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It's Going To Implode: Buy Physical Gold - NOW
For previous articles by the author go to: Gordon Gekko's Blog
Evidence seems to be mounting that we are headed towards some sort of implosion in the paper Gold market, and perhaps the currency/bond markets in general. Let’s take a look:
Jacksonville, FL based EverBank – a bank with approximately $8 billion in assets and 1800 employees according to the company website – recently sent this notice to customers (courtesy of Warren Bevan):
"Non-FDIC Insured Metals Select Changes" -
Section 6.3.7. General Terms: We have added language clarifying our right to close your account. We may close your Metals Select Account at anytime upon reasonable notice to you. If we believe that it is necessary to close your account immediately in order to limit losses by you or us [GG: We really don’t give a s**t about you; it’s us that we care about], we may close your account prior to providing notice to you. Notice from us to one of you is notice to all of you [GG: the nerve of these people!]. If we close your account, we reserve the right to convert your Precious Metals to U.S. dollars and tender the balance to you by mail [GG: I am willing to bet my entire Gold stash that when you receive these "converted" dollars, they will be nowhere near the market price of physical. What did you think that whole "limit losses" thing meant?] .
If you have a "Non FDIC Insured Metals Select" account with these people, you can pretty much say goodbye to any chances of ever seeing your metal. This is a clear sign that the (already tight) availability of physical metal at the manipulated Comex futures paper price is in danger of vanishing altogether. Think about it. What is the scenario in which they avoid catastrophic losses while at the same time sending you the US dollar value of the metal? When the official or Comex price has fully decoupled from the physical price. Expect to see more such notices from banks offering Metals "Investments".
Citibank recently issued this notice to its checking account (remember the type of account where you thought you could withdraw your money whenever you wanted? Well, not anymore) customers (via Market Ticker):
Withdrawal Notice:
We reserve the right to require seven (7) days advance notice before permitting a withdrawal from all checking, savings and money market accounts. We currently do not exercise this right and have not exercised it in the past.
Hmm…let me see. Why would a bank need to impose withdrawal restrictions? Has this kind of a thing happened before somewhere? Could it be because of the danger of a bank run/capital flight from the United States? Why would Citibank fear bank runs? Why would money flee the US banking system/US? Could it be because the entire US banking system and the US Government is INSOLVENT and people - fearing a collapse in the dollar’s value (in terms of real goods i.e. for all you Prechterites out there) - rush to withdraw money convert it into real goods such as precious metals? You tell me. Also, could they maybe increase this notice period from seven to whatever the hell they want whenever they want? What will you do then? Even if you don’t buy Gold with it, withdrawing your cash from America’s insolvent banks is a very wise strategy at this point.
One of Mish’s readers Construction Insider recently sent him this little nugget:
Hi Mish
I work in the construction business and something has been creeping to the forefront of my attention for the past few weeks and now it seems to be moving full steam ahead.
Banks are forcing developers/builders (especially smaller ones) to give up their properties (unsold homes and lots).
Banks say the reason is that the properties in question are no longer performing assets. I am sure there are some loans out there that are not performing and the owners are going under. I am equally sure that there are plenty of developers that are still selling homes - just not at the pace originally planned on the pro formas.
Having inside information on one of these scenarios that happened today, I cannot help but wonder what is really going on? The bank told a small developer/builder I work for that they were taking back his ongoing subdivision.
He is selling houses and updated pro formas would indicate that the current sales pace would exhaust all remaining lots within 33 months. Yet the bank stated they would only give him until April 15 to find alternative financing. The bank is also willing to let him buy the subdivision at a 33% discount to what is currently owed.
If he is unable to obtain this backing, the bank will let him walk away without penalty or consequence so they can write it off.
I have been on the phone trying to put some of these pieces together. It seems there are many banks doing the same thing. However, there is apparently no interest [or ability - Mish] from anyone wanting to pick up land/lots at 30% - 50% discounts to today's prices.
Another interesting point is that the banks all state that they must have these situations written off or taken care of by the end of Q2.
