Old T.
OldToad
Group Organizer
Dallas, TX
Post #: 790
With the falling value of the U.S. Dollar, I found the following two links interesting:

GoldMoney.Com
http://www.goldmoney....­

Another one is:
BullionVault.Com
http://www.bullionvau...­

Unfortunately, these types of businesses may not be long-lived:
Digital Currency Business E-Gold Indicted for Money Laundering and Illegal Money Transmitting
http://www.usdoj.gov/...­
For example:
"Today's indictment is the result of a two and a half year investigation by the U.S. Secret Service Orlando Field Office into an alternative payment system which has largely operated outside of normal banking industry regulations," said Secret Service Assistant Director for Investigations Michael Stenger. "This system has been exploited for more than 10 years by criminals who operate primarily via the Internet. Cooperation among investigators, including the IRS, the FBI and other state and local law enforcement, has enabled us to more effectively address emerging threats and evolving criminal methods, such as the use of electronic or digital currency to facilitate trafficking in illicit goods and services."

It seems that governments don't like the idea much. I had thought it might be a way to store value of a small percentage of my savings against the governments printing money like it grows on trees.

GoldMoney.Com appears to be based in The Bahamas and offices in the U.K., so it may somewhat insulated from U.S. law. I signed up online, but it turns out the real application form is a bit daunting, presumably to help screen out those interested in trafficking in "illicit goods and services." I'm not sure I will bother finishing the application process, as I was only going to start with a little bit of money to try it.

I also like the idea that it claims the gold or silver is stored in a bank and insured. But maybe a few gold coins is all that we are going to be allowed -- for the time being.

Gold coins are available from the U.S. Mint:
USMint.Gov
http://catalog.usmint...­
Scott C.
Scott_Connery
Dallas, TX
Post #: 72
I really like the idea, but it does seem a little more risky than just buying gold/silver and keeping it at home. With gold being near $1000/oz you would have to have a truly incredible amount of wealth before storage space became an issue.
Old T.
OldToad
Group Organizer
Dallas, TX
Post #: 792
Hi Scott,

I wasn't worried about storage space, of course, so much keeping a few coins safe from burglary or forgetting where I'd hidden them. (Yes, I'm looking forward to Alzheimer's.) I was also intrigued by the possibilities for voluntarily moving some transactions to a gold standard -- how it could actually be done. GoldMoney.Com has a way to pay others in gold or receive gold from others who have an account with it, similar to PayPal but with gold or silver.

Other than being electronic, it is probably a lot like the private bank notes that were first used in the United States.

For emergency savings, I am leaning to just buying a few small gold coins form the U.S. Mint. Easy to come buy, smaller denominations, and easy to carry and trade in almost any imaginable short-term emergency circumstances. The downside of minted coins is the minting cost, which appears to make the gold cost about 10-25% more relative to pure, unminted gold. Right now, for example, a 1/10th oz coin is about $120, whereas a 1 oz coin is about $1,050 (from the U.S. Mint, if available). Buying gold via GoldMoney.com would be about $960/oz. But minted gold coins are pretty -- and the minting makes them easier to trade.
Scott
user 6545865
Dallas, TX
Post #: 17
Inflation is a reality that is not going to go away anytime soon. I have a couple properties that I really wanted to sell but I am reconsidering now. I am not considering holding on to them because of the current crisis so much as the dollar crisis. I am keeping my money in real estate because it is the best hedge against inflation. It also has the potential to produce inflation current income as rental contracts update every year or 3. In addition, if they dollar losing half it's value in the next 7 years and rental incomes go up 25%, eventhough you are making less profit, it becomes increasingly cheaper to pay off the loan.

In short, we are stuck with the dollar, so I recommend real estate. Property values can only go down so far, especially here in the DFW metroplex, due to construction costs and low prices to begin with. Combine fuel costs with the weakening dollar and you get higher housing prices in cities rather than suburbs. Transportation costs are already influencing housing decisions, the long term trend will lead away from long commutes.

