Category: Economics & Investing

Don’t Confuse the COMEX Spot Prices with Retail Reality–Bullion Coin Supplies are Tight!

I was recently chided by one of my readers for being “dead wrong” about the direction in the spot price of silver. I had to laugh about that. The COMEX spot price of both silver and gold have indeed been pushed down in recent weeks. But this is an artifice. This has been attributed to some massive and well-orchestrated short selling in the futures market. The spot market typically echoes moves in the futures market. This short selling has distorted the COMEX spot price significantly. This distortion has become so pronounced that at this point the official COMEX prices do …


Letter Re: What Happened, and What Should We Watch For?

Jim, Thanks for the awesome blog. I consider it essential reading every day, especially now considering the terrible situation we find ourselves in. You keep speaking of mass inflation yet we see oil and other commodities falling in price along with, sadly, our home values. In a recent post you also mentioned being able to buy classic cars at rock bottom prices, closely followed by hyperinflation. Can you explain for all of us how this can come to pass and some of the warning signs? Thanks, – DZ in Louisiana. JWR Replies: To clarify, I mentioned buying older, fuel-inefficient vehicles …


Letter Re: An Apology About Recommending Silver?

JWR:: Your repeated bullish calls on silver have been dead wrong. Do you plan on apologizing to your readers? – Jim G. Jim: An apology for what? For making people money? You aren’t looking at the big picture if you are only looking at the past few months. If you had invested in silver back in February of 2001 when I went on record and accurately called the bottom of the silver market, then you would have more than doubled your money, even with the recent sag in the market. I made that call within 36 cents of the absolute …


Letter Re: Some Observations on Registered Class 3 Guns and Suppressors

Mr. Rawles: To suppress or not to suppress: there is no question. (A hat tip to The Bard.) Many in the preparedness community are apprehensive about the acquisition of [“Class 3”] National Firearms Act (NFA) items. [These include machineguns, short-barreled rifles (SBRs), short-barreled shotguns (SBSs), and sound suppressors. There is a background check, fingerprinting, paperwork required, and a $200 tax per transfer.] There are reams of writings about “remaining under the radar”. I do not share those misgivings. Neither do tens of thousands of other legitimate gun owners. A caveat: under no circumstances should anyone build/construct/ any NFA style weapon …


Letter Re: A SurvivalBlog Reader’s Relocation to the Interior of Alaska

Dear Jim – Thank you for the note and I think its the least we can do to support such a worthy web information source. I’ve learned a great deal reading your archives and I’m doing my best to try and promote a self-sufficient lifestyle for our family. We have chosen to live in interior Alaska for a variety of reasons, not the least of which is a steady job, but not without serious consideration. We are very well aware that we’re at the end of the food chain up here and things are a bit more expensive (and can …


Letter Re: Selecting and Storing Bargain Barter Items

As Mr. Haney (Pat Buttram) from the television show Green Acres would say, “Have I got a deal for you!” In the spirit of Mr. Haney, I’ve come up with some good barter items. To make the list, the items have to be fairly light, extremely useful, practical, and cheap to buy, now! The items have to fit, and be able to be stored in six gallon plastic pails with a water proof seal. The items also must be available in large quantities now, to get the most for my money and be easily accessible now, at a low cost …


Letter Re: Pre-Paying Utility Companies in Anticipation of Worsening Banking Disruptions?

Dear Mr. and Mrs. Rawles, Thank you for your excellent blog. My husband and I are benefiting tremendously from the hard work you have put in to this valuable resource. My question: With banking integrity a growing uncertainty, would it be prudent to devote our rather limited capital to build up a credit balance with our utility providers (water, electric and natural gas) in anticipation of possible interruptions in bank transactions? We do have modest contingency back-up systems for all three supplies but as long as the grid holds up we will use the utilities. Sincerely, – Mrs. T. from …


Letter Re: Cheap is Good, But Free is Better

Mr. Rawles, I’ve noticed there have been several letters lately about getting prepped on a budget, and several people have suggested watching Craig’s List for good bargains. I’m surprised that no one has recommended Freecycle as a place to find good deals, because everything listed is free. I’m sure it’s been mentioned a few times in Survivalblog over the years, but I think it deserves as much emphasis as Craig’s List, if not more. I think there may be some misconceptions about what is found on Freecycle. There can be a lot more than just old baby clothes and blenders. …


