Today, Saturday I just bought a couple grand worth of Silver

[Supervisor42]

Yep I have a few of them that my grand ma gave me long ago

The going price of the ten I posted above is $65-$69 ...in today's money.

 

[Bacpacker]

I wouldn't sell mine right now for 10x that.

 

[SheepDog]

The silver certificates are collectors items with no silver value at all. I remember when they were "pulled" from the market we were told they would not be honored as currency after the pull date.

 

[Supervisor42]

The silver certificates are collectors items with no silver value at all. I remember when they were "pulled" from the market we were told they would not be honored as currency after the pull date.

But it would be priceless to take the ten to a bank and tell them that you will only accept 10 of the new silver-dollars that the government has started minting again, or something in writing explaining that the words on US currency is a lie and cannot be trusted.

Note the denomination shown on it below:

 

[hiwall]

Note the denomination shown on it below:

The denomination is accurate. But many are thinking of Federal Reserve Notes and not actual Dollars.

 

[angie_nrs]

Our currency was tied to gold and silver before it lost it's way.

Yes, and it wasn't that long ago.
https://www.history.com/this-day-in-history/fdr-takes-united-states-off-gold-standard

 

[Supervisor42]

Yes, and it wasn't that long ago.
https://www.history.com/this-day-in-history/fdr-takes-united-states-off-gold-standard

Most telling in the History Channel's article is the "why":

On April 5, 1933, Roosevelt ordered all gold coins and gold certificates in denominations of more than $100 turned in for other money. It required all persons to deliver all gold coin, gold bullion and gold certificates owned by them to the Federal Reserve by May 1 for the set price of $20.67 per ounce. By May 10, the government had taken in $300 million of gold coin and $470 million of gold certificates. Two months later, a joint resolution of Congress abrogated the gold clauses in many public and private obligations that required the debtor to repay the creditor in gold dollars of the same weight and fineness as those borrowed. In 1934, the government price of gold was increased to $35 per ounce, effectively increasing the gold on the Federal Reserve’s balance sheets by 69 percent. This increase in assets allowed the Federal Reserve to further inflate the money supply.

...And thus it begins.
Now back to silver!

 

[angie_nrs]

So, I was thinking what else might spur PM's to go higher. Well, I just checked interest rates at one of our local credit unions. Low dollar amount savings accounts are yielding .05%, with accounts over $25,000 yielding a whopping .11%. These rates silently went into effect the last Q of 21. Money market accounts are not far off at .07% and .2% respectively. Are we getting closer to negative interest rates? Obvioulsy.....yes. Will we ever get there? Who knows......

I've been hearing talk of the fed increasing interest rates, but what if they don't? What if we go into negative territory? Would and/or could that be the final straw that knocks over the economic house of cards? If negative interest rates were to happen on bank accounts, I can imagine that PM's would soar just out of increased demand. People would want a safe place to put their dollars into and it would also cause loss of confidence in the dollar. Those dollars would be like hot potatoes with people trying to figure out what to spend them on. This in turn would flare up inflation as well. Then folks would want to get rid of even more dollars as prices soar, before their dollars become useless.

I don't know of many people that would leave their money in banks just to lose money. It could cause a flood of folks to line up to get their cash out, kinda like the Great Depression. I know I would be purchasing......pretty much anything that would hold value. PM's would be the easiest way to do that for most folks. Although, at that point, I think PM's would be pretty hard to come by. I'm just thinking out loud. Maybe I'm not done with PM's yet.

 

[Neb]

I was given homework by my money guy to research why gold was going up with inflation.

Some searching showed some experts were suspecting the prices are being manipulated.

Then I found this



Which looks at the definition of inflation...

Too many dollars chasing too goods.

Generally it is the too many dollars but but this time it may be 5he too few goods. Supply shortages due to shipping and production issues from the baby boomers retiring etc.

So it may be that it is not that dollars are worth less so gold not going up to reflect that situation.

Just thought I should share.

Ben

 

[Tacitus]

Interesting on the "too few goods" point.

I have to say, it certainly is hard to find the gold I want to buy. You'd think that would drive up the price of gold. But, it hasn't. Maybe that is because the price is determined by digital gold, and I can always buy a gold fund online...so there is not "too few goods" when it comes to virtual gold.