Looks to me like DaBoyz are calling in the loans while the currency still has some value. Does the government plan some type of overt currency devaluation or expect the dollar to collapse on the currency markets of its own sorry weight? The cracks are already appearing in the Bond market. Foreigners are increasingly fleeing the Treasury auctions. The only thing keeping them going is manufactured "deflation" fears from time-to-time. A recent 30 year auction (10th February, 2010 to be precise) practically failed. This is what Mr. Denninger had to say about it:
Bad. Actually, let's go worse than bad and call it what it is - by any definition this is just one step off from "Failed."
The more-worrying factor here is that we've got this "mystery" direct buyers out here again taking nearly 25% of the offered amount (who is bidding for that undisclosed?) and another 11% taken down by The Fed for the SOMA account.
Yet even with this Treasury had to pay up to get it to go and the bid-to-cover was anemic at best.
Given the Primary Dealer system we have in this country, any BTC under 2.0 is an effective fail. To get an auction that behaves in this sort of fashion, complete with mystery direct bidders and heavy SOMA (Fed) participation, yet Treasury has to pay up in the form of a significantly higher coupon is not a good sign at all.
And this is what happened on 23rd February, 2010 for a 4-week $37 billion Treasury Bill auction (Per Graham Summers):
There are times in life when one witnesses something so outside the scope of normal experience, that at first you don’t see it.
Captain Cook’s diaries tell us that upon first seeing his ships offshore in Australia, the aborigines expressed “neither surprise nor concern.” Cook notes that it was not until he and his men approached the shore in smaller, more familiar vessels that the villagers reacted, arming themselves as “the sight of men in small boats was comprehensible to them: it meant invasion.”
Well, I had a similar experience during yesterday’s bond auction.
Roughly, 27% of the auction took place at the highest rate. This means nearly one third of the demand from competitive bidders (those who care about yield) came at the HIGHEST yield that was accepted. In plain terms, this alone tells you that investors want higher yields from Treasuries since nearly a full third of the debt issuance took place at the highest REQUIRED yield.
Of the competitive bids (meaning those bids coming from folks who care about yield), roughly 70% went to Primary Dealers (investors who HAVE to buy the debt and who usually turn around and try to sell it afterwards). To put this number into perspective here is the percentage of competitive purchases made by Primary Dealers in the last four 4-week Treasury issuances:
...yesterday’s auction featured MORE buys from Primary Dealers than almost any of those occurring in 2010. Remember, Primary Dealers HAVE to buy Treasuries. So to see them buying a high percentage of Treasuries at debt auctions means that few investors who can pick and choose what to buy are actually looking to buy US debt.
Of the remaining competitive buys (about $8.86 billion), only 32% came from Direct Bidders or those who bought debt directly from the Treasury: orders that can easily be tracked. The other 68% ($5.9 billion) came from Indirect Bidders: folks who we cannot track.
Even more bizarre, only $5.9 billion in Indirect Bidder competitive buys were ACTUALLY OFFERED. So we had a 100% acceptance rate for Indirect Bidder competitive buys.
Let’s put this in perspective:
This means that the Treasury took up EVERY single cent of competitive bids coming from indirect buyers. Remember, indirect buyers are usually assumed to be foreign governments (even the Treasury website admits this).
If this was the case yesterday, then foreign governments barely bought much of anything in yesterday’s auction (only 19% of total debt issued). Moreover, it implies that Primary Dealers (those having to buy) had to gorge on the auction to make up for the fact that few if any foreign governments are interested in buying our debt anymore (including even short-term debt).
So basically the demand from the indirects (i.e. foreigners) for US Debt is drying up and the Treasury is taking all of whatever miniscule amounts they are offering. As if that was not enough, we had another similar auction on 9th Match, 2010 (via zerohedge):
Two weeks after the indirect hit ratio in the 4 week auction came at a record 100%, today it was once again at almost at the all time possible high, with Indirect Bids of just $6.744 billion taking down $6.683 billion, resulting in a 99.1% hit ratio. The chart of the recent Indirect hit ratio in recent 4 week bill auctions is attached:
What’s more, the yield doubled from two weeks ago. What we are witnessing here, in my opinion, is the beginning moves of a complete and total repudiation of the US Bond market, and indeed, all dollar denominated paper financial assets.
