Depends....I don't have any so take that into consideration when appraising my response (I'm in debt).Moss Man wrote:Jason - would you cash-in your precious metals (if you had any) for reserve notes or hold onto them?
If I had any debt to pay I'd cash in - no thought required....and pay off debt. Especially now with prices at or near all time highs.
Beyond that....hard question because it really gets into what precise scenario you see coming down the road with all of the timing implications as well as long terms goals and realistic end points. Where do you want to be and what you want to be doing when the proverbial crap hits the fan (me....I'd like to be a farmer in fairly remote area).
Will they print or not print? Who makes that call? Why would they make it....or not make it? What are the constraints - if its only more debt who is going to borrow and how? Additional debt doesn't solve a debt saturation problem but only hastens the demise.
What's going to happen outside the scope of their control (i.e. God) and what is His timing and His plans/actions....and how does that effect the investment position (value)? Like what's the value of gold when you are starving and running for your life from a pack of wild dogs???
My hunch is they (very top dogs to whom all the debt is owed) will create deflation (often reiterated I know) in the short term. Long term they lose and God wins. What that will look like financially and in terms of timing is anybody's guess. I have difficulty believing the US dollar will survive intact....but there is a gap to be bridged between now and then when those dollars could be extremely difficult to come by to service debt (or you give up everything to those whom you are obligated to). We've been given much advice in surviving that gap which includes getting out of debt, savings for rainy day, food storage, etc.
Here's the general overview of silver/gold bug via comment at Zero Hedge -
Its the general belief the the little guy still matters and that the government can't possibly let them down....reason hearts are going to fail!!!There will be no deleveraging. If deleveraging commences, then asset prices fall, the banks fail, and depositors lose their money. The Fed won't allow depositors to lose their money so the Fed either prints now to keep the credit stream going, or they print later to bail out the banks so depositors don't lose their money.
fyi - also a fan of mattress (safe) FRNs if you haven't caught that too.
From an investment/speculation standpoint it could be tempting to cash out and cash in after the deleveraging has fully hit. Timing, risk, investment vehicles used, luck, etc....all play major roles though in getting in & out successfully with real hard assets (whether land, gold, food, etc).
The gold/silver bugs will push the idea that the government is on the verge of collapse....while partially true....they leave out the reality that we are just shifting to a complete dictatorship. The people don't have real representation and are not calling the shots. Sure there are riots....but the people who do call the shots have big guns, technology, armies, media, law, government ownership, etc etc etc. We know when that dictatorship goes into final implementation (King or I interpret as martial law)....that things will fall apart (promised no kings on this land - God will intervene)....but that could be awhile after credit disappears and we've gone through a nasty hard round of deflation (getting out and back into gold could net you multiples of the gold you have now).
I have a hunch that the plague will be unleashed by the gadiantons in response to the premise that they own everything.....and the people (who actually have day to day control/use of their assets - they acquired by debt) have become to pesky to deal with (selfish in their own right and prone to riots/violence/destruction)....and thus ought to be eliminated.
I'm guessing all of this takes place in the near future (over the next 12 months).
My personal favorite asset....and the one I WILL invest in (if and when I can get out of my current investment with an egg to invest)....is land which produces food. In a perfect world good clean land free from years of pesticide/herbicide/fungicide abuse....and productive. But that's just me with my ideals.....I'm still fairly young and could still do hard labor (though an adjustment for sure from desk jockey). If I were in my late 80's....I'd be shooting for hard assets to trade (gold/silver) for the things I needed...or some other way that I could produce to barter for things I needed (owning equipment/tools?).
Anyways that's probably way more than you bargained for.....