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OchoBlue

Silver & Gold NJ dealers

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I would never trade ammo in a crisis situation unless I trusted the person I was giving it to.

 

You trade it to someone who then trades it to someone else who trades it to someone who breaks down your door at 2am and shoots you with it.  No thanks.

So in other words you believe in background checks.

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We have had many crisis situations in the 20th Century, and even in recent decades. Currencies have become worthless, but money never has. Beans and bullets are for the poor. You aren't going to bribe a Colonel with a case of beans, or arrange for safe passage of your family for a closet full of ammo. Cash is king. Always has been, always will be.

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Ummmm, what?  We have?   Please, enlighten us.  

 

https://www.mint.com/blog/trends/hyperinflation-the-story-of-9-failed-currencies/

http://www.investopedia.com/slide-show/5-failed-currencies-why-they-crashed/

 

There are more, Ukraine, Russia, etc.

 

US Currency has lost about 97% if its value over the last 100 years or so.  Some people even argue we've defaulted on our currency like 3 times in the last 100 years with the confiscation of gold in '34, dropping the silver coinage in 64 and the end of the gold window in 71. Every single time we've redefined what our money meant.

 

Sure, those events are not exactly the same as Weimer republic hyperinflation, but we had that too in the century before, we've re-invented the dollar a few times.

 

Personally I don't subscribe to the notion that only gold and silver are money. Money is a social convention, not an object, over time we've used sea shells, food, tally sticks, beads, pelts, metals, paper, etc as "money". Granted the current split between currency and money is a bit wide, but we've done that in the past as well. Technically you could use .22 ammo as money, AA batteries, or AOL disk drives (40 free hours!!), it isn't about intrinsic value because no item has intrinsic value, it is about the value we assign to it and we all agree it has.

 

But, gold and silver have been a good hedge bet historically. They may be again, or they may be as useful as pogs. I think anyone who over-invests into any single asset class is foolish, but ignoring asset classes without a third party risk is also foolish. All things in moderation.

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Can you quantify this conclusion? In other words what specifically did he say that you take issue with?

I don't recall what I was thinking at the time. 

 

But...ammo is the same as anything else. You trade it and it could come back to haunt you. That doesn't stop us from trading, does it?

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https://www.mint.com/blog/trends/hyperinflation-the-story-of-9-failed-currencies/

http://www.investopedia.com/slide-show/5-failed-currencies-why-they-crashed/

 

There are more, Ukraine, Russia, etc.

 

US Currency has lost about 97% if its value over the last 100 years or so.  Some people even argue we've defaulted on our currency like 3 times in the last 100 years with the confiscation of gold in '34, dropping the silver coinage in 64 and the end of the gold window in 71. Every single time we've redefined what our money meant.

 

Sure, those events are not exactly the same as Weimer republic hyperinflation, but we had that too in the century before, we've re-invented the dollar a few times.

 

Personally I don't subscribe to the notion that only gold and silver are money. Money is a social convention, not an object, over time we've used sea shells, food, tally sticks, beads, pelts, metals, paper, etc as "money". Granted the current split between currency and money is a bit wide, but we've done that in the past as well. Technically you could use .22 ammo as money, AA batteries, or AOL disk drives (40 free hours!!), it isn't about intrinsic value because no item has intrinsic value, it is about the value we assign to it and we all agree it has.

 

But, gold and silver have been a good hedge bet historically. They may be again, or they may be as useful as pogs. I think anyone who over-invests into any single asset class is foolish, but ignoring asset classes without a third party risk is also foolish. All things in moderation.

 

None of this has anything to do with the US, and less to do with gold or solver having value in a true SHTF situation.  

Gold and silver are a hedge against inflation in an intact economy.  

 

When the economy is no longer intact, gold and silver are laregely of no value either. 

People will be willing to trade a pound of gold for some food if they are hungry. 

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You are saying historical behavior of humans is somehow not applicable to Americans? Interesting theory. 

 

It also nonsense to think the economies go away. There is always an economy, even if subsaharan africa or in the middle of a civil war in the balkans, or trying to escape Nazi germany. Oddly in all of those case, precious metals had value. If you are imagining the zombie apocalypse, then sure precious metals are worthless, but in the real world they are a decent hedge against bad times as well. 

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I don't recall what I was thinking at the time.

 

But...ammo is the same as anything else. You trade it and it could come back to haunt you. That doesn't stop us from trading, does it?

Ammo is not the same as anything else. When you barter with it you do so to armed individuals who you by default know need it. They in turn will know you have it, therefore you will want to be extremely aware of who it is you are dealing with under such circumstances.

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