Silver

All posts tagged Silver

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By Ken Jorgustin – Modern Survival Blog

At the highest level, silver is used in industry, in jewelry, and as an investment (and/or wealth preservation). Together, these three categories represent more than 95 % of annual silver demand.

Silver has been used as a medium of exchange dating back to the earliest of records. It has always been considered to be a form of ‘money’. Even up until the late 19th century, most nations were on a silver standard as to their ‘money’, with silver coins making up the main circulating currency.

The thing is, even though today’s silver coins are not used as national currency (replaced by Fiat ‘paper’), silver is still collected, stacked, and invested by many people as a hedge against today’s modern currency and a collapse thereof. People who know history may also know that EVERY ‘paper’ currency ever created has ALWAYS collapsed. And most critical-thinking people today know that our current system and foundation is no longer on solid ground…

Continue reading at Modern Survival Blog: SILVER – Currency For Collapse

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By Mac Slavo – SHTFplan.com

With gold and silver becoming a popular asset class for investors in recent years many buyers of precious metals may be wondering what they should or should not report to the Internal Revenue Service.

The following Infographic from JM Bullion provides a simple and informative guide to help you make sure you’re letting the government know what you’re up to so they don’t come banging down your door.

Not everything you own needs to be reported (depending on the types of precious metals you have), but you certainly wouldn’t want to get caught up in an audit if the IRS knows you are in possession of certain types of gold and silver investments.

(Click here to view a larger version of this image)

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Visit JM Bullion for your precious metals needs.

Gold and Silver: What the IRS Needs to Know About Your Investments (And What They Don’t)

Empty Supermarket - Photo by Infrogmation

By Michael Snyder

In the event that a major crisis or emergency strikes the United States, you are not going to be able to eat your gold and silver.  If we get into a situation where supermarkets get cleaned out and food supplies get very tight, you are going to wish that you had stored some things away for your family.  Now don’t get me wrong – I actually love gold and silver.  I believe that they are both going to multiply in price during the years ahead.  I particularly love silver for a couple of reasons.  Unlike gold, silver is used in thousands upon thousands of different consumer products, so the physical supply is constantly diminishing.  And historically, silver comes out of the ground at about a 10 to 1 ratio compared to gold, but right now the price of gold is about 65 times the price of silver.  At some point there is going to be a massive adjustment there.  But if you just rely on accumulating gold and silver and you never store up any food, you could end up deeply regretting that choice someday.

If things get bad enough, people are not going to want to trade you their precious food no matter how much gold and silver you may have.

When a real crisis arrives, priorities change very rapidly.  When you realize that you can’t feed your family, the need for basic supplies become extremely important.  Just check out what is happening in Venezuela right now

Alvaro Villarueda starts his morning the same way every day — putting in a call to his friend who has a friend who works at a Caracas, Venezuela, supermarket.

Today, he’s looking for sugar, and he’s asking his friend if he knows if any shipments have arrived. As he talks on the phone, his wife Lisbeth Nello, is in the kitchen.

There are 10 mouths to feed every day in this family — five of them children. The two youngest are still in diapers.

“The things that are the scarcest are actually what we need the most,” Nello says. “Flour, cooking oil, butter, milk, diapers. I spent last week hunting for diapers everywhere. The situation is really tough for basic goods.”

And the truth is that what is happening in Venezuela is just a very small preview of what is going to happen in much of the world during the years ahead.

In such an environment, people become extremely desperate, and desperate people do desperate things.

That is why self-defense needs to be another high priority for preppers.  When desperate people in search of supplies get desperate enough to break into your home, things can get Medieval very rapidly.

For example, one homeowner in Detroit was recently forced to use a hammer to confront a man that had broken into his home late at night…

Police say an elderly man fended off a home intruder by hitting him on the head with a hammer.

On Sunday, March 9, 82-year-old George Bradford was asleep when he was woken up by the screams of his daughter and granddaughter.

Someone had broken into their house through a basement window.

“I could hear him walking up the stairs. … I had my choice to get ready,” Bradford tells FOX 2′s Andrea Isom. He says he went into the kitchen and got a hammer from the drawer.

Bradford says he asked the intruder to leave but he wouldn’t so that’s when Bradford says he “let him have it.”

Could something similar happen to you and your family when things start really getting crazy out there?

That is something to think about.

And even without a major emergency, food supplies in this country are already starting to get tighter.

The size of the U.S. cattle herd has been getting smaller for seven years in a row, and it is now the smallest size that it has been since 1951.

But back in 1951, the size of the U.S. population was less than half of what it is today.

A few days ago, we learned that during the month of February the price of beef increased at the fastest pace since November 2003, and it is now at a new all-time record high.

