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Showing posts with label impending european economic collapse. Show all posts
Showing posts with label impending european economic collapse. Show all posts

Tuesday, June 26, 2012

Should I Buy Gold for SHTF?

I recently had a friend of mine, not in my immediate survival group, but a prepper none the less, ask me if he should buy some Gold, and if so, should he buy one ounce rounds, or smaller weights. He had around $6,000 to spend. Part of his question was should he wait awhile as Gold and Silver prices seemed to be going down.

I told him that trying to time the market now would require some constant observation and some luck. Sure, Gold and Silver may yet go down more, in light of some good economic news the last few weeks, but that "good" economic news was really just "not as bad of news as usual".

I told him that while the Greece, Italy and Spain economic problems seemed to have leveled off, we will certainly see more bad economic news in the very near future. I told him to watch for more banks defaulting, instability in the U.S. and Foreign exchanges, higher U.S. deficit and national debt, worsening unemployment, lower oil imports, higher oil prices, higher inflation and downward spiral of the housing market all would be factors signaling a rise in precious metals.

This conversation was about two weeks ago and now we are seeing the following headlines:

World stocks fall amid economic reports from the largest economies forecasting a global downturn.

Job growth much lower than expected and fears of heightening unemployment amid reports that applications for unemployment benefits jumped to the highest level in nine months.

Housing gloom ahead as sales of previously owned homes fell 1.5 percent in May and are forecsted to be even lower in June and July.

Eurpoean leaders are trying to work out a solution to a spreading financial crisis across the European Union and global lessening confidence in a solution and the value of the Euro.

Major banks being downgraded. Moody's lowered the credit ratings of 15 major banks, including Bank of America, JPMorgan Chase and Goldman Sachs, saying their long-term prospects for profitability and growth are shrinking.

So yes, the time is right to buy Precious Metals. However I would not put all of the $6,000 into Gold. I would spread it out with Silver bullion and maybe some junk silver as well. All this would depend upon how much precious metals I already had and any other holes or lack of essential equipment, material and supplies in my Collapse Preparation Plan.

Maybe one ounce of Gold, 4 one-quarter Gold rounds, $1,000 into Silver rounds and the rest in long term food maybe a good choice for my friend as I know he primarily focusing on survival guns and gear for SHTF and is well preparaed in that aspect.

Him having some viable precious metals for bartering and some long term food would also possibly benefit me as he is one of the families on a short list my survival group keeps of possible recruits or straphangers we would accept into our group as his ethics, morals and skills are known to us. Anyway, if you don't have very much or any precious metals at all, then what are you waiting for? An invitation? Okay, consider this an invitation.