Does the average person have more in precious metals than cash?

[vacuum]

Here's a random thought I had:

Most people use a debit card. I don't see that many that use cash, so I'm guessing that the average person has less than $100 in physical cash at any time, generally.

However, most people have jewelry, tvs, cell phones, cars, and other electronics. It seems to me that the combination of these would be greater than $100 on average.

So am I missing something here? Obviously large bank accounts don't count.

I suppose there might be cash-heavy people like illegal workers or drug dealers, but cash does have a tendency to move. I wonder if cash-heavy types significantly increase the average. (But don't forget the pm heavy types :) )

[Veni, vidi...evigilavi!]

...
However, most people have jewelry, tvs, cell phones, cars, and other electronics. It seems to me that the combination of these would be greater than $100 on average.


Well, inthat combination, yes, however...your title asks for PM's, in which case your average lamb, more than likely holds no more than $500-$1000 in jewelry and once they need the all mighty FRNs then they pawn it. So, in that case NO!
And as far as physical? Ur right, most folks don't carry more than 5 benjamins at most, and maybe only for a day on paydays!

[Sparky]

I don't see the relevance. If they have more in PM than in cash, it's only because they don't have much cash. What point are you trying to make?

[vacuum]

I don't see the relevance. If they have more in PM than in cash, it's only because they don't have much cash. What point are you trying to make?
Its just an observation mostly. Some conclusions you could draw would be (1) most people truly have very little, (2) cash could be extremely important if the shtf, maybe much more than pms. It depends, in Argentina everyone's bank accounts were left intact, but the money was just devalued. However, if there was an emp and electronics went down, for example, totally different scenario.

[BrewTech]

Cash? In a cashless society? Please...

Anybody holding a lot of cash is either a drug dealer or a terra rist.

And if you are holding gold/silver you are even worse!

[mightymanx]

Hell most people in this country anyway have a negative net worth if you honestly run the numbers.

Complacency kills and there are going to be a whole lot of dead people that did not figure out that fact of life soon.

Other "poor countries" have much more stored away because they are not complacent in the fact that they will never be uncomfortable.

If Joe Sheeple just skipped buying one stupid Electronic gizmo and bought some basic tangible assets. They would not be slaves to the handout factory AKA government.

[Sparky]

Its just an observation mostly. Some conclusions you could draw would be (1) most people truly have very little, (2) cash could be extremely important if the shtf, maybe much more than pms. It depends, in Argentina everyone's bank accounts were left intact, but the money was just devalued. However, if there was an emp and electronics went down, for example, totally different scenario.

I think without question, cash would be much more valuable at the beginning of a SHTF situation. The government response to SHTF will be to flood the system with cash. That's when your PM will serve you for the longer run.

Think about it this way: If digital money became unavailable or inaccessible, do you think the people with cash are going to be spending it on food, or on PM? If cash isn't going into PM, and digital money isn't available for PM, what will hold up the PM price? If you have only PM and need cash to buy things, and you bring your PM to your dealer to exchange for cash, he will be reluctant to give up his cash to you. The price of PMs would drop initially. The only buyers would be those with enough cash for monthly cash flow PLUS additional cash to take advantage of falling PM prices.

As I said, this would be followed by a government flood of printed cash, at which time the PM price would soar.

The interesting part is thinking about the timing. How long would it take the government to act? It would probably take a week of SHTF for them to understand the problem, another week for Congress to debate it and give the order for a cash infusion, and then another 1-2 weeks to actually print and distribute the cash to banks who could then distribute it to their depositors.

That's why a month's worth of cash for purchase of food and supplies (not for paying monthly bills or mortgages or rent!) is the minimum to have on hand. If you have more than that, you can be the one buying up the PM at discount prices.

Of course, this just covers one possible SHTF scenario. There are others, so the goal is to cover as many bases as possible.

"Cover as many bases as possible." -Sparky

Geez, now I'm sounding like Ponce...

[BabushkaLady]

Here's a random thought I had:

Most people use a debit card. I don't see that many that use cash, so I'm guessing that the average person has less than $100 in physical cash at any time, generally.

However, most people have jewelry, tvs, cell phones, cars, and other electronics. It seems to me that the combination of these would be greater than $100 on average.

So am I missing something here? Obviously large bank accounts don't count.

I suppose there might be cash-heavy people like illegal workers or drug dealers, but cash does have a tendency to move. I wonder if cash-heavy types significantly increase the average. (But don't forget the pm heavy types :) )

1) Most people seem to only have a few bucks; much less then 100.

2) Are you comparing stuff with equivalent dollar amounts? Or pawn value??

3) I think the illegals and drug dealers operate in Reality. They Don't Trust the Banks or goberment for a good reason!

4) The average person doesn't know what precious metals are. It's a vague notion to them.

[BabushkaLady]

. . .
That's why a month's worth of cash for purchase of food and supplies (not for paying monthly bills or mortgages or rent!) is the minimum to have on hand. If you have more than that, you can be the one buying up the PM at discount prices.


I agree with most of what you said Sparky; however; Having food and supplies on hand frees up that month's worth of cash. Ideally you have the preps and the cash for the bargain PMs and cheap stuff when the time comes.

The funny thing about putting up cash; it just takes some discipline and a source . . .

