Letter Re: Stocking up on Copper Tubing/Pipe

I have been following the metal’ and copper in particular, as it is a very necessary part of our modern existence.   One of the things I envision, is a shortage of copper tubing. I have been buying a little extra every time I go to the home store. Some of it I plan use for making a still– for making alcohol, other sizes are for my propane tanks and last but not least, I still have copper [water] pipes in my house that are going on 30 years old, so I have been buying some to replace that.   …




Letter Re: Copper Price Galloping

Dear Mr. Rawles, I have wanted to write to you for a week or two with respect to an oddity.  An increasing number of sources are discussing the degree to which the base metal in the US penny is becoming more valuable than the penny itself.  This is odd, and www.coinflation.comis tracking it with alleged numerical precision.  If I get some spare time this week, I hope to write about the death of the penny in more detail. Best Regards, – K.A.D. JWR Replies: Silver is about 45 times more bulky than gold, (As I’m writing this, gold is $605.10 …




Two Letters Re: The U.S. Housing Bubble–Yea, the Pinprick Cometh

Mr. Rawles, I read the article on the housing bubble on SurvivalBlog and would like to add a bit of evidence to the claim.  I currently own a home in Orlando, Florida and haven’t sold in five months.  This is unheard of for that region, but it is just not me all the houses in the area having the same problem.  Here are a couple of quotes from my real estate agent on the Orlando market: “I just returned from a real estate conference in Tampa.  The main topic was the large amount of time listings are sitting the market …




The U.S. Housing Bubble– Yea, the Pinprick Cometh

I am now convinced that the housing bubble in The United States is about ready to pop. Once home sellers see that “the Spring buying season” does not reappear along with hay fever this year, they will get panicky. Up to 30% of the homes that have been sold in the past two years have been sold to over-extended speculators who were hoping to “flip” them–taking advantage of the rising house market. The old saying goes “A rising tide raises all ships.” But the inverse is also true. When the flippers realize that they are on a down escalator, they …




The Silver Bull Gains Speed

Just over a month ago we were marveling at the fact that silver was solidly over $10 per ounce. I just checked the charts at kitco.com, (see: http://www.kitco.com/charts/livesilver.html) and spot silver was at $12.80 per ounce! (As a data point: The New York close was at $12.05 just four days ago–Friday April 7th. Quite a change since then!)  At the current spot price, means that a $1,000 face value bag of pre-1965 circulated (“junk”) silver U.S. coinage worth $9,152 wholesale. (Assuming 715 ounces in a typical bag of well-worn coins.) The silver market is showing all of the signs of …




Letter Re: Investing in Tangibles Through an IRA

Dear Jim: Per your suggestions, I have been doing a lot of research into the American Church Trust Precious-Metals IRA [offered through Swiss America]. However, I have several questions that I would like to ask. [JWR’s replies are in-line, in bold.] 1.) I noticed in a recent post of yours on this subject that you have your IRA backed by Gold American Eagles. Could you explain why you chose gold instead of silver? Because of the much higher “per ounce/per dollar” purchase premium on U.S. Mint Silver Eagles, I prefer U.S. Mint Gold Eagles, in this case.  (At the time …




Letter Re: Argentina’s Lessons for the U.S. Debt

I read the first-hand accounts of Argentina’s decline from wealth and prosperity to near lawlessness that were linked to here a while back and they stuck with me. How could a prosperous nation with generally well-regarded policies sink so far so fast? Far more importantly, what caused it, could it happen in other places (i.e. here), and what indicators were missed? Luck would have it that I stumbled across the answers to two of those entirely serendipitously. The answer is actually rather simple: debt. The Argentinean economy was in good shape in the 1990s, it had good growth, good employment, …




Letter Re: Defensive Use of My IRA

Jim, I agree that nothing beats physical bullion and ammunition for real wealth, but there may be something to be said for keeping a store of digital wealth in tact for as long as possible also. My bank has an emergency plan. They mailed me a copy. So I figured I needed to incorporate a plan to keep them out of my life during an economic meltdown. The plan is very simple. I fully intend to eliminate my mortgage with what is left of my IRA on the day before doomsday (or thereabouts). My money will ride out the storm …




