Category: Economics & Investing

Jim, I have been thinking about my 401(k) money that I can’t get to till I am 59-1/2. I have done some homework on it, and here is what I have found out. Our Federal Government has confiscated the gold eight times in the past. When they do, they pay face value. Double Eagles are $20.00, that’s it. Talk about taking it in the neck! There is a way to put gold into an account, where it is stored for $100.00 per year, in the owner’s name, but it seems one cannot get [numismatic] pre-1933 gold coins (which are non-confiscatable) …

James: Bill in North Idaho’s letter intrigued me, so I did some digging and thought you would be interested in what I found. The FinCEN FAQ is pretty clear that the requirements of being a ‘dealer’ only applies if you buy and sell more then $50,000 in one calendar year/tax year, so if you’re buying up bullion and not selling it (i.e. hoarding it) you don’t count as a ‘dealer’ so this specific ruling doesn’t touch you. What it does do, is make most people selling lots of gold/silver/jewels into ‘dealers’ which means they file IRS form 8300 and report …

Jim, It looks like our rulers are going to tighten the noose on reporting requirements for bullion purchases to chip away at anonymous buyers effective January 1, 2006. See:  http://www.fincen.gov/faq060305.pdf   FDR started the ball rolling in 1933. See: http://www.the-privateer.com/1933-gold-confiscation.html. This FINCEN ruling may be the precursor to the next confiscation coming down the pike. Instead of “hoarding”, the new buzzword is now money-laundering prevention. As with guns, the strategy is to attach names and addresses to potentially confiscated goods to facilitate asset seizure and forfeiture.- Bill in North Idaho

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.

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 …

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 …

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 …