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 rimfire ammunition. (See the Commodities section.)
Precious Metals
The surprising rationale behind a million-dollar bet on silver
Stocks:
CNBC: Are the homebuilders showing cracks? (Auto-start video.)
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Next, at Seeking Alpha: The S&P 500 Goes Flat In Week 3 Of September 2017
Commodities (Rimfire Ammunition):
After three+ years of chronic shortages, I see that the price of .22 LR rimfire ammo is finally normalizing. For example, mail order giant Midway presently has Remington 22 LR 36-grain Golden Bullet buckets of 1,400 on sale for under $85. But back during The Great .22 Crisis just a single brick of 500 was selling for around $80. Buy low and sell high, folks!
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I spotted this linked at Zero Hedge: In World’s Hottest Oil Patch, Jitters Mount That a Bust Is Near
Forex:
German election uncertainty sinks euro; dollar broadly gains
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Euro To Dollar Forecast For 2017, 2018, 2019, 2020 And 2021
Economy & Finance:
Cash Is in Short Supply in Storm-Ravaged Puerto Rico (Has auto-start video.)
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The National (from the UAE) reports: [EMEA] Leveraged finance issuance to maintain momentum in September
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The Fed maintains 2017, 2018 rate forecast
Troubling Trends:
Brexit Betrayed! (Thanks to H.L. for the link.)
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Next, at Bloomberg: Can the Fed Unwind Without Unnerving Markets?
Tangibles Investing:
Can collectible investments be a useful diversifier?
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At CNBC: Wine is now the best-performing collectible of the rich (Has auto-start video.)
Provisos:
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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!
Weeks after Sandy Hook, a friend in Alabama had a deputy come to his house wanting to buy some of his .22LR rounds. He had around 20,000. The deputy went away empty-handed. However, he was able to find two bricks on the shelf in a Best hardware store 150 miles away, for $179.00. He bought both of them. Callers on Gun Talk say they saw bricks going for $250.00. That’s .50 cents per round….half of what 5.56 was bringing at the time. It’s all supply and demand. Mind you, the lights were still on, groceries in the stores, and clean water gushing from our taps. I foresee a box of 50 .22s having more worth than a one ounce gold piece.
I have never understood the attraction to the 22lr. It’s a great squirrel/rabbit round and farm varmint round but that’s about it. I have had 6,000+ rounds around for a couple decades and never use more than maybe a dozen rounds a year through an old Glenfield single shot. I never got sucked in to the “I gotta have some 22lr ammo or I’m going to die thing”.
I generally use a Savage bolt gun in 22 hornet for squirrel hunting. I reload my own ammo and get much better accuracy and extended distance than a .22lr. 80 yard head shots on squirrels aren’t hard with this gun if I can get a good rest. Of course a good scope helps as well. It will shoot 3/4″ 5 shot groups @ 100 yards.
Most of the attraction to 22lr is that it’s the most popular and widely owned caliber in the US, quieter than bigger calibers, ammo is cheap, and it’s still deadly for sure. I want enough to #1, to live off of now if need be, #2, to have enough to trade away with no concern of it running out, #3, and to have enough so my children and grandchildren will be able to live off of, and also to trade with no concern of running out. I agree with Paul, it’s real value has not even come to light yet.
Sad, but I don’t think any of us are surprised at Brexit not happening. They have less rights than we do, and they are losing more every year. In the convening years the immigrants and EU folks will totally subject this great Nation.
Every distributor right now is having blowout sales on guns, magazines, and ammo. There is no better time to get what you need. With a little careful shopping, you can get a decent AR, 1000 rounds of 5.56mm, and some magazines for around $1000. Or, a Glock 9mm, 6 magazines, 1000 rounds of ammo and a training class. Every payday, grab another magazine, another brick of .22, something. There will be another crisis, there always is.
Next to food, 22 rimfire might be the best barter much as described in ‘Patriots’
Well, after some/most SHTF scenarios small game will rapidly be wiped out for food by all those with guns. Not going to be much use for 22lr after that, in my opinion anyway.
“…after some/most SHTF scenarios small game will rapidly be wiped out for food by all those with guns.”
Yet with all the good folks who live in the mountains of Tennessee and North Carolina, who eat small game, it doesn’t get wiped out. The small game thrives. If you are a good steward of your property the small game will gather on your property, even after the crunch.
As for being relatively useless as a defensive weapon, if you walk up on someone with a .22LR pointed at your head, that barrel is going to look like a freaking cannon. (Especially with a sound suppressor on the end of that barrel.)
The .22LR is always going to be a necessary round whether for small game hunting or for self defense, even in a SHTF scenario, always.
In the event that you Fall short of appropriate centerfire combat ammunition during or after a S H T F scenario, having 50,000 or more Rimfire rounds and lots of hi cap mags in reserve could be very reassuring. Depending on the scenario, it could be a life saver until such time as you are able to reload / restock your centerfire battle rifle ammo supply. It very well just might be enough to protect your inside perimeter until you get back on your feet.
I bought a .22 reload kit, use .22 pellets as the projectile, strike anywhere tips for the primer component and a 5.56 round gives me enough powder to charge 4 or 5 .22’s.