Side note: Physical is harder to find than before. Not impossible to find, but more difficult. I like British Sovereigns. Two years ago, they were there every time I went. Now? The last time I saw one there was almost 4 months ago...and that was an isolated chance, since they hadn't had any available for months before that. Whoever has them is not selling them. People are holding.

They still get American Gold Eagles and Krugerrands occasionally. But, fractional gold is hard to find. You have to be prepared to pick up an entire ounce to get gold these days.

 

[Biggkidd]

If it isn't in your physical possession you don't have anything. IMO

 

[Supervisor42]

If it isn't in your physical possession you don't have anything. IMO

Yep. You might as well be one of the 'unfortunate people' like me that own stock in 100-year-old companies that pay you a fat dividend every 3 months.
I don't even have stock certificates to hold in my hands , but my wife does!

 

[Neb]

If it isn't in your physical possession you don't have anything. IMO

Physical in the safe
PHYS.U no overheard to buy and sell
Glint acts like a debt card

Physical in the safe is only useful for TEOTWAWKI.

The other 2 hedge inflation.

Ben

 

[Biggkidd]

I've never believed in allowing someone else to manage my funds / life. Granted I never had any money other than what I earned. I spent that well enough without help. lol I never wanted what the Joneses had I always wanted more abilities which in turn means more tools and knowledge. I'll take tools and knowledge to perform real tasks or services over stocks and bonds any day. Finding a place off grid and living the lifestyle make my life a little more secure if you catch my drift. Having the tools and know how to build and do for ourselves just increases the lead.

CHANCE FAVORS THE PREPARED

To which point I wanted a little usable "CASH" if the system goes down so I picked up some old change (pre 64) and a few ounces. No gold.

 

[Biggkidd]

IF I were ever in the position where I had money that needed a home I would probably go after real estate close to home.

 

[Supervisor42]

Physical in the safe
PHYS.U no overheard to buy and sell
Glint acts like a debt card

Physical in the safe is only useful for TEOTWAWKI.

The other 2 hedge inflation.

Ben

Yes, the most important thing about PM's is it's resistance to 'turbulence'.
Today's ride on the stock market was a fine example (hope you had your seatbelt fastened!)
If you were deep into FAANG stocks or tech stocks, you had a bumpy ride today.
Silver never even blinked.
Gold didn't blink either.
Tech-stock owners are still hoping the bleeding stops soon.

 

[angie_nrs]

Physical in the safe is only useful for TEOTWAWKI.

The other 2 hedge inflation.

Why do you think physical PM's don't hedge inflation?

I don't agree that physical is only good for SHTF. It's good for privacy, just like cash. For anyone I would gift it to, I think they would disagree that it's only good for bad times. It's still useful today as a means of exchange, probably more so than a dollar would be, albeit a bit more cumbersome at this point. I've heard the casino accepts PM's as a means of currency, but I can't verify that since I don't go to the casino. Right now I could use PM's in any country and exchange it for currency if I wanted to. How long will that be the case with the almighty dollar?

For me, PM's aren't something I look at every day to monitor my bottom line. My daily bottom line means nothing to me. I have a life to live, so I don't care what I'm supposedly worth. I'm only interested in that number on an annual basis....the rest is just noise. PM's aren't meant to be a short term hedge, they are intended to be a long term safety net. Although if things truly did hit the fan, they would likely become more of a generalized means of exchange, especially if the USA became more like Venezuela.

 

[Mountain trapper]

I started selling off some of my gold last year. Getting ready to sell some more in the next couple of weeks. Most of my gold I bought at under $500 per ounce so I've made a fair profit. I held it all these years for when I got old. I guess at 64 I'm old now. Our retirement income is secure so I really don't need the gold any more. Besides there's some things I want to buy, like a new boat.

 

[Biggkidd]

I started selling off some of my gold last year. Getting ready to sell some more in the next couple of weeks. Most of my gold I bought at under $500 per ounce so I've made a fair profit. I held it all these years for when I got old. I guess at 64 I'm old now. Our retirement income is secure so I really don't need the gold any more. Besides there's some things I want to buy, like a new boat.

Love it You've taken care of business and now you're enjoying some of the spoils just as it should be! Well done!

