Category: Economics & Investing

Chris D. recommended this piece over at Don’t Tread on Me: 12 Reasons Not To Fear September’s Gold And Silver Price Smackdown. JWR’s Comment: In this piece, Scott Wolf notes that the COMEX governors just raised margin requirements on gold, silver and copper again. They can keep manipulating the rules in the futures market, but they cannot stop the demand side of the physical market. In the long run that is what will prevail–even if the futures market is destroyed by outrageous margin requirements–a la Silver Rule 7.) G.G. flagged this: Fed Vice Chair: Economy worse than you think. Also …

Several readers mentioned a video that caused some jaw-dropping by the newscasters: Trader on the BBC says Eurozone Market will crash Reader R.J. wrote to mentIon: ” So just how is ‘Operation Twist’ supposed to fix the economy? One positive from it: It gave me a chance to buy some relatively cheap silver.” J. McC. pointed me to this: The €2 trillion fund to save the euro: The numbers keep getting bigger. When the European Financial Stability Facility (EFSF) was created in May last year it was underwritten to the tune of €440bn (£384bn). Marty Weiss: Twelve (12) Giant U.S. …

I’m sure that most of you noticed that gold and silver took deep dips on Thursday and Friday. (Spot silver declined nearly 20%–almost $9 per ounce!) Then an odd thing happened last weekend: I attended a gun show deep in the American Redoubt. I was happy to see that there were four coin dealers that had rented tables there. I had brought some cash with me, hoping to buy some more silver. I also brought a few fractional gold coins to swap for silver, or perhaps even platinum. (Since spot platinum is presently priced below gold!) But my more realistic …

Pierre M. sent this: Bank of America is Becoming a “Counterparty Risk” Like Bear and Lehman Over at Fierce Finance: Banks downgraded, but is too-big-to-fail really over? G.G. sent a link to a noteworthy news article dated September 19th that I had missed: Israel Has Dumped 46 Percent of Its U.S. Treasury Bills; Russia 95 Percent Also from G.G.: Virginia regulators closed another bank, bringing the nationwide tally of bank failures to 72 for the year. Items from The Economatrix: Oil Falls Below $80 On Demand Concerns Global Leaders Struggle to Calm Recession Fears Signs of China Slowdown Add to …

FOREX Crunch recently noted: Everything is going against French banks: a senior figure said that there are “signs of an institutional bank run” in France that may be followed by retail accounts,  BNP Paribas is seeking for an investment in Qatar and a senior French EU official admits that the the government may need to help the banks. John R. kindly sent this piece: Is the US Monetary System on the Verge of Collapse? (David Galland of Casey Research) John T. pointed me to an article that illustrates that the IRS is getting desperate for revenue. “DaddyO” suggested an interesting look at …

Hello, I am a fairly new reader to SurvivalBlog.  I must say I enjoy reading it and have found a ton of useful knowledge here. I have a question If you have time to answer.  I have a large amount of old U.S. Coins and would like to refine the silver out of them myself.  Is the possible for a do-it-yourselfer? If so, what is the best process for this?  I am also considering melting down some old silverware and jewelry.  I would want to cast my own mini bars or silver coins for ease of storing and bartering.  I …

J.B.G. mentioned a recent piece by the ever-cheery Ambrose Evans-Pritchard: Fear gauge enters the red zone. Bama Man sent this: Chicago Tower Year’s Largest Muni-Bond Default Rhonda T. sent this sign of the times: Spam Turns Serious and Hormel Turns Out More From The Washington Post: World Market Fall Sharply After Fed Action on Bonds (Thanks to Linda U. for the link.) Items from The Economatrix: Peter Schiff On Obamanomics:  “There Are Not Enough Open Minds In The Capitol To Keep This Ship From Sinking” S&P Downgrades Italian Sovereign Debt Rating; Fear of Contagion Spreads Implosive Fusion of Global Financial …

I’m sure that you saw the many screaming headlines on Thursday, the global markets are melting down, and the pillars of the EU are crumbling. There were two notable oddities amidst Thursday’s panic for those of us that hedge with precious metals: 1.) Spot silver saw a $5 per ounce selloff. This big dip of 12% in one day represents a great opportunity to either convert some of your cash into silver, or ratio trade out of gold into silver. The silver-to-gold ratio now stands at (48.2-to-1.) In just a few years the ratio will likely be 30-to-1, or less. …

Investing in silver and gold is a hedge against potential inflation and monetary devaluation; it is a way to keep high concentrations of wealth portable and off-grid and it can be fun and profitable.   Gold and silver has been a way to grow and preserve wealth since wealth has been defined.   The downside is that silver and gold are expensive and becoming more so, there is a typically a specialized group that you must deal with to see return value and it is not at all edible. I have been a coin collector on and off throughout my life.  As …

Ryan S. sent: IMF downgrades outlook for US and Europe economies J.W.M. spotted this: Florida credit processor to give away AK-47s Paul K. mentioned a recent BBC piece: Anarchy in the USA – could it happen here? Over at The Daily Bell: Advisers Emphasize Calm as Global Depression Gathers More nationalization down in Hugo Land: Venezuela forces miners to sell gold to government Items from The Economatrix: Stocks Plunge After Fed Announces Stimulus Steps $2,000 Gold Now in Sight Big-name Brands Cut Size Not Price Gold Will Soar on Imminent US Bailout of Europe China Pulls The Rug Out From …

I noticed over at The Daily Bell: EU – Britain Wants Out? Rolling Sovereign Debt Defaults and Euro Break-Up Ahead? Veteran content contributor K.A.F. sent this: J.C. Penney to Close Stores, Exit Catalog Business Items from The Economatrix: Stocks Rally On Hopes For Fed Stimulus Measures August Home Building Fell 5%, Slide Continues Oil Rising on Expectations of Fed Stimulus Eight Arrested as Third Day of Wall Street “Rage” Protests Clog NYC Sidewalks

Reader Larry W. recommended this commentary from Howard Gold: Lehman Brothers II crisis is coming soon John R. sent us several links to some recent Zero Hedge articles: Interactive Infographic of the Doomed European Financial System   DSK Says Greece Is Done   Is September 20 Greek Default Day?   Items from The Economatrix: Is China Ready To Pull The Plug? Is Revolution Hitting US Streets Tomorrow? The Economic Collapse – Part 1 Mayor Bloomberg Predicts Riots In The Streets If Economy Does Not Create More Jobs

America’s Poorest States. [JWR Notes: I was surprised to see Montana on the list. Of course up there they are strong on barter and self-sufficiency, and that economic activity simply doesn’t register in dollar terms. A large portion of the population in Montana cuts their own firewood, hunts, and has a vegetable garden. My consulting clients in Montana tell me that lots of transactions are paid for in firewood, shed antlers, and even frozen huckleberries.] Ayn Rand Institute president Yaron Brook the annual Ayn Rand dinner: The Coming Collapse: “We Can Buy Time, But We Can’t Change the Outcome” Deep …

J.J.H. sent this: US taxpayers could be on hook for Europe bailout Europe’s Response To Geithner’s Advice: “I’d Like To Hear How The United States Will Reduce Its Deficits … And Its Debts”. (Thanks to Jonathan B. for the link.) J.B.G. sent this: Eurozone: A nightmare scenarios. John R. was the first of several readers to mention The Economic Collapse video Part 1 and Part 2. Items from The Economatrix: Dumpster Diving? Geithner:  Economy in “An Early Stage” of Crisis US Poverty Rate Spikes as Incomes Decline Fuel Pump Woes Won’t Go Away