Jim Sinclair recently had two gentlemen from Poland and Russia speak up at his Toronto meeting. This is what they had to say (in Jim’s words):
Dear Extended Family,I believe the most important event at our Toronto CIGA meeting was the testimony of two attendees.Two men spoke independently. One is a Canadian resident from Russia and the other from Poland.
Both said the same thing, "All the signs that preceded our inflation of more than 100% per year are here now in the West."
What more do you need to know?
Regards,Jim
Any unbiased observer who knows how to put two and two together will be able to tell that something very fishy is going on. The urgency with which trillions in debt is being shoved down the market's throat at the worst possible time for the US Economy has the distinct smell of the government trying to extract every last bit of money from those stupid enough to buy the bonds before it all blows up. Rest assured, a huge chunk of this money is being funneled to the insiders who are most likely covertly using it up to buy real assets for themselves while keeping the crowds distracted with the stock market circus.
The bond market is the backbone of the US Ponzi Finance system. When it goes – and the day is not far in my opinion - the whole enchilada will come crashing down. Any type of financial asset that has a counterparty – which is pretty much all the paper assets in the world – bonds, futures, any and all derivatives and yes, even the paper currency – will crash. What will they crash against? Yes, that’s right - Gold. All the world’s capital – trillions, perhaps quadrillions of it - will come rushing into the very tiny physical (NOT paper) Gold market. Remember, the world’s real physical capital – real assets such as land, oil-refineries, mines, infrastructure, etc. will not vanish, only it will be re-priced in terms of Gold and its ownership transferred to those who hold it. Since everything stays on this planet, it is a zero-sum game and the winner will be Gold. In other words, an ounce of physical Gold will command a lot more in real purchasing power than it does today. Just like a national currency is a claim on goods and assets within that country, Gold will be a claim on global goods and assets worldwide.
Paper Gold Will FAIL
Today what you think of the price of Gold is nothing but the price of paper Gold. "What is the difference between the two? We are still getting the metal at the price we see on the COMEX, are we not?", you may ask. Sure, but the key word is still. Even today you have to pay "premium" to the futures price to get physical ranging from about $50 for some coins to about $10 for bars. When it all blows, these “premiums” will skyrocket and the price of physical WILL decouple from the official paper price (this is what the guys at EverBank are scared s--tless about), as we already witnessed in 2008 – and this is the good scenario. Indeed, we may have a situation where there is no physical available at any paper price.
1. The GLD ETF
The problems with the GLD ETF are too numerous to enlist here but why bother when they have already mentioned 'em all in their prospectus! It is simply another Wall Street scam designed to rip off the retail investor and rest assured, when the SHTF, you will be the last in line since the insiders need somebody to hold the bag in order for them to get bailed out. YOU will be the one left holding the bag. Unless you have a direct line to Ben Bernanke, I suggest you get the hell out of any paper ETF’s such as GLD, SLV, etc. Remember AIG? It’s all good until it isn’t.
2. The Gold Futures Market
The futures market is nothing but a tool for the dollar managers (US Government/Fed/Bullion banks) to manage/control the price of Gold. Any rational observer with an iota of brain who has watched the gold market for any reasonable length of time can tell that the price is intentionally driven down during the Comex trading hours. If you don’t believe this, either you’re in denial or worse – collusion - and IT WILL end up costing you big time. Given the massive, concentrated and long-term (the entire past decade - they haven't been net-long - not once - during that time period) nature of their short positions, it really isn’t that hard to deduce that the banks do not nearly have enough metal to cover their shorts and that the sole intention of the massive short position is to control the price. Whenever the price rises (or threatens to rise) the big bullion banks ala JP Morgan create massive naked shorts introducing fake supply of Gold in the market, thus driving the price down. “But the price has been rising for the past decade, hasn’t it? So how can you say they are driving it down?”, many people ask. Well, the constraint on the bullion banks has been the availability of the physical metal. If the metal is not available, the fraud of the paper market is exposed and they lose their price managing ability. So they allow the price rise to a level at which there are some weak hands willing to sell and then they hold it there till all the sellers have been exhausted (I am assuming the Fed has already sold all the US Gold during the past decade). So strong are Gold’s fundamentals that despite the massive rigging, all they have been able to do is slow its rise. The weak hands who sell the physical metal at every price rise have helped them in this endeavor. But soon, as the bond market implodes, they will run out of sellers. Treat the availability of real metal at today's paper price a gift and buy as much as you can.
