Silver Bullet + Silver Shield, buy silver before dooms day?

Oh brother,

I am sure Jamie Dimon is shakin' in his boots, that the boys from CT are buying silver

 

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It's not that they "do not want PM in money", it's simply due to gresham's law.

 

And there is a snowball effect. It's easier to build more wealth upon wealth than it is to start from nothing. You have more options and can spread your investments out better.

 

I loved it. I watched a lot of it, and I have to agree with almost all of it. I don't think it's a revolutionary thing to own silver however. I think it's a hedge. The perfect hedge. I don't know, but it's a very inspirational series of movies for us silverbugs. I will take it with a grain or two or salt however...

 

Only assets that are NOT leveraged will be safe. In a monetary collapse we’ll 1st experience a period of hyper-deflation. As people’s banking assets disappear the demand for currency will increase exponentially. When the banks start falling like dominoes the money supply contracts 10 fold. Creditors will demand payment in currency as opposed to other forms of payment such as checks, bank draft and lines of credit. And until the US Government tools up the BEP producing $100,000 bills by the millions and flowing through an organized distribution system – cash money will be king. In my opinion this will be the real window of opportunity – just don’t know how long it will be open.

 

The narrator of the SBSS videos says that after the collapse of the fiat currency system the things that will be needed most will be food and fuel. That is a good reason not to invest all your cash in silver or gold. As in any smart investment strategy, it is wise to diversify. So, in this case, you should have a storage of food, fuel and PMs. Some weapons and ammo would be smart to own for protection and hunting.

Also, if the present currency system fails, will the banks let you in to access your safe deposit box? Many people store their gold and silver and other assets there for safe keeping. How much of an asset is it if you can't get to it.

 

I can see how hard assets will be a good thing to have, but you have to remember that as they print all this money up there are also people losing their jobs and selling anything they have to get enough to live on. We have a yard sale economy, and as it gets worse there is more and more stuff out there looking for a buyer, which brings prices down. If we have another 2008, people will sell their gold and silver too, depressing prices.

 

As printing continues the job market actually increases. However, this hurts those who have a savings. Since the great recession gold buyers have been popping up buying the only real and tangible assets the poor and low middle class may have. In the past three years, old silver scrap has increased the supply available significantly. The amount of ounces in 2011 recycled through old silver scrap was 256.7 million ounces(silverinstitute.org). That is a huge portion of the total supply. I don't see this trend continuing.

 

I agree Tyler. The amount of recycled ounces will start to drop as people hoard their silver now. I don't think the poor and lower middle class have anything in the way of assets any more. I know it's getting harder just to live, and the family silver went a long time ago for most of us. There are a few of us who are still buying, but I'll be a seller soon if this keeps up. I plan on retiring in 5 years, and then I'll go from collector to seller when my income drops.

 

That's the whole purpose of a a savings. You are saving to spend in the future. Nothing wrong with selling. Let's hope 1 oz of silver in 5 years buys you the same or more of food and gasoline or whatever else you will need.