting $$$'s, I buy to have something when $$$'s are worth nothing other than tinder.
    That is pretty much my thought process. 15 years ago, I figured the worst case scenario was the dollar went away and we went to the Amero (North American currency thought to be used in Canada/US/Mexico). Canadian and Mexicans would become more wealthy in the conversion and the US would lose value in the conversion. Same concept with a global or digital currency, but imagine a the conversion much worse for the countries that have been prosperous over the past few decades.

    25 years ago I would fly to Amsterdam with $400 dollars, which converted to 800 Guilders. That would cover hotel for a week, coffee, smoke, beer, etc and I would fly home with money left over. Once they converted to the Euro, at first, the same $400 would get me 200 Euros and that would no longer cover a hotel for a single night. The first trip, after the conversion to the Euro, was over 2200 Euros, or .... $4400 US Dollars. 10x more over a 1 year period. I imagine something very similar is coming to the US in the near future. If the Dutch, and many other european countries, had spent their money on properties/gold/silver in 2001, they would have had 10 times more money in 2002. On the flip side, most Dutch lost 90% of their savings.

    The key is to spend your dollars before that happens.
    Last edited by jiggysmb; 05-03-2023 at 07:52 AM.

  4. #4

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    As currency collapses, silver & gold can be used in a few ways.

    First, it can be a hedge against inflation. If the currency halves in value over a period of time, but you saved in silver, you still have your purchasing power.

    Second, it can be a stake in the new game when the next currency emerges.

    Third is more of a question mark in my mind. It may be used as an interim form of money, between currencies. Personally, I think that barter will be more the norm, but silver & gold will likely be a form of viable commodity at most times. If there is extreme famine, then almost nobody will accept gold nor silver in trade for rice, until the emergency is over. The few that do will be those who control a lot or rice. Then the former rice barons will declare the value of gold again, when society again starts to grow.

    The answer to the question of silver's value, depends largely upon the period of time you choose to consider. The metrics by which it's value is best measured will also vary.

    For today, we value it in USD in most cases. For now, that is a viable benchmark, but not the only one.

    All that aside, I do believe that a debt default will be very bullish for silver & gold. As currencies collapse, people will look for safe havens. What seems less certain to me, is how long that will last. If a viable new currency emerges, people may flock to that instead. That is a very big "if". People will likely also look for durable goods, food, & lets hope not so much ammo. If we get to the point where things are commonly valued in 9mm rounds, then we will truly be living in a dangerous world and dark times. Then again, a rice shortage is also a cause of a dangerous world & dark times.
    Last edited by SilverPalm; 05-03-2023 at 09:36 AM.
    “The Federal Reserve is not currently forecasting a recession.”
    Fed Chairman Ben Bernanke, January 2008
    This is no longer posted in the Fed Minutes of January 2008, but still quoted here - https://www.nbcnews.com/id/wbna22592939. The FOMC minutes still quote MR. Reifschneider. as stating the same thing.

  5. #5
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    Quote Originally Posted by rwh63 View Post
    wondering what people think.

    When I started buying silver over twenty years ago, I wanted to get rich due to the coming major supply crisis (which never happened in real time) that Ted Butler and David Morgan kept talking about. Nowadays, I view silver as a last man standing, true store of value investment. It all seems to be going down,so I will keep my silver coins no matter what.

  6. #6

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    Quote Originally Posted by rwh63 View Post
    wondering what people think.
    200 Mark to 2,000,000 mark, WOW! If it can do this for a piece of paper, imagine what it could do for a coin....

    Now there's no more oak oppression
    They passed a noble law
    Now the trees are all kept equal
    By hatchet, axe and saw.

    I will not comply.

    The Tea Party... quietly plotting to take over the world,
    and leave you the hell alone!

  7. #7

    Default

    If the economy crashes (or takes a big hit), wouldn't the new economy that springs up (and/or any parallel economies) have a big impact on how precious metals are impacted? Any ideas on the "new" economy might look like?

  8. #8

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    This thread reminds me that I should buy more canned beans.
    A journey of a thousand miles must begin with a single step. -Lao Tzu

  9. #9

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    Quote Originally Posted by PM Bug View Post
    This thread reminds me that I should buy more canned beans.
    combination of lead, copper and zinc is also a good bet.

  10. #10

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    Quote Originally Posted by yellowsnow View Post
    combination of lead, copper and zinc is also a good bet.
    All of the above. Plus a garden, chickens, skills, etc.

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