This post follows my Banking post. I think the 2 are linked as the following will happen if/when the Government grabs banks. So, here is my precious metal OPINION...
I have read so much about this that my head spins. FIRST - I am NOT a financial advisor, nor do I play one on TV. I do like Gold - in fact I wear it frequently ;)
Ron Paul thinks the dollar is going to tank....and not just lose a little value, but BE WORTHLESS. If you hold to that thinking, Gold would be a good choice to put dollars in order for them to AT LEAST not go to ZERO and possibly keep their entire value and even make some.
Gold is nice - as I said, I am a big fan....HOWEVER....I think SILVER is where its at.
Gold is expensive - EXPENSIVE. If you look at things of large value - stocks - real estate - things that are EXPENSIVE to begin with, rarely go up in large amounts.
If people fear their dollars arent going to be worth much - they will start buying metals - they may buy some gold, but my bet is that most buy silver because its cheaper. The old "you get more for your money" mantra. This kind of thinking will drive the price of Silver UP FASTER AND HIGHER in relation to GOLD. IT WONT EVER be worth what Gold is worth, but its percentage of going up will be higher - that means that when you sell, you make more.
Now - with the coming difficulties, I have a hard time thinking about MAKING money - mostly I want to CONSERVE what I have - make sure that my dollar buys the most it can - counter act INFLATION, but I am also not opposed to making a few extra bucks.
So when you have used your dollars to buy tangibles - the ole bean, bullets and band aids - add some silver and maybe come out ahead when this thing goes South and manages to turn around....eventually.