Thursday, July 4, 2013

PEEno10


PEEno10

PRECIOUS METALS

 

I almost hesitate to cover precious metals as they are ranked right up there with MRE’s and night vision goggles.  Nice to have but rather expensive and if you don’t watch it, a diversion of resources that could endanger your life.  So, from the onset, keep in mind that PM’s are NOT a necessity but rather a near-luxury that you can do without.  All the Yuppie Survivalists think that you shouldn’t buy PM’s until after you’ve secured your beans, band-aids and bullets.  I will concur, but since you aren’t buying a $3,000 one year freeze dried menu, nor a $300 trauma kit nor $10,000 in semi auto poodle shooters ( one assumes, if you are still with me reading this ), you can buy PM’s sooner than the fat rich guy putting flat resistance tires on their Hummer.  The thing to understand is that precious metals, while real money, aren’t necessary to survive.  They are merely a safe transfer of wealth from one generation to another.  But come the collapse, you don’t want to be waving around gold or silver coins anyway.  They are for AFTER the recovery, not DURING a die-off.  If you never have them, you won’t be imperiling yourself.  If you do them, they are nice for the grandkids to have.  But of course, given the choice between a box of ammo or a silver coin, I’d definitely pass on the PM.

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Mankind survived for long periods of time without money.  Since food was always precious prior to mechanization and petroleum inputs, it was quite enough to live by barter alone.  You were able to buy your needed tools by agricultural surplus.  Only recently has money been so central to living for the common laborer.  Prior to the Industrial Revolution it was only city folk who needed or wanted it ( not to say a farmer didn’t want a pot of gold at the end of a rainbow, but he certainly didn’t need it ).  And then only in recent history.  If money becomes mandatory you can be sure a banker somewhere is skimming off his share, be that money paper or precious metals.  So, no, you don’t have to have gold or silver ( you can collect copper cheap enough if you put the ungrateful lazy e-game playing balls of pudgy goo you call your children into forced labor and have them sort through pennies, culling the pre-‘82.  If you buy a sorting machine, sorry, but I’m calling “moron”.  If you can’t get your children to do this simple and sedentary activity, you all might as well all eat a bullet come the collapse ).  Beyond a few, half a dozen ounces, put aside as insurance for emergencies such as buying one of the few vials of antibiotics ( search under “fish medications for emergency antibiotics” or something similar for making your own stockpile ) left or even come chronic unemployment needing to pay the property taxes so you don’t become homeless, I can’t see much need of PM’s.

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Now, I bought myself several generous handfuls of silver coins, back in the day.  That was when it would have been criminal to NOT buy them at $5-$7 an ounce ( and I was making two grand a month in tips at the casino.  Of course, between taxes and child support taking 75% of my hourly wages, a lot of those tips just went to daily expenses.  Still, I was able to buy land and silver by living frugally ).  Nowadays, I would certainly not buy any silver at $20 an ounce.  If you could find any.  Enough paranoid folks are out there, not trusting King Kenya since he doubled our national debt the first term ( sorry, as asinine as the American people are I can’t believe they would re-elect anybody who did that.  To me, tinfoil hat wearer, this is proof positive the elections are rigged ) are hoarding silver and gold to where the physical coins are not freely available anymore.  I would not buy any without immediate delivery, not daring to trust the market which has suffered innumerable blows to its credibility in the last few years.  If the e-markets are not more controlled than the elections I would be very surprised.  You can of course still buy PM’s, but it is not so simple anymore as walking in with paper to a retail store and walking out with coins. 

