• Welcome to H4O! For a reduced ad experience, please login or register with the forum.

Precious Metals and alternate money

cgalpha08

"Like Nothing Else"
Messages
3,499
Location
Indianapolis, IN
As i see it, the Euro is going to collapse. The european nations who are part of the eurozone (those who use the euro) are going to have to either give up complete sovereignty and all have 1 central bank ,have no control over the currency etc. Or revert back to their home currencies. Either way, economic turmoil and hardship are going to be around for awhile.

Sent from my DROID BIONIC using Tapatalk 2
 

abearden

Well-Known Member
Messages
609
Location
N. Idaho
Food for thought, for those paying attention. This is getting serious! :whaa:

Spain is bordering collapse. http://www.telegraph.co.uk/finance/...n-total-emergency-the-EU-in-total-denial.html

As mentioned earlier, our status as the world's reserve currency is deteriorating: http://times247.com/articles/china-challenges-dollar-with-yen-yuan-currency-deal

To prepare, or not to prepare, is your decision.
To add to the fire: silver is back down where it was at the beginning of the year. Should be interesting to see where it goes if the EU goes sideways.
 

Paladine71

ΜΟΛΩΝ ΛΑΒΕ
Messages
1,483
Location
Tallmansville, WV
All precious metals are being intentionally suppressed. GATA has a lawsuit in progress. The metals go up on the foreign markets based on global economic events, but are then routed in the American markets due to massive paper derivative selling to force the price back down. It happens every time the price starts to climb, usually within a short timespan on a single day. Someone wants those prices kept low, probably because they sell the derivatives and are worried about people claiming against them. There is only about one real ounce per every 100 paper ounces of gold and silver being sold on the stock market and metals exchanges. Their losses would be huge.

Check out this article. If the cat gets out of the bag, silver prices will explode. This could be a once-in-a-lifetime opportunity. http://www.marketwatch.com/story/jp-morgan-hsbc-sued-for-silver-manipulation-2010-10-27

The GATA lawsuit is ongoing: http://www.gata.org/node/8192

Derivatives admission (fractional reserve banking): http://www.youtube.com/watch?v=BfCn8NlLHko&feature=related
 

3Hummers

Super Moderator
Staff member
Messages
10,183
Location
Central Texas
Volatility will drive the prices higher. All of the uncertainty about the Eurozone, slowing growth in China, etc will drive the prices higher. Regardless, a sound plan touches lots of bases and not having some form of reserve of gold/silver etc will probably cost you in the long run.
 

Paladine71

ΜΟΛΩΝ ΛΑΒΕ
Messages
1,483
Location
Tallmansville, WV
Yes, to explain this in a simple way... There are 100 people that can all claim the same ounce of metal. When things get worse, only one of them will get it, the others will get dollars that are dropping in value. One wins, ninety-nine lose. The outrage will be huge. The banks know this and are trying to deceive people for as long as they can. As long as the spot price stays low, people will not want to sell the metals.
 

abearden

Well-Known Member
Messages
609
Location
N. Idaho
All precious metals are being intentionally suppressed. GATA has a lawsuit in progress. The metals go up on the foreign markets based on global economic events, but are then routed in the American markets due to massive paper derivative selling to force the price back down. It happens every time the price starts to climb, usually within a short timespan on a single day. Someone wants those prices kept low, probably because they sell the derivatives and are worried about people claiming against them. There is only about one real ounce per every 100 paper ounces of gold and silver being sold on the stock market and metals exchanges. Their losses would be huge.

Check out this article. If the cat gets out of the bag, silver prices will explode. This could be a once-in-a-lifetime opportunity. http://www.marketwatch.com/story/jp-morgan-hsbc-sued-for-silver-manipulation-2010-10-27

The GATA lawsuit is ongoing: http://www.gata.org/node/8192

Derivatives admission (fractional reserve banking): http://www.youtube.com/watch?v=BfCn8NlLHko&feature=related
Which is precisely why I use the suppressed paper prices to load up on physical. :thumbs:
 

3Hummers

Super Moderator
Staff member
Messages
10,183
Location
Central Texas
Yes, to explain this in a simple way... There are 100 people that can all claim the same ounce of metal. When things get worse, only one of them will get it, the others will get dollars that are dropping in value. One wins, ninety-nine lose. The outrage will be huge. The banks know this and are trying to deceive people for as long as they can. As long as the spot price stays low, people will not want to sell the metals.


Exactly, which is why the coins work for many people. I have no paper gold/silver, stocks in mining companies, etc. I have silver and gold coins.
 

abearden

Well-Known Member
Messages
609
Location
N. Idaho
So buying gold / silver bars are better than buying stocks? Sounds actually really resonable. Gold is way out of the question, so I might start buying silver.
Entirely depends on your outlook. If you think the current recession can be turned around and the economy will boom soon (and the dollar will remain strong), then stocks are the way to go. If you think the economy is going to falter or the dollar is going to weaken with inflation then metals will hedge against that. They're less wealth-generating and more wealth-preservation.
 

