A quick weekend post to report on the latest record high set by gold:
On September 16, I wrote about gold hitting a new high of $2,588.19 per ounce. This Friday, five weeks later, it hit a new high of $2,721.80. That is up $133.31, or five percent. Not a bad gain in a month.
During the same period, silver is up from $30.72 to $33.78, an increase of 10 percent. An even bigger gain, but gold gets the media attention.
What I find shocking is the gold Krugerrand I bought in 1999 as part of my Y2K preps is now worth about ten times what I paid for it. I wish I had purchased ten or twenty, but back then, $278 seemed like a lot of money. I had three kids at home and credit card debt. Even if I had known gold would go up ten times, there was no way could I afford to spend $5,500 on gold. (Read the full story on the Krugerrand pictured above, which was posted in 2021.)
Why the High Price of Gold?
All the reasons I mentioned last month, like inflation and the deficit, remain valid, but I suspect the election plays a larger part today than it did then. The market is anticipating a Trump victory and expects it will result in physical goods like gold, silver, oil, steel and other commodities will do well under his administration.
Of course, it’s easier for you or I to own $2,700 worth of physical gold than it is to own that much oil. Where would you store 33 barrels of oil? A once-ounce gold coin can be hidden anywhere.
But recall, too, that in our recent Hurricane Helene emergency in which there was no power or Internet for weeks, no one was spending silver or gold. There was no barter with silver dimes for a gallon of gas or a dozen eggs. It was all greenbacks, and the banks were limiting withdrawals to $1,000.
I paid cash for the eight bags of chicken feed I bought last week. The general store operated for ten days without lights and took cash. (They reopened before Walmart.) When I got there, the lights had been on since Monday. I do not know if they were taking cards yet because I didn’t even try to use one. But I can tell you there was a thick wad of twenties in the cash drawer.
Cash and Gold for Preppers
Based on my recent experience in Hurricane Helene, my new thinking related to a global or national long disaster is credit cards will have almost no utility, cash will have more, but silver and gold won’t be used for months or years, much like this timeline:
| Day 1 – 2 | Credit cards may still be accepted online and in limited locations, depending on the nature of the disaster |
| Day 1–5 | Cash, if you can find a store that is open |
| Day 5 – 10 | Some places will still accept cash, but the number will decrease, especially if banks are not open |
| Day 7 and on | Barter, especially for food, gasoline, tobacco products, alcohol and drugs. (See my thoughts on barter.) |
| Years 3 and on | Junk silver and other silver coins like American Eagles and Maple Leafs will be useful for day-to-day transactions. Gold will be used for large transactions, like purchasing real estate or livestock |
Prep accordingly.
NOTE: I am not a financial advisor, accountant, tax professional, lawyer or an expert in precious metals. All I am is an educated prepper relaying my personal beliefs built up over more than 30 years of prepping experience. Do your own research and consider consulting a financial professional before making any financial decisions, including those related to buying or selling gold.
