Category: Economics & Investing

You may have read in recent years that both Microsoft’s president Bill Gates and Berkshire Hathaway (founded and still led by Warren Buffet) acquired large hoards of physical silver when silver prices neared their low ebb in the late 1990s first few years of this decade. Bill Gates purchased at least $10 million worth, with his “personal investment money.” Meanwhile, Berkshire Hathaway bought 129.7 million ounces. According to published accounts, the latter bought their silver at $4.40 per ounce, in 1997. The recent news on Wall Street is that Berkshire Hathaway has quietly sold off their silver position in the …

Jim, A few weeks back, you covered the issue of pennies being more costly to produce than they are worth. Here is my Quixotic take on the issue: Based on historical precedent, currency/coinage reform is overdue. The half-cent was discontinued in 1857, when it was worth ten cents in today’s inflation adjusted dollars! Source: Historical Statistics of the United States. (USGPO, 1975), Statistical Abstracts of the United States. That means that the smallest monetary unit at the time was worth $0.20 in today’s value. And a $100 bill (gold certificate) in 1863 had a value equal to nearly $2,000. A …

Hello Jim, I am hoping that you can verify something for me about the [U.S. circulated} 90% silver [coin] bags. I just received my order of a $1,000 face [value] bag from The Tulving Company of California. I believe that I saw their name [mentioned] on SurvivalBlog a number of months ago. They have great customer service and the product came faster than they had promised. What I received from them came shipped in a plastic paint pail and inside was a flour sack, cloth bag, full of dimes and the weight printed on the UPS sticker showed 57 pounds. …

Jim: In response to Rosy the Bull, I have to say I’m not so pessimistic. I heard similar dire warnings about how the US economy would collapse at $3 a gallon gas, and it didn’t happen. A great many countries in Europe and Asia, with smaller economies than ours, are paying over $6 a gallon now, which as a percentage of per capita income is five to ten times what we’re paying. As to the comments on nuclear attacks, those are inaccurate. Depleted Uranium is barely radioactive, and its danger is as a colloidal heavy metal toxin. The dangerous radionuclides …

Hey James, Hope you and your family are well. I have read many books on the coming economic collapse and Peak Oil, your opinion and also your readers comments on SurvivalBlog. For quite a bit of it, I agree. However, I doubt we’ll see a true TEOTWAWKI because of a lack of oil or even a complete collapse as some are predicting. One thing people are forgetting is the HUGE (1.5 Trillion barrels or so) of oil deposited in oil shale in the Western United States. At $35 per barrel of oil, it becomes profitable to start producing oil and …

Jim, Just one more note regarding the rising cost of metals, especially copper in the market – I sent an earlier message regarding recycling cartridge brass (which contains copper) instead of stockpiling copper, but now the New York Times notes in a Saturday brief: “Price of a Penny Could Exceed a Cent – What happens if a penny is worth more than one cent? That is an issue the U.S. Mint could soon face if the price of metals keeps rising. The cost of the metal in a penny has climbed to almost one cent. Add in the cost of …

Jim: I think we now have another way to compute the countdown to the collapse of our society as we know it. Several months ago I read on one of the economic web sites, we both visit, that for every penny the price of fuel goes up $1,400,000 per day is sucked out of the consumer economy. With oil at $74 per barrel today and the PENAC people pushing for another Middle East war, this one with Iran, we are looking at oil reaching $125 per barrel or higher as soon as this dumb war starts. This translates to $5.25 …

We asked you this week, dear reader: What will the next Great Depression bring? How will Americans survive in our day-to-day lives? The responses to this not-so-hypothetical query continue to clog up our inbox, which doesn’t surprise us. What does surprise us, however, is how united our readers are on this subject. Not one message lamented on how strong our economy is right now, and how we are fools for even bringing up the possibility of another Great Depression. Each e-mail portrayed how real this idea is to Americans – that something this bad could be right around the corner. …

The New York silver market has been pushed down sharply on profit taking, to around $11.85 per ounce. (It was over $14 per ounce on Thursday, which was a 25 year high.) My advice: Look at this as a short-term buying opportunity. Buy on this dip! The silver bull should resume his charge in May. Even at under $12 per ounce, silver is still quite high compared to just a month ago. OBTW, I recently bumped up my allowance on pre-1965 silver coinage to NINE times face value, for anyone that wants any of my mail order merchandise (or to …

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.   …

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 …

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 …

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 …