Category: Economics & Investing

Some Words of Advice From Kyle Bass (paraphrased): “Buy guns. Buy gold. Buy nickels.” Inevitability of a Crash Goes Mainstream. Reader S.B. in Japan me sent a link to this: A Greater Depression is coming. S.B.’s comment: “Until fairly recently, much of the talk of truly serious economic problems has been in far from mainstream sources. The mainstream media has talked a bit about further recession, but I haven’t seen a single article that clearly stated that it’s coming and there’s nothing we can do about it. That is until I saw this today, linked from The Wall Street Journal‘s web …

Hi Jim: I just finished the article titled “Sorting Canadian Pennies” and had one more thought regarding the comments on nickels.  What everyone is predicting will happen to the US nickel has already taken place here in Canada.  The current US nickel is 25% nickel and 75% Copper making the 5 cent coin already worth around 6 cents. That is a great investment if you ask me!  The Canadian nickel on the other hand, has already been badly debased, valued at around 4 Cents. This happened in 1982.  However, Canadian nickels that are pre-1982 [but post-1954] are 99% nickel! This makes them …

K.A.F. flagged this: UBS, RBS Ratings Lowered as Fitch Says More Than a Dozen Banks May Follow Greg F. sent this: Reconsidering the Housing Crisis George Maniere: Precious Metals Investing: Will Gold And Silver Continue Their Run Up? Items from The Economatrix: Business Inventories And Sales Rose In August Oil Prices Rise Near $87As Recession Fears Ease Foreigners Dump $74B In Treasurys In 6 Consecutive Weeks; Biggest Sequential Outflow In History Big Trouble Brewing

Mr. Rawles, I had a moment of inspiration today and after looking up melt value of Canadian coins on Coinflation and giving thought to your article about storing U.S. nickels.  I decided to try an experiment sorting Canadian coins, specifically nickels and pennies.  Note that these melt values are when Copper spot price is listed at $3.246/lbs – a two year low in October 2011.  Personally, with the currency printing going around world wide, I think it’s reasonable to assume these prices are going to skyrocket in the near future. I went to a Canadian bank and bought several roles …

Ian Gordon: Hedging With Gold Against Imminent Economic Collapse State may expedite Florida foreclosures B.B. sent a link to the latest Jim Rogers CNBC Interview. Also from B.B.: Gold is not in a Bubble: It’s on its way to $10,000 an ounce Yet another from B.B.: Foreigners Dump $74 Billion In Treasurys In 6 Consecutive Weeks: Biggest Sequential Outflow In History Items from The Economatrix: Stocks Rise On Gain In Retail Sales; Google Jumps California Revenues Down By $705M The Depression:  If Only Things Were That Good Retail Sales Rose Strongly In September On Autos  

Chuck McAlvany: The Atomic Bomb that is About to Explode at the Federal Reserve Days of Reckoning Are Here: Accumulate Precious Metals and Hard Assets Zero Hedge: It Begins: Harrisburg Files For Bankruptcy Protection G.G. flagged this: Banks turn to demolition of foreclosed properties to ease housing-market pressures Items from The Economatrix: Buckle Up:  America Is Getting Very Angry And The Protests Are Going To Become Much More Frightening Millions Could Lose Unemployment Benefits In 2012 Wall Street Sees “No Exit” From Woes Roubini:  Double-dip Recession A Foregone Conclusion

More folks are catching on to nickels, as an inflation hedge. For example, see this recent piece over at Seeking Alpha: Looking For An Alternative To Gold And Silver? It is noteworthy that Kyle Bass didn’t make all of his millions with foolish irrational investing plays. He is one sharp cookie. James C. sent this from Sovereign Man: How Bankrupt Governments Will Confiscate Your Gold. (Yes, it has happened before in the U.S.: See Executive Order 6102. And the potential repeat of that, BTW, is one reason why I prefer investing in silver rather than gold.) Have you got your …

Reader V.L. sent a clip from a television reporter that must have skipped “Reality 101”, in college. (Sarcasm ON: I won’t sleep well at all tonight, now the I’ve been told that my gold “isn’t backed by anything–unlike the U.S. Dollar.”) German push for Greek default risks EMU-wide ‘snowball’ Items from The Economatrix: Euro Crisis Spreads and Puts the World Economy at Risk Detroit’s descent into economic darkness continues, literally: DTE deal pulls out lights in Highland Park–Areas in dark after 1,400 street lights removed to settle bill When?  (When will the next financial crisis happen?) The Top 100 Statistics …

SurvivalBlog’s G.G. sent this: Census: Housing bust worst since Great Depression Der Speigel asks: What Options Are Left for the Common Currency? EU delays summit to have more time to finalize plans for Greece, banks, bailout fund John R. mentioned this by Marty Weiss: Seven Major Advance Warnings Nine Ways Supermarkets Suck You In R.C. sent this: Colorado empties popular lake to pay its water bill Items from The Economatrix: Stocks Jump on European Pledge to Help Banks Oil Rises to Two-Week High Occupy America: Protests Against Wall Street and Inequality Hit 70 Cities

Gold Investing: Detailing Gold’s Wild Q3   Silver Futures Auction Market Perspective For those of us that like to track precious metals price ratios, Jerry T. recommended these charts. Steve R. sent this: Holiday Retail Sales Set To Slide Amid High Unemployment and Low Consumer Confidence G.G. flagged this: A job is becoming a dim memory for many unemployed Used Car Dealer Becomes a Horse Trader John R. sent us these items: World facing worst financial crisis in history, Bank of England Governor says – The Telegraph Economic Apocalypse Goes Mainstream: Meltdown In Two To Three Weeks; It Will Spread Everywhere; …

Those pesky derivatives, again: IMF advisor says we face a Worldwide Banking Meltdown. (In this case, it is credit default swaps.) J.B.G. was the first of several readers to mention this sign of the times: Thieves steal from community garden KAF sent this: Moody’s Cuts Rating on 12 UK Financial Institutions G.G. sent this: Regulators Close Two More Banks, bringing the nationwide tally of bank failures up to 76 for the year. Also from G.G.: CBO estimates $1.3 trillion deficit for 2011 Keely spotted this new item: Bold thieves steal bridge in North Beaver, Pennsylvania. Nestle Chief Warns of Food …

Silver Prices Beaten Down By a Strong Dollar Chris G. recommended this: California and Bust . Chris notes that this article was recently referenced by Rush Limbaugh and in Zero Hedge.   Quick Fix In Europe? Dream On   Items from The Economatrix: The End Of The Inflation/Deflation Debate There is No Plan to Fix The Economy Economists Agree:  We Are in a Depression From California to New York, the Tide of Protests Keeps Rising Some observations (circa 2007) from the late Derry Brownfield: Our Land is Collateral for the National Debt. Occupy Wall Street:  The Word is Getting Out …

US’s Geithner warns Europe crisis a global threat. (Thanks to Alex B for the link.) Peter Schiff: U.S. Dollar is the Monetary Titanic A sign of our nation’s doom? Nearly Half of U.S. Lives in Household Receiving Government Benefit G.G. flagged this: Americans have no choice but to get more frugal Why We Are Just Half-Way Through The Global Economic Crisis   The Metals Trade: Why I’m Still Really Bullish On Silver Items from The Economatrix: Leaders Push World to Depression Underwater Mortgages Could Sink US Without a Trace Banksters Expect Global Meltdown Within 12 Months Bank of America Website …