To those who think that the Comex shorts will be crushed one day and the price of paper Gold will do a moonshot, to them I will say that you are dreaming. The Comex shorts will be crushed, but not in their own casino! If and when a majority of paper Gold longs demand delivery a force majure (who do you think the US Government will side with?) will be declared with cash settlements and/or offers of equally worthless GLD shares (don’t tell me you didn’t know about this). By some accounts, this is already happening. What will happen to the paper price then? That’s right – it will utterly collapse even as the physical’s price is rocketing. Paper gold holders will dump it all to buy the physical – which, unfortunately – will most likely not be available at all. Yes, yours truly has been trading the paper [Gold] markets himself, but only with the objective of converting the paper profits onto the metal. Having said that, in light of the sum total of the recent developments mentioned in this update I think it is too risky to be trading right now and one should just sit 100% in physical Gold and some currency for day-to-day needs.
Additionally, there is increasing evidence that the Europeans have withdrawn support from Wall Street’s paper Gold market (COMEX and the LBMA, which also operates on a fractional reserve basis as documented here) and are in favor of setting up a physical only Gold market (this is quite a long story - for details, I suggest you go through FOFOA’s blog). Jim Willie had this to say in a recent piece (he’s been accurate on many things so far, so I at least pay attention when he has something to say):
Fast approaching is the event of GAME OVER for London, a condition that has already reached critical level, according to a key reliable source of information with London connections and direct experience with its market events. How long can a major metals exchange sell contracts but have miniscule supply of gold in their vaulted possession? The paper gold market and the physical gold bullion market have finally separated in a practical manner, meaning actual gold has almost no role anymore in London paper contract settlement. The absence of gold in London requires extraordinary tactics to settle contracts and to obtain gold bullion. Red tape procedures delay delivery for individuals, and bribes accompany gold delivery demands as standard practice. The London Bullion Market Assn has almost zero gold, its supply having been drained in high volumes since early December, a process currently in acceleration. The opportunity to convert fiat money into precious metal at prices considered reasonable is also vanishing. The London gold banker said,"There is going on a lot more than meets the eye. The physical system is actually consolidating bigtime and is organizing itself with lightning speed, totally hidden from pretty much anyone, even the so-called insiders. The paper precious metal market and the physical precious metal market have defacto disconnected. The paper and physical gold markets currently operate in parallel universes. The outflow of physical metal from bank vaults is happening at a mind bending pace."
Wall Street and the US Dollar are being increasingly marginalized at the global level with China having instructed its companies to renege on Wall Street’s derivative contracts last year; Russia, Middle-East and China setting up their regional currency blocs; Germany calling for an end to the CDS casino and the recent exclusion of Wall Street banks from European Government bond market. For obvious reasons, none of this is getting much play in the lapdog US media.
Physical Gold in your personal possession is the only thing that will survive the coming financial Armageddon. What we are witnessing right now is nothing but the calm before the storm. Keen observers are hearing rumblings beneath the ground signaling an imminent volcanic eruption. Once it blows it will be too late to take action. Trading paper markets for paper gains is like picking up pennies in front of the steamroller. It’s time to stop trading and just buy the physical metal. The window of opportunity to convert your casino chips (fiat money) into real money, i.e. Gold, is getting smaller by the hour. He who panics first, panics best.
GET. GOLD. NOW.