My income is down 15-20% in the last 4 years due to higher health insurance and fuel costs. If I can't afford to live far away from work, a whole lot of others can't either.
Old T.
OldToad
Group Organizer
Dallas, TX
Post #: 793
Yes, we are stuck with the Dollar for routine, carry-on-as-we-have-been business.

In making this thread, however, I was thinking about two things, which I did not make clear: (1) the possibilities for starting to voluntarily move away from the Dollar, i.e., how could it be done; and (2) a small percentage of our savings in something safer than a bank in case of a temporary currency crisis. Our banks are robbed every day by the U.S. Government printing money.

We can't eat land or buy a tank of gas with it. It's not "liquid."
Scott
user 6545865
Dallas, TX
Post #: 19
1. The US government will never allow it.

2. I hope you find something along these lines because I think our only recourse in a currency emergency is to suffer.

If you study currency crises you will find that the only way to preserve your value is with assets. This is a bizarre concept here in the US as our currency has always been valuable, but in many countries value is stored in real estate and durable goods.

As for your small percentage: it might be a good idea to invest in a currency that is on a standard and then convert it as you need it. If you have ten thousand pounds in a bank in England and a debit card that converts withdrawals into current dollar value, you should be able to buy food and gas for a while.
Old T.
OldToad
Group Organizer
Dallas, TX
Post #: 794
Hi Scott,

1. The US government will never allow it.
My understanding is that the U.S. Government does allow it right now -- it is legal to buy, sell, and trade in gold or silver.

The electronic clearing houses offer new possibilities in this regard. The U.S. Government's main issue seems to be so-called "money laundering," which could be addressed various ways, including with reporting large transactions just as banks are required to do. (Not that I agree with such laws even for banks.)

2. I hope you find something along these lines because I think our only recourse in a currency emergency is to suffer.
Suffer, yes. Heck, we're starting to suffer now. But those who are more prepared tend to suffer less.

If you study currency crises you will find that the only way to preserve your value is with assets. This is a bizarre concept here in the US as our currency has always been valuable, but in many countries value is stored in real estate and durable goods.

I have not studied currency crises, but I would venture that gold and silver are considered assets.

As for your small percentage: it might be a good idea to invest in a currency that is on a standard and then convert it as you need it. If you have ten thousand pounds in a bank in England and a debit card that converts withdrawals into current dollar value, you should be able to buy food and gas for a while.

Is the Pound on a standard?
Chris J.
gearjammer351
Dallas, TX
Post #: 108
"and durable goods"

I know this may not be everyone's cup of tea, but I have been buying as many guns as the budget will allow lately. Not only do they retain value better than most other consumer goods, I am afraid there may be a new round of bans if the Democrats take power next year (which would increase the amount I could sell them for).

Oh yeah- I like shooting them too.
Old T.
OldToad
Group Organizer
Dallas, TX
Post #: 793
Guns as durable goods?

For sure. See, e.g., http://en.wikipedia.o...­

Guns can be used repeatedly, for example, to make darn sure the target is dead.

I'm hoping we avoid the dark ages when "the currency of the realm" becomes guns, though.
Sherry
SherryTX
Plano, TX
Post #: 685
Chris - why don't you just go even further and buy gold guns?
Hedge your bets twice as much.

I think I prefer chocolate. When the revolution comes, I am sure I could get a lot for a Hershey's bar, or for a few Lindt chocolate balls (that is if I don't eat them first.)
Powered by mvnForum

Suggested Annual Donation

$10.00 (after 6 event visits)

This covers: Supporting operating expenses and advertising for new members!

Payment is accepted using:

  • PayPal
  • Cash or check - “Please give any cash or check to any Organizer at an event. We also accept BitCoin: 14sioRkdEBcvvQavE4zbDbSwbsvscPAvF9 Thanks!

Your organizer will refund you if:

  • Each event may have a specific refund policy based on the nature of the event. General donations are not refundable. We may rely on any payment, so if you have any questions please ask an Organizer BEFORE making a payment!

Sign up

Meetup members, Log in

By clicking "Sign up" or "Sign up using Facebook", you confirm that you accept our Terms of Service & Privacy Policy