Economics & Investing For Preppers

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. Most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today, we look at the recent dip in the gold price, in USD terms. (See the Precious Metals section.)

Precious Metals:

Spot Gold took a 3% dive to a 4-month low of around $1,837 per Troy ounce early in the week, and silver meanwhile was down 2%. The gold price slump continued to around $1,805, on Tuesday. Rather than profit-taking, this seems to have been triggered by a turn in sentiment on the US Dollar Index. Dips in metals markets like this are a good time to buy. It is noteworthy that the price gap between gold and platinum is narrowing. (A +/- $800 delta versus the former $900.) But I still consider platinum a genuine bargain. In the next boom phase of the economy, platinum will probably be back to selling for more than gold.  You’ll then be patting yourself on the back for buying the white metal.

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Alasdair Macleod: The Global Reset Scam. Here is an excerpt:

“There can be little doubt that central banks wish to increase their control over money and how it is used, cutting out the obstacle of commercial banks who produce most of the money in circulation through the expansion of bank credit. From a statist point of view, commercial banking is a dinosaur, an outdated remnant of free markets, perpetuating needless systemic risk and superseded by technology. Branch networks will disappear with cash, changing relationships between banks and the general public for ever.

By introducing direct central bank accounts for members of the public and every business, commercial banks become superfluous and can be allowed to die. And if one goes bust before commercial banking has ended, the facility to transfer all its loans and deposits onto a central bank’s books will then exist. The removal of systemic risk by the abolition of commercial banks is one of several likely long-term objectives of CBDCs. Commercial banks can be left with the role of investment banking activities in capital markets.

We can imagine the development of CBDCs going even further than just replacing cash. Stimulation by dropping money into personal accounts can be used to target increased spending by consumers, or even groups of consumers, sorted by wealth, location or other factors. Some consumers can be favoured relative to others, so in a swing state, for example, an incumbent administration might buy votes. While this would be strongly denied, as we have seen with unfettered fiat currency the state creeps incrementally towards unstated objectives, using every tool at its disposal. The election of Deep State-approved politicians then becomes possible.”

Economy & Finance:

The Street reports: Hundreds of Companies That Got PPP Loans Have Gone Bankrupt

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At Yahoo Finance there’s this from Richard Cookson: Inflation May Be About to Pick Up Sharply

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Reader B.C. sent this: Hotels: Occupancy Rate Declined 32.7% Year-over-year

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Also from Wolf: Online Sales by Category, in Weirdest Economy Ever

Commodities:

Natural gas inventory build tops estimates

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Paraskova of OilPrice News asks: How High Can Oil Prices Go In 2021?

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Copper gained a whopping 23% in the past year but copper futures for 2021 are looking negative.

Cryptos:

Crypto users speak out on proposed change to FinCEN Travel Rule

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Bitcoin And Dollar Dominance: Five Factors Behind The Current Altcoin Season

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A video interview with Michael Pento: Be Prepared To Turn In Your Cash

Tangibles Investing:

Our own Pat Cascio sent us this: National Ammo Crisis! Where is the Ammo & When Will Prices be ‘Normal’ Again?

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And Pat Cascio also mentioned this sad sign of the times: steel-cased 9mm Russian garbage ammo is now selling for $589 per case! (Before the ammo shortages, this Tula 9mm was selling for around 15 cents per round, with few takers.)

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A store owner in Oklahoma explains how the severe ammo shortages are forcing some gun stores to sell ammo only to accompany the sale or rental of a gun: H&H Behind the Counter – Ammo Availability Update

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Google Searches For ‘Reloading Ammo’ Explode Amid Nationwide Shortage 

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Video: Ammo Shortage Alert: Top 5 Calibers You Need To Switch To Now! JWR’s Comment:  I mostly concur with his conclusions, with a hearty concurring vote for 10mm. Locally, about the only varieties of modern pistol ammo that I can consistently find on the shelf are 10mm and .454 Casull. And as for quasi-obsolete ammo, I can only find .44-40, .38 S&W, .41 Long Colt, and .38 Long Colt with any regularity.

Provisos:

SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.

News Tips:

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 items from local news outlets that are missed by the news wire services are especially appreciated. And it need not be only about commodities and precious metals. Thanks!




21 Comments

  1. Gold dropped to $1775 this morning — below the $1800 support level. Spread between it and platinum continues to narrow.

    One reason may be a rotation into depressed stocks expected to revive if a vaccine is deployed soon.

    American airlines was $28 a share in February, fell to $9 with crash in air travel this summer but has recently risen to $15 – a gain of about 67% in a few months
    Carnival Cruises was $50 in January, fell to $9 but is now at $21 – a gain of 133 percent.

    Platinum’s closing spread with gold may be due to it being an industrial metal and may reflect anticipation of a recovery in manufacturing.

