Have you ever noticed that the world’s nations have gold reserves? Why, because they aren’t stupid and they know that their currency is only as good as the faith that people put it in. The faith that the dollar you just took for digging a ditch will be accepted at the grocery store for food and beer. Without that faith, fiat currency (paper currency) is worthless! (well you can still wipe your a$$ with it but toilet paper is much preferred). Check out the updated stats here. EVERY Country has SOME reserves!
Knowing that a nation’s currency will become worthless in the most trying times, governments know that they MUST hold their most important asset, the country’s reserves, in an asset that will NEVER be worthless. In fact, gold has been the defacto currency since … hmmm, let me think, oh yeah THE BEGINNING OF TIME! (look, I am no historian so I am sure some guy is going to email about some Sumerian Tribe circa 650 A.D. and all about how they used cat paws or otter tusks as a currency. It is an exaggeration, I know it, you know it… lets move on)
In the event of a serious scenario in your country you are going to need to think about relocating. Hard as it may be to think about now, but if the US gets nuked that Canadian border is going to start looking pretty sweet! How are you going to start a new life? Your gold reserves. Your brokerage account is going to be worthless as it is just numbers in a computer unless you actually hold your stock certificates in your home vault. Yeah, neither do I!! Gold is your uber-rainy day stash and if the SHTF, then it is pouring rain and it is time to tap the gold keg. You better hope you had the forethought to have one. You can take gold to any, and I mean ANY country in the world and trade it for local and worthy currency that you get you food, clothes and rent on an apartment while you look for work to sustain your family. Without some sort of reserve to take with you in the only international “currency” you are going to be living on the streets for a while until the money starts rolling in. Gold is relatively portable and easy to transport.
Take advantage now, start buying the American Eagle 0.10 of an ounce and socking them away. This is one place Mr. Rawles and I agree. They are at a good price at about $90 shipped right now at a number of places. I order from BullionDirect.com. $90 here and $90 there will get a good little collection going. You can usually trade a coin dealer 9, 0.10 ounce coins for a full ounce bar or coin because the 0.10′s have a premium. How you want to hold your gold is up to you. If you are a suburban prepper with some decent wealth then put some money in tangible gold and silver. It will preserve some of the wealth you have worked so hard to accumulate, inherit or steal! Besides, over the last few years it has turned out to be a decent investment (although not a sure thing)
Of course, I want to call your attention to the fact that if the situation is serious enough then FOOD is the new currency. You can’t eat, smoke or drink gold so in a way it is still fiat currency. It requires the faith if you accept it for your work done, you can use it to buy stuff! Always, Always have your food squared away plus a 25% reserve before starting your gold reserves.
And NO, I do not believe that we are at risk of the government confiscating our gold. Is it possible? Sure. The same way it is possible that a comet will hit the earth or aliens will make contact. But the odds are too low to prep for it and like most relatively intelligent people, I play the numbers. If you are truly paranoid about it, then take off your foil hat and go buy the coins in person for cash at a local coin store.
Having some gold or silver reserves will help you if you need to secure anything after a serious collapse because no one is going to be taking dollars… lol, they are getting to be worthless WITHOUT a serious event! Everyone knows gold, everyone wants gold and there is a good chance everyone is going to trade for gold! As preppers we are essentially little pack rats accumulating what we think we will need when “things” are no longer available as they have been in American society for over a hundred years. Gold will allow you to preserve your wealth like your food will preserve your life.