Are physical funds PSLV, PHYS, CEF, etc, good for when the SHTF? Will they reset to a fair value?

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#1 Mon, Jun 20, 2011 - 9:34am
joe rocker
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Are physical funds PSLV, PHYS, CEF, etc, good for when the SHTF? Will they reset to a fair value?

Just wondering...that's been my plan...play around with AGQ, ZSL, make some money...and switch it over to CEF or one of the Sprott funds. Then...my thinking is...when everything get's "revalued" after a dollar default or an Americo is created...I get the "gold value" of whatever the new currency is. Does this sound like a sound plan? I do have some physical...but buying $100,000 worth seems extreme and VERY illiquid to me. After all, it will eventually have to be exchanged for the new currency anyway...with a premium. This assumes of course that it's not a Mad Max scenario...just an "orderly" monetary reset/depression where I'd eventually buy dividend stocks and get on with life again.

Thanks for your thoughts...

Edited by: joe rocker on Nov 8, 2014 - 5:06am
Mon, Jun 20, 2011 - 10:09am
Bull
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PHYS

I'm liking PHYS for my 401K. Canadian and Sprott seems to have integrity. SHTF is possible in numerous scenarios. If the shelves are empty and gas stations closed not much will help but the stash of physical is the best hedge.

I see a slow motion melt down with a fortune to be made in PM. The GGG (gold guns and grub) folks are the best prepped for Mad Max but I am opposed to human suffering and know Mel Gibson to be no hero.

Bull
Mon, Jun 20, 2011 - 10:18am
tmosley
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No way to know what is fraud

No way to know what is fraud and what isn't, or whether you will be able to access your money should the govt outlaw PM ownership for US citizens and/or collapse.

If you have a LOT of cash you want to convert of silver-like products, but don't want to hassle with installing a vault in or around your home, or if you are trapped in a world of paper, those might be good options. I'd stack physical myself.

But then, what did you expect from me?

Mon, Jun 20, 2011 - 11:36am (Reply to #3)
Pax Argentum
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When the Money Dies

Since we don't know what form the meltdown will take diversification still holds. If you lean toward an extended 'soft patch', CEF and the others are probably for you but don't neglect actual physical. $100,000 in Gold Eagles isn't a very big stack to have to hide. Disclaimer: I like CEF and own it. Pax

Mon, Jun 20, 2011 - 5:18pm
ouchtouch
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Diversification is key

Diversity of location, e.g. some at home, some in a depository nearby, some overseas (e.g. goldmoney), and some in paper form in a tax-advantaged product like CEF, GTU, or Sprott. If things get so bad that the electrical grid/internet are acting funky, more physical exposure might be in order.

Mon, Jun 20, 2011 - 6:55pm (Reply to #5)
Jasper Puddlemaker
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I agree with the wisdom of

I agree with the wisdom of diversification via owning CEF or Sprott products. Seems to make sense from a liquidity and location (held outside my country) standpoint. If we were to end up in a long-term situation where ONLY physical metal in hand was of use then it truly is TEOTWAWKI and I doubt having a bucket full of metals in hand would do me much good anyway. At this point in time I feel better having some diversification.

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