/biz/ - Business & Finance

>>55388765

That's part of it. But, read my first reply; >>55388745 I view precious metals as a last ditch insurance policy. If you're in an environment with extreme volatility, being forced to liquidate your entire stack in 1 trade could end up destroying you just a few months down the road if you're in a hyperinflation scenario where your cash proceeds lose a lot of value in a short period of time. Being able to liquidate 1 ounce of gold a month to cover basic expenses would be ideal over liquidating an entire kilo in 1 month.

On top of that, in the second scenario where you have to barter, you have to think about how many people will even have the ability to match your kilo gold value in physical goods. No farmer is going to be able to trade you 1 gold kilo worth of meat, eggs and milk. He won't have the inventory and it would be a dumb decision on your part because your goods would go bad over time anyways. Plus, you draw WAY too much attention flashing a kilo gold bar around looking for someone to do business with you.

>>55384427