what would Gold be Worth in the Collapse?

Phil wrote to Urban Survival Skills to ask: "Urbanman I have emailed you in the past on various subjects and I have a question, how will gold and silver be valued in a collapse? For example, todays price is $1300 USd for gold and $21.94 for silver. How will value be assigned? If a decline inflation (of commodities) or deflation (value of the fiat currency) occurs, then it will be assessed against the current dollar value. Years ago on a UN Mission to the Golan Heights the scheckle (did I spell that correctly?) was 124 to the US dollar the day I arrived and was over 400 six months later and climbing. I understand inflation, I suppose a more accurate statement would be what intrinsic value do these metals have and will the yard stick they will be measured against be the failed dollar? Your comments will be appreciated TTFN an old Sojer."

Stephen Lendman, in an article entitled, "Public Banking Avoids Today's Debacle" made some key points which effect the value of the fiat dollar and rise in prices of commodities which effect the value of previous metals, albeit this is before a real collapse. Right now we are seeing:

• rising consumer debt;
• record budget and trade deficits;
• an out-of-control national debt;
• record numbers of personal and business bankruptcies;
• millions of home foreclosures;
• depression level unemployment, poverty, homelessness and hunger; • an unprecedented wealth gap between rich elites and ordinary Americans; and
• a hugely unstable economy lurching from one crisis to another.

At one time, dollar value was defined as 1/20th of an ounce of gold or about an ounce of silver. Spot gold today sells for over $1,300 an ounce. Spot silver is about $21.50. Analysts expect much higher prices. And that is your question,....how much higher will Gold go?

Well, first let's look at the bullet comments above. Are these facts new? Were the figures worse a year ago? Two years ago? I submit that these key indicators are worse or at the very least some are the same as where they were a year ago and two years ago when Gold was selling at a much higher number.

The only thing that has changed is the perception of the people that things are getting better,...but you can only fool the creditors and your accountants for so long.....and you'll never fool the Chinese!

I believe that the value of Gold (and Silver) came down as the "perception" of the strength of the US dollar and the US Economy rose. Just wait until the curtain is pulled back!

Gold is certain to rise. The worse the economy, the higher the Gold value. If the US government does what I expect them to do, and that is to try and confiscate private Gold (and silver) bullion, then Gold will certainly be traded on the black market as prices much higher than the official Government line.

And by confiscate I mean mandate a trade-in for fiat currency, and outlaw private ownership of all but a small amount of bullion, or maybe allow collectors coins with silver content. In any event, we may not see a revolution in this country, but the vast majority of people will hide their Gold and Silver.

I also predict that a national Gold prohibition would come before a comprehensive gun ban - it, the gold ban, would affect less people and would be justified to the masses under a combination of socialist gobbleygook or what rural folk call plain old bullshit.

I think in an economic collapse Gold will easily hit $2000 an ounce and continue to climb, however in a major collapse with communications extinct, regional Gold values or the agreed upon value per barter transaction will vary widely depending on the need for the item being bartered for with Gold. What would you pay (in Gold) for anti-biotics for your wife if she had a major infection? How much per ounce would Gold be if your child needed insulin?

I'm sorry Phil that I can't answer your question more precisely, but their are too many variables. Suffice it to say that while Gold may drop and rise and drop again,...it will certainly rise when the collapse hits. However you still can't eat Gold nor can you protect yourself with it unless you hit someone over the head with a large bar of it. I consider Gold and Silver as necessary components of my survival stocks, sometimes more important than handtools, stored fuel, non-hybrid seeds, and sometimes not as important, depending upon the depth of the collapse and what my current needs would be.

stay safe, cheers