How much gold will I need when financial Armageddon hits?

Michael Allan McCrae | November 17, 2012 | 9:29 pm Precious Metals Gold Silver

For those who believe crippling inflation is just around the corner due to reckless money printing, Casey Research has put together a table to help people budget for how much gold and silver they will need when paper currency no longer works.

It’s simply a matter of setting your current monthly budget, a timeline on how long the crisis will last and then converting to gold.

Casey Research starts with the assumption that gold will be at $1,600/oz. So to maintain two years of monthly expenses at $2,000, the investor will need to salt away 15 ounces of gold.

Of course people can take the silver route but they will need a lot more room to store it. In the same scenario above an individual would need to find space for 1,285.6/oz of silver based on price of $28/oz.

Just remember, says the author, that the day of reckoning will come:

If price inflation someday takes off – an outcome we see no way around – no one’s current standard of living can be maintained without an extremely effective plan for keeping up with inflation.

I’m not talking science fiction here. When the consequences of runaway debt, out-of-control deficit spending, and money-printing schemes come home to roost, it’s not exactly a stretch to believe that high inflation will result. We need a way to diffuse the impact this will have on our purchasing power. We need a strategy to protect our standard of living.