Disclaimer: Nothing in this commentary should be construed as investment advice or guidance or any recommendation to buy or sell any financial instrument. It is not intended as investment advice or guidance, nor is it offerred as such. It is solely the opinion of the writer, who is NOT an investment counselor/professional. All content of this commentary is solely an expression of his personal interests and is posted as free-of-charge commentary and is subject to error and change without notice. Please do your own due diligence before investing in ANYTHING. The presence of link to a website does not indicate approval or endorsement of that website or any services, products or opinions that may be offerred by them.
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everytime i see the name "denniger" mentioned it brings back bad memories of gold and silver bugs being constantly harrassed, lambasted, and verbally assaulted by this man on a continuing and daily basis, on his "forum" (if you want to call it that). since zerohedge opened up, i have not been back to his "forum" since the air around here is a tad more clear and less opaque. one day mr denniger, about the middle of last year, out of the blue, decided he wanted to humbug with jim willie....mr willie, after suffering the verbal barbs of said miscreant, opened up a can of whoop ass on the man from sunny niceville. what is the golden jackass said one time about mr denniger....oh that's right....he never has had a original idea in his life.....ha ha
You must not read him then. His Tickers are one of the few reflections of critical thought that exist in this sphere. He is clearly a megalomaniac, but that doesn't make him wrong.
+100
"If paper precious metals are at such risk, why do we read here at Zero Hedge about Paulson and Soros (among other "astute" investors) being long GLD?"
Only the naive base decisions on the public positions of "astute" traders.
If they are "long" it probably means they feel exposed and want
to sell to those who feel comforted knowing their positions.
Yeah right! Long as in long gone!
didn't your mom ever ask you, if your best friend jumps off a cliff, are you going to jump off a cliff too. who gives a fuck what soros, says he's doing. think for yourself, and make your own decision,oh if its wrong, you won't be able to blame soros.
the real question is to ask oneself why soros would bother making a statement, and then backtrace the logic to the real intent.
This issue about paper vs physical seems to be somewhat distorted. Users and producers of commodities including Gold and Silver have used futures markets as a hedge since 1974 on the COMEX. Speculators use it as well. Overall, less than 5% of the value of contracts traded are actually delivered/converted to physical form. GLD is probably the same in its ratio if not even smaller.
Market forces will drive the price should we see more demand for the metal. If you're that paranoid of the scam taking place, sure, then buy as much of the physical metal you can. It's expensive and difficult to store. If the shorts need to cover, they better identify the supply, perhaps the US Treasury, Russia, China, wherever. JPM or other market makers will have to participate in futures and even GLD/SLV to acquire shares or physical.
I think we're talking about general functions of the marketplace. In other words, it's not unusual that open interest in commodities is excessively higher than physical product. Same with Oil, Cotton, Soybeans and OJ for example.
Someone HAS been playing around with the paper gold Comex price all week. Grubbily, almost DESPERATELY driving it down.
Someone, somewhere, screams in pain lately every time the Comex price exceeds about $1135.
Why, with cracks appearing and wheels falling off all around, does it keep FALLING? Does this have something to do with options expiry? Or, more likely, with this week's bond offerings?
In any case, do I care? (Liberty head Double Eagles (0.9675 oz.) have been going for $1400+ on eBay.) But this price manipulating gamesmanship just means I can still buy physical metal at the absurdly low Comex price tomorrow!
our process servers have been looking for you lately. would you mind please staying in one place so that we can hand you some very nice papers.
signed
citibank (south dakota) n. a.
http://www.wegelin.ch/download/medien/presse/kom_265en.pdf
Geneva paper speculated IRS to impose a 30% w/h tax on foreigners y'day
The Everbank notice is very, very telling. As far as Soros: remember, he was dissing the hell out of gold, all the while purchasing it. Just because he or the "papers" say he is long GLD, I would take it with a grain of salt. In fact, I would assume the exact opposite. But hey, if you want to "own" fiat gold or silver, it's a "free" market...
Soros' gold (GLD) holdings are less than TWO PERCENT of his entire portfolio.
487 million out of 25 billion.
It doesn't sound like he's bullish to me! A bullish bet would likely involve more than two percent of his portfolio.
