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LetFreedomRing

Why Are Nations and Banks Hording Gold

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Gold is a form of wealth preservation. It has been around for thousands of years. It is the only true form of money. Gold always rises in value during economic collapse. Gold is one of my favorite things...If you want to hear someone who knows about these things, look up Jim Willie on YT. He is a brilliant man trained at Carnegie Mellon in statistics. He can be a little emotional and goofy at times, but he has economic contacts around the world and he blows my mind most of the time. The reason oil tanked is because Russia was challenging Saudi Arabia and they got pissed and started bringing too much oil to market. and the prices fell too low. Saudi wants to control the market. Practically destroyed Alberta Canada. GET SOME GOLD!!!   Cheers, KCS

 

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Edited by KCS

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The problem right now for buyers is that pure investment bullion and bullion grade (even investment grade) coins in both gold and silver are scarce, there is no supply.  Even when spot plunged a week ago on both, ask was still 2 or 3 times the normal premium above spot because of the bullion shortage.  It was paper contracts in gold and silver being dumped by investors to pay their margin calls in the stock market driving the price down temporarily.  There is big time manipulation going on in the stock and bullion markets right now.  The key is to not panic and hold until you get the buy or sell price you want.  Stay away from gold and silver contracts, just buy physical bullion when it is both low enough and available.  

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LFR...

I buy my gold and silver from charity auctions. Most of the time I can get it way under spot. I also buy jewelry. They make 24k gold jewelry. Gold actually performed better than stocks over the past years. Most of my IRA's are in physical gold. It is out there, you just have to find it...think outside the box, and YOU WILL FIND IT! Yes, JP Morgan got caught manipulating the silver market. Bastardos...

 

Cheers,  KCS

Edited by KCS

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Gold is a great "preservation" tool.  However, based on everything I've witnessed and read... most Americans are either deep in debt or woefully short on hard assets, like their house, auto, emergency fund etc.

 

First priority should go to a food stock for emergencies: maybe 2 months (preferably more).  Then a way to protect your food and family.  After that, get out of debt... including mortgage, car loans, credit cards (top priority at 18%) etc.  Only after all your obligations are met, should you think about acquiring precious metals.  Do not buy "paper gold" such as gold stocks/shares etc.  Only hard, solid-metal pieces in your hand.  Then remember that gold is expensive, so tiny pieces will work better for most transactions... don't spend a 1/2 oz. bar for a bag of groceries.  In that regard, silver would be easier to obtain, even though it's less valuable; it's still a precious metal.

 

Just a few things to consider.

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John,

 

I took one of my IRA's, cashed it in and paid off all of my debt. Mortgage, car, credit cards. After doing a little math, (never has been my friend), the 10 percent hit turned out being worth it in the long run. Not to mention, having peace of mind...you cannot put a price on that. Just a thought for people who are having a hard time out there...

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10 minutes ago, John Last said:

Gold is a great "preservation" tool.  However, based on everything I've witnessed and read... most Americans are either deep in debt or woefully short on hard assets, like their house, auto, emergency fund etc.

 

First priority should go to a food stock for emergencies: maybe 2 months (preferably more).  Then a way to protect your food and family.  After that, get out of debt... including mortgage, car loans, credit cards (top priority at 18%) etc.  Only after all your obligations are met, should you think about acquiring precious metals.  Do not buy "paper gold" such as gold stocks/shares etc.  Only hard, solid-metal pieces in your hand.  Then remember that gold is expensive, so tiny pieces will work better for most transactions... don't spend a 1/2 oz. bar for a bag of groceries.  In that regard, silver would be easier to obtain, even though it's less valuable; it's still a precious metal.

 

Just a few things to consider.

 

Exactly what I did and in the same order.  Thanks John!  

 

I would add some other sage advice, use a reputable bullion dealer site.  Read all the information they have about buying and selling gold and silver, educate yourself then dip your toe in cautiously.  I buy mostly silver in 1 ounce rounds that are low cost for bullion content only, no fancy collector stuff.  I also buy 5 oz and 10 oz bars but only if the rounds aren't available in supply when silver is at a good price.  Some people like buying junk silver coins, US coins of 1964 or earlier that are mostly silver but you need to do some more studying on that type of silver to make sure you make out ok.  Also remember that bullion is for the long haul and economic protection, not for quick turn around profit.  So if you buy, be prepared to hold it for a couple years or more if you want to make a good profit from selling it.

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Exactly.  I like junk coins because there's not much "homework" involved: just don't pay 100% silver plus "over spot" value... you can rely that it's 90% silver content (rounds can be "adulterated" with zinc, lead or such), and it's got a recognizable denomination that everybody understands.  I like dimes or quarters personally.

