Category: Economics & Investing

Dear Mr. Rawles: I have read your excellent blog for years and truly enjoy the unique mix of practical advice and news you provide that is not often found elsewhere. I wanted to comment on your recent article titled,  "Precious Metals–When to Begin Reducing Your Holdings."  Your article was quite thoughtful and I would encourage anyone who failed to read it when originally posted on March 29th to go back and read it now. There was a minor point that I did disagree with.  Near the end of the article you wrote, "Here in the United States, pre-1965 silver quarters …

B.B. suggested this: Chart of the Day: Silver Coin Mania. Clearly, more folks are now distrusting the U.S. Dollar and hedging into tangible silver. We’ve Become a Nation of Takers, Not Makers–More Americans work for the government than in manufacturing, farming, fishing, forestry, mining and utilities combined. D.I.W. suggested this over at the Secular Trends blog: Current Real Unemployment is 16% Foreign Banks Tapped Fed’s Secret Lifeline Most at Crisis Peak. Is this supposed to give me a warm, fuzzy feeling? Items from The Economatrix: Massive Capital Wave Approaches Gold MyBudget360:  Federal Reserve Silently Grows Balance Sheet to Approximately $2.75 …

Hi James, Just following up on my last letter about stacking nickels in the “Standing Shotgun Shell” configuration.  I’ve continued experimenting and have a few tips I’d like to add that might come in handy. Luckily, I’ve been able to order quantities of nickel boxes from my local bank [at face value] and have been making a studied process of stacking them, trying to improve with each box.  BTW, a cardboard box of nickels such as delivered by Brinks weighs 22 pounds.  I have figured out that by sliding the thumb in and pushing in towards the empty cardboard box, …

M.E.W. flagged this: Gross Echoes Buffett Saying Treasuries Have ‘Little Value’ on Debt, Dollar Greg C. spotted this: Ripples in Japanese supply chain will be felt here. Greg’s comment: “This will end up being a major case study in the weaknesses of “Just in Time” (JIT) delivery.  It won’t be just car parts that will be affected as you will see when you read the article.” More economic suicide news from Zimbabwe: Implats, Aquarius fall on Zimbabwe indigenisation news. Items from The Economatrix: Gold, Silver Now Legal Tender in Utah. (But is is too bad that Utah also recently caved-in, …

Pierre M. was the first of several readers to send this: Wal-Mart CEO Bill Simon expects inflation. Reader Joe P. noted: “I can’t think of any private or government entity in a better position to recognize inflation than Wal-Mart.” Reader Mark F. reports: “I went to our location Tractor Supply Store this week to buy some T-posts to put up some more fencing for my livestock and I got a surprise. Last May I paid $3.69 for 6 foot posts. Those same posts are now $4.79 apiece.” Food Commodities Surge Seen Swamping Consumers with Inflation. (Thanks to Bryan E. for …

Latched on to the Federal teat: A First in American History: 2011 Federal Aid Set to Overwhelm State General Funds. This is the master stroke of Federal statism. If the 50 states get more than half of their revenue from the Federal government, there is no way that they can forcefully insist on 10 Amendment rights. The U.S. Mint has set April 4th as the deadline for public comment on new metallic compositions for U.S. coins. Clearly, the days are numbered for U.S. 5 cent pieces (“Nickels”) that are 25% nickel and 75% copper. Stock up! Pierre M. mentioned this …

Food Inflation Kept Hidden in Tinier Bags. “As an expected increase in the cost of raw materials looms for late summer, consumers are beginning to encounter shrinking food packages.” (Thanks to C.D.V. for the link.) Yuri L. suggested this, over at Frugal Dad: Nine Ways to Prepare for Food Inflation Reader Tony B. sent this: No One Cries for Argentina Embracing 25% Inflation as Fernandez Leads Boom Wow That Was Fast! Libyan Rebels Have Already Established A New Central Bank Of Libya Items from The Economatrix: Gerald Celente & Lew Rockwell:  Gold, Guns and Getaway Plans   Salivating at the …

I often get e-mails and letters from readers about precious metals, and most of them are wrong. Many of them were about silver: In 2001, when I formally called the bottom, for silver, I got taunting letters. Those naysayers claimed that silver was heading down further, perhaps to $3 per ounce. In 2005, I started getting whining “I missed the boat” letters. That was when the silver bull was still just a calf. People have continued whining, ever since. In 2008, when silver was $9.80 per ounce, I got my first “this is the top for silver” letter. I’m still …

Do you remember my warnings about “creative” ways that legislators might find to solve budget crises? Brace yourselves. CBO: Taxing mileage a ‘practical option’ for revenue enhancement. (A hat tip to J.H.B. for the link.) My cousin in England sent this: Proof That Gold Is Not a Bubble Gonzalo Lira: How Likely is QE-Three? (Lira thinks either that there will soon be be either more monetization or seizure of IRAs and 401(k)s. G.G. flagged this: Morning Note: Gold Replacing Dollar as World’s Reserve Currency? Also from G.G.: Buffett Warns: The Dollar Will Decline Items from The Economatrix: Stocks Falter Despite …

G.G. sent this: End of the Dollar? Some severe gloomage, over at Zero Hedge: The Dollar Will Collapse Within 3-4 Months Dr. R. highlighted this item: Connecting the Dots … Grain Shortages & Food Inflation Quietly Accelerating Due to Perfect Storm Greg C. flagged this: Fears rise that Japan could sell off U.S. debt Items from The Economatrix: Of particular interest to SurvivalBlog readers in the hinterboonies: Postal Service to Cut 7,500 Jobs, Close Offices   Asian Shares Higher After Wall Street Closes   US Experiencing Uneven Job Growth Across States   Oil Hits Highest Levels Since Recession   Private …

Dear James Wesley, I have been wanting to get to a bank to make arrangements to buy nickels and pennies, but my normal workday and duties prevent me.  Today I was finally able to do so. I was told that the pennies came in “boxes” of $25 and the nickels in “boxes” of $100.  The banker said he had to check on a recent fee hike. He came back with an a $0.20 per roll delivery fee. But then he offered a “free” alternative.  Their coin counting machine bags [loose] pennies with $50 in a full bag and $200 of …

John Rubino: Commercial Real Estate on Borrowed Time? John R. suggested this piece by Bob Chapman: The Road of Inflation Will Only End in Tears G.G. flagged this: Moody’s Warns Britain Over Triple-A Credit Rating Also from G.G.: Unsustainable budget threatens nation. Items from The Economatrix: $105 Oil:  It’s The Perfect Storm Central Banks Shedding Dollars, Buying Gold   Silver Surges Over $37.25 on Way to Record $50, Gold to $5,000 in 3 To 4 Years? Sprott Putting Clients in Gold and Silver Ahead of Prolonged Global Uncertainty   Gold Rises To Record; Copper Rallies Metals Stocks “Instead of looking …

US Finances Rank Near Worst in the World: Study. (A hat tip to C.D.V. for the link.) J.B.G. flagged this: Worst Texas Drought in 44 Years Eroding Wheat, Beef Supply as Food Rallies Commentary from Ireland: Default or not to default? Now that’s a no-brainer Items from The Economatrix: Just Not in Time Manufacturing: Toyota Tells US Plants “Prepare to Shut Down”  Breaks in Supply Chain: Disaster in Japan Sends Ripples Through Global Economy Fed Officials See U.S. Recovery Taking Hold   Gold Fields: Gold at $1,500 Possible  Durable Goods Orders Fell 0.9% in February