Earlier today, one of my readers sent me the following photo.  It shows a price of $24.32 for 0.695 pounds of beef tenderloin steak.  This isn’t even prime rib…

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And don’t think that you are just going to switch to pork either.  A highly contagious virus known as “Porcine Epidemic Diarrhea virus” has killed more than 4 million pigs in the United States since last May, and it continues to spread rapidly.  Experts acknowledge that this is going to drive up pork prices significantly as well.

In addition, the crippling California drought threatens to drive fruit and vegetable prices up to unprecedented levels.  Below, I have posted a recent video news report about the drought.  As you will notice, in this clip they use the term “Dust Bowl” to describe what many farmers fear may be happening…

So now is the time to get prepared while food prices are still relatively low.

They certainly aren’t going to go any lower than they are now.

To some, this type of talk is “gloom and doom”, but I do not believe that is the case at all.  I believe that there is great hope in understanding what is happening and in getting prepared.

These sentiments were echoed by a Canadian prepper named Daisy Luther in one of her recent articles…

Preparedness: It means that whatever may come, you intend to not only grimly survive, but to thrive. It means that you foresee a day when the imminent threat, whatever that may be, diminishes, and you will rebuild. It means that you have taken responsibility for yourself and your family, and that you will not be forced to rely on others. It means that your mind is focused on life itself, not some imaginary life of some reality star that actually has no grasp on reality whatsoever. You have chosen not to be misguided by the lies that the media uses to pacify you.

Preparing yourself is the most optimistic and hopeful thing you can do in a world that would prefer to choose immediate gratification over a firm grasp on reality. Readying yourself to deal with whatever might happen is a joyful act, an expression of gratitude to the Creator, peace made tangible, and the personification of faith itself.

So what do you think?

Is now the time to ramp up our preparation for the years ahead?

Please feel free to share your thoughts by posting a comment below…

More at The American DreamYou Can’t Eat Gold And Silver

When You Are the ATM – How to Carry Gold and Not Get Ripped Off In a Post-Collapse World

By P. Henry

With the global economy hanging on by one rusty and wobbling wheel to the triple loop roller-coaster rails we are on; paper money is no longer a wise investment. For those who see the writing on the wall and even the less pessimistic, holding precious metals in the form of Gold and Silver are a time-tested hedge against inflation, currency manipulation and bank defaults. You can’t help but hear the advice of financial professionals who are saying you should buy gold at the very least as part of a diversification strategy. There are numerous opinions about this and I for one am convinced that at some point in our future, the dollars in my bank will either be worthless or unobtainable for a variety of reasons. If the economy finally does go off the rails, precious metals are what we in the prepping community are looking to as our monetary bumper guard.

When this happens, people who have prepared by purchasing Gold and Silver for their financial security will be all set, right? That is what we all think about but it got me to thinking. Let’s take the hypothetical scenario that you have purchased 10,000 silver American Eagles and they are hidden safely away somewhere that only you and your spouse know about. You wake up tomorrow morning and we are hit with a Weimar Republic type of scenario. Banks are closed for weeks and thousands of dollars won’t buy a loaf of bread. The way of life we once knew is completely gone and now you have one of the only forms of money that will buy anything. You figure you can go down to the local market and buy or barter for anything you want with some of your shiny American Eagles. There may be a few problems though.

How do you know if the metals you are trading for are real?

One of the first issues I can foresee with a new economy based upon precious metals is the risk of forgery. I assume this has been the case throughout time since money was invented and began to be circulated as a suitable method for payment. Do you know how to test a gold coin to make sure it isn’t fake? What if a total stranger offers you a gold coin for two of your best shotguns you were keeping for barter. Will you know if the yellowish coins he is giving you are real? What if a woman offers you two old-looking silver coins with some woman on the face and tells you that they have been in her family for years. Will you know if they are real or forgeries from China? These could be more risks with bartering that you need to consider.

Testing precious metals is fairly easy if you have the knowledge and supplies. There are several methods for each and I will go into a couple for Gold and Silver. If you think you may encounter a situation where you might be faced with trading large or even small amounts of precious metals, it may be wise to invest in a digital scale to verify the weight. A silver (troy) ounce coin should weigh 31.10 grams and simply being able to verify that the coin someone is trying to trade you for weighs close to what it should weigh could give you a quick indication as to the authenticity.

To quickly test gold you can purchase a Gold testing kit which comes with a variety of acids. These acids are in marked bottles and each reacts differently to different types of metals. With one of these relatively cheap kits you can test Gold, Silver and Platinum and even know the quality of the metal from 10K to 22K.