Letter Re: Investing in Tangibles Through an IRA

Hello James, Given the abundant information about the state of the economy, what would you recommend we, (the consumer and fellow American) do when making a decision about Individual Retirement Accounts (IRAs) come April 15th? I am concerned about putting money away and into “paper currency” when maybe it would be better to just pay down debt. What would you advise to someone in my situation? I am not necessarily looking for information about the tax benefits, simply your view about what would be a wise move. -The Wanderer JWR Replies: This is a bit repetitious to my previous recommendation, …




Letter from Michael Williamson Re: Accumulating Silver and Gold Bullion

Jim, I’ve been lucky on bullion recently and found some good info and a source. I found local coin dealers at a gun show, who were selling “junk silver” coins at barely over spot price. The price was about the same as from the best mass dealer I could find, but in per coin price, not in $1,000 face bags with 715 troy ounces. I’ll be hitting them as funds and silver price permit. NWTBullion does offer the best price I’ve seen, and will deal in bags as small as $100 face value–72 troy ounces, and in small coin quantities. …




America’s Economic Woes–Some Deep Schumer in the Near Future?

The U.S. housing bubble but has not yet popped, but it is starting to make funny noises. (See: http://biz.yahoo.com/ap/060306/housing_slowdown.html?.v=2) You have probably read that the Federal debt ceiling has been raised to nine trillion dollars. (See: http://www.foxnews.com/story/0,2933,138881,00.html) What is the point of calling it a “ceiling” if Congress keeps raising it every year? The U.S. Treasury is now technically bankrupt, but from a practical standpoint, how can you call the man with the printing press bankrupt? He just prints more, as needed. There are just more and more “fun tickets” in circulation, and their value gradually melts away. Ask anyone …




Letter Re: Advice on Silver Investing?

Jim, I’m just curious to your thoughts on this. Like you, I believe silver is going to gain a lot of momentum in the near future. The wife and I are out of debt and sitting on some paper investments that I’m unable to move out of for various reasons. I’m thinking of taking a home equity loan (our house is paid off) out and purchasing approximately $30,000 in silver and turning around and selling throughout what I feel will be the climb in silver prices. Of course we would pay off the loan but hope to reap the profits …




Letter Re: Advice on When to Sell Silver?

Dear Mr. Rawles, I read on The Claire Files that you think silver will be going to $40 an ounce. My spouse and I can’t agree when we should sell our 8,000 ounces of silver. I think we should hang on to it all until it gets to $20 and ounce then sell. But my spouse thinks we should start selling now. What do you think? By the way, we purchased most of it at $5 an ounce in the form of 100 ounce bars. We also have about a bag and a half of “junk” silver dimes.- F.L. JWR …




Letter Re: A Second Silver Exchange Traded Fund

Mr. and Mrs. Rawles, I just read this article today and thought it would be of interest to the Survival Blog readers: http://www.resourceinvestor.com/pebble.asp?relid=17672 The gist of it is that a silver backed exchange traded fund (ETF) is quietly being opened in London within the next month. Note, this is NOT the silver ETF that Barclays’ is trying to get past the SEC right now. Upon reading closer one can note that the claim of being “backed” by silver is erroneous – “We buy a security from a third party…and supply the matching contract, and investors won’t have to worry” about …




Letter Re: Why “Invest” In Gold or Silver?

Jim: I came across some links that may help “clarify” why Gold/Silver for some readers. Keep up the good work! http://www.bambooweb.com/articles/h/y/Hyperinflation.html http://www.kitco.com/ind/Wiegand/feb142006.html http://www.gold-eagle.com/editorials_03/waltzek091003.html http://inflationdata.com/Inflation/Inflation_Rate/ConfederateInflation.asp