Category: Economics & Investing

Paul Tustain: The Crushing Debt Burden = Inflation Ahead = Higher Prices for Gold and Silver

In a recent economic analysis piece featured by our friends at Gold-Eagle.com, (http://www.gold-eagle.com/editorials_05/tustain120505.html), Paul Tustain outlines just how bad the national debt situations is, he compares our situation to Argentina a few years ago, and he predicts that Uncle Sam will inflate his way out of the jam. My extrapolation of Tustain’s remarks–and from what I’ve read from many other analysts: One likely end result will be a dollar crisis and gold at perhaps $2,000+ per ounce. Meanwhile, the expert “chartists” like Clive Maund (see: http://www.gold-eagle.com/editorials_05/maund120505.html) tell us that in the recent run-up past $510 per ounce, gold has pushed …


Letter Re: Bullion Dealer and Question on Recommended Inoculations

Jim: I have been purchasing my silver from a store in Reno Nevada and have never had a problem with them. http://www.silverstatecoin.com/ I read your blog everyday at lunch, I enjoy it immensely. I was wondering what your thoughts were on vaccinations.  Last month I was vaccinated for Flu, Pneumonia, Measles, Mumps, Rubella, Tetanus and Diphtheria. I am 50 years old and had the usual vaccinations when I was a child, is there anything else that I should consider getting?  Have a Merry Christmas. – Jim from Illinois JWR Replies:  I have very mixed feelings about inoculations. Currently, with the …


Zimbabwe’s Slow Slide Continues

Mismanaged for many years by a horrendously corrupt and inept communist government, Zimbabwe’s economy is sliding into deeper Schumer. SurvivalBlog reader Lyn recommended this article: http://www.theaustralian.news.com.au/printpage/0,5942,17457835,00.html The Australian newspaper reports that the mass inflation continues: “A US dollar now costs $Z61,000 at official rates and $Z85,000 on the black market.” The economy continues to decline, along with farm production. Now starvation is a real threat in a country that once fed much of sub-Saharan Africa. To make matters worse, the infrastructure is crumbling–including sewage treatment plants. The Australian reports that there is the risk of disease–with cholera and amoebic dysentery …


Letter Re: Recommended Silver Bullion Dealer

Mr Rawles, I just wanted to send you a note suggesting another dealer from whom to buy $1,000 face value bags of [pre-1965] junk silver. I am not affiliated with him in any way, just a happy customer. The dealer is Hannes Tulving, [in southern California.] His web site is: http://www.tulving.com. In my experience he deals in primarily in bullion, and very little in numismatic products. I’m a very happy customer and have referred several people to him over the years. – E.L.


Letter Re: The Great Debate–Puru Saxena Explains the Fed’s Interest Rate Hikes

I enjoy most of what Survival Blog puts out, but the Puru Saxena article is a bit misleading. Mr. Saxena seems to be a bit confused into thinking that 1) all inflation is the same and that 2) control is the same as eliminate. The Federal Reserve’s monetary policy is, has been since its inception, and will most likely continue to be creating inflation. This is not at issue, as the Fed is happy to point out. What Mr. Saxena seems to say is that control over inflation should equal eliminating inflation. The Fed strives to keep inflation within a …


Letter Re: Cleaning/Polishing Silver Coins?

James, I hear that silver spiked again today. I’m very glad I took your advice and bought a half-bag of junk silver last month! It was as easy as you say. I just called the local coin dealer with the biggest ad in the yellow pages. Their price was about $200 cheaper than Swiss America’s. Would it be worth the bother to clean the coins? Virtually all of the coins are quite dirty. My main purpose in storing these coins will be for future barter, if necessary. I’m guessing they would be more attractive for barter if cleaned up. If …


Letter Re: Sources for Pre-1965 Circulated “Junk” Silver Coins?

Jim: Why is it, Jim, that when I ask a coin shop about “junk silver” or pre-1965 [$1,000 face value] bags of silver they look at me as if I’m nuts? Am I going to the wrong place? – Gerry JWR Replies: It sounds like you visited a “numismatics only” shop. Some shops don’t bother selling bullion because the markup is so much less than rare coins. Just call around to several other dealers in your region. Odds are that most of them will sell pre-’65 by the bag or half-bag–or can at least they can order it for you.


The Great Debate–Puru Saxena Explains the Fed’s Interest Rate Hikes

Don’t miss the article titled The Great Debate by Puru Saxena which recently ran in The Daily Reckoning. In it, Saxena refutes the widespread belief is that the Federal Reserve is currently increasing interest-rates to “control” inflation. Here is an excerpt from his excellent article: “The grim reality is that the modern day central banking IS inflation…and the quicker we get used to this idea, the better. The deflation scare is nothing more than a decoy, which the central banks use in order to continue with their money-printing (inflationary) program. Still not convinced? Then, consider the greatest fabrication, the Japanese …


Letter from G.F.L. –Reply to L.C., Re: On Gold, Silver, and Barter

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 …


Clarification on Pre-1965 Silver Coins

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 …


Letter Re: Onset of “The Crunch”

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 …



The Precious Metals Bull Continues His Charge

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 …


The Silver and Gold Price Spikes

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 …


Odds ‘n Sods: Walter Williams on Understanding Inflation

Noted economist Walter Williams (who sometimes substitutes as the host for Rush Limbaugh’s talk radio show) just wrote a concise little piece on understanding inflation. See: http://www.townhall.com/opinion/columns/walterwilliams/2005/11/16/175724.html Williams is one of my heroes because he is a true conservative and he doesn’t mince words.