Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on investing in Pre-1965 Silver Coins. (See the Tangibles Investing section, near the end of this column.)
Clive Maund: ‘The Most Bullish Set Up for Silver that I Have Ever Seen’ (Thanks to H.L. for the link.)
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Economy & Finance:
We Understand The Chinese Government Has Halted Purchases Of US Treasuries”: SGH. JWR’s Comments: Think this through, folks: This change could be the tipping point ending stable, artificially low interest rates. The People’s Republic of China has been the single largest foreign buyer of U.S. Treasury paper. Once the You’re-a-Peons realize that they can hold out for a higher yield from the U.S. Treasury, then they’ll get it. And that could start a very ugly sequence of events: 1.) A stairstepping of interest rates, leading to… 2.) A dampering down of our economy, leading to… 3.) Spiking interest rates, leading to.. 4.) The U.S. National Debt becoming unserviceable– at least without more monetization (QE), leading to.. 5.) A full-blown credit crisis, leading to… 6.) Wholesale Monetization (“QE to Infinity”) , leading to… 7.) A Dollar crisis, leading to… 8.) Mass inflation, leading to… 9.) A Dollar collapse, leading to… 10.) Something like a novel I once wrote.
Watch U.S. Treasuries yields very closely, folks. Those will be the barometer of the entire global economic weather system, for the next couple of years.
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Where Politics and Economics Meet:
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And here is a company with more scruples that didn’t change course to match the political breezes: Wells Fargo resists pressure to stop offering banking services to NRA, gun makers
JWR’s Comment: I strongly recommend that SurvivalBlog readers boycott Dick’s Sporting Goods, CitiBank, and Delta Airlines. Shame on them! In contrast, Well’s Fargo deserves applause for showing some backbone.
Tangibles Investing (Pre-1965 Silver):
Up until 1964, the U.S. Mint produced circulating 90% silver dimes, quarters, and half dollars. Sometimes mistakenly called “Pre-’64”, these coins are actually Pre-1965 silver coins. Although you will occasionally find a silver half dollar, most of these coins have been hoarded by the American citizenry, in accordance with Gresham’s Law. (“Bad money drives out good.”)
I still prefer circulated pre-1965 silver coins for barter for three reasons: 1.) Because they have generally-recognized value by the American populace, 2.) They have a fairly low markup, and 3.) They have a very low likelihood of ever being counterfeited.
Most local coin shops will have pre-1965 silver on hand. They generally consider well-worn circulated coins to have little or no collector value. Hence their derisive name “Junk Silver”. As non-cellectible coins, they sell essentially at their bullion or “melt” value. That is the way to buy them.
Compare prices before you buy. It f you buy locally, it is best phone several shops, and ask: “What percentage above spot are you charging for pre-1965 circulated silver?”
If you have the choice between dimes, quarters, and halves, then I recommend that you buy quarters. That way you avoid the heavy wear (read: loss of weight) often seen with dimes. And you will also avoid any confusion with 1965 or later mint date half dollars, which were composed of only 40% silver.
What Are The Coins Worth?
The melt value of these coins change daily, closely following the spot silver market.
Here is some data that you should print out and keep in your reference binder. Most of what you need to do to calculate coin melt values is simply shift decimal places…
90% .50/.25/.10 bags ($1,000 face value) contain approximately 715 Troy ounces of silver.
So at today’s spot price (in early April 2018):
$16.53 spot x 715 ounces = $11,881.95 for a full $1,000 bag (Or just think of it as 11.8 x face value.)
You can find detailed coin specifications at Coinflation.com. (These are useful if you’d rather calculate coin values by the gram.)
The Handy Formulas
And here are some handy conversion formulas:
Grams to pennyweights, multiply grams by .643
Pennyweights to grams, multiply pennyweights by 1.555
Grams to troy ounces, multiply grams by 0.32
Troy ounces to grams, multiply troy ounces by 31.103
Pennyweights to troy ounces, divide pennyweights by 20
Troy ounces to pennyweights, multiply troy ounces by 20
Grains to grams, multiply grains by .0648
Grams to grains, multiply grams by 15.432
Pennyweights to grains, multiply pennyweights by 24
Avoirdupois ounces to troy ounces, multiply avoirdupois ounces by .912
Troy ounces to avoirdupois ounces, multiply troy ounces by 1.097
Avoirdupois ounces to grams, multiply avoirdupois ounces by 28.35
Grams to Avoirdupois ounces, multiply grams by .035
Note that $1,000 face value bags of 40% silver half dollars (with 1965 to 1970 mint dates) contain approximately 296 Troy ounces of silver.
SurvivalBlog and its Editors are not paid investment counselors or advisers. So please see our Provisos page for our detailed disclaimers.
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who particularly watch individual markets. And due to their diligence and focus, we benefit from fresh “on target” investing news. We often “get the scoop” on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!