Category: Economics & Investing

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 …

The big 48 cent “profit taking” drop in the spot price of silver yesterday represents a great buying opportunity. For those of you that felt that you “missed the boat” this dip is your chance to buy some silver before the bull resumes his charge. For those of you that already have a pile of silver, don’t let short term volatility like this spook you. We are in the opening stages of secular bull market in precious metals that may last a full decade. The long term charts at Kitco.com should convince you.Quit hesitating and Buy! (Yes, I mean you …

James: Regarding your reply to Jerry T., who was interested in purchasing junk silver… For those of us who can’t afford (or don’t wish to purchase) $1,000 bags, there is an alternative: eBay. Search for “silver dime roll” (or a similar search phrase for other denominations) and you’ll find tons of them for sale. To simplify the bidding process, use eSnipe (www.esnipe.com). The usual caveats of buying on eBay apply: always check the seller’s feedbacks [number and ratio of positives], and things that sound to good to be true usually are, etc. However, I’ve done a number of silver transactions …

Dear Jim, I really enjoy your Blog. On Friday the 3rd of February you wrote: “I recommend that you first buy one $1,000 face value bag of circulated (“junk”) pre-1965 dimes or quarters for each family member as your designated “barter” silver.” How do you go about acquiring the junk silver? My local coin store guy just talks about grading…I can’t seem to get him on a silver to trade concept. Do any of your advertisers deal in that type of silver? Can you recommend any other types of trade goods? Beads and sea shells are probably out even when …

Dear Jim: I noticed in your SurvivalBlog post of January 27 that you mentioned that you have invested in 100 oz. Englehard silver bars. 1.) Do you recommend this type of purchase in today’s silver market? [JWR’s replies are in-line.] Even at $10 per ounce, silver is still a relative bargain.  (It certainly when you consider the real value of the U.S. Dollar–which is essentially nothing.) I recommend that you first buy one $1,000 face value bag of circulated (“junk”) pre-1965 dimes or quarters for each family member as your designated “barter” silver.  Those coins could presumably be used for …