Since I slammed you on a thread earlier this week, let me commend you for this post. You provided one post, with a succinct, cogent, rational argument. You added value. Keep it up.
Just to clarify - Soros didn't say gold was in the "ultimate bubble" - he said it was going to be the "ultimate bubble". The press completely soundbited his words and made it into an anti-gold headline, when in fact he was at davos and he was putting money in.
What he said was that gold is the ultimate bubble. As in the last bubble. The final bubble.
I agree that the press (and most people) misinterpreted what he actually said and meant.
Is Reggie bankrupt yet, with his "short banks" trade?
Banks continue to look STRONG and open UP on this down day.
-BBH
Reggie doesn't recommend trades, my friend. I also notice you were absent in the mortgage performance thread where I dumped all of that FDIC and NY Fed data to chew on. Plenty of facts so we don't have debate "he said, she said".
"Banks continue to look STRONG"
Wait till the morticians get done, you'll swear they are alive!
our military "looks strong" from the outside too. Doesn't mean much
I hear you, you GG, and agree gold is a partial solution to this "end of days" scenario you paint, and that a percentage of holdings devoted to the shiny metal objects is smart risk management. However, if the end of days comes, gold won't save you from that attack from heavily armed rogues who decide your house looks like it might have food and booze in it. Forget about it. Put another way, the thing that holds up paper money is the same thing that holds up "imaginary" things like laws, civil obedience and other concepts which while not "real" or "physical," make it possible for each of us to walk around without getting shot at on any given day.
If you really believe in the imminency of TEOTWAWKI, you are compelled to go long The Other Metal: Glocks, Remington pumps, deer rifles with scopes, and plenty of bullets. I'd also suggest other forms of currency that will be held in much higher regard than gold, such as food, liquor and toilet paper. Otherwise, those long The Other Metal will soon be pulling your metal out of your cold, dead (but accurately prophetic) hands.
A guy who calls himself Ferfal writes about living through Argentina's currency collapse. For the last several years he has been saying that we should expect the same as he has endured. That's both good news and bad news. Good in the sense that it's not Mad Max; bad in the sense that it still sounds like it sucks.
His post called Thoughts on Urban Survival was extremely well received. It has been reposted numerous places, including here: http://www.m4carbine.net/showthread.php?p=349477 I highly recommend it.
He now writes a blog called Surviving in Argentina.
http://ferfal.blogspot.com/
It too is worth a read.
Store some wealth in you mind and body as well.
I spend money on the the highest quality food I can. A plague seems likely to me. I think Celente came out and said the same to me. MMA and gun training. Engineering, medicine, electronics technician will be useful in multiple scenarios.
I'm all the way pro gun but people need to ask themselves a few questions. Like are they willing to take a life, if so what are they going to do with a body? If there are still cops what are you going to tell the cops? If things are 3rd world and the cops are crooked how will you deal with the cops who show up? After all cops can be crooked now, in a bad situation what is to prevent them from seizing your valuables if you look well stocked and well armed?
All for guns for protection and I love target shooting so I highly recommend them, but people also need to ask questions about what could happen and how they will respond. Now is the time to plan.
make sure you used a disposable gun, and don't leave any prints, when you load the clip. and don't forget to pick up your brass. shooting 1 attacker, is not enough. if you shoot 1 you have to shoot them all. better to avoid that scenario. your brain is more powerful than a gun, use it first.
If anyone initiates force against me, or any other innocent party, it will result in the assailant's immediate incapacitation/death. Threating with a deadly weapon will result in the same:
http://en.wikipedia.org/wiki/Justifiable_homicide
If one is unwilling to defend innocent life at all cost, then they are already a slave.
Here, here. I pledged my life to humanity some time ago. Living for one's self is an empty pursuit.
a noble and fulfilling sentiment, but it doesn't work if you have young children
If it comes down to folks on this forum taking a life, its probably safe to assume that law enforcement is no longer a reality.
looking around right now, we can already observer this by the massive number of law enforcement layoffs going on all around us.
That part of this mess is already happening.
