gold/silver questions

[Barefoot343]

Walmart's CEO spoke out yesterday about extreme inflation coming.

From the Economic Depression Blog; sums up the case for buying silver/gold pretty well:




People to believe we will never see inflation and that hedging against it with precious metals or other commodities is a waste of time.

Eventually the Chinese and others will stop trading real tangible things/goods for monopoly money backed by nothing. The dollar will be removed as the world reserve currency. ALL fiat currencies have failed historically. Savings, IRAs, checking, mutuals, stocks, CDS, anything paper will greatly devaluate, if not evaporate.

Many millionaires will be turned into ‘thousandaires' in short order, within hours or days. Of course, some event can be arranged to take the blame for this planned grand theft. The banks collect up all the ‘real things' like land and homes while Joe Stooge is stuck holding a sack of worthless dollars.

Wall street and the banks have taken over via the private Federal Reserve cabal of banksters. They own all the important politicians. Politics is worthless. The two-headed one party system is a fraud. Same agenda, nothing changes. They are selected, not elected. Politicians don't give a damn about you, at all.

How would you like to run a business where you are handed money at .01% interest and then you turn around a charge 21 % interest + penalties to poor saps using credit cards to stay afloat?

The mob never had it that good. They bathe in money and pay out billions in bonuses to themselves, sell out their stock positions (4000:1), buy commodities, and prepare. Meanwhile, Sheeple America is so deluded, so distracted with entertainments, they simply don't care as the Titanic slowly sinks. Will Tia will American Idol or will it be the country guy?

In 1893, the people figured it out – it was all the banksters. They actually dragged them out and hung them from the street posts. In 1929 it was also all the banksters (they hoarded dollars vs mass printing them then) in order to bring down the economy and do their looting. Surely now with the internet people aren't so naïve and they can figure out who is bending them over, yet again!? Wrong. YOU can figure it out though. YOU can prepare.

GREAT post, amazing times we live in.

 

[djm68]

Walmart's CEO spoke out yesterday about extreme inflation coming.

From the Economic Depression Blog; sums up the case for buying silver/gold pretty well:



People to believe we will never see inflation and that hedging against it with precious metals or other commodities is a waste of time.

Eventually the Chinese and others will stop trading real tangible things/goods for monopoly money backed by nothing. The dollar will be removed as the world reserve currency. ALL fiat currencies have failed historically. Savings, IRAs, checking, mutuals, stocks, CDS, anything paper will greatly devaluate, if not evaporate.

Many millionaires will be turned into ‘thousandaires' in short order, within hours or days. Of course, some event can be arranged to take the blame for this planned grand theft. The banks collect up all the ‘real things' like land and homes while Joe Stooge is stuck holding a sack of worthless dollars.

Wall street and the banks have taken over via the private Federal Reserve cabal of banksters. They own all the important politicians. Politics is worthless. The two-headed one party system is a fraud. Same agenda, nothing changes. They are selected, not elected. Politicians don't give a damn about you, at all.

How would you like to run a business where you are handed money at .01% interest and then you turn around a charge 21 % interest + penalties to poor saps using credit cards to stay afloat?

The mob never had it that good. They bathe in money and pay out billions in bonuses to themselves, sell out their stock positions (4000:1), buy commodities, and prepare. Meanwhile, Sheeple America is so deluded, so distracted with entertainments, they simply don't care as the Titanic slowly sinks. Will Tia will American Idol or will it be the country guy?

In 1893, the people figured it out – it was all the banksters. They actually dragged them out and hung them from the street posts. In 1929 it was also all the banksters (they hoarded dollars vs mass printing them then) in order to bring down the economy and do their looting. Surely now with the internet people aren't so naïve and they can figure out who is bending them over, yet again!? Wrong. YOU can figure it out though. YOU can prepare.

Sheer awesomeness. Profound words coming from a CEO of such a large, public facing company.


DJM

 

[gunslinger1911]

Gents and NWFA Memebers ;-)

I think we have a failure to communicate -- specifically, it would seem that we understand the term "SHTF" in different ways. I think much of the disagreement on this thread would be mitigated/reduced we had a common understanding of "SHTF".

If we understand "SHTF" and total and complete loss of society/culture, as in "The Road", then I totally agree: gold/silver have not value.

If we understand "SHTF" as a war, major long term civil unrest, massive disease, currency collapse, etc, then without doubt silver/gold will have value, just as it has many, many times throughout history during times of extreme duress.

