'how to replace paper money for gold
asked in the TimeBomb 2000 (Y2000) Q&A Forum
I heard paper money will be worthless and should should have coins.
Where and how do you get them if you are wanting to replace
thousands of dollars?
Asked by donna olsen (jdolsen@aol.com) on October 21, 1998.
Answers
There are mixed opinions about which currency will be worth anything.
You should do your own research on what the experts say, then decide
for yourself. Read the threads under banking/finance in this forum's
archives, the first one discusses your question. Good place to start.
Myself, I plan to convert enough in gold/silver for a few month's supply.
I've ordered 3k worth of gold bullion coins (cheaper in lots of 10)from
Monex a couple weeks ago, but haven't recieved them yet. (I should by
Friday, as they said within 2 weeks.) We haven't decided yet what to
do with the rest of our money assets (pension plan, stocks etc.)
Answered by Chris (catsy@pond.com) on October 21, 1998.
I got some gold and silver from Affordable Jewelry and Precious
Metals ( I believe its www.ajpm.com). The had the lowest price I could
find at the time on the internet.
Answered by anonymous (secret@here.com) on October 22, 1998.
And I always play the silver medallion payoff slots when I go to a
casino. Since I keep em instead of turning em back in - they start to
accumulate after a while.
Answered by Paul Davis (davisp1953@yahoo.com) on October 22, 1998.
Gold with some silver bullion coin is a good bet to have for a number of
reasons. BUT, you first want to stock up on food, supplies, etc. There
are very long and involved theories regarding the advent of the EURO,
the economic upheaval in Asia, which has filtered down to Canada and
major countries in S. America etc, etc.
There are so many factors involved, it would make your head spin. If
you want to put in the time to do the research, by all means, the "writing
is on the wall" out there for anyone to read. The US dollar will undergo
an upheaval. Like Y2k, we do not yet know how bad it will get. Gold
along with a small amount of silver bullion coin will be a very good asset
retention tool. You can count on it. And by the way, you will not be
alone in your quest. Most precious metals dealers are backordered on
bullion coins, and are enjoying near record business. Ask AJPM (see
above post). Their last comment was that they hadn't been this busy in
18 years (yes they are reliable and discreet).
Answered by Goldi (goldilucks@yahoo.com) on October 22, 1998.
Dear Donna,
Paper money is worthless NOW. It's just that the majority doesn't think
so yet, and might possibly get away with that attitude. I prefer not to
bet on that one. Your decision to seek harder assets might well be
wise.
As to how: first chore is to select a dealer. You can check locally (you
may have to pay sales tax if you do, depending on your state), or mail-
order. Check around the net for dealer advertisements or troll here on
the list for suggestions (try 1-800-375-4653- that's who I buy from.
Disclaimer: no commissions or kickbacks or conflicts of interest in the
reco either. Heck, this isn't really me anyway, it's some guy named
nemo). Take a look at Mark Skousen's SCROOGE INVESTING (a
book) for some tips and suggested dealers. Shop by comparing prices
from dealer to dealer- call several at as close to the same time as you
can manage for prices. They generally set prices by what's called "spot"
which means the going market price for metals- it changes from minute
to minute depending on trading in the commodities market, and if you
do your shopping over several days you might not get a good
comparison.
After you select a dealer, call in an order. They'll quote a locked- in
price and give you a trade number or transaction number, and if it's
your first time they might give you a customer or account number too.
When you make the deal by phone you're obligated to get payment
under way soon- you can wire money, send a cashiers check or a
personal check if you're willing to wait for it to clear. The dealer will
ship to you registered and insured, and you just go by the post office
and sign for the package.
You might want to place a couple of small orders first to 'feel out' the
process. It is a pretty big leap of faith to venture several thousand
dollars with people you don't know and haven't done business with
before. Some people are paranoid about people knowing who bought
what. Your call there on how tricky you want to be.
Second chore is to figure out how much to buy, and third chore is to
figure out what to buy. A general rule of thumb is 5-10% of asset total
in hard assets. Some people are going beyond that right now, some still
don't have any at all. Your call. What to buy is your call too. Right now
the bullion coins are probably the best bet. The premiums for pre-1965
US silver dimes, quarters and halves(called junk silver) have gone up a
lot, as have premiums for pre-1934 US gold coins. Some will try to tell
you the old stuff is "non- confiscateable." Some will try to tell you
"numismatics" (collectible coins) are the only way to go. I bought
pre-34 US gold while prices were good but now that it's gone up so
much I'm buying bullion coins. I bought enough junk silver while prices
were lower too, and I'm not buying any more silver at all. So your call
here also. I don't buy numismatics at all. I suggest you buy some of
your bullion gold in fractional values (1/2, 1/4 and 1/10 ounce) just to
be on the safe side. Silver is OK in ounces. I would stick with US
Eagles on all counts. Do buy one 1-ounce maple leaf 'cause they're so
pretty though (hey, I found out I'm a raving gold-bug at heart. Who
woulda known?)
Fourth chore is to figure out where to stash your stuff. DON'T put it in
the safe deposit box in the bank. Hide it somewhere safe and smart.
We did a thread on that a while back on this list- hunt it up.
I hope you never need ANY of your insurance, your monetary
insurance (your gold and silver) especially. But I really think the bear
(market) will be worse than the (computer) bug, and the insurance
might just save your financial life. My mom recently made the same
decision and I'm taking care of several thousands of $ in trades for her
too. Good luck and happy trading,
nemo...
Answered by nemo (nemo@deepsix.com) on October 22, 1998.
You might consider 40% silver coins -- half dollars -- minted between
1965 and 1969. These coins have the unique characteristic of having a
face value (.50) that is not a great deal lower than their current silver
content value (aka "melt" value... about .75 with silver around $5/oz).
Hence one is buying silver, primarily, but with a safety net rather close
below in the form of the .50 legal tender value. It is hard to imagine that
*both* silver and the dollar will tank terribly. (I mean, people have to
use *something* for money, eh?) If the dollar goes to hell (very likely),
then silver will almost certainly appreciate, possibly dramatically. If
silver goes to hell (very unlikely), then you always have the dollar value
of the coins. These coins can be bought in bags of 2000, face value
$1000, for about $1500-1600, at current silver prices.
Answered by alan lewis (aelewis@provide.net) on October 23, 1998.
Contribute an answer to "how to replace paper money for gold"
greenspun.com |
