If the U.S. economy collapses, does gold still hold it's value?

Question

Since, people around the world want gold, does gold still hold its value. Or does it go even higher in price per oz.

Answer 1

If the economy collapses I would expect inflation to slow or possibly turn to deflation. Gold being the inflation hedge that it is could plummet. In such a scenario (which I believe is unlikely) I'd rather have food and fuel than gold. What you gonna do with gold in a collapsed economy?

Answer 2

The value of gold is set more from people hedging their bets. People see gold is very stable and as the dollar's value collapses they buy gold because it is a better store of value. The same thing has happened with oil. There are many many factors but a weaker dollar means that gold will be a good investment.

Answer 3

Worth is derived from supply and demand.  Demand is a result of desire and ability to buy.  Supply is desire and ability to sell.  Therefore, golds value will come from people who have it and are willing to sell compared to people are are want it and have the money to buy it.

If the US economy collapses, then in US dollars, nothing is worth anything because people will not be able to buy anything.  That is what happened in the depression.  Everyone wanted things, but no one had money to buy anything.

If that happened, you could sell your gold to people in other countries.  But you will need to have a method of getting it to those people and have a plan to spend their money on things that you could sell in the US.

Gold has value right now because people are worried about inflation.  People are putting large amounts of money into gold thinking it is a good investment.  Sooner or later the market is going to get better and people are going to want their money back for other things (i.e. new house, business investments, etc.).  You will see the value of gold fall.

So if you are concerned about the value of gold, then you should be more concerned about the economy getting better than collapsing.

Answer 4

Yes...and gold is the thing to do right now...actually it would've been better for you to have started a couple years ago....but no matter what happens..worldwide, gold is the last safe refuge.

Answer 5

If the U.S. economy collapses, the whole world's economy collapses.

Answer 6

Gold has a worldwide value,so it could still be sold for a high price abroad.

Answer 7

Gold and Silver is "Gods" money. I buy gold and silver when it is in a down market because it will always be worth something. A dollar is nothing more than "currency", paper with printing on it to collect on debt. It is not backed by gold like it was before President Nixon destroyed that.

Answer 8

Yes.  In fact, the worse the US dollar does, the better gold appears to do against the US dollar.  So if you're in US dollars, and/or you're American/live in America, I would definitely buy as much gold, ie., get rid of as many dollars, as you can.  

Indiana Jones is wrong.  The world's economy will not collapse with the US.  It will be affected, but the US is now less than 40% of the world's economy.  In another ten years it is seriously not going to dominate the economic scene by any legal means.  

MoneyEnergy

http://www.getmoneyenergy.com

Answer 9

Gold is the "Gold Standard)

When the dollar is worth alot, then it's worth more then gold (gold is cheap to buy with the dollar)  If the economy crashes, then it is worth less then gold (gold costs more dollars to buy)