I am well diversified outside of PMs, they in total are less than 12% of my net assets.
That is a sane level imo.
Throughout history, there has always been someone around who will take your gold. They would have to confiscate the guns before they try for the gold, there will be resistance.
I am not asserting they will come take your gold. I have not written that. I am saying that gold you can't trade without being expropriated when you trade it, is the same as having a zero value (assuming the taxation rate is roughly 100%[1]).
My point is what will you trade it for when there is no cash?
And of those things you can trade it for, which of those won't be registered with the government (e.g. real estate, cars).
Also when unemployment reaches 50% and the governments are hiring people by the millions to be snitches and do sting operations, how will you trade while hiding from the government?
If you can't hide from the government, then how can you stop the government from expropriating it via taxation?
Another very effective way to attack goldbugs who try to exchange their gold, is to drive the economy into such a mess that crime becomes rampant, thus most trades will go down as muggings. Oh so you carry your guns to the trade, and the mob brings bigger guns to the party. An arms race back to the era of mobsters... I can be fairly certain how quickly you will tire of that type of world and throw in the towel on gold leaving it to sit in your basement forever useless. You could hold it for 20 years like those who held from $850 in 1980 down to $250 by the turn of the century, losing 1000% gains in stocks and bonds interim.
Also once the rule of law is gone, the government can do basically anything they want to. So expect bullshit such as Civil Asset Forfeiture on your gold when you trade it at a registered dealer. Meaning they seize your income from the trade declaring it money laundering or whatever and you are unable to disprove or win a fight in the kangeroo courts.
There was a former US Treasury official who was quoted by an anonymous source, "We will burn the fingers of goldbugs up to their armpits". Perhaps that might have been Robert Rubin.
[1] I don't assume the tax rate will be 100%, but I think they may force savings into nationalized accounts, meaning in effect 100% expropriation. Also note that that a 90% tax (I believe upper tax rates reached this level in the USA prior to WW2) on capital gains with 500% capital gain, is 72% effective tax on purchasing power (assuming gold's rise reflects the loss in purchasing power of the dollar which may not be the case). Also if you can't prove your tax basis, they might tax as if your tax basis is zero.