 

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11 hours ago, John Last said:

Exactly.  I like junk coins because there's not much "homework" involved: just don't pay 100% silver plus "over spot" value... you can rely that it's 90% silver content (rounds can be "adulterated" with zinc, lead or such), and it's got a recognizable denomination that everybody understands.  I like dimes or quarters personally.

 

If the coins are 90% silver content, then a total face value of $1.40 of any combination of denominations equals 1 ounce of silver content.  So if you have 4 dimes and 4 quarters of 90 percent silver content that is equal to 1 ounce of silver.  One advantage of junk silver coins is that you have smaller pieces of silver that are legal tender as well for smaller purchases where a whole 1 ounce round would be too much silver for the purchase.  I'm probably going to pick up a little junk silver for just this purpose as well.

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9 minutes ago, Randi Altman said:

Too crunchy and no nutrition at all. I think I’ll stick with goats, rabbits and chickens 

 

True enough.  If EVERYTHING goes to chit, you'll be better off bartering what you have for what you need.  MONEY (gold, silver, sea shells etc.) is only good if there is still a functioning (economic) system, where a recognized medium of exchange is accepted for goods and services.  If it's every being for themselves, then commodities will be currency:  3 chickens for a pair of shoes as an example.

 

 

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5 minutes ago, John Last said:

 

True enough.  If EVERYTHING goes to chit, you'll be better off bartering what you have for what you need.  MONEY (gold, silver, sea shells etc.) is only good if there is still a functioning (economic) system, where a recognized medium of exchange is accepted for goods and services.  If it's every being for themselves, then commodities will be currency:  3 chickens for a pair of shoes as an example.

 

 

True dat but after every crash in history, even after the black plague killed perhaps 1/3 of the population or more, within a generation gold and silver were the best medium of exchange.  Unless you expect the world to never recover, it's better to have some in hand for later.  Plus I don't think the world will every get so bad that gold and silver won't be in demand somewhere where goods are made and sold.  A true prepper prepares for every scenario and situation possible.

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This is what I meant earlier when I said it is "wealth preservation". You could barter with silver/gold too. Maybe only small quantities though. Wouldn't it be great if we could start over without FIAT? Gold backed and everything new and no debt. Keynesian economics does not work for the people. Only the rich that want to eventually clean up on top of everyone else's back. Man...like Peter Griffin said, it really "grinds my gears"!

Edited by KCS

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8 minutes ago, John Last said:

you'll be better off bartering what you have for what you need. 

I do that now and I need a lot less than I have.  Money, gold, and seashells do not have much sway in my world.  I need a rabbit, I trade you a goat 

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Right you are!!  Humankind has always strived to "better his condition", hence the modern world, where (paper/electronic) money makes all transactions run smoothly... you don't have to lug your chickens to the shoe maker.  I read somewhere that what gives value to precious metals (gold, silver, platinum etc.) is what you can actually do with; how many uses for that metal, as well as it's scarcity.  Silver has many industrial uses but is pretty common whereas gold has many uses but is relatively rare by comparison.

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Yes...some definite truth to that. Check out how much Rhodium is worth now. It will blow your mind! Last time I checked, it was going for 12,000 an oz! Guess what is made with Rhodium...??? on your car...

 

From Kitco:

 

Description and Uses:

Rhodium is a silver-white metallic element, is highly resistant to corrosion, and is extremely reflective. It is used as a finish for jewelry, mirrors, and search lights. It is also used in electric connections and is alloyed with platinum for aircraft turbine engines. Another use is manufacturing of nitric acid and used in hydrogenation of organic compounds. Rhodium usage is dominated by automotive catalyst applications where it is used together with platinum and palladium to control exhaust emissions.

Major sources of supply 

South Africa is the major source, accounting for almost 60% of the world's rhodium supply Russia is the second largest producer, although its sales are, as with the other PGMs, volatile and subject to political intervention.

Historical prices

High rhodium prices during the late 1980s led to increased rhodium production from South Africa. This increased supply was primarily responsible for a declining rhodium price during the 1990s.Interruptions to Russian supply since early 1997 have helped the rhodium price to recover strongly. Kitco provides historical price charts updating on a daily basis.

 
Edited by KCS

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Just now, KCS said:

Yes...some definite truth to that. Check out how much Rhodium is worth now. It will blow your mind! Last time I checked, it was going for 12,000 an oz! Guess what is made with Rhodium...??? on your car...

 

Even better, corner the market on printer ink and you will rule the modern world!  ?

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