Husband want to convert all savings into gold

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Gold only has value because we say it does. It's just a rock. Like a diamond. There is no inherent value in any of this stuff.

This is the part that gets me. These types always say the dollar will be worthless because it's fiat currency but never explain why anyone will give a s*** about specific metals in this Mad Max thunderdome they're imagining. "Because it's what fur trappers used!" doesn't really persuade. If the dollar becomes worthless no one is going to be trading gold bars for canned goods. It will be straight barter or theft; plan accordingly.

He could go all out fur trapper. Glass beads, tin cooking pots, sewing needles, bolts of calico.

It had only become legal to own bulk gold in the 70s under Nixon. My entire childhood gold was fixed at, if I remember, $35 per ounce. Plus in the 60s they stopped making coins out of pure silver, so people were stashing older coins during the transition.

In the 80s it seemed like end times publishing exploded, plus there was huge inflation and very high interest rates--easily up to 18% My dad was a farmer at the time, also on the local farmer's co-op board, and the co-op itself was paying 18% for awhile. The gold spike then was because of the economy.

Rural areas were hit especially hard because modern family farmers often have to borrow to put in their crop (crop prices were low as well, less money in the bank from the previous harvest). This was the time when the Posse Commitatus movement, the Montana Freeman, other paramilitary groups became active. VCR technology helped them spread their notions in persuasive ways that were not possible before. Not that there had not been pockets of cranks and conspiracy theorists before, but I think they became more established starting around then.

I think you are absolutely right.

[Anonymous]

Agreed with the others that gold is pretty pointless. It is pretty, but the intrinsinc value is limited to making jewelry and some electronic components; there will be no market for either if the dollar collapses.

It's also impractical as a medium of exchange, as it is heavy and unwieldy, and the purity needs to be determined by an expert. (For the poster who mentioned Bitcoin--that is also impractical as a medium of exchange, as the transaction times are measured in hours.)

If the husband simply _must_ buy physical gold (being aware of the transportation, purity, and security concerns), then put some fraction of your savings into it. Maybe 1/3 to 1/2 at the most. That way, you won't be totally screwed if (when) the gold thing fails.

If you are genuinely concerned about the collapse of the dollar, then my suggestion would be to become as self-sufficient as possible, in order to minimize your use of dollars. Buy a farm, plant some crops, raise some animals, and learn a trade that will always be in demand for barter. Given the unlikelihood of the dollar's collapse, this is probably not a great plan (assuming that you have good jobs now), but it is more likely than a gold bar to prove useful in feeding your family.

My own opinion is that the current US debt level is irresponsible and unsustainable, but that the collapse of the dollar would be so disastrous for the world that it will not be allowed to happen, at least not for the next few decades.

[Anonymous]

I would convert all of your savings to TP, yeast, and flour.

[Anonymous]

Anonymous wrote:He’s been listening to podcasts that talk about very bleak future for our economy: government prints trillions of $$ for stimulus. The money is not backed up by any gold reserves. It’s not going to be worth anything soon and we’ll enter an economic fallout.

All of this is kind if logical. It’s hard to argue with.

So he wants to move all our savings (401k, etc) into tangible assets like gold, real estate or other currencies.

What do you all think?

Gold and silver are very smart places to put money right now.
VERY smart....

[Anonymous]

Anonymous wrote:TSLA is a better investment

At 1100? Yeah


We are almost all cash in our accounts right now including retirement. Gold -no, but I do think a big correction is coming. There will be profit taking in advance of the elections if it looks bleak for the markets. My plan is to let it drop and then go back in at that point. More room on the downside than the upside

[Anonymous]

It would be a financial disaster to convert all your savings to gold or to cash for that matter.

If he really wants, it's not problematic to put a small percentage in gold as a hedge. Typically no more than 5-10%... Not 401(k) money, just lying around money.

I don't bother with gold but if I did, I'd get some physical bullion. Better get a good safe though.

[Anonymous]

Anonymous wrote:If the dollar collapses, what makes him think gold hold value? If the dollar collapses and takes the economy with it to the extent that gold is the only viable store of value, what makes him think that someone who has invested in ammunition (the next step for gold bugs), won't just take his gold.

Gold being a savior relies on things collapsing, but only to a certain extent- it seems absurd to me

Agreed. Gold's only value is perceived, like the dollar. So if he's standing around with a bunch of gold and no one else has any, they will either take it or decide it has no value. Either way he has no recourse.

[Anonymous]

There's a reason the only place you see the "buy gold now before your dollars are worthless" huckster ads is on Fox News and other outlets with a heavily older and more religious demographic - because they know that people in cognitive decline and people so gullible they think magic exists are the only people dumb enough to believe them.

Don't be one of those people.

[Anonymous]

Gold (and other precious metals) are quite volatile. 5-10% of your savings in them is not loony because they tend not to correlate with other assets, but beyond that is very risky.

Just buy a Total Stock Market Index--that will get you exposure to all the businesses (of a certain size) around the world. Not dollar dependent. He could buy some international bond funds (ones not tied to US currency) or an etf of assorted foreign currencies.

[Anonymous]

Terrible idea. Do not let him do that.

[Anonymous]

Inflation-adjusted returns on gold aren't that high over time and you can lose over the long term. If you invested in gold on this date in 1980, you'd have less inflation-adjusted money now than you started with.

[Anonymous]

Why don't you separate your finances, OP. Seems like a good time.

[Anonymous]

Anonymous wrote:He’s been listening to podcasts that talk about very bleak future for our economy: government prints trillions of $$ for stimulus. The money is not backed up by any gold reserves. It’s not going to be worth anything soon and we’ll enter an economic fallout.

All of this is kind if logical. It’s hard to argue with.

So he wants to move all our savings (401k, etc) into tangible assets like gold, real estate or other currencies.

What do you all think?

If you know anything about the markets, all the money is in tech and gold/silver.
Your husband is actually very wise and you would reap an enormous financial gain in making that move.

Diversification is a foolish play in these times.

[Anonymous]

Hell NO. If you worried, move money into conservative money markets so you do not lose what you have.

Do not convert it all to anything else! That is NUTS!

[Anonymous]

Put it all into bitcoin.