Oh yeah, silver is down…….

I’ve been so wrapped up with the gun stuff going on (and rightly so, I believe) that I completely overlooked the fact that silver has dropped below $30 and is, at this moment, right around $28.75…time to buy!

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I’m fortunate that I have a buddy in the gold/silver biz (and, wow, has he been busy lately or what!) so he only gives me the mildest of dirty looks when I ask him to drop by the shop with just one or two silver rounds or Eagles for me. (Honestly, I prefer the rounds for the better value but the Eagles are probably more ‘recognized’.) It sucks that between the sputtering economy (and how are those job numbers these days, anyway?) and the gun control shenanigans it’s mighty hard to decide which direction to point my disposable dollars at. (Although, after typing the term ‘disposable dollars’, I think I’ve figured out where to point that wallet.)

Really, the ‘investment’ plan is really the same as it’s always been: gun stuff, metals, food. (Not necessarily in that order.)

I realize that there’s a certain demographic (a short-sighted one, in my opinion) that says “If you cant eat it or shoot it whats the point of it? When we’re all living in caves and eating our children no one will want your Eagles!” and thinks buying this sort of thing is a waste of time. That’s cool, I can respect that..I disagree with it, but I respect that you have an opinion. So take your money and buy more mags, ammo, land, guns, food, fuel, clothes, meds, household supplies, tires, and tools…because while we can disagree about the metals thing, I think we can agree that there’s virtually no point in holding onto anything more than a small amount of cash when it’s looking more and more like the only economic courses available to this country involve bank runs and inflation.

21 thoughts on “Oh yeah, silver is down…….

  1. FYI on the inflation / cash thing, if we look at the past two decades, Japan has been devaluing their currency in a Keynesian attempt to spur growth. It has done *NOTHING* but create a 2:1 soverign debt ratio. Their economy has stagnated for 20 years and while they have “inflated” in the traditional sense, because there is no private demand for credit, have not seen consistent price inflation.

    Our country isn’t Japan, and the $ is the world’s reserve currency. That will make the $ more prone to strength, so the US Government has even more leeway to “print” before price inflation hits. You’re seeing strength in the $ now which is causing the metals prices to fall. This is also because the economy isn’t going anywhere anytime soon.

    However, we will see pockets of price inflation because the Fed has and is “printing” money. Their actions have done some “reinflation” of the housing bubble in some regional markets like California, Arizona, and New York, where the money is hitting first. I also wouldn’t be surprised to see some new technology bubble with Venture Capitalists. Banks have huge reserves because of their ability to sell off their toxic assets to the government (Fannie and Freddie) and keep these things off books.

    The reality is it’s hard to predict what’s going to happen. The average layman doesn’t have job security and debt levels are still high, so I wouldn’t see much credit consumption ability from the average Joe.

    In the long run, precious metals have *ALWAYS* held their value. If you want a store of wealth for uncertain times, that is certainly something you want to explore.

    Also you have mentioned guns, ammo, and magazines. These are going to be valuable as commodities should anything go south with the dollar. DHS is buying pistol and rifle ammo, as well as making practice shooting targets called ““no hesitation” targets modeled from pregnant women, little kids, old men, and teens. There is a real design with the federal government training to prepare for civilian unrest and training its employees to shoot you.

    http://www.infowars.com/law-enforcement-requested-shooting-targets-of-pregnant-women/

    And if they can’t, their drones will.

    http://www.dailymail.co.uk/news/article-2281403/U-S-Air-Force-developing-terrifying-swarms-tiny-unmanned-drones-hover-crawl-kill-targets.html

    In my opinion, we are closer to a dictatorship / civil war / unrest than we are to TEOTWAWKI.

    • “In the long run, precious metals have *ALWAYS* held their value. If you want a store of wealth for uncertain times, that is certainly something you want to explore.”
      A true statement, but only in the context of history which does not include nuclear war, runaway inflation, mass pandemic or Zombies. Sure gold and silver are good as things go bad, but like in Germany after WWI that gold coin could not buy a loaf of bread…because there was none to be had. I have some gold and some silver but I realize that food, booze, smokes, gun parts and ammo will have a better barter value then some gold or silver coins. So I have some extra of those items just in case. If I read CZ’s post correctly we all need to strike a balance in what we stockpile to survive,
      and not poo poo any one aspect…like precious metals.

