Category: Economics & Investing

Letter Re: Gold and Silver Coins as an Investment

JWR: Christopher W. asks a very good question, “should you buy gold and silver coins as an investment?” I think this brings up the point that there are really two uses for gold and silver, as an investment and store of value and as a barter/trade item to facilitate commerce. Unless you want to overpay for an item, you will need change, which for every day purchases is provided by smaller silver coin. A friend on Wall Street put it this way “what are you going to do, chip a piece off a gold brick to buy some food?” Smaller …


Two Letters Re: Denominating in Time Versus Dollars

Sir: I bought a cross cut saw on eBay and was wondering how one might sharpen and care for it. I was directed to a USDA Forest Service web site that has a 30 page downloadable document all about cross-cut saws, their use and care. And it is free! Supposedly it is one of the best resources around on this particular topic. Kind Regards, – Jay Jim, The note from SF in Hawaii about the cost of barley versus the work to produce it made me think of one of my favorite tales from Laura Ingalls-Wilder’s book, “Farmer Boy“, about …


Economics and Investing:

It is noteworthy that spot silver and gold prices have remained fairly solid near their six-month highs, despite the IMF’s saber rattling move of announcing 403 metric ton sale of gold.: This is evidence that wise investors have not been fooled by all the governmental and bankster blustering and that they will continue to shelter more of their assets in tangibles. “The Other Jim R.”: flagged this must see: video link: ‘Worst economic collapse ever’. (Don’t hold back, Mr. Celente, tell us how you reallllly feel!) For those readers that don’t have a fast Internet connection, Matt B. mentioned that …


Letter Re: Gold and Silver Coins as an Investment

James Wesley, I’d like your input regarding the purchase of gold and silver coins from third party vendors. Instead of paying $1,000+ for a single gold coin of one troy ounce. I’d like to buy ten 1/10th troy ounce gold (or silver) coins. I feel smaller denominations of “hard” currency promote better trade/purchase power. I have noticed in a multitude of Gun/Survival forums/magazines various companies that offer coins that are not directly from the U.S. mint but are [in smaller fractional sizes] than what you normally purchase from the US Mint. I can foresee having a handful of one troy …


Sending “Patriots” as a Form of Protest

Dear Jim, I was incensed that one of my state’s US Senators (Kay Hagan of North Carolina) voted for the so-called “Stimulus Bill”. I searched for ways to register my protest in such a way that it would get her attention. Thanks to you and your novel “Patriots”, I have a way. I just sent her a copy with a gift card from Amazon.com. The gift card reads: “This is to thank you for voting for the stimulus bill and making the resulting economic collapse and hyperinflation profiled in this work of fiction a reality.” I just hope she gets …


Economics and Investing:

From the most recent issue of The Appenzell Daily Bell comes an article that details both banking peril and some blatantly revisionist editing: European Commission report says $25 trillion in toxic EU bank holdings Reader “DD” sent us this: Thousands losing jobs in housing crisis. From reader H.D.: The Great Awakening: Boomers, Your Crisis Has Arrived (Part 1 of 3). From G.G. came this link: German 10-year Bund auction fails for second successive time. Laura H. said that liked this Wall Street Journal editorial: Capitalism Needs a Sound-Money Foundation. Items from The Economatrix: Martin Weiss: Stock Market to Fall at …


Survival Retreat vs. Neighborhood Survival, by Dr. Richard

Earlier this month, I posted Etienne’s guest post Seeking/Starting a Survival Retreat in Virginia / Maryland / Pennsylvania / West Virginia. Today, I had lunch with Etienne de la Boetie and another prepper here in Loudoun County [, Virginia]. We had a long discussion about survival retreats vs neighborhood survival. Etienne is a big fan of the survival retreat concept. He previously had a retreat where he did not own the land but where he was able to store a travel trailer recreational vehicle in which he pre-positioned various preps and supplies. Unfortunately, his friend moved and sold the property. …


Letter Re: Should You Invest in Real Estate?

