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 Ratio Trading Metals. (See the Precious Metals section.)
Precious Metals (Ratio Trading Metals):
I mentioned this same inflection point in SurvivalBlog a week ago when the ratio was then north of 82-to-1.: Gold to Silver Ratio Hits Highest Level in 27 Years – What does it Mean? JWR’s Comment: Again, I recommend that folks seriously consider doing some ratio trading. The approach should be much like the oft-quoted “buy low, sell high” mantra. In the case of commodities ratios, we should say: “Ratio trade whenever ratios reach extremes.” After all, reversion to the norm happens more often than not.
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When The US Stock Market Crashes, Buy Gold
Cryptos:
Hard Forks Hinder Mass Adoption of Cryptocurrencies: Study
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This Dormant $720 Million Bitcoin Wallet Has Woken Up – But Who Owns It?
Economy & Finance:
Even CBS News is sounding alarm bells: 10 years after Lehman, is another crisis brewing?
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Fed faces ‘quite challenging’ period keeping recovery on track: Yellen
Forex:
The Argentine Peso’s recent relative strength appears to be due to short term market intervention rather than something secular. So we can probably expect to see it in back down in the low 30s by late October. For those who trade, this might be a good time to short the Argentine Peso.
Tangibles Investing:
The discontinuation of the Browning Hi-Power pistol from Browning’s product line has had a predictable result: Prices are now rising on nearly all of the variants that were Browning factory made. My advice fro investors: Buy Hi-Powers that are still brand new or like new in their original factory box (and/or pouch.) The more scarce variants will see the greatest gain in value. One such model to jump on if you can find it is the .40 S&W Hi-Power Practical (with a matte hard chrome frame.) All of the Browning factory Hi-Powers chambered in .40 S&W are particularly desirable, because they have a beefier frame. Using a drop-in barrel, you can down-convert these to 9mm. Then you will have a dual caliber pistol. And even better, you will have a 9mm pistol that is capable of shooting +P ammo and heavy 9mm SMG loads.
But basically any of the scarce variants (two-tone, camouflage, et cetera) are bound to be worth a lot in just a few years. One notable variant is the Capitan. This was a Mark III variant with a tangent rear sight and a rowell hammer reminiscent of the early model HP35. It was introduced in 1993 went out of production around 2005. And of course any pre-war Hi-Powers, German occupation Hi-Powers, and Inglis (of Canada) Hi-Powers also have great collector appeal.
Provisos:
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.
News Tips:
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!
“Gold to Silver Ratio Hits Highest Level in 27 Years – What does it Mean?”
it means the g/s market is manipulated.
“After all, reversion to the norm happens more often than not.”
or that the “norm” is changing.
Precious Metals (Ratio Trading Metals):
I’m seeing this as an opportunity to buy more physical 1 oz silver rounds with my limited budget dollars.
It may not be much, only an ounce or two more per month, but it adds up.
I have some silver and I never thought of it as an investment but more of insurance because I have bought during lows and highs. I have tracked every silver purchase for the last 8 years on an excel spreadsheet. Buying a few “high” purchases will kill your gains.
Here are problems you have when you have limited access to dealers because of where you may live and/or buy in low quantities. What the coin dealers do is when the spot goes from high to low they just raise their over spot price to compensate for the fact they are selling silver for less than they may have paid for it. Another practice I have notice when you buy an ounce the dealer will charge say $5.00 over spot but if you went back the next day they will give you only $0.50 over spot to cash in that same ounce. I guess a coin dealer has to make a living too, but at who’s expense.
What prompted this comment was a comment 3 days ago by Tim which I never considered.
“PMs are more nearly insurance…And you get to keep the ‘premiums”.
I buy both “junk” silver and 1 ounce Walking Liberties. Just a bit, every month, and it does add up. A few Kennedy half dollars (1964-1969) too. Add in all the nickels I got, and it’s pretty respectable. I have friends who dumped their silver when it slid off of its highs a few years ago, and they think I’ve lost it, buying as I do. We shall see.
never quite understood why people say gold/silver will be useful after teotwawki. if the trucks aren’t running then no-one is going to sell any amount of food or anything else for any amount of gold.
Money eases transactions when barter requires both parties to have something the other wants. For example, let’s say that in a post-TEOTWAWKI scenario I have five piglets and you want to trade for one. You offer me 200 rounds of 5.56. I have plenty of 5.56, so I shrug and decline to trade. I say I’ll accept your mountain bike instead, but you decline since it is your primary method of transportation. So we are at an impasse.
You have two options: Do a chain trade in which you trade your ammo to someone for a mountain bike (and the chain may have many more links) or we can negotiate a price in money — silver or whatever the current monetary unit is. Option 2 is faster and easier and allows me to then use that money whenever I want to buy whatever I want.
While I agree with your basic premise that food will be in demand, so will sex, cigarettes, alcohol, medicines, gasoline, rechargeable batteries, etc. I know I’d trade food for an antibiotic or other medication I needed.
“cigarettes, alcohol”
(grin) you forgot coffee and chocolate.
dunno. g/s will be taken only if the recipient thinks they can turn around and spend it elsewhere – I just don’t see that happening very often for quite a few decades after any kind of major teotwawki. think I’d rather have $1200 in coffee or rice or salt than a $1200 gold coin.
GMan, Dave’s reply is spot on. Any major event rolls through in stages (for example, decline, collapse, recovery, rebuild). Silver and gold will have its place in all stages plus still act as a medium of exchange. Anyone who fails to prepare for each stage of an event is substantially increasing the risk of failure. In addition to food, skills, self defense, etc. I also want to give my family a chance of coming out on the other side positioned well for success. At some point your preps don’t allow formmuch more than daily survival. More is needed to start up a successful business or buy necessities.
“stages”
yeah, that’s the only argument that makes any sense – ‘cept that’ll be decades on. think it’s better to focus effort on getting there rather than on trying to pre-position yourself for any kind of economic dominance after decades of starvation and gunfights.
Another thought-at some point the US dollar becomes worth alot less – maybe no longer a reserve currency – might be good to have some silver to trade for a currency with value – Swiss franc. Silver will have value regardless of dollar value or lack there of.
“at some point the us dollar becomes worth a lot less … might be good to have some silver to trade”
as someone else pointed out, this country deficit-spends by literally one trillion dollars per year, and has a trade deficit of 600 billion dollars a year. if the dollar fails then this country is going to be a profoundly different place (think tijuana with no money but lots of guns), and I’m not sure silver and gold are going to be any kind of life raft.
“the us dollar”
the dollar is not us owned or controlled in any way. it’s a private pyramid scheme, meant to loot the us and the world for all they’re worth and leave the owners in possession of everything – just like joseph wound up owning all of egypt.