If its crooked cops you are worried about,(and I don't think
there are that many actually, but then I have never been to Chicago!)
they will be just like anyone else and go where there is minimal
o no resistance.
As far as taking a life goes, just make sure you don't keep staring at the body. First timers always get fixated on the body and their
situational awareness goes to shit. So, NO STARING PLEASE!
Head up, keep looking around....no kidding.
you know how some people buy lottery tickets just so they can dream about being rich... i think this place buys gold so they can dream about armageddon
there is no reason to over think it unless you are writing a book/screenplay - if/when it happens there will be so much chaos (think katrina) that all your planning will be devoured unless you got lots of friends...
Well I buy gold and dread Armageddon. I've said it before and I'll say it again I hope I'm wrong. I hope I take a bath on my preparations and we are at the start of a golden age of unlimited prosperity. I'm horrified about what could happen! I simply prepare because I plan on living even if I have to live in a shitty situation or a shitty place.
I think these questions need to be asked because I don't think it will be a full Armageddon and breakdown of society. I think it will be a slow grinding march into a 3rd world hellhole. They have crooked cops in Argentina, what is to make us think we won't have crooked cops here? In a total collapse then it might look like the road in which case of course you would not worry about the cops robbing you under color of law, because anyone could rob you and there is no law. Regardless I still think most people should at least think about these situations. Failure to plan is a plan to fail.
Antiobiotics would be incredibly valuable - watch their storage life though.
"the other metal" is important, but useless without training and practice. And a couple dozen friends with guns if you actually want to deter a violent gang looking to raid your place.
I would suggest a balanced approach. I would also suggest reading survivalblog.com and FerFAL's surviving in Argentina blog. Two quite different perspectives, but I think both useful.
viagra... how much per oz?
heh
Another "end of world" currency, that few people ever mention will be anti-biotics. If there is anything that civilization has given us, and anything whose lack will be felt acutely when civilization falls apart - antibiotics (and maybe pain meds) are it.
LOL...said the same thing on one of the million madmax threads on TF.
Stockpile medicine. A simple infection is life threatening without antibiotics. You have them, you name your price to a dying man or the parents of a dying child. THAT is pricing power.
Even aspirin or NSAIDs to control a fever.
The people who stockpile guns for the EOW are fools; better to learn skills like how to make opium or something. Find something that sells well in collapsed societies.
And, the FRNbugs would be wise to understand the paradox of their idiocy - as society "collapses," and becomes more primitive and less "enlightened," what does that do to the value of shiny things? Seems to me that more primitive societies place a higher value on worthless yellow metals. We are not going to revert back to the "dark ages" but maintain all of our modern sensibilities.
Oh, look, it's Trav. The guy that thinks its foolish to own guns because an armed person would have no chance against the military or police. Who plans on fighting the military or police, Trav? No one. Weapons are for protecting your family from criminals, and most criminals are inept.
By the way, since you whine about antibiotics as well, the answers are: veterinary supplies and colloidal silver generators. Come to think of it, two pure pieces of silver, wire, leads, a glass jar, and three nine volt batteries are all you need for a colloidal silver generator.
Now that your questions have definitively answered, please feel free to post less.
You can get bulk antibiotics cheap from the pet store. Penicillin/amoxycillin for fish? Sure. I keep mine in the fridge.
Re: Physical Gold Purchase: From what I understand about CEF, they are almost 50/50 gold and silver with possession of the physical. I could be wrong, but this is what I am lead to believe…that being said, who knows what evil lurks in the hearts of men…
As far as delivery of the physical, there is one company, "goldandsilverexchange.info" that will deliver in three to four days, right to your door, insured, certified, etc. This company recommends pre-1933 US gold coins in all the denominations - $2.50, $5, $10, and $20. Silver is also top on their list.
The other one I have done business with is "Centennial Precious Metals", aka USAGold.com" out of Denver. Thye have all of the above, as well as foreign and all the bullion as well. Their turnaround time is a couple (1.5 - 2) of weeks. I am going to try the first company soon for my next purchase…
Bank safety deposit boxes are good in good times. In bad, they can get confiscated and your goods can "disappear"…"Gee, you had your life savings in there? I'm sooooo sorry, My. Hooplehead".
