Preparedness and the Price of a Donkeys Head

There seems to be a lot of pressure today to invest in gold and silver for the coming times. Ostensibly, this investment will tide you through the rough times a comin’ down the road. But the question begs to be asked, will gold and silver really help me survive the coming times? The answer to that question is unfortunately a two edged sword. A sword that can not only lop off an arm on the for-swing, but take your head off on the back-swing as well. We have become too accustomed to taking wealth for granted here in the United States, and the rest of the world is following suite, unfortunately.

We base all of our transactions on a dollar bill, and as long as that dollar bills value holds true, we can survive. Or so we believe. I’ve made mention time and again that the value of any currency is based upon an arbitrary figure, set by governing officials. Currency traders further drive the value of that currency being traded by creating demand for it, while the governing officials create the supply. The old adage of supply and demand exists only so long as the two entities exist. What happens when the governing officials no longer create a supply of currencies for the traders to trade in? Simply put, your currency is worthless.

Most people are aware of that fact, and preppers and survivalists are acutely aware of that fact. And because of that many are now stocking up on gold and silver bullion and coinage, or what many consider to be the currency of the future. It’s a nice picture, but it isn’t necessarily the picture that tells the truth. Precious metals dealers want you to believe that their products will indemnify you from the coming collapse of society, the coming depression, the rising tide of inflation, and on and on, ad nauseum. But will gold and silver really save you in the future?

That all depend upon what you want it to be used for.

Generally, most buyers of precious metals invest for one of two purposes. In the first case, gold and silver, or other precious metals are purchased simply as an investment tool. Buy low and sell high. Profit is the name of the game, and today, those who have purchased in the past, are raking in the cash by selling today. But once you’ve sold your investment, what then? You no longer have the gold and silver jingling in your pockets, so to speak. Used wisely, precious metals can be an excellent investment tool, and I encourage you to look into the market as part of your portfolio. It can pay off really well in the long run. However, just like any investment, you can lose your shirt, pants and even your undies should the market collapse.

The price of everything can go up, or it can go down.

The second common reason to invest in precious metals is for the investment to be used as a hedge, or buffer against the rising cost of living in the coming times. We buy gold and silver because we can use it when currency as we know it today no longer exists. We hold onto the thought of buying a loaf of bread with gold or silver just like we hold onto a fistful of dollars at the store. We want to buy, we have the cash, but we hate to part with it. You know the feeling.

Inflation is already here, and we feel the effects of it every time we look at the receipt for this week’s groceries. Prices are going up, but our paycheck isn’t keeping up with the rising costs. If you think things are bad now, wait until hyperinflation sets in, or worse, suppose the ultimate calamity does occur and the government has vanished, eliminating currency as we know it today.

Then we have a few problems with our scheme to survive the coming times based upon our stockpile of gold and silver bullion and coinage.

For one, what value does an ounce of gold have when there is no currency to value it against? Secondly, what mechanism will be in place to assure that this standard will be adhered to by all parties? Just because we say an ounce of gold has a value of $1400.00 today, who’s to say what it will be worth tomorrow? Nobody knows, and in fact, value will be set purely between the buyer and the seller of these commodities. And I can guarantee that the results won’t be truly satisfactory for all parties involved.

When the crap hits the fan, all bets are off, and the value of any precious metal will be set by the seller of what you wish to buy with that gold or silver coin. There will, if the crap really hits the fan, come a time when there will be things of much greater value than coin and bullion. There will come a time when a pound of silver may buy you an ounce of coffee.

As an example we can look back into the annals of history and look at an ancient time when exactly what I am suggesting occurred.

We read in 2 Kings 6:24 that; Later,
Ben-Hadad king of Aram gathered his whole army and surrounded and attacked Samaria. Samaria was surrounded, besieged, put into a place of ultimate hardship where economy had no place. The crap hit the fan, and as can be expected what happened? Verse 25 tells us that; There was a shortage of food in Samaria. Aha! That’s exactly why we need to stockpile gold and silver. We can use that to buy provisions when society as we know it collapses. This is all well and true, but the other end of 2 Kings 6:25 says that; It was so bad that a donkey’s head sold for about two pounds of silver, and half of a pint of dove’s dung sold for about two ounces of silver.

And that’s the truth of investing for the future. Those who had much wealth in gold and silver paid through the nose to barely survive with food that wasn’t fit for the hogs. We always exist in a state where the haves and have-nots battle betwixt and between each other, and the haves always win out in the end. The problem here is that we need to determine what we want to have in the future as preppers an survivalists.

History tells us one thing about wealth; those who have land always come out ahead of those who do not.

Those who can provide commodities, such as food, implements etc, to those who cannot, but have the wealth to buy those commodities, can make a huge killing by setting their own prices.

Therefore, if you wish to invest in gold and silver as an investment tool for today, go right to town with the idea. Just remember that when, and if, the crap really hits the fan, the value of that gold and silver may well plummet to near zero in value. Your better investment will be in long term storage foods, land, seeds and equipment on which to grow more food, and other skills, supplies and investments that you can trade and barter with those who haven’t the sense to prepare for the coming times today.

Value of anything is purely an arbitrary term, don’t place your future on the altar of today’s wealth and expect it to be a bed of roses in the coming times.

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