Category: Economics & Investing

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 …

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 …

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, …

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 …

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, …

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. …

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 …

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 …

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 …

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 …

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

Mr. Rawles, I have been a reader of your blog for about a month now and as some one who believes in being prepared for any situation. I have found a lot of your comments very useful. I am confused though about your suggestions to invest in gold and silver. I am just learning about these things so hopefully you can help clear up my confusion. If you look at the track record for gold and silver over the long run these assets have just kept up with inflation. Over the same historical time period the stock market has been …

Hi Jim! All things considered, what is your best “guestimate” on when this economy will crash or the SHTF ? – M. in Montana JWR Replies: Sorry, but I don’t have a crystal ball. All that I know is that with the massive debt accumulations (both Federal and consumer debt), the real estate bubble, and the burgeoning trade deficit, the U.S. economy is highly unstable. Other factors like international terrorism and the Asian Avian flu are totally unpredictable variables. The bottom line: Just be prepared, and be prepared soon.