A good gun safe that you can bolt to your floor, wall, or imbed in concrete is the way to go. Fireproofed to stand a few hours of incendiary heat, your stash is well protected. For the really paranoid, you can bury it in 6" white or black PVC pipes with the threaded ends. Wrap the goods up well, throw in some anti-moisture dessicant stuff, and bury it somewhere that you'll be able to recover either quickly or easily. Without forgetting where you put it, so that that land developer 50 years from now won't dig it up and suddenly inherit your fortune in gold.
Pre-33 US gold coins are usually sold under bogus legal theories. They are fine if the premium is reasonable, but I would not pay an extra premium for them.
"Gun safes" vary widely in security, from little boxes that can be opened in 30 seconds with common hand tools, to much heavier duty "safes" that are genuinely theft resistant. A lot of buyer's research is needed to get something good. If it's going to be mostly for PMs I would skip the gun safe and get a real TL-15 or TL-30 safe in a small and concealable size. Much higher security, won't cost that much more.
Go GATA !
Good post thanks Gordon... I've been thinking recently that I'll bury some metal on the family lot, late at night, where no one sees me. You never know what the government will do in its death throes. NO ONE gets my metal.
Bank of Gaea has been the goldbug's friend for thousands of years.
Eh, can you please elaborate, kind sir? I googled the bank, but still seek insight from you. Thanks in advance!
GAEA or GE (Gaia or Gê), the personification of the earth. As in, dig a hole while no one is looking and bury it.
Haha - yeah...
Anyone have thoughts on the precious metal stocks? What will happen to the Newmonts, Goldcorps, Iamgolds, etc, of the PM World? If the rest of the equities tank, will the gold stocks go with them? Seems logical, Captain…
Or, once everything tanks, will the Gold Stocks be the "last man standing", whilst the flood to physical gold reaches biblical proportions, and the miners reap the whirlwind of huge share price increases on the back of the physical explosion?
Thoughts?
Gold stocks might be good but keep 3 things in mind.
1. Many of these gold producers have forward sold production so price increases will not help them, indeed rising paper costs of goods and services but having them locked into a price could bankrupt them.
2. Not all miners have good properties and might be overvalued. Have to do your homework.
3. Your brokerage firm holds the shares not you. If prices go nutty then you might see weird legal chicanery as teh system breaks down. Where their might be a computer "error" and your stock is sold. We are going into a place were it will be a wild ride anything can happen.
Not saying it's a bad investment, but it has risks and you need to do your homework on the companies.
buy the miners that have not forward sold
take delivery of shares
a share will be valued at gold in the ground ,
an instrument redeemable any where in the world .a gold backed piece of paper
all the what ifs. . most have done nothing ,, and even over the last ten years evidence of this happining has been ignored , gold wouda coulda shoulda been bought at 300,, silver at 4.00 plus
now we have the late to the party people giving their two bit opinions, and the left handed hand movers giving advice with zero understanding ,,
and mostly merkin like ,, dream in circles of muck
buy the miners that have not forward sold
take delivery of shares
a share will be valued at gold in the ground ,
an instrument redeemable any where in the world .a gold backed piece of paper
all the what ifs. . most have done nothing ,, and even over the last ten years evidence of this happining has been ignored , gold wouda coulda shoulda been bought at 300,, silver at 4.00 plus
now we have the late to the party people giving their two bit opinions, and the left handed hand movers giving advice with zero understanding ,,
and mostly merkin like ,, dream in circles of muck
buy the miners that have not forward sold
take delivery of shares
a share will be valued at gold in the ground ,
an instrument redeemable any where in the world .a gold backed piece of paper
all the what ifs. . most have done nothing ,, and even over the last ten years evidence of this happining has been ignored , gold wouda coulda shoulda been bought at 300,, silver at 4.00 plus
now we have the late to the party people giving their two bit opinions, and the left handed hand movers giving advice with zero understanding ,,
and mostly merkin like ,, dream in circles of muck
http://www.pdegraaf.com/