Like Something Out of a Novel–Some Predictions for 2009-to-2019

The economic headlines in the past couple of weeks have sounded like something out of a disaster novel that I once read wrote. The international financial and equities markets are spinning out of control, with seemingly wider and wider gyrations with each passing day. Since there are so many variables, the end result is difficult to firmly predict, but one thing is clear: It will be neither easy nor pleasant. My current prediction is that the governments of the English-speaking nations and Europe will co-conspire with the banksters to concoct the most grandiose Mother of All Bailouts (MOABs) yet. This …


Replace Your FUD with Preparedness Action–a Pre-Crash “D” List

All of the recent economic news may be overwhelming to some. This has left many people virtually petrified by Fear, Uncertainty, and Doubt (FUD). Don’t be a proverbial “deer in the headlights.” I strongly encourage you get past your anxiety uncertainty and instead of sitting around glued to CNN, wringing your hands and saying “ain’t it awful”. Replace that angst with action. Get busy preparing. Here is my suggested Crash Countdown “D” List, for folks that are already fairly well-prepared: 1.) De-Hummelize Sell off any collectibles that are not family heirlooms. The worst offenders here are the mass produced “limited …


From the SurvivalBlog Archives: Hedge Funds–A Disaster Story that Could Unfold in Quarterly Episodes

One of the consequences of the collapse of the credit bubble and the subprime lending fiasco in particular is with hedge funds. There is a substantial risk of uncontrollable instability in hedge funds that could potentially be disastrous for investors. This instability will likely be seen in waves of bad news that will come roughly once a quarter. First, let me provide a bit of background: 1.) Most hedge funds have rules that allow only quarterly redemptions (“cashing out”) by by their investors. (A few hedge funds even have only one annual redemption “window.”) Typically, the redemption requests must be …


Our Changing Times: The Advent of Rule 157 and Perhaps Rule 308

We are living in unprecedented times. The global economy is being asphyxiated for lack of credit, and we face the prospect of an economic depression that could be worse than the Great Depression of the1930s. The Advent of Rule 157 One of the contributing factors in the unfolding banking debacle was the advent of Financial Accounting Standards Board (FASB) Rule 157, that went partially into effect on November 15, 2007. This was a financial accounting rule change that yanked the bankers back from the Fantasyland games that they had been playing with Collateralized Debt Obligations (CDOs), Credit Default Swaps (CDSs), …


From FerFAL in Argentina: A US Crash that Will Parallel Argentina’s?

Hi James, These are hard times, indeed. The parallels between the days before our own economy [in Argentina] collapsed and what’s going on today in America today are very hard to ignore. Our local television seems to be getting some kind of sick kick out of all this. They showing the comparisons, even editing politicians and economists speeches showing how similar they were to the ones the American politicians and economists are using right now. In some cases, they even said the exact same line, the only difference being the language. About the article “Letter Re: What Are the Economic …


Letter Re: Expect Delays and Confusion During FDIC Settlements

Jim: If Michael A. in Seattle was surprised by his little run-in with the FDIC, I urge him and others to research what happened in Texas during the S&L crisis. That’s within fairly recent memory, just about 20 years ago, not like the Great Depression [which has faded from memory. And this was when the entire rest of the nation’s banking system was largely intact but the S&Ls in Texas (and a few surrounding states) caused all the fuss. Common problems included: 1. Inability to get at checking or savings accounts for months at a time. 2. Inability to get …


Letter Re: Investing in Foreign Currency CDs

James, Today the dollar posted its largest one-day decline against the euro since that currency was created. I am rebalancing my investment portfolio to account for the market’s recent gyrations – and the fact that our government is attempting to make the dollar even more worthless than it currently is. Several years ago I was in a similar mood and found EverBank, a bank that issues a number of CD products tied to foreign currencies (effectively getting your saving out of dollars into something that’s not dollar-denominated). I am not preparing for a complete meltdown or the end of civilization: …