I understand the value of Gold & Silver as a hedge against the dollar/inflation. However, I'm starting to question whether Gold & Silver are really still worth their price. As of today, I have to save up roughly $1700 for a 1-ounce gold coin, that's only 1 coin!
I'm wondering if I should be putting my money into another commodity that has not skyrocketed as much as Gold & Silver have. For instance, Gold has doubled in the last 2 years (100% increase), while a gun 2 years ago is probably only 10% more today. It appears that all prices have been increasing as of late (of course due to inflation) but that Gold & Silver are leading the way, and perhaps are getting ahead of themselves. Of course this would be good if you bought Gold & Silver several years ago but is not so good if you got in the game late and are still trying to accumulate (as I am).
The last time the dollar could be directly exchanged for gold was in 1971, when $35 could get you an ounce of gold. (The Bretton-Woods System between 1944 and 1971). Does anyone know what a gun cost in 1971? For the sake of an example lets say a new pistol cost the same price ($35). Now lets say I go buy a new pistol today for $500. That's a 1,400% increase. Compared to buying an ounce of gold today ($1700) and that's a 4,800% increase. Today, that 1-ounce gold coin is more valuable than 3 pistols. Again, it would have been smart to buy Gold & Silver several years ago, but is it still worth it as we near the end of this system?
Since it seems many items still have not been fully adjusted for inflation (at least not like Gold & Silver), I'm thinking it might be smarter to put my investment money into weapons or land or anything else that will hold value, and I can accumulate more of. When the time comes, and SHTF, I see 2 outcomes. First, the Gov. can get smart and create a new monetary system with a new currency, (which at this point does not seem likely), or Second, hyperinflation kicks in, then deflation. Either way money will be re-valued and when that time comes, you'll have the opportunity to exchange your 1-ounce gold coin for 35 new 'bankos' (just for an example) or I can exchange my 3 pistols for 105 new 'bankos'.
Does what I'm saying make sense or am I missing something here? I understand as long as we have inflation Gold & Silver are a good investment and will only go up, but when the financial system finally crashes, and currency is 're-valued' I'm thinking the late Gold & Silver investors will not get their moneys worth.
As a further example, would you rather own a $100,000 home, or 58 ounces of Gold? Trying to leave out fiat, what do YOU think is more valuable today, a house or 58 coins? How about 3 guns or 1 coin?