[Ponce]

My PM is more than all my other assets combined..........

1= Silver

2= IOU's <----------this one might be a complete lost (principal), will know next year...but...got it back in interest.

3= Home and so on.

4= Dollars and coins <-------includes foreign currencies and nickels.

5= Gold <-------my "Run Like Hell Ponce"

I use my credit card only for on line purchases and always pay at the end of the month......never keep in the bank more than what I need for that particular month to pay all my bills.......always carry at least $500.00 with me.

Always ready with a plan, behind the plan, behind the plan........always planning and always thinking.

[Sparky]

I agree with most of what you said Sparky; however; Having food and supplies on hand frees up that month's worth of cash. Ideally you have the preps and the cash for the bargain PMs and cheap stuff when the time comes.

The funny thing about putting up cash; it just takes some discipline and a source . . .

Of course I agree with food and supplies. But the cash is there to cover another base.

But an interesting question for you: If you have your own food and supplies and some cash when TSHTF, do you start using your own food until it runs out, and then hope that the store still has food? Or do you buy the extra food while it's available?

[BabushkaLady]

Of course I agree with food and supplies. But the cash is there to cover another base.

But an interesting question for you: If you have your own food and supplies and some cash when TSHTF, do you start using your own food until it runs out, and then hope that the store still has food? Or do you buy the extra food while it's available?

I actually believe that S has HTF. This is the slow motion viewing!!

I am loaded with plenty of food and supplies for a long long time. I figure that any day I could wake up and find out something finally pushed everything over the edge. I continue to restock and load up on coupon bargains every week.

So yes, in this slow motion version, continue re-stocking as usual. If a really big event happens, I'll stoke the fire, start the generator for the freezer and get my lanterns lit. Then I'll plan dinner!!

I don't plan on running to town after any major event. My small network of friends have discussed all contingencies BEFORE we need them.

In the real SHTF scenario I'll use common FRNs for replacement gas and any unforeseen supplies. We've had plenty of time to check our list TWICE.

I'm not so sure PM's will be for sale; more likely for barter. So I have some good stuff to use for barter too.

[Joe King]

But an interesting question for you: If you have your own food and supplies and some cash when TSHTF, do you start using your own food until it runs out, and then hope that the store still has food? Or do you buy the extra food while it's available?
I'd say you get all you can while you can and in doing so, pretend that what you're getting is all you've got.

[Sparky]

I actually believe that S has HTF. This is the slow motion viewing!!

OK, so you're saying TS has already HTF.



In the real SHTF scenario I'll use common FRNs for replacement gas and any unforeseen supplies. We've had plenty of time to check our list TWICE.OK, so you're saying TS has not yet HTF. Make up your mind!

The idea of TSHTF in slow motion doesn't make any sense. The entire SHTF analogy implies that one second, the room is clean, and then instantly, the room is covered everywhere with S. If you want to say that the long, slow grind toward a lower standard of living began a while ago, I'll agree with that.

We'll know TS has HTF when we are no longer debating if TS has already HTF.

[Sparky]

I'd say you get all you can while you can and in doing so, pretend that what you're getting is all you've got.

Roger that.

[BabushkaLady]

OK, so you're saying TS has already HTF.

OK, so you're saying TS has not yet HTF. Make up your mind!

The idea of TSHTF in slow motion doesn't make any sense. The entire SHTF analogy implies that one second, the room is clean, and then instantly, the room is covered everywhere with S. If you want to say that the long, slow grind toward a lower standard of living began a while ago, I'll agree with that.

The current SHTF is essentially financial and well-planned not to go Boom too soon. I'd predict a devaluation down the road; but not yet.

The other SHTF I consider of bigger magnitude, would be a major False Flag or serious natural disaster.

The latter being the more serious event to prep for. In either scenario, I don't believe society would be reduced to using hand tools forever. Maybe until infrastructure is back up; but certainly not forever.

Each one of us could define what SHTF means to us; but seeing through to the other side to me is the critical part. I don't believe for one minute the stock market won't be operating as soon as it can after an Event. Sure you may not see apples in the grocery store year-round but stocks will be trading . . .

[letter_factory]

I suppose there might be cash-heavy people like illegal workers or drug dealer



You just nailed it right there, comrade. That's why the new world order must embrace a cashless society.

[StreetsOfGold]

1 in 10 Brits Have Gold Stash Worth More Than Savings in Bank

According to a new survey by esure home insurance British distrust of banks and savings accounts has increased to such an extent that more than one in ten in the United Kingdom now own a stash of gold valued above any cash savings.
According to the survey, more than 38% of Britons also say investing in gold is better than keeping cash savings. As gold vending machines pop up in shopping malls and physical gold retailers like London-based Bullionvault surpass some central banks in gold holdings, 14% of Britons bought an item of gold as an investment in the past year.
Immediately bank-friendly Savings.co.uk tried to poke holes in the gold as savings argument saying gold doesn’t produce an income like interest (USARY) or dividends, it’s illiquid and if you buy physical gold you’re unlikely to be covered by any financial compensation scheme if things go wrong.

http://www.mining.com/2011/10/19/over-one-in-ten-brits-have-a-gold-stash-worth-more-than-what-they-have-in-the-bank/