    But I am not a financial advisor — my wife usually asks my opinion so she can invest the opposite of what I say. As soon as I move money into stocks the economy will probably crash.

  2. Speaking of economics and investing… the most important “investment” is a secure home. I have many family members looking to get out of California. If you have a family member who is living in an urban setting and they feel unsafe, a great Christmas gift could be: “Survival Retreats & Relocation: A Guide to Finding Your Secure and Sustainable Home.” I’m sure that the Rawles can provide an Amazon link for your purchase. I appreciate this edition because it covers more than the American Redoubt (Pacific Northwest) – and since property is being gobbled up in these areas, it’s good to know what to look for in other areas. The book covers retreat theory/principles (very interesting and helpful), locales, and has a good appendix.

    Also, “The Ultimate Prepper’s Survival Guide”, brand new book just out. I plan on giving the books as gifts. In our modern age, many people are far removed from “the farm”, their grandparents or great grandparents have passed on, along with their knowledge.

    Disclaimer: I am only promoting these because I find them valuable. Over the years I have shared information found on this site to family members. JWR is the primary reason I ended up in Idaho *before* the masses started moving here.
    Happy Black Friday shopping!

  3. A friend of mine bought a 10mm SW revolver a while back. I don’t think it was due to the shortage because I think he bought it just before the shortage. I think he was just intrigued with the round in a revolver as he is a big revolver guy. It will also shoot 40SW. I have shot it and it is really nice. It uses moonclips and reloads faster than say a .357 with a speed loader. He is convinced it may be the perfect round when you take into account the balance between recoil and power. I think he might be right.

  4. For those that buy physical metals, gold and silver premiums (along with platinum) can take several weeks to drop, assuming we see the current prices remain flat or fall further. You may have to wait a while before retail suppliers offer pricing in line with recent downward moves in spot prices.

    IMO we will see good buying opportunities until the next stimulus package is announced. Even then the rotation into cryptos could put a damper on precious metals demand.

  5. I’ve seen zero handgun ammo on shelves regardless of caliber. [Rifle cartridges such as] .300 win mag, .350 legend and 4.50 bushmaster is all I’ve seen. The Legend just isn’t used here for hunting. They should send it up north.

      1. I’ve had a .25-06 a long time. Yes, it’s great long range caliber. Mine is a Ruger M77 with Varmint barrel, and I reload 87 gr Sierra bullets. Great for deer.
        I’ve been thinking about buying a rifle in .204 Ruger because that’s the Ammo I’ve seeing a lot of.
        Semper Fi

  6. I just got my copy of
    “Survival Retreats & Relocation “!!!
    I got it on JWR’s #1 son’s site.
    This book is beautiful. Thank you for working with your son to put this together. I love that it has information for all 50 states (Even though my state, Illinois, sucks, I’m in the recommended area for here)!!

    I absolutely love the cover photo home.

    Have a Rockin great day!

  7. JWR,

    I recently purchased a copy of Survival Retreats and Relocation. I’m learning a lot from it. I’m applying for jobs in the Redoubt now. Then I will be able to put that knowledge to work. The sooner I leave the California Soviet Socialist Republic, the better.

    Thank you very much for your books and blog. We have all learned a lot from you and from each other. The day after Thanksgiving is usually for mindless consumption, but I choose to be thankful for the SB community instead.

  8. Everyone who understands the extraordinary importance of preserving the Constitution might consider investing in the defense of the Republic. Here’s a link from NC Renegade with an appeal to all of us. They have asked that this time sensitive and important information be shared far and wide.

    https://ncrenegade.com/

  9. Want a new All American Pressure Canner?

    “Lehman’s Store,” has size 21 1/2 quart IN STOCK, and 20% off. For other sizes, it says a 3-5 month wait. Some other stores say, “Not available until next May.”

    I feel like I found treasure for my daughter-in-loves! PTL

  10. “And Pat Cascio also mentioned this sad sign of the times: steel-cased 9mm Russian garbage ammo is now selling for $589 per case! (Before the ammo shortages, this Tula 9mm was selling for around 15 cents per round, with few takers.)” Hahahaha…went to the link… $619 per case!!! Checked my inventory…I’m RICH!!

  11. The article: The Street reports: Hundreds of Companies That Got PPP Loans Have Gone Bankrupt, has some details we do well to note.

    The failed Socialist state you fear is coming is already here under the current administration. An excerpt: The Small Business Administration’s inspector general, an arm of the agency that administers the PPP, said last month there were “strong indicators of widespread potential abuse and fraud in the PPP.”

    The watchdog counted tens of thousands of companies that received PPP loans for which they appear to have been ineligible, such as corporations created after the pandemic began, businesses that exceeded workforce size limits (generally 500 employees or fewer) or those listed in a federal “Do Not Pay” database because they already owe money to taxpayers.

    Prepping and Praying will protect us.

    Carry on

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