The former scenario has never occur, while the later scenarios has occurred and re-occurred through history. I wonder how many of you have read-up on the dark ages -- a terrible time in human history and, to those living through it, it am sure it seemed like the end of the world...and yet silver/gold retained their worth.

Cheers,
DJM

bravo...

 

[wjv]

Couple points from the new guy here:

- Owning gold/silver and having preps (guns, ammo, food, supplies) is not mutually exclusive. I have noticed a trend over the years that the anti-PM crowd seems to have the view that you can have preps OR gold/silver. Bad assumption.

- Many in the prep world seem to be prepping for a worse case Mad Max scenario, but ignores the growing probability that when TSHTF in the USA, it will probably be a financial SHTF. But again, guess, what? You can actually prep for both! (see point above)

- Many people also seem to assume that if you buy gold/silver, you are not making any other kinds of "traditional" investments. Again, bad assumption. 15% of my salary goes right into my 401K (mutual/indexed funds). Other money goes into the bank. We also bought some land where we could take our camper and bug-out to if needed.

- I was also going to mention the Walmart article, but reality is, wholesale prices have been going up dramatically for many months now. The corporations have been eating the costs, but now it has reached the point where that is no longer possible. Inflation has been ramping up in China, mostly because of salary inflation:


From: www.china.org.cn
"Sound corporate performances and raised lowest salary levels lifted the average salary of China's employees working in cities and towns approach 25,000 yuan (3,561.3 U.S. dollars) in 2007, up 18.72 percent over the previous year, the biggest rise in the past six years"

This keeps up, Dollar Tree is going to have to re-name their stores The Two Dollar Tree!

 

[Burt Gummer]

 

[Grunwald]

If gold hits a million, how much will an edition of the NY Times cost? Never mind, I can see that it does not have a price because no one is willing to pay anything for that crappy fish wrapper.

 

[OreGunSun]

The bad thing about 100 oz bars is the capitol gains tax when you sell it.
There is no tax on American Silver Eagles since it is US currency.

Coctailer - I am pretty sure that all silver including AES are treated at the 28% rate. See article below:

Even though this is a "Prep thread" silver has more than doubled since last summer. If someone ended up in a pinch financially, they could get dinged pretty hard

Gold and Silver Are Taxed as Collectibles
Gold and silver bullion, such as American Eagle gold coins, Canadian Gold Maple Leaf coins, and South African Krugerrand gold coins, are taxed at the same capital gains rate as collectibles. This includes Gold ETFs and Silver ETFs. Investors make a very real mistake assuming they will be able to pay the lower capital gains tax rate that is paid on stocks and bonds, sometimes causing them to experience painful surprises come tax day. Capital Gains Tax Rates on Collectibles

 

[Grunwald]

Ironic isn't it. Paper printed by a federally authorized, yet private entity is treated as nations money, but real coined money created by the US Mint, and actual government entity, is treated as collectible and thus taxable.

If you hold $10,000 in "federal reserve" (as federal as FedEx) notes and deflation hits giving them more buying power, you do not owe any tax on that buying power.
On the other hand if you hold $10,000 worth of real gold coins minted by the US Government, and inflation hit, where you simply maintain your buying power, when you try to convert them to some paper currency, you are now responsible for paying taxes on the purchasing power that you managed to maintain.

 

[djm68]

One of my favorite quotes by Thomas Paine -- especially timely considering what we just saw in the housing crisis:

There are a set of men who go about making purchases upon credit, and buying estates they have not wherewithal to pay for; and having done this, their next step is to fill the newspapers with paragraphs of the scarcity of money and the necessity of a paper emission, then to have a legal tender under the pretense of supporting its credit, and when out, to depreciate it as fast as they can, get a deal of it for a little price, and cheat their creditors; and this is the concise history of paper money schemes.

Thomas Paine (1737 - 1809)

 

[nubus]

Ummmmm... $39 today folks.

 

[EZLivin]

For those who don't read Sinclair daily:

$1444 Gold Down For The Count : Welcome To Jim Sinclair's MineSet

I won't post these links often, but today he posted a good overview on the reasons to stay long on metals and metal stocks. What is true for gold should also be true for silver (and the gold and silver stocks).

 

[lonegunman]

Copper, brass and lead are where it is really at. A good sized investment in these metals is always a good idea.

 

[trainsktg]

One of my favorite quotes by Thomas Paine -- especially timely considering what we just saw in the housing crisis:

There are a set of men who go about making purchases upon credit, and buying estates they have not wherewithal to pay for; and having done this, their next step is to fill the newspapers with paragraphs of the scarcity of money and the necessity of a paper emission, then to have a legal tender under the pretense of supporting its credit, and when out, to depreciate it as fast as they can, get a deal of it for a little price, and cheat their creditors; and this is the concise history of paper money schemes.

