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Gold - best source and type?

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Cyan Posted: Fri, Mar 21 2008 7:12 PM

I don't know much about economics, but ever since I heard of Ron Paul I've become aware that the USA is headed for a serious depression/recession (please forgive me for not knowing the correct terminology). I'm just an entry level clerical drone with no assests besides my car and my somewhat substantial savings account, but I'm trying to prepare as best I can. From what I've read it seems owning physical gold coins will be the best way to survive. Would anyone mind sharing  a bit of advice about how to get started?

- Should I look in the phone book for a coin dealer or is it better to buy online (e.g. blanchardonline.com)? I've heard something about gold transactions being tracked. If possible I would rather the government NOT know I have gold. Obviously, hehe.

-  Is there a certain coin that's best to buy? I've already been warned the "old coins are exempt" thing is a sham and to go with the ones with their purity stamped on them (American Eagles, Buffalos, Krugerrands, Maple Leafs) But if the dollar completely melts down and I need a cold hard commodity to trade for food/services, is there one that would be more practical than the others?

Thank you in advance, I hope I am welcome to learn here even though I'm just starting out!

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Mark B. replied on Fri, Mar 21 2008 7:51 PM

American Eagles and Krugerands are both excellent.  Any well recognized currency with a known gold alloy content will do the trick. 

If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home and leave us in peace. We seek not your council, nor your arms. Crouch down and lick the hand that feeds you, and may posterity forget that ye were our countrymen.
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Junker replied on Fri, Mar 21 2008 8:38 PM

Lots on line, for liberty, http://www.lewrockwell.com/blumert/burt-gold.html

As above for the coin brand. He's spot on. Usually the Krugs sell for less. For tracking, working in cash through friends or informal sales marts, but know what you're dealing with. Some do http://www.fisch.co.za/ but depends on you and your dealing. Don't forget silver...some is good, Good luck & welcome aboard.

If you want a picture of the future, imagine a boot stamping on a human face—forever.
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JAlanKatz replied on Fri, Mar 21 2008 9:15 PM

It's my belief that, if transactions do begin to go down in gold, things previously used as coins will be used first.  Later, though, all gold will be accepted.  So, I'd have enough coins, primarily Eagles and Leafs, for the first year.  The rest of the money you might consider putting into bars because you can buy them at a lower premium.  You also want silver - it's hard to conduct any small transactions in gold. 

I'd recommend Paul-Camino coins as a dealer.  Remember, you want an honest, reputable dealer, so you don't wind up with fake coins.  I don't think you can keep your purchases a secret, under the Patriot Act gold dealers are financial institutions and just about any sizable purchase is going to be a reportable event. 

Of course, it's hard to prepare for disaster.  There's no guarantee that in a currency meltdown, people would start to accept gold - they might return to law of the jungle, or use shells as a currency...However, if you're expecting a depression to come soon, why buy gold?  In the ABCT, the inflation, which drives up the value of gold, comes first, and is followed by a depression.  So, if you think the depression is about to hit, you'd expect that the inflation is over.  On the other hand, having some amount of money in gold can't hurt in any economy, if only as a safety factor and to make you feel better.

Another place to look at for your savings account is foreign-denominated investments.  Consider Paul Schiff, Paul's financial advisor, and his Europac accounts.  There is no minimum balance required.

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Cyan replied on Tue, Mar 25 2008 7:24 AM

Thank you for the replies, that is very helpful! Having gold of any type will make me feel a lot safer just because it is guaranteed to hold SOME value. Foreign currencies are most fiat money too, right? I'm glad you recommend some silver for small transactions. That was my thought too, but some of these gold enthusiasts say "ONLY gold, silver is worthless!" heh

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Cyan:

Thank you for the replies, that is very helpful! Having gold of any type will make me feel a lot safer just because it is guaranteed to hold SOME value. Foreign currencies are most fiat money too, right? I'm glad you recommend some silver for small transactions. That was my thought too, but some of these gold enthusiasts say "ONLY gold, silver is worthless!" heh

 I purchased a few gold coins from Blanchardonline.com late last week at the low point in the dip in the gold prices. No complaints so far. Blanchard seems to have good prices. All four coins you mentioned are good ones. Some silver is good for smaller transactions but you can get the smaller (than 1 oz) gold coins for something in between too.

Yours in liberty,
Geoffrey Allan Plauché, Ph.D.
Adjunct Instructor, Buena Vista University
Webmaster, LibertarianStandard.com
Founder / Executive Editor, Prometheusreview.com

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