To test the gold you simply drop a small drop of the acid onto the coin or bar and the acid reacts when the gold is real and the correct acid will react to the correct Karat or purity of gold.

This is a short video that illustrates the process.

You can test Silver with the same kit mentioned above or there are some other less sophisticated methods that are supposed to work also. I found a nice article that describes 3 quick ways to help tell real  Silver from Fake Silver.

The Ring Test

Silver has a nice ringing sound when it is tapped. If it is a coin, you can flick it into the air. Alternatively, you can gently tap it with another coin. In both instances, you should hear a high-pitched bell-type ring that lasts about 1-2 seconds. A fun way to try this is with a U.S. quarter from the years 1932-1964, which is 90% silver, and with a modern U.S. quarter (post 1965), which is 91.67% copper and 8.33% nickel. The silver quarter ring will be much higher-pitched compared to the dull ring of the copper quarter. Be careful when doing this with whatever coin you are testing so as not to ding or damage it.

The Ice Test

In addition to having the highest electrical conductivity of any element, silver also has the highest thermal conductivity of any metal. If you place an ice cube on a silver coin or bar, the ice will begin to melt immediately. Obviously, ice will melt if placed on anything at room temperature, for example, but if placed on silver it will melt much more quickly and impressively. Try it!

The Magnet Test

Silver is not magnetic. If you place a strong, rare-earth magnet called a Neodymium magnet on a silver coin or bar, it should not easily stick to it. If you are testing bars, you can angle one at 45 degrees and let the magnet slide down. It should slide down very slowly. If it sticks or it slides very quickly, it is not silver. However, keep in mind that just because the magnet does not stick does not necessarily mean that it is silver.

I found another video that describes a couple of magnet tests for silver and how to use them.

How will you carry your Gold and Silver?

OK, now you know how to verify if gold or silver is fake but in a post collapse world there will still be risks that you might want to consider. You will be your own ATM because there won’t be a strong building to store your precious metals in until you need them. You will be responsible for storing, hiding most likely and keeping your wealth safe from people who want to take it. There will no longer be the illusion of safety that the FDIC provides to your deposits. If someone steals your gold and silver, it’s gone. There isn’t any getting it back unless you find the person who stole your money and take it back.

There are a lot of strategies for hiding your money but probably the most important concept would be to make sure you do not hide everything in one place. If you are going to hide your silver, make sure there are several locations. I would recommend a minimum of 3 locations with varying sizes in there.

For example if you were bugging out on foot and had to take all of your money with you the risk that you might be confronted on the road is higher after the SHTF. Do you want to have all of your silver in one pack? Probably not. If you aren’t alone, you could have different caches of your money so that if the bad guys ask for your money you could give up one bag but the other two would be OK. I might recommend having three so when you give them the first bag and they inevitably ask for the second you still have your third in reserves. Who knows if this will work but it does give you options. You could do the same with weapons, food or any other survival cache you have planned.

Hopefully this gives you something to think about as you prepare for whatever is in our future. If you are considering stocking up on precious metals, the points above may help you out one day. – Prepper Journal

Mac Slavo
SHTFplan.com

As uncertainty about the stability of the global economy spreads and investors look for ways to diversify their assets, precious metals companies are looking for ways to cater to those who are seeking a safe haven in assets like gold and silver.

Though often described as “the money of last resort,” one gripe from potential investors about owning gold is that it is costly, currently running around $1700 an ounce, and not feasible as an emergency exchange mechanism in the event of financial and economic catastrophe that may disrupt food supplies and the normal flow of commerce. The problem with one ounce gold coins, or even 1/10th of an ounce fractional coins, is that if you needed to buy a few loaves of bread, medicine, clothing or supplies in an emergency it would be difficult to do so with a gold coin as opposed to something like silver, which can be more easily traded for smaller value goods.

Enter the “Combibar” Gold Card – designed for “a scary new world.”

Introduced by Swiss precious metals firm Valcambi, the 50 gram (~ 1.6 Troy Ounces) card is fabricated with 99.9% fine gold and can easily be broken into 1 gram pieces and used as payment during an emergency. Each gram is worth approximately the same as an ounce of silver – about $34 – making it an almost perfect emergency barter item.

For the preparedness minded, it’s a simple solution and one that fits right in your wallet, so you can always have “real money” with you wherever you go.

According to Valcambi the Combibar divisible gold card should be available in the U.S. in late 2013.

In the meantime, though some key officials at our central banks suggest gold is not real money, we strongly recommend diversifying assets into physical commodities that may include food, arable land, gold and silver, and learning new skills that can be traded for essential items should the system as we know it come crashing down.

What’s in your wallet?