My refrain for 2 months short of 23 years now has been to “exchange your currencies for Gold and/or silver. A part of that is that you need to get Gold while you still can.
Not only will it take far more currency in the future to obtain Gold, both may not be so obtainable. You may no longer have a job, and those who can hold onto their Gold will choose to do so.
Eventually, the much higher price, will draw some of the Gold out of its hoards, but in a real currency panic, I wouldn’t be so sure. If you can see the currency falling on a day-by-day basis, why would you part with your Gold for any price – unless you were absolutely desperate? That situation will apply to some.
Gold is due a substantial re-appraisal in terms of its value in currencies. In other words, even if the value of the US$ (for example) stabilized right here, the US$ price of Gold should be higher than it is right now. When the frailty of the world’s economies, burdened as they are with unpayable debt, becomes more widely understood, Gold will revalue to something better representing that value.
We draw ever closer to that point.
What is that ‘proper’ value of gold? That can only be ascertained when Gold is no longer valued in currencies, but in the assets that it can be used to acquire – i.e., when it resumes its rightful role and is again acknowledged as the one and only money.
Gold’s revaluation will be simultaneous with the collapse in the value of all asset classes, particularly commercial and residential real estate.
In the middle of the 19th century, the price of an average house in the U.K. and U.S. was around 500oz silver. At the current Gold/silver ratio of about 80/1, that would translate to a price of 6.25oz Gold.
That ratio could well drop, and probably will, meaning that a house would cost more in Gold, but it’s an interesting ball-park figure.
At the bottom of the collapse, houses could also be considerably cheaper.
Nothing can be stated with any precision, except that your Gold will buy considerably more in the future than it will right now.
So, what are you waiting for?