Gold and Systemic Crisis - Most money has no tangible existence.
MY COMMENT: The panic into physical gold/silver might rival the NASDAQ and Housing bubbles. I was at a public auction back in March any time a $90 gold coin (1/10 ounce) came up they would bid it up to $130 - 235++. There more 5-10 people bidding like crazy for the gold and silver.
One guy bought a painting at the auction for $3000ish, with no competitive bidders. He had it appriased for $350k-435k the following week. A 1800ish black powder brass pistol came up for auction no bidders until it hit $20 dollars...I sold for $80. That pistol might sell for $300++ in the right market place.
MY POINT: If you are panicing into gold/silver now, you should ensure you are not blind to the other opportunities around you. The bigger money was made with pistol and the painting. The dumber money was paying a very high premium for gold and silver. I love physical gold and silver. However, I like other assets too. I told Fooldom to buy ammo and ammo makers 9 months ago, that has 100%+ return in less then 12 months. Gold and silver are holding. There have been some other Fools making some great calls also. IMO, gold and silver are very crowded trades now, so keep your eyes open for less crowded opportunities too.
Gold and Systemic Crisis
Zerohedge has an outstanding post for those that might not grasp the current panic into gold/silver.
To many of us, it is obvious the US equity markets will soon crash, but the real crisis will come with the failure of our currency -- a currency which is IMPLICITLY and historically linked with trading of both dollars for oil, and dollars for gold. Thus, these spot markets are the ones to watch. Some may be aware Russia recently surpassed Saudi Arabia as the world's number 1 oil producer -- and last week , number 2 oil producer Saudi Arabia has signed a $2bn weapons deal with Moscow. The final strategic alignment of Saudia Arabia and the rest of the Middle East remains up for debate, but we have certainly witnessed the tentative steps of the BRIC nations and their affiliated satellites to build their own international clearing system, based in Hong Kong and Moscow, rather than New York and London. Ultimately this will probably involve some form of the IMF SDR -- rebalanced with new currencies and possibly a gold component. Remember Medvedev at the G8?