 

[Rick]

So, I was thinking what else might spur PM's to go higher. Well, I just checked interest rates at one of our local credit unions. Low dollar amount savings accounts are yielding .05%, with accounts over $25,000 yielding a whopping .11%. These rates silently went into effect the last Q of 21. Money market accounts are not far off at .07% and .2% respectively. Are we getting closer to negative interest rates?

I'd say with inflation outpacing interest rates by an order of magnitude plus, we are at negative interest right now.

 

[SheepDog]

Interest rate have never kept up with inflation. If they did the banks would go broke.

 

[angie_nrs]

I'd say with inflation outpacing interest rates by an order of magnitude plus, we are at negative interest right now.

I see what you're saying, but people aren't yet paying the banks to keep money in them. When or if that happens the savers could yank their money and the banks will get a black eye, which is why I don't think they've gone there yet. I think the savers have more of a tendency to pay closer attention to their funds. Will many of them then flood to PM's? I think the answer would be yes. I also think the manipulation of PM prices down would be broken with such a rush on the supply in the market. It could get interesting......

 

[Smalltimefarmer]

I bought another $1000 in silver rounds yesterday. Not much but it adds up.

 

[Cascadian]

I went to the coin store today. The guy handed me a punch card.
Him- if you refer six friends you get a $50 gift card.
Me- I don't have six friends and I sure as hell don't want to be telling anyone my business.
Him- ok can you leave us a yelp review?
Me- now why would I tell the whole world I was here.
Him- I think you can stay anonymous.
Me- oh you mean like paying cash and keeping my mouth shut.
Him- blank stare.

 

[Tacitus]

I keep going to the local store and asking if they have British Sovereigns. (If they read this forum, they know they are dealing with Tacitus.)

They haven't had any for months. Sometimes they remind me I can leave my name and number, and they will call me if they get any in. One guy started to say that one time, and then remembered: "Oh, you like to remain anonymous, don't you." He didn't mean it accusingly; he just remembered, and said it politely. That is a significant part of their clientele, I assume.

I did sell them some 40% silver once, and you have to give them an ID to sell them stuff, so if they really wanted to track me, I suppose they could--they certainly know my face by now. I don't think they care enough to do anything like that. They have always been respectful of privacy.

 

[angie_nrs]

I had a weird dream last night. I dreamed that my kid came flying through the door and said "mom, have you looked at what silver did today?" I got online and looked and sure enough, silver went up over $10 per ounce in one day and was still moving higher. Weird, right?

I just had to take a peek this morning when I got up b/c I hadn't really looked in a while. It's still higher now than when I bought my last batch, but not that much. I guess my brain was just saying that I expect to see a huge increase in PM's soon.....but my subconscious didn't really need to tell me that.

 

[Neb]

I had a weird dream last night. I dreamed that my kid came flying through the door and said "mom, have you looked at what silver did today?" I got online and looked and sure enough, silver went up over $10 per ounce in one day and was still moving higher. Weird, right?

I just had to take a peek this morning when I got up b/c I hadn't really looked in a while. It's still higher now than when I bought my last batch, but not that much. I guess my brain was just saying that I expect to see a huge increase in PM's soon.....but my subconscious didn't really need to tell me that.

The bump yesterday came about same time as warnings to get out of Ukraine. If Putin invades I would expect another bump.

Ben

 

[Rick]

There was a bump in silver Friday.
Not huge but not trivial either.
I am still not liking the premiums over spot for coins and eve rounds so I will likely make a buy in Gold before the weekend is over.
I expect Spot prices to rise by Monday (which means sunday night as markets open in Asia and Europe many hours ahead of us).

Mostly driven by conflict fears.
However I do not believe we will see war in Ukraine this week or next or even next month despite the saber rattling (only) in Washington.
This means PMs will drop again to their pre war-fears state shortly.
but inflation is still a big threat so I like PMs more and more.

 

[Rick]

I bought that Gold.
Makes me feel more resilient about economic disruptions.
When I look at my life savings in my accounts the thought of them getting eaten away 20% every year from now on, by inflation is awful.
Something had to be done.

 

[Neb]

I confess...

I was refreshing the price of gold. It went over $1900/oz minutes ago.

Every day the Ukraine thing keeps festering gold goes up.

Ben