Category: Economics & Investing

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.

Dear Jim: With all of the prevailing concerns about the USG economy and the specter of a hyper-inflated or collapsed USG dollar, many people are seeking to invest in the precious metals like silver and gold. But, unfortunately, many of us have previously invested in dollar-denominated IRA‘s, 401(k) and other pension plans. As you know, if a person withdraws money from these plans he must pay all applicable taxes PLUS a 10% penalty which makes this a prohibitive thing to do. Therefore do you have any suggestions on what to do with existing retirement funds? Are there any precious metal-backed …

Sir: I stumbled across your blog a few months ago and have enjoyed reading it ever since. Your readers would enjoy this link about hyperinflation in Serbia and Zimbabwe.  See: http://www.zimbabwesituation.com/feb17_2006.html#Z5.   – Greg

Back in the late 1990s, I corresponded via e-mail with a gentleman from Indonesia who had read the short “Triple Ought” draft edition of my novel Patriots. One of his letters in particular (from October of 1998) had some interesting insights and a valuable perspective on what it is like to live through a period of hyperinflation. (This was back during the time of wholesale inflation of the Indonesian Rupiah.) He started his letter by responding to my request for a sample of the Indonesian paper currency for my collection. To explain: I collect fiat paper currencies that have been …

Dear Jim: I just finished reading an article from the Gold Anti-Trust Action (GATA) group which quotes a Treasury Department official as saying “The U.S. Government has the authority to prohibit the private possession of gold and silver coin and bullion by U.S. citizens during wartime and declared emergencies…” I have also learned that the USG also considers “junk” pre-’64 silver coins to be bullion and therefore subject to confiscation when the situation arises. In talking with our good friends at Swiss America it appears that, currently, only coins minted before 1933 and having a numismatic grade of MS64 or …

Jim, Why [do you] recommend [serialized] 100 ounce silver bars when 90% silver coins are selling at spot and the bars are at spot plus $.30 (this is from www.cmi-gold-silver.com in Phoenix)? It seems like silver coins would be the better choice because they are cheaper and more versatile than 100 ounce bars. – Springmtnd JWR Replies: If you can buy circulated pre-1965 U.S. silver coinage at spot, that is fantastic. Even after the recent dip, most dealers currently charge around 7 times face value ($7,000 per $1,000 face value bag.) As a point of reference, a $1,000 bag with …