Here are the latest news 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 SurvivalBlog’s Founder and Senior Editor, JWR. Today, we look at investing in AR Lowers. (See the Tangibles Investing section.)
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And for the leftist-globalist perspective, there is this discussion at CNBC: Traders discuss why gold is near highs as dollar also rallies.
Economy & Finance:
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Reader H.L. sent this: PG&E’s bankruptcy: Renewable energy costs at 800% of market rates. H.L.’s Comment: Another nail in California’s coffin. How very sad. JWR’s Comment: Here is where Liberal Feel Good intentions conflict with common sense. I won’t be surprised to see electricity rates jump to 40 cents per kilowatt hour in California, within two years. Here in the American Redoubt we are still paying under 10 cents per kilowatt hour.
The global crude oil market is now in turmoil. The price of oil had been plunging up until June 12th. Then came news that two oil tankers had been struck by limpet mines, in the Persian Gulf. Stay tuned.
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At Seeking Alpha: Tight supply, strong demand push iron ore price to new record high
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Tangibles Investing (AR Lowers):
I am once again making special mention of the importance of stocking up on AR lowers–specifically AR-15 and AR-10 lowers. For the uninitiated, this takes a bit of explanation: Just one part, the “lower receiver”–an 8-ounce alloy trigger and magazine housing that bears a serial number–is legally considered the “firearm”, under Federal law. All of the other parts for rifles are completely unrestricted here in the Land of the [Formerly] Free. Everything but a receiver can be freely bought and sold by anyone. This is substantially different than the laws in most European nations, where not just receivers, but also barrels and bolts are restricted. (Typically, their laws restrict all “pressurized parts.”) Thus, we presently have the opportunity to stock up on serialized “firearms” for under $40 each, that can be fully assembled at a later date. If we look back just a few years at the Obama Administration, for a period of about 10 months the price of stripped lowers jumped to $200 each. I expect something very similar to happen again, if another Democrat is elected to the White House in 2020, or in 2024.
It is noteworthy that Palmetto State Armory frequenty runs $29.99 sales on their standard “Safe-Fire”-marked stripped AR-15 lowers. (Search on SKU 1728, at their web site.) They also regularly sell AR-10 lowers for as low as $79 each. If you have some extra funds to invest and if your local dealer charges a percentage, rather than a flat fee fro Form 4473 gun transfers, then I suggest that you stock up on AR lowers, heavily! You will thank yourself the next time that the price of stripped lowers spikes up. I believe that they may soar to $300 apiece, in the next Political Panic Buy period. So that would literally be a 10X return on investment! Granted, this is a bit of a gamble. But anyone with an extra $300 on hand has a fair chance of turning that into $3,000 in either two years, or in six years.
Estimate the number of grandchildren you’ll have, if you live to be 90 years old. Now multiply that number by 3. The result should give you a good baseline number of how many stripped AR lowers to buy, just for your own family’s use. Beyond that, buy extras, for speculation.
One advantage of this tangible investment is that it is fairly compact and lightweight. You can fit about 20 AR-lowers in a large briefcase. That is a $600 investment that you might someday be able to easily parlay into $6,000. And one nice thing about American ban laws, is that there is almost always a Grandfather Clause.
If you are a machinist, you can find 80% complete unserialized AR lowers for roughly $20 to $35 each. But keep in mind that those can ONLY be completed for your personal (immediate family) use. Re-selling them in completed form would be a violation of Federal law.
Note: If you decide to stock up on any AR parts, then please be sure to use our Palmetto State Armory affiliate ordering link. That way, we’ll earn a small commission.
SurvivalBlog and its Editors are not paid investment counselors or advisers. 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!