A trip back to 1964 proves Silver creates wealth

Technically, of course you are correct, that is how our legal system works, but lets just not slip down the slope, that it is "Ok" to do it, because in this country you are innocent until proven guilty. It is not "OK " to break the law with the hopes that you won't get caught.

 

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But this is a moral statement and I've not suggested this at all.

 

I agree, you did not say it

 

That's an opinion. I totally think it's ok to break the law. Not necessarily in this case, but I'm all about people breaking laws.

 

Anarchists are my heroes.

 

Well, I have to say, you got me there, it is just an opinion.....

 

I get what you say. I have most all of the purchase records, but it's not as a big deal to me as I have zero plans on getting rid of unless they pay off/down the National Debt. We all know that is a joke, :dead-horse:so I will take it to my grave for insurance.

I do not see the hippy/green and survivalist types around here doing any of this. I see them being just like the Greeks.

 

I agree, but after seeing the 60 Minutes show where 50% of the Greeks are cheating it becomes unenforceable.

Another strange thing I see is all these alternative currencies (Nationally over 100+ they are now saying) popping up like Bitcoin - The Currency ofthe Resistance. This seems like another fiat ponzi scheme to me.

I believe they will try to crack down on PM's as they are real unlike this Bitcoin scam.

 

I was sixteen in 1964 and was into coins then.

I knew that countries all around the world were abandoning silver in coins.

I managed to amass a collection of circulated foreign (non US) silver coins from coin shows and dealers, which I still have.

Dealers would usually sell the minor silver coins for the equivalent US coin size, crowns (silver dollar size) had a premium.

I also wrote a high school term paper on the US removing silver from coins and the invention of the clad coins, needed to pass as silver in vending machines.

I got an 'A' on the paper and reused it for a college class a year later.

 

FWIW, (which is not much), I see Congress simply slowly upping the information reporting requirements, and making the ability to use cash undetected harder. The part of the Helath Care bill we were able to overturn requiring higher informational reporting for cash items is not dead, just waiting an opportunity to come back. Think about it, the politicians can pass a bill claiming to "raise money" for XXXX cause, but at the same time get much more control over everyone's life. Win win for them. I think its just a matter of time. What good will owning PM do you to escape the tax man, when every buyer must report the transaction to the IRS with your SSN?

Like I said, I am very libertarian and worry about this prospect as well. I am just pointing out the legalities today, and warning about the future I see, (unfortunately).

 

I think worrying about things that haven't happened and may never happen is fruitless exercise. Someone mentioned to me once that "Real Serious S***, Always Comes Unexpected". So there is no point in living in fear of conjured trouble especially when it comes to what the government might or might not do. The only thing you can do is to look at what they ARE doing now and take appropriate action based on how it might affect you.

We DO know that government and the Federal Reserve are causing money to be createdin amounts far beyond this country's means to ever pay back and the math says that it will continue to get worse. This means that if you hold monetary assets you have to move to protect these assets from the resulting monetary inflation. You can choose to gamble this money in equities, put the money in various other inflation protected paper investments, or purchase physical PM which isn't dependent upon government action for it's worth.

As for this notion the government is going to send storm troopers to take everyone's silver and gold, it's never going to happen. These days, they can't even put together an organization to effectively check people's bags at the airports.

 

The fact is that there are no 20 year periods when common stocks have not had a positive total return. The same cannot be said for PMs. So "gamble" is in the mind of the beholder and should be periodically fact checked by anyone wishing to preserve capital. I like PMs and I like common stocks right now. But this will change over time as the probabilities of gain and loss change. Nothing is always good and the intelligent investor will recognize this and act accordingly rather than make PMs or any investment class a religion.

 

This is only relevant if you believe that past results are a predictor of future returns. No rational investor should take this approach.

What does matter is what is happening now, such as QE (never been a 20 year period where that is practiced either), national debt, failure to police finance industry laws, etc.

 

Let me get this straight. You think worrying about things that haven't happened and may never happen is fruitless exercise. Yet your main basis for investing in PMs is for protection from a type of inflation that hasn't happened and may very well never happen.

 

Yes. And I'm quite happy about it.

I said this:

"This means that if you hold monetary assets you have to move to protect these assets from the resulting monetary inflation.:​

Monetary Inflation IS happening. Do you think it isn't?

 

I don't think anyone knows yet. Of course we have normal consumer price inflation as there has been for a long time, and folks need to deal with it. Beyond that, I believe you are looking at how the Fed is expanding the balance sheet and calling that monetary inflation. But the other side of the coin is that for every dollar they create, a dollar of asset is removed from the banking system or a dollar of debt is created, and both of those actions are deflationary. So it looks like a wash for now.

 

I think the key word there is "worrying". Not that these things won't happen, but why "worry" about them? Just like in his next sentence he mentions "living in fear" of what our "government might or might not do". Being scared is not a prerequisite to being prepared.

Hyperinflation has never happened? Maybe not here in the US, but it has happened many times. Perhaps we could learn a thing or two from those examples instead of assuming it'll never happen here. Just sayin'

 

I think you are correct in saying it could happen. But I don't think it will happen as a result of any action taken by the government or Fed so far. Unsustainable debt and bad assets on the books are deflationary, as would be crashing markets if no action occurred. So actions to offset deflation are not necessarily inflationary, which I believe is the Fed position [whether they come right out and say it or not]. Personally, I think there is a 50/50 chance between serious inflation and deflation down the road depending on policy decisions that haven't occurred yet.

 

First I said nothing about price inflation. I said monetary inflation. Second, you don't understand, based on this definition, on the different role of base money versus circulating money and furthermore how their QE mechanic is being used.

 

The potential is certainly there but to state as absolute fact that monetary inflation is currently happening - is debatable.