Oh Come On

General Discussion on the Permanent Portfolio Strategy

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vnatale
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Re: Oh Come On

Post by vnatale » Wed Jan 15, 2020 8:00 pm

Kbg wrote:
Fri Jul 08, 2016 12:01 am
Clearly I've hit a nerve here. :o

I will just lay my opinion out very simply. Gold has unique qualities as an asset class. These can be accessed by holding phys or an electronic medium of same. Either way the benefit/risk accrues to the holder of it. In today's monetary system under extreme SHTF (like nuclear war) scenarios I don't see phys being that useful. In such a scenario what matters is protection and producing the necessities of life which a shiny metal is incapable of doing. I am totally serious about this...if this is really a concern one has go buy some farm land and learn how to cultivate it. Saving such an extreme occurrence, the electronic form isn't going to be a problem. For the hundredth time, SPX, LTTs, STTs and Gold are not arcane derivatives that are difficult to price and illiquid.

Good heavens read a little German history people if you have this fear. In the bad parts of WWI, the Weimar years and WW2 what happened to an industrialized society in true SHTF scenarios was city people hauled their butts out into the country and traded their useful stuff or labor for food. Farmers don't need gold. They need equipment, fuel for their equipment, seed, fertilizer and maybe labor.

In short, have something actually worth bartering for.
More wisdom from Kbg!

Vinny
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Re: Oh Come On

Post by Kbg » Wed Jan 15, 2020 10:28 pm

Versus
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Re: Oh Come On

Post by vnatale » Wed Jan 15, 2020 11:03 pm

Kbg wrote:
Wed Jan 15, 2020 10:28 pm
Versus
Thought that could have been the word you had meant to use. Would your statement remain the same if one were to pack that physical gold in three or four locations? An idea I got from a post in this Forum.

Vinny
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Re: Oh Come On

Post by Kbg » Thu Jan 16, 2020 11:23 am

vnatale wrote:
Wed Jan 15, 2020 11:03 pm
Kbg wrote:
Wed Jan 15, 2020 10:28 pm
Versus
Thought that could have been the word you had meant to use. Would your statement remain the same if one were to pack that physical gold in three or four locations? An idea I got from a post in this Forum.

Vinny
I think I'm probably not the person to ask for an unbiased view...you dug up my articulation of what I really think. If I were to go down that road I'd think silver or bronze would be a bit more useful than gold as a medium of exchange. Historically, this has been the case. Kinda like should I have a wad of 20s or 100s buried in the back yard? 100s have a greater "value", but I don't think anyone would disagree that 1/5/10/20s are day to day more "useful."

PS. I have 50 acres of land, a tractor and a bunch of other farm stuff. :-)
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