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This week,
the inevitable HYPERINFLATION came closer to reality, as the ECB
announced what appears to be an open-ended sovereign debt monetization
scheme – lamely “euphemized” the MOT, or “Monetary
Outright Transaction” program. Likely, the Federal Reserve will
announce its own, euphemized ‘QE3’ program at its September 13th
meeting; once and for all, SHOUTING TO THE WORLD that “QE to
Infinity” is GURANTEED.
Once the
Fed puts this “icing on the cake,” I expect the WORLD’S
MOST IMPORTANT MARKETS – Euro Gold and Rupee Gold – to race
through their ALL-TIME HIGHS, followed shortly thereafter by “DOLLAR-PRICED GOLD”
– perhaps by year-end. As for silver, its ALL-TIME HIGH is
closer to $800/oz – in inflation-adjusted
dollars, six centuries ago. My current “price target” for
silver is $1,000-$4,000/oz – in today’s
dollars – so obviously I expect silver to surpass its ALL-TIME HIGH as
well; albeit, not simultaneously with gold reaching its own record milestone.
However,
as long-time readers know, I believe silver will shortly complete the “ULTIMATE
QUADRUPLE