Quote:
Originally Posted by Porsche-O-Phile
Gold will be worthless. It's ultimately just a conventional "commodity currency". It has very little practical use or purpose other than it's shiny and looks pretty in jewelry and it's reasonably good for certain types of electrical connectors and dental products. If things really get bad, food, water, guns, ammunition, gasoline, portable generators and safe/secure places to sleep will be infinitely more valuable than gold. Do I think this could happen in the USA in 2008/2009/2010? Damn right I do. I doubt there'd be open civil war, but there most definitely could be widespread looting and civil unrest unless things calm down soon - which I don't see happening.
I actually think we're headed right for stagflation - a recession combined with very high inflation. Just like the 1970s. Where that leads (in terms of civil strife) is anybody's guess, but I'm preparing for a "worst case". If I'm wrong then fine. If I'm right... well... at least I'll be prepared for it.
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If fiat currencies collapse, a new "money" is needed in the economy -- gold can play that role effectively (as it has historically).
I don't disagree that certain goods may appreciate in value even greater than gold (being used as a substitute for fiat currencies) -- especially if complete civil unrest occurs.
Assuming we have what you expect, stagflation, without significant amounts of civil unrest, you can expect precious metals to be an excellent fiat currency substitute.