To quote Robert Prechter, “Short Answer is: no. Long Answer: The worst thing about real estate is its lack of liquidity during a bear market. At least in the stock market, when your stock is down 60 percent and you realize you’ve made a horrendous mistake, you can call your broker and get out (unless you’re a mutual fund, insurance company or other institution with millions of shares, in which case, you’re stuck). With real estate, you can’t pick up the phone and sell. You need to find a buyer for your house in order to sell it. In a …


Letter Re: What Does the Drop in the Baltic Dry Index Really Mean?

Dear Jim: I just read a TEOTWAWKI warning article [at Rense.com] stating that since the Baltic Dry Index (BDI) was down 95%, [and that therefore] all shop shelves would be empty in short order. The writer said that the BDI referred to the number of ships in transit. I thought it only referred to the price charged for the transport of those ships and that while the cost was indeed 95% lower, there were still a lot of ships in transport. Can you clarify? – SF in Hawaii JWR Replies: I see plenty of scare pieces like that, mostly written …


Preparedness Through Tapping in to the Craig’s List Culture: Doing Well by Doing Good, by D.S.

I do not consider myself an expert on Craigslist.org. However, I do cruise our local Craigslist several times a day as I am fascinated with what people are buying, looking for and selling. It helps me keep a pulse on our local economy that I don’t get through the Mainstream Media. To that point, I have noticed a strong uptick, since the New Year, of people selling anything of value that they can. This tells me people are really starting to hurt from this incipient Economic Depression. On items I have an interest in I call or e-mail to enquire. …


Letter Re: The Weekly Bank Failure Hit Parade

Greetings! Three more down, and waaaay too many more to go, most likely. SurvivalBlog readers and everybody else ought to keep looking at The Weiss Research ratings regularly – – just to keep tabs on their own bank, investments, insurance companies, etc. I’ve gone from checking once a month, to once a week, to a couple times a week now -all in the span of a year! – Bob M. JWR Replies: The situation in the banking world has become so fluid that the ratings from Marty Weiss, et al may not be timely enough to be of great value. …


Four Letters Re: More Predictions for 2009, by Roger Wiegand

Mr. Rawles- In response to “More predictions for 2009”, reader Jeff K writes, “There has never, ever been hyperinflation with deflating real estate prices.”. This is simply false, and a surprisingly common misperception. Zimbabwe is hardly a ‘red hot’ market for residential (or commercial) real estate, yet that country is an example of extreme hyperinflation. When Turkey went through its period of massive inflation it too suffered declining real estate values. South America, plagued with inflation during much of the past century was also a black hole for real estate investment. Ditto for [much of] Africa. Weimar Germany, a famous …


The New Washington, DC Paradigm Does Not Bode Well for Economic Recovery or Gun Ownership

Wednesday’s news of passage of the “supplementary” TARP II $900 billion stimulus and bailout legislative package in the House of Representatives is noteworthy. The fact that it passed with hardly a whimper is evidence that Congress cannot be trusted to show any fiscal restraint. According to the Wall Street Journal only about 12 cents of every dollar appropriated in that legislation will go for something that can be considered a growth stimulus, yet there was no lengthy or substantive debate on the bill. The floodgates of the Treasury have been opened! The Mother of All Bailouts (MOAB) is now sure …


Two Letters Re: More Predictions for 2009, by Roger Wiegand

Good Morning, Jim! This is a response to “More Predictions for 2009”: We can’t make other peoples’ choices for them, but we can be affected by them. We are our brothers’ keepers, but not their masters. Governments will always do what they always do. You need to be concerned with your “mini government” – your own household. Wherein the adults are the governing body and are also constituents (along with any dependents). I choose to focus on what I can control and not toil and spin about the stuff I can’t control. My predictions for 2009? – My wife and …


More Predictions for 2009, by Roger Wiegand

Our new president was inaugurated and we wish him well for the sake of our nation and others throughout the world. We do not want to be cynical but must be realistic. We think this year will be the worst one of this longer recession-depression cycle and our new leader, we suspect is going to take a merciless pounding from a heap of troubles domestically first and foreign later. Thankfully, the spending of TARP #2 and whatever billions-trillions are added for emphasis, should give us the Obama Market Bounce lasting perhaps 90 days or so. While this economics plan has …