Letter Re: Silver/Swiss Francs/Gold

Hi, sir!

I just listened to an interview Mr. James gave on the XX2 Spotlight Report and wanted to ask either you or he a question. I have been following the economy for quite some time and now, as Mr. Trump prepares to enter office (if he actually gets in!), I am getting nervous about the banks. I heard Mr. James mention silver and swiss francs but not gold, and then he mentioned paypal. I have none of the above! I have no idea HOW to buy silver, gold, et cetera, and an investor I met in passing the other day told me to go to a pawn shop. What do I do there? Do I just walk in and buy a coin?

I have a lot of food and water stored, and actually I have quite a bit of cash; I just don’t want the value of my currency to fall, which it probably will, so I want to have some buying power. Any thoughts or advice would be greatly appreciated. – N.T.

JWR’s Comment: Some pawn shop owners are notorious for both under-paying when they take in precious metals and over-pricing them when they sell them. Be sure to compare prices with at least two local coin shops before you buy.

In my estimation, silver is presently much preferable over gold for three reasons:

  1. It is more appropriate for barter, since gold is too compact a form of wealth. (As I explain this in Chapter 16 of my novel Patriots.)
  2. Silver is currently undervalued and will likely gain in (relative) value versus gold, in coming years.
  3. Gold was confiscated from the citizenry by our government in the 1930s, and they conceivably could do the same again, in the event of a major monetary and budget crisis. Silver was left untouched.

If you are buying locally, then you might as well pay in CASH, to minimize the paper trail of your purchases. For barter, the best coins to buy are U.S. 90% silver pre-1965 mint date dimes and quarters. You should buy worn coins (often called “Junk Silver” coins), to get them at the lowest premium. There is no need to buy numismatic grade silver coins; if you do, then you will pay too much.