Buying Gold

[elessar78]

Stupid question but I couldn't find a definitive answer on the internet.

When one buys gold as an investment, where is it kept? Does the purchaser get a shipment of gold amazon style? I assume it's kept in a bank vault, but is this knowledge available to the purchaser?

People buy gold, as far as I can tell, because they feel it's a stable "medium" in case of global economic collapse—in the event of global economic collapse, how accessible is their gold? Will they be able to walk up to some building and make a withdrawal?

Enlightenment please.

[NetSkyBlue]

My opinion on this sort of thing is that in the event of a true global economic collapse, you're not going to be able to walk up to any building and make a withdrawal, there will be rioting in the streets. I'd stock up on living supplies long before worrying about gold.

I have some heavy gold jewelry purchased at cost from the early 2000's (through the jewelry store where I work), that is now worth 10x what I paid for it, and maybe half that at "scrap" value, that would make a difference in an economic hardship for me - I could sell it and make a good profit. But if the economy ever TRULY collapses, I'm talking the numbers in our bank accounts just don't exist any more, who would even want to buy something so useless? You can't eat it, it doesn't keep you warm or safe. It's too soft to even fashion into a weapon!

[elessar78]

Thanks. Not really looking for some pedantic slant on why gold isn't a good investment (I'm on board with that). I just want to know about the physical act of buying, storing, and retrieving gold.

[Joan.of.the.Arch]

I do know people who have used their jewelry in times of crisis --LOCAL crisis-- to get out of the place they were in to a safer place. A whole extended family left Viet Nam by paying their way with jewelry onto a boat. Another family left Argentina selling/trading jewelry and also a car. A woman got travel to Pakistan, then airfare and expenses for documents to leave Afghanistan just after the Russians bailed out. She sold gold bracelets and rings to do this.

I don't think gold or anything like that would do me any good in a crisis like those. I would not have the connections or knowledge of who I could work a deal with. Doubt if I know someone who knows someone either.

If what I read on the internet is true, there are people who are actually burying their stash in their yards. So not everyone is relying on bank vaults.

[97guns]

buy from a reputable dealer, they can hold it or send it to you. i am in the camp that if i don't hold it i dont own it

http://www.providentmetals.com/

[KTP]

Anyone who claims gold will not be useful in a financial crisis has not studied history.

Now we can debate if a financial crisis is going to happen (which I do not think it will), but if it does, gold is going to do quite well. It always has.

[UnknownXV]

If you're concerned about currency collapses, I'd first stock up on water and emergency food and fuel. After that, if you buy gold and silver which I do think is a smart investment (even if there's no currency collapse) always buy physical tangible metals. There are plenty of sites that sell coins or bars and deliver them to your door.

In Canada I use http://silvergoldbull.com/

For the US http://goldsilver.com/buy-online/gold/

If you buy in bulk, I'd recommend finding a good secluded location and dig the metal deep into the ground to hide it. That, or get a solid safe in your house. Buying tangible is critical since the aftermath of any sort of collapse would be chaotic enough to make claiming possession of any metals held for you difficult if not impossible, but it does mean that keeping it safe is your responsibility.

My opinion on this sort of thing is that in the event of a true global economic collapse, you're not going to be able to walk up to any building and make a withdrawal, there will be rioting in the streets. I'd stock up on living supplies long before worrying about gold.

I have some heavy gold jewelry purchased at cost from the early 2000's (through the jewelry store where I work), that is now worth 10x what I paid for it, and maybe half that at "scrap" value, that would make a difference in an economic hardship for me - I could sell it and make a good profit. But if the economy ever TRULY collapses, I'm talking the numbers in our bank accounts just don't exist any more, who would even want to buy something so useless? You can't eat it, it doesn't keep you warm or safe. It's too soft to even fashion into a weapon!

If the entire world collapses, there's no electricity, fuel, production of any kind, internet, etc... and we're back in the stone age, then yes gold and silver for a time will not be very useful, people will be too scared to even think about trading, in fact most people who survive will be hunting for what you have... that's a depressing thought.

What isn't however, is this apocalyptic scenario is extremely unlikely. If a currency collapses, a new one likely backed by something tangible so as to not repeat the same mistake as before, will arise very swiftly. Likely before the original actually does collapse. The conversion over would be very painful, no doubt, but I don't think it will be apocalyptic.

[bjl584]

I don't own gold, but If I wanted to buy it, I'd want to take physical delivery.