fundamentals-precious metals

FRIDAY FUNDAMENTALS-PRECIOUS METALS


Let’s just get it out of the way first so we can go about our business in peace. No, you can’t eat gold. Gold will not keep you alive during the collapse. Gold should never be bought except when all your food and arms have already been attended to. You don’t buy six months supply of freeze dried pigs ass and then start buying gold. You store three to five years worth of food per person, and only then do you start to buy precious metals ( and of course I include other essentials such as warm clothing, lighting, alternate heat, etc. in the items you need prior to precious metals )( The Collapse of the Dollar and How to Profit from It: Make a Fortune by Investing in Gold and Other Hard Assets ). Gold, silver and copper are not meant as a survival tool, they are the means of transferring your surplus wealth from one generation to another and from the Oil Age to the Post Oil Age.

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We all earn a huge surplus of wealth. Even the minimum wage earners. In this era in which petroleum gives every man, woman or child dozens if not hundreds of Petroleum Slaves, at least in America and its approved economic client states, it is so simple to set aside wealth which would dazzle the kings of old. With a minimum of effort and sacrifice we can all put our wealth into investments and insurance. The Age Of Plenty is already unraveling and by acting now, immediately, you can built a bit of a safety cushion against the coming Dark Ages ( Long-Term Survival In The Coming Dark Age: Preparing to Live after Society Crumbles ). The age where we all go back to, after much chaos and anarchy and fighting over the scraps ( “We kill for stuff we used to throw away” ), when the new guarded infrastructure gets into place, being lucky to produce twenty percent surplus crops to maintain the powers that guard our bounty. You have a last once in a lifetime opportunity to provision against that future. First and foremost is the petroleum grown grains. They might have quadrupled in cost in twelve years but they are still a screaming bargain. What took a medieval tradesman hours of labor to buy takes us minutes. Buy the surplus food while it is affordable. Then, all the cheap tools from China. After your basic needs are met, after all the solar panels ( Sunforce 50044 60-Watt Solar Charging Kit ) and batteries and grain grinders and water filters and winter clothing and guns and ammo, then you can buy precious metals.

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Wow, I’m glad we got that out of the way. Critics satisfied, we can sing the praises of precious metals. Gold is the proven wealth preserve of the ages. An illiterate beggar from a thousand years and Billy Bob the Redneck Yahoo ( Billy Bob Teeth Broadway Baby Pacifier ) in ten years time will both instinctively know the value of gold. It doesn’t need persuasion, it has always been known as the ultimate store of value ( with the exception of the last few decades when bankers could fool the masses into believing that paper currency backed by oil was more valuable- and it was for a short period of time ). And it will revert back to that status soon. Personally, I think that anyone alive who still believes paper has value deserves the fleecing they will get. Yes, paper is the only trading commodity accepted now. And you need enough on hand for immediate needs. But to go beyond that, to place your faith in ANY paper promise ( 401k, government pension, Social Security, bonds, stocks ) is to be a friggin schmuck. Gold will hold its value once all the paper promises circle the drain of our current economy. It is wealth, not the promise of wealth ( remember, precious metals are for AFTER the collapse, not for during- that is where you need beans and bullets ).

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Silver is the poor mans gold ( NEW Buffalo/Indian Head Nickel Art Coin 1 TROY OZ .999 SILVER BULLION ). You might not think your poor ass can afford it, after the spot price hit $30 an ounce. So let me illustrate a bit by my own silver stash. I didn’t go crazy on silver. A few handfuls. But at the time I bought it it was only five to seven bucks an ounce. You are resentful, I see. But consider its true cost rather than the inflated one. At the time I could have taken the same money per ounce and bought a box of 303 ammo ( Ammo & Ballistics 3, Third Edition : For Hunters, Shooters, and Collectors, Completely Updated (Ammo & Ballistics for Hunters, Shooters, & Collectors) ), new manufacture. Or a fifty pound sack of wheat. Silver has now advanced to a box and a half of ammo or two sacks of wheat. I didn’t see a six fold increase, I only really saw a 1-1/2 and a two fold increase. The money gain is an illusion. You can’t think of dollar terms, paper currency manipulation, but in terms of buying power. I’m ahead of the game temporarily, until wheat doubles in price and ammo goes up again. I beat the re-pricing to truer, scarcity driven commodity it is true, but I don’t believe you will be overpaying for silver. I believe you buy what you can and be thankful you will be one of just a few that can preserve their wealth. Both gold and silver ( Ruff's Little Book of Big Fortunes in Gold and Silver: A Middle Class License to Print Money ) are easy to buy. You go to a retail coin shop and ask to buy bullion. No collectables or jewelry or fancy crap. Just bullion coins. You will pay X amount over that days spot price. Take immediate delivery and don’t tell anyone and bury that sucker. You can buy junk silver, the old dairy circulation coins that were discontinued in 1965, but most likely you will be paying a premium due to demand. I don’t think one ounce private minted coins will have a problem being accepted in the near future ( and, as one who worked twenty years in retail, I’ll tell you right now there is ZERO circulating silver junk coins- been that way since a few years pre-Y2K ).

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Yuppie Survivalists will discount copper pennies as a poor way to spend your time. They are looking at copper as an industrial commodity. After industry has all but vanished, already minted copper coins will be worth a premium over copper scrap. Because they are already minted in an economy where energy costs are astronomical ( what happens when you go from cheap oil to expensive wood/animal/human powered ). Look at pre-Industrial Age American prices. Meat at 16 cents a pound. Flour at five cents a pound, etc. ( sorry, I might be off a bit- going by memory ). A penny bought a lot in a precious metal currency Agricultural Age ( On the Agricultural Community of the Middle Ages, and Inclosures of the Sixteenth Century in England: Tr. From the German of E. Nasse, by Colonel H.a. Ouvry .... [ 1871 ] ) economy. Sort through your coins and save the pre-82 pennies. And no, there is no way to cheat on sorting. You must look on the dates since fifty year old coins can look bright and shiny and a two year old one can be dull ( the new ones come out shiny and the old well circulated pennies generally become deeply dulled- but appearances always vary and are no guide to age ). Put your kids to work sorting and keep a Grinch List. Those that don’t work are the first into the stew pot.

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For the survivalist that already has everything, precious metals.

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