Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today, we again look at investing in Nickels. (See the Commodities section.)
We’ll start off with this piece over at Lew Rockwell’s site: The History of the World is a History of Gold
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Gunmen steal $2.5M in gold coins from open vault at Mexican mint headquarters. (Thanks to H.L. for the link.)
Economy & Finance:
At Zero Hedge: China “Faces The Worst Of Both Worlds” As PPI Deflation Arrives While Food Inflation Soars
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Bankruptcy-related job losses are grimly reminiscent of the Great Recession
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Wolf Richter: The State of the American Debt Slaves, Q2 2019
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Another article at Wolf Street: One of World’s Construction Giants Admits Using Risky Hidden-Debt Loophole “Across Group.” Australian Subsidiary Crushed
Zero Hedge reports: Tightening Nickel Supply Threatens Electric Vehicle Boom. (Thanks to G.P. for the link.) JWR’s Comment: The melt value of a U.S. nickel 5-cent coin recently crept back up to nearly 4 cents. ($0.0398, according to Coinflation.com.) So stock up, before nickels are debased and a “Nickel” coin no longer contains any nickel!
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Kyle Bass’s big nickel bet. JWR’s Comment: I first advised acquiring U.S. nickel coins back in 2009. I believe that author Koning missed the point of the hedge into tangible nickel taken by Kyle Bass. It was (and is) more of a hedge on the inevitable inflation of the U.S. Dollar than it was on the nickel metal market. It also showed great prescience, anticipating the growth of the global battery market. I am confident that history will prove that I was about 10+ years early, and Bass was about 8+ years early, in our nickel moves. For both of us, the premium that we paid was ZERO, and our risks have been nil. After all, I can always cash in my nickels at the bank. They are still legal tender.
Higher inflation is coming, folks! Once the melt value of a nickel coin nears 10 cents then they will disappear from circulation. Gresham’s Law dictates that.
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Hedge Funds Turn Their Back On Oil
All of the major stock indices were down dramatically on Tuesday (August 14, 2019), with the S&P 500 down 2.93% and the DJIA and NASDAQ both down more than 3%. Yikes! Buckle up. I hope that you took my advice and minimized your stock exposure — and meanwhile diversified into tangibles, including silver. Even though it is more of an industrial metal than gold, I still expect silver to outperform gold, in the months to come. Silver could literally double in price (from $17 to $34 per Troy ounce.) But it is long way for gold to double from $1,500 to $3,000.
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How Can a Company Lose $5.2 Billion on $3.2 Billion in Revenue? Uber Shows How
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Did A Kiss Good-Bye Take Place For The S&P 500?
Forex & Cryptos:
Argentina Default Fear Looms as Traders Dump Assets. JWR’s Comment: This can’t bode well for the Argentine Peso.
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Global System to Combat Crypto-Driven Money Laundering in Development
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Binance KYC Breach — Did It Happen, and If So, Who’s to Blame?
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Altcoins Annihilated as Crypto Winter Threatens to Return=
The continued polarisation of the Swiss watch market
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What’s new in the watch market?
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who closely watch specific markets. If you spot any news that would be of interest to SurvivalBlog readers, then please send it in. News from local news outlets that is missed by the news wire services is especially appreciated. And it need not be just about commodities and precious metals. Thanks!
RE: Nickels- Maybe they’ll start making ’em outa wood! LOL. I’ve heeded your warning and have been culling them from change for a few years now,
You can mine Nickel without a mine, without a refinery and without risk. Just go to the bank and get $20.00 in Nickels every week and put them away for the inevitable rise in the price of Nickel.
A Nickel is 75% copper and 25% Nickel, that 25% Nickel is the key. All you have to do is sell the Nickels. And it only cost $0.05 each. You cannot lose any money.
A nickel is the only coin in circulation that is the same metal content as it was in 1866, but not for long. When the mint changes the metals in the Nickels many will say IF I ONLY HAD KNOWN WHAT WAS COMING. And in the event that nothing happens to the Nickel what have you lost.
Anyone can do this rich or poor, an investment that can not lose any money.
When NAFTA was passed more than two decades ago I remember being decidedly undecided about whether it was good or bad. Read the pros and cons and just could not tell one way or the other.
I have now concluded that it was bad for the majority of the US but good for a few elites. I believe that for some time many elites have been enriching themselves by selling out Americans and transferring our wealth overseas.
Is this a John Birch style conspiracy? I don’t know and I don’t think it has to be (although it could be). When Rome was invaded by barbarians I don’t think it was a conspiracy. Rome simply had wealth and the barbarians wanted it and kept the pressure up till they got it. When you have stuff you are a target.
Now regarding China. IMO (and I am sure there are many who would disagree) Trump has been a disrupter of this economic (and physical but that is not my topic here) invasion. He has had the audacity to put America first and fight to get better deals for the majority of Americans. This is a Battle Royale. There has been substantial effort put into the propaganda of “free trade” and our current economic arrangements have to be disrupted to make any changes to the current status quo. These disruptions will hurt the US short term. But IMO they have the potential to hurt China more and I think it is showing. Canada and Mexico gave in pretty quick. Will China? Remains to be seen but I think it is possible to win this Battle because Chinese leadership, while powerful, is not omnipotent.
I personally believe this trade war (with the southern border issue) is the most important issue for the US to remain the free powerful country we have been. I think this is one of the top if not the top issue in fighting the “Swamp”. Stealing the wealth of the US and giving it away while skimming a portion is the primary motivation of “Swamp” members IMO. The “Swamp” will not give up easily, not because of ideology, but because the have been making themselves wealthy undercutting America.
This is the War of this generation IMO. And this Battle with China could be the turning point.
Well put and I agree. SWAMP = Skimming Wealth Americans Made for Personal gain.
Celente’s warning was timely. Others were early, and now everyone is piling on. The stock market is set to crash hard this fall, just like I was yammering about last month. We saw the cracks appearing in the financial system (D-Bank), and confidence in the financial system (Banking) took a big hit. Sentiment can be difficult to gauge, yet it is the most relevant in over inflated markets. Bonds are a ‘tell’, and the inversion is easy to see, but what is happening with Duestche Bank gives us a clearer indication of the severity, and stage in the progression of the collapse. A combination of factors determine the outcome.
Folks need to pay close attention the canary’s in the coal mine. This will effects lives and the country far more than the latest scandal. What is about to happen will rock the planet and wake people up in droves. Essentials in the survival stores will disappear quickly after this initial crash.
Another Greg Hunter Interview: Bo Polny
Over the years you have cost me a ton of money. Every time I turn around there is something that you bring to my attention that eats at my horde of fiat. Nickels were one of these items…Yes I have nickels…A God load of them. A pair of boxes of nickels make the best book ends on the planet, and I got a lot of books. KEEP UP THE GOOD WORK… I still have some paper to burn!
In the event of a financial collapse,the only tangibles that will have any purchasing power will be gold and silver.Stocks,Bonds,Fiat Currency,or any other financial instrument will be used as fire starters,or to wipe your butt.Thats all.
Physical gold or silver,that you can hold in your hand will be invaluable.In the fantasy world of digital,crypto,or portfolios there is no tangible that can be touched.
You owe it to yourself and your family to survive! Don’t let them down!
Correct me if I’m wrong, don’t nickels have to be removed from service before you can melt them down for profit? I know there was a law, has it been changed?
You wouldn’t need to melt the nickels. If the price of the metal content rises the value of that coin rises. If you remember when copper was up to $4.00/lb. There were many pre-1981 pennies bought and sold for 2x-4x the face value of the coin. Same as the pre-1964 90% silver coins that are worth metal content value versus face value.