      • I certainly did not mean to disparage any one aspect of preparedness. Having precious metals will preserve your wealth in what I consider any 95% scenario.

        If you look historically at the majority of developed countries / economies, typically inflation / uncontrolled state spending has been the wealth destruction scenario.

        Balance is good. Certainly like I said, weapons related trades would have extreme value in infrastructure degraded environment. I adjust my balances accordingly and regularly depending on how the wind is blowing.

  2. Umm….you do know what the acronym “TEOTWAWKI” stands for, don’t you?

    a dictatorship / civil war / unrest are all just that.

    Just saying…

    • Typically I associate TEOTWAWKI as a catastrophic event, war or holocaust that destroys a good bit of our everyday infrastructure.

      IMHO, we are already in a soft-dictatorship on its way gradually to something we would consider Nazi-esque. The problem is, if you look at all the statist controls and interventions of that country and era, we already have them in place here. The Germans didn’t know they were fascists until they lost the war. The US typically invades countries in order to overthrow them, or instigates other countries to do that. Since 9/11, we have government controls in place that require our “papers please” at airports and other common carrier locations. There are warantless stops on our highways. We have the NSA Datacenter in Utah build for the sole and specific purpose of storing, deciphering, monitoring, and tracking every single thing happening on the internet. We have state planning and ownership of financial institutions. We have an executive that is assassinating civilians without due process, and that is arming and training the national “homeland security” agency to be desensitized against killing civilians, pregnant, children, young, and old alike.

      Many people would argue that America is still “home of the free, land of the brave,” even against all that I have stated.

      However, no one would argue that we are currently in a TEOTWAWKI scenario, despite our country being in a state of war, using police state tactics, and fascist elements in control of government in our country, and have had so for at least 10 years.

  3. I too am buying on the dips and I believe that silver is undervalued by about 15x when you look at the last 2000 years (minus the last 100). A 10th of an ounce of sliver was about the usual daily wage until we created the fed was created. Once the fed goes away with the paper dollar (and it is mathematically inevitable), silver will return to its place as the daily wage and common currency. Every time I buy an ounce of silver, I like to think of it as 10 days of manual labor – now that is good value!

  4. So, of course the floor is dropping out from Silver, everybody is looking to stock up on .223 FMJ at $1/round, so they gotta find that cash somewhere. Just a tiny bit of overlap between those two demographics. :)

  5. CZ, do you buy only rounds or do you diversify into “junk” silver coins as well? I’ve been into junk silver for a while now, but considering a few rounds just for the compactness.

    I figure the smaller dimes and quarters will be a worthy medium of exchange along with a few .22 shells if I need to make “change” on a barter activity.

  6. Spot silver is down, but if you want physical metal, it’s going to cost more. We’re seeing the disconnect between paper promises and metal in hand continue. I should look for some data on whether that gap is widening.

  7. So CZ, have you ever mentioned “disposable dollars” around the missus?

    I agree you can’t eat Silver. But each of us has a $20 in our BOBs because * someone * will value paper money or silver and trade you something for it.

    In the case of Silver, as with many other preps, “Better to have it and not need it than need it and not have it”.

    • You hit the nail right on thehead. It’s better to have and not need. I”ve never thought of coins as an investment. More along the line of can goods in the pantry.

    • I keep $1 bills and some quarters in my bag for vending machines. Of course, if its a complete breakdown, perhaps you would just break te glass on a vending machine. But for smaller local emergencies I would buy my food or drinks.

  8. What is a “round”? I’ve some junk silver, but I wouldn’t mind increasing the pile…

    Anyone know a decent place to buy metals if you don;t have a friend in the business? The place I used back when is no longer around.

  9. I have been into PMs since I was a teenager. I used to run out after work and buy silver rounds in the early 80’s. For record’s sake, I would write the date and spot price. I have a bunch that were from $19-$38 back in 1982/3.

    I still get the urge to run out after work and buy a little here and there. Nowdays, its mostly junk silver. Meridian Pawn has treated me right over the years so that’s my first stop.

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