Gold for during the SHTF or after?

Quote:

Originally Posted by pengyou The consensus seems to be that precious medals are going to most useful during the reconstruction phase after some kind of disaster. When I read about the status of currencies in the world, however, I hear people say that this country or that country is amassing gold as a hedge...most of the conversations seem to focus on what happens when the US dollar is bumped off its throne, or how to bump it off its throne. The "gold will be useful after" and the "gold will be our hedge" seem to be a bit contradictory to me. Can anyone explain?

Both. Is a hedge on a government scale. Whatever happens a country that has a lot of gold has that gold to fall back to. If a serious, global SHTF financial meltdown goes down and I have several tons of gold, a country can say that they will back the currency with gold and actually deliver on it.
Far less drastic and more realistic, countries historically have had gold for the same reason individuals do. During a significant economic downturn they have that gold reserve, which is likely to go up in price considerably during the crisis.

At the same time, and individual can have gold as his SHTF reserve fund. Chances are you wont go around using gol and silver as currency, but you may be able to sell those PM you have for whatever new currency is now in use.

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Gold for during the SHTF or after?