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A very important point no one wants to believe is that for all intents and purposes, PM’s are disappearing as far as ore reserves.  Fifteen years ago, the US imported something like 6% of its silver.  Today, that is over 60%.  We are running out of the supply from mines.  The whole world is.  The ore available is mostly high energy input, high financed metal.  What is left is very low concentrations requiring heavy machinery to extract ( gold is worse ).  Without cheap oil, or at least affordable oil, we would not be extracting any new copper, coal, PM’s or frack oil/gas.  And all those operations require bank financing.  Come economic collapse or severe oil shortages, all new extractions for near about everything the Industrial World uses doesn’t reach the surface ( I can’t believe a recent newspaper article where some dim-bulb from an Ivy League school said gold’s natural market price was $700.  That is BELOW the extraction cost.  I guess he doesn’t get out much ).  My point here is that we will soon be out of PM’s anyway, and that compared to everything else we will run out of, it will be of little consequence.  Yes, the price, if freed from central banker manipulation of the derivatives market, would skyrocket both from inflation of paper currencies and diminishing supply.  But you would just be playing around with an endangered species.  You could make a killing selling Dodo feathers, but soon enough you would be unemployed.  PM’s are best left as a rich man’s plaything.  Stick with the soon to be real and the only wealth, food.

END

11 comments:

  1. Or Bullets...
    By the way, I got three Bricks of Remington 22's this morning at Wally's Mart !
    Right place, right time eh

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    1. Hey, bite me! I found 53 rimfire last night on the road. I think they fell off an ATV. I'll have to throw away a few that got run over, but still. A free box!

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  2. PMs are to be purchased in sufficent quantity to cover the taxes for x# of years of the property you have bought outright.
    My property costs $120 in taxes so I have 3 years worth of silver value to pay those taxes.
    Sure the $ value of PMs can vary over time, and other items could be sold as well, but when the paper currency collapses or hyperinflates the PMs will be worth something.
    Food and Water are required for life, but in most places you can find those sufficent to live on if you have shelter - the Finely Folicaled Bisons pit of doom on junk land fits that bill, but to keep the junk land you have to be able to pay the property taxes. Thats why with every years worth of food I buy I schedule the next purchase of a years worth of PMs followed by a years worth of ammo.
    IF you pay your taxes and keep your head down you shouldnt have to fight the army/tax collectors/local strong man, just individual criminal opportunists, and as a good law abiding _tax paying_ citizen you should be able to persuade the local law that you were in the right. Maybe with only a trivial additional bribe.

    -Grey

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    1. How do you calculate a years worth of ammo?

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    2. If the bottom falls completely out, there won't be a tax man to worry about.
      It will be more so the local Warlord dude that will have to be given tribute.

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    3. But you are betting on an overnight collapse if you are trying to cheat the taxman

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    4. You should consider taking advantage of the allodial title Jame's, especially since you live in one of the two states (Texas is the other) that allow for it?

      It's based on a lifetime tax payoff from the youngest in the household, and since the land is inexpensive, I can't imagine that it would
      be too bad?

      You might want to at least do it on your paid for, further out in the sticks lot? I say this because as long as you're working, maintaining the lot now will not be a problem. But once unemployment rises, that close proximity to town lot will probably not be too desirable to live at, and you will likely want to relocate to that remote lot and wait out the collapse there.

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    5. And anyways the local warlord will have 'tax men' of his own soon enough - even if it is just him, as far as how much ammo for a year? figure on enough for a firefight per month maximum (if you do more than that you are dead sooner rather than later anyways) and that most firefights of the gurellia or criminal sort are usually only a couple of dozen shots at most. So at 12 shots x12 months you need only about 150 rounds. Then throw in some practice ammo once a year at about 300 rounds, and for 500 rounds you should have enough for a year. Of course that is per person per firearm so it adds up quick enough especially at todays prices but a couple years worth isnt too bad if you keep the calibres consistent for everyone and have a reload system (you only need a year or twos ammo plus reloads for the brass fired) you should be set for 10 years for less than 10 grand.

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  3. Well considered and thought out. Though I recently bought a few junk dimes when silver fell, food (and water) is the way to go. Never can have enough (and silver leaves a metalic taste in your mouth).

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    1. Plan for the worse-ten years of volcanic winter-hope for the best.

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    2. sad thing is the best is a plague or clean nuke war that wipes out 80% + in the population centers, the worst is an ELE with multi-generational effects.

      -Grey

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