Subj : Re: Gold and Silver
To   : poindexter FORTRAN
From : k9zw
Date : Thu Nov 10 2022 11:35:37

On 08 Nov 2022, poindexter FORTRAN said the following...
 
 pF> -=> debian wrote to all <=-
 pF> 
 pF>  de> I don't forsee gold or silver replacing the dollar/credit, even in a
 pF>  de> mad max situation. It seems allot of these gold and silver advocates
 pF>  de> think that these will replace the nations currency when all goes down
 pF> 
 pF> I see silver having a place in a time when the dollar's trust is
 pF> lowered, or  when cash is restrained, either through economic or
 pF> electronic issues.
 pF> 
 pF> Having a stash of ounce silver coins would be a good amount for
 pF> bartering  for goods when cash is either doubted or unavailable.
 pF> 

Agree - as when intangibles (fiat currency, debt tools) become less trustworthy, tangibles become more useful.

 pF>  de> Diversifying and having different currencies isn't a bad idea, though
 pF>  de> It may come to a point where one currency may have more buying power
 pF>  de> than another? Having a cash reserve on hand will be more helpful than
 pF>  de> having a frozen credit card.
 pF> 
 pF> I've been looking into index funds based on international stocks -
 pF> having a  Canadian, European or Asian index fund in your portfolio would
 pF> be a nice  hedge.
 pF> 

Diversification is nice, but also substitutes a "suspended risk" of dealing in paper assets in distanct marketplaces where recourse and trust are reduced.

If you recognize that you are taking on more risk and that extra risk fits well in your risk tollerance and saturation position, not a bad idea in a steady state situation.

If things get dicey your hold on these assets likely will be affected.  

Do not think distance proxy assets are robust enough and low risk enough to be useful when the chips are down.

--- Steve K9ZW via SPOT BBS 

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