Paladine71

ΜΟΛΩΝ ΛΑΒΕ
Messages
1,483
Location
Tallmansville, WV
Here are a couple of videos that should scream "three alarm fire" to all of us. George Soros is one of the puppet masters behind our move to global governance, and is controlling politicans throughout the world (including most of our own). His predictions:

This was last year.

[video=youtube;zVuoQa3r-vc]http://www.youtube.com/watch?v=zVuoQa3r-vc[/video]

This was three days ago. Three months at the most for Europe?

[video=youtube;7XPGsWkkups]http://www.youtube.com/watch?v=7XPGsWkkups[/video]
 

cgalpha08

"Like Nothing Else"
Messages
3,499
Location
Indianapolis, IN
I have also heard that out if all currencies, the dollar is the strongest and safest. Simply due to the fact that all of the other currencies are horrible! Lol

Sent from my DROID BIONIC using Tapatalk 2
 

Paladine71

ΜΟΛΩΝ ΛΑΒΕ
Messages
1,483
Location
Tallmansville, WV
The only thing strengthening the dollar is our status as the world's reserve currency. When we lose that status, through devaluation (printing too much money and having too much debt) we will drop like a rock. I am not a certified financial advisor, but know enough from my own research to be very concerned. I hope we never have hyperinflation or a collapse, that would destroy all of my future plans, but it is what it is.
 

abearden

Well-Known Member
Messages
609
Location
N. Idaho
The only thing strengthening the dollar is our status as the world's reserve currency. When we lose that status, through devaluation (printing too much money and having too much debt) we will drop like a rock. I am not a certified financial advisor, but know enough from my own research to be very concerned. I hope we never have hyperinflation or a collapse, that would destroy all of my future plans, but it is what it is.
Just a little bit of an understatement. :wink:

I too hope I can remain "paranoid" instead of "right."
 

3Hummers

Super Moderator
Staff member
Messages
10,183
Location
Central Texas
Actually the dollar can strengthen even if the economy goes to hell. If the euro zone falls apart the dollar's chief competition for being the world's reserve currency disappears. Despite our $hitty economy, horrible debt situation and hopeless political deadlock we would likely be considered a relative safe haven. Consider the potential for civil unrest and military action as China's economy slows down and hurts the rest of the emerging economies and the case for the dollar gets stronger, even though the underlying strength of the dollar in that scenario is based on the overriding weakness and uncertainty of the rest of the world.
 

abearden

Well-Known Member
Messages
609
Location
N. Idaho
Actually the dollar can strengthen even if the economy goes to hell. If the euro zone falls apart the dollar's chief competition for being the world's reserve currency disappears. Despite our $hitty economy, horrible debt situation and hopeless political deadlock we would likely be considered a relative safe haven. Consider the potential for civil unrest and military action as China's economy slows down and hurts the rest of the emerging economies and the case for the dollar gets stronger, even though the underlying strength of the dollar in that scenario is based on the overriding weakness and uncertainty of the rest of the world.
If the Chinese economy picks up enough to where they become a significant consumer for their own junk, the yuan has a good chance of stepping in as a reserve currency in my opinion.
 

3Hummers

Super Moderator
Staff member
Messages
10,183
Location
Central Texas
That could happen but when the **** hits the fan the world still looks to the US to pull it all back together. As a Safe haven I would be more comfortable with dollar based assets.
Soros is a malignancy the world could do without. No one will mourn when that guy passes and the world will be a better place with his passing.
 

Paladine71

ΜΟΛΩΝ ΛΑΒΕ
Messages
1,483
Location
Tallmansville, WV
Gold and Silver are a worthwhile way to maintain buying power over time. As an emergency prep, I'd only go for them after the other necessities are taken care of. You can't drink or eat metal, nor does it make a good weapon to stop an attacker. In this day and age, good farming land, a few quality weapons and knowledge of how to provide for yourself are quite possibly the best preps you can have. Then, some good tools and useful skills. After you've covered all of your needs, and a few wants, then you should consider metals as a safe haven for the rest of your money. Hyperinflation or a currency collapse can destroy a million dollars overnight, reducing them to just numbers in an account or pieces of paper (useful for starting fires). Metals will always be worth something.
 

Kurt

Well-Known Member
Messages
926
Location
Austin, TX
I've been picking up silver for a while now, one advantage I found with the increased cost of minted coins vs rounds is the face value as a currency can be handy if you are traveling to and from another country with them. You can declare them as the currency value and not the bullion value.

On that note, Canada apparently has .9999 bullion setup as duty free, not surprising considering the Canadian mints purity for its metals.

Not a big deal if you are not planning to leave a country, but for folks that work internationally on contract it would make things easier returning to the US with a case of US silver or gold eagles vs rounds and bars.
 

Kurt

Well-Known Member
Messages
926
Location
Austin, TX
Any thoughts on tarnished and non-mint silver coins from a bullion standpoint?

I went to my supplier and he let me know that he had a large quantity of silver eagles and leafs, random years, various condition, some with tarnish for about $2 over spot [vs 3.50-4 for mint circulated] . I picked up a few rolls and they cleaned up very nicely.. I

They won't be collectors items but I figured a slightly worn eagle or leaf would be better than a mint generic round.
 
Top