Category: Economics & Investing

Mr. Rawles: The following response is not intended to be insulting, but I fear it must inevitably come across as such. L.C.’s ignorance is so astonishing in its breadth and depth that I do not know how else to address it. I therefore apologize from the outset for what follows, but understand that this is all intended in the sincere hope of increasing understanding and not some sort of “I know more than you do” contest.  L.C. wrote: “I was moderately concerned for the first time reading your blog this past week in regards to the post on Gold and …

There was an interesting thread of conversation over on The FALFiles Forums about the U.S. 90% silver coinage that was minted up to 1964. The thread began: > Talk about coincidence, I was given two silver quarters im my change from a local McDonalds [the] day > before yesterday. I knew there was something good in all that change as soon as she dropped > it into my hand by the distinct difference in sound the old coins made, the cashier never batted an eye. >I got one 1965 quarter in very good shape and one 1942 quarter that looks …

This is a question that should be of general interest. In your novel Patriots, “The Crunch” was beginning at 16% inflation. With the latest inflation figures annualized at 14.4%, how do we stand on The Crunch index? Will people really believe it is possible, even after it happens? The people I know are incredibly naive and trusting in all-powerful government.- Ron Y. JWR Replies: I think that inflation would have to jump into triple digits in order to precipitate any sort of full scale economic collapse. IMO, it is far more likely that a dollar crisis initiated by nervous foreign …

I have a good friend with whom I chat on the phone quite regularly. I have been bugging him to hedge into metals for the past three years. When the spot price was $4.35 an ounce with the dealer’s commission a 100 ounce Engelhard bar was about $500. At that time, I suggested that my friend buy at least buy one or two $1,000 face value bags of pre-1965 “junk” silver coinage–just in case. He waffled. Then, when silver was $4.80 an ounce, I was practically begging him to buy.  Even though he was sitting on substantial dollar-denominated liquid assets, he …

Silver closed at $8.07 per ounce on Thursday, and gold closed at $485.70. Pardon me for rubbing it in a bit, but I told you so. (See my August 6, 2005 post.) Since $8 is a psychological barrier, there will likely be some profit taking for the next few COMEX market days, so if you missed the boat, you may be able to buy on the dip. But then get ready for the bull to resume his charge. I am still convinced that the metals are just a few years into a long term “secular” bull market. NewsMax reports Gold …

James: First of all, I want to say thank you for putting so much effort in to an active blog on this subject. I try to read daily, and I always play catch-up once a week. I know it takes a TON of work to keep something like this alive and post as much each day as you do, so again, thanks. I was moderately concerned for the first time reading your blog this past week in regards to the post on Gold and Silver Barter. In there you referred to the American public as having “been robbed”. My concern …

Jim: I just purchased ten Canadian silver dollars. The ones I bought were from 1990. They contain 1 ounce of 99.99 silver.They cost me $11 each including shipping. I bought them for making colloidal silver in bad times. They are the purest silver coins I have seen yet. – C.R.Z. Mr. Rawles: What do you think of silver “rounds.” That is, those ounces of silver sized like a silver dollar, but not minted as a negotiable coin of the realm. They may commemorate Christmas of a certain year or have some other decorative design. Many times these can be found …

Mr. Rawles: Okay, say TEOTWAWKI happens. You have some silver coins and want to buy something. How does the person you buy whatever from know what it is actually worth since it is constantly changing. If you buy something for $2.00 do you hand the person 20 silver dimes? Or does the shop owner have to find out what silver is worth that day and weigh what you hand him. Also I’ve read the government is going to confiscate all gold including collectors old gold. I live in Minnesota west of the Mississippi about 50 miles on a lowly 10 …

Jim: German-silver is a Brass – or in the family of brass thereof anyway just like bronze – don’t catch me out with too much details as an expert will tell me how far off I am on that statement! Regardless, “German silver” has NO silver at all, it is to varying degrees of composition depending on its intent etc, basically: copper, from 50% to 61.6%; zinc, from 19% to 17.2%; nickel, from 30% to 21.1%. Developed by the way by the German scientist Geitner. There is a related alloy called Tuetenag (see the German connection???…which is very “gold” looking …

I am often asked in e-mails about gold and silver coins and their value, both in the present day and their eventual worth (post-TEOTWAWKI) for barter purposes. The basic unit of measure for most of us that are in preparedness circles is the $1,000 face value bag of circulated U.S. silver coinage, minted in or before 1964. (Some folks mistakenly call these coins “Pre-’64”, but properly they should be termed “Pre-’65.”) 1964 was the last year that 90% silver coins were minted for circulation in the U.S. All of the dimes and quarters minted from 1965 onward are “clad” copper …