Gold and Silver in an Economic Downturn

by Michael Smith (Veshengro)

Those that make a nice living from selling bullion coins try to convince everyone that gold and silver coins (and bullion) is the best way to protect against problems in an economic downturn and when things finally collapse, as they may some day.

Those advocated of gold and silver who have a huge vested interest in other people believing their message as to this always cite the fact that in the recession and depression after WWI – worldwide – and then after WWII in Europe gold and silver, and here especially coins, were used as a means of economic exchange, instead of useless paper money and general currency.

That, however, was then and this is now. In those days in the past gold and silver coins were still or had been not so long ago in official use and circulation and people could relate to the value of those coins and in many places gold and silver was more accepted, anyway, than the paper money of the realm. People could put a value to gold and silver coins of various countries. But, as said, that was then an d this is now, and today things are rather different.

It must also not be forgotten, though, that cigarettes, for instance, had much greater barter value than anything else in Germany, for instance and that this was something the GI made great use of.

Despite what the advocates of gold and silver for use in a meltdown suggest and they do after all have a vested interest anyway gold and silver, even .999 pure coins marked as such, are of no real use to you at all.

Whatever those coin merchants or those preachers of doom and gloom – even though they may be right with the doom and gloom bit – on websites and in books try telling you gold and silver, whether as coins or bullion bars or jewelry, has (virtually) no use in any economic, financial crisis or similar.

So, do not waste you money on it. Gold and silver, and that applies for coins, most of which are no longer legal tender proper, bullion and jewelry, equally, will not save you and yours in a downturn. Proper preparedness and skills, on the other hand will.

Learn the right skills and learn what to store and where and how, including stuff that you can use for barter in the bad times. You do not need to include gold in silver in such preparations. Anyone who tells you different, I am afraid, has no idea of what he is talking about and has a vested interest somewhere as to selling gold and silver (and even platinum).

© 2009