Thomas Paine (1737 - 1809)

"The more things change, the more they stay the same."

OR

"There is nothing new under the Sun."

Keith

 

[nubus]

Copper, brass and lead are where it is really at. A good sized investment in these metals is always a good idea.

I have an excellent storage method for just these metals.
I store my lead inside my copper and my copper inside my brass!

 

[Barefoot343]

amazing how far the prices have gone in just this short of time.

 

[A.I.P.]

For those who don't read Sinclair daily:

$1444 Gold Down For The Count : Welcome To Jim Sinclair's MineSet

I won't post these links often, but today he posted a good overview on the reasons to stay long on metals and metal stocks. What is true for gold should also be true for silver (and the gold and silver stocks).

10-21-11
Gold was up 25 to 1667
Silver was up 1.09 to 32ish
I predict a other buying frenzy as Euro investors scramble to save even a fraction of thier euro-tied investments (they have to pay large taxes when they sell off thier holdings

 

[EZLivin]

10-21-11
Gold was up 25 to 1667
Silver was up 1.09 to 32ish
I predict a other buying frenzy as Euro investors scramble to save even a fraction of thier euro-tied investments (they have to pay large taxes when they sell off thier holdings

In the latest GEAB/LEAP publication their GlobalEurometre section (basically a poll, but I don't know how it is derived) shows a 9% increase in the number of Europeans who would "change Euros for gold in the coming months." 52% of them said they would. Only 8% said they would change Euros for $US, or Yen, or the British Pound. 51% believe the $US is going to crash against all major currencies in the next 6 months.

 

[kenno]

Walmart's CEO spoke out yesterday about extreme inflation coming.

From the Economic Depression Blog; sums up the case for buying silver/gold pretty well:



People to believe we will never see inflation and that hedging against it with precious metals or other commodities is a waste of time.

Eventually the Chinese and others will stop trading real tangible things/goods for monopoly money backed by nothing. The dollar will be removed as the world reserve currency. ALL fiat currencies have failed historically. Savings, IRAs, checking, mutuals, stocks, CDS, anything paper will greatly devaluate, if not evaporate.

Many millionaires will be turned into ‘thousandaires' in short order, within hours or days. Of course, some event can be arranged to take the blame for this planned grand theft. The banks collect up all the ‘real things' like land and homes while Joe Stooge is stuck holding a sack of worthless dollars.

Wall street and the banks have taken over via the private Federal Reserve cabal of banksters. They own all the important politicians. Politics is worthless. The two-headed one party system is a fraud. Same agenda, nothing changes. They are selected, not elected. Politicians don't give a damn about you, at all.

How would you like to run a business where you are handed money at .01% interest and then you turn around a charge 21 % interest + penalties to poor saps using credit cards to stay afloat?

The mob never had it that good. They bathe in money and pay out billions in bonuses to themselves, sell out their stock positions (4000:1), buy commodities, and prepare. Meanwhile, Sheeple America is so deluded, so distracted with entertainments, they simply don't care as the Titanic slowly sinks. Will Tia will American Idol or will it be the country guy?

In 1893, the people figured it out – it was all the banksters. They actually dragged them out and hung them from the street posts. In 1929 it was also all the banksters (they hoarded dollars vs mass printing them then) in order to bring down the economy and do their looting. Surely now with the internet people aren't so naïve and they can figure out who is bending them over, yet again!? Wrong. YOU can figure it out though. YOU can prepare.

I don't understand how one can "Hoard Dollars" as a method to generate additional money, especially when gold and silver were still used in coins.

 

[Barefoot343]

So quick question for anybody... (I think this was asked a while ago, but I can not remember or find the answer)

* if you buy junk silver to use for shtf currancy do they have to keep a record of what you buy or sell, or is it only over a certain dollar amount? will the goverment know, and would they be able to tax or confiscate it if it ever came to that?

 

[Grunwald]

So quick question for anybody... (I think this was asked a while ago, but I can not remember or find the answer)

* if you buy junk silver to use for shtf currancy do they have to keep a record of what you buy or sell, or is it only over a certain dollar amount? will the goverment know, and would they be able to tax or confiscate it if it ever came to that?

Junk silver is legal tender of the United States. Why would you keep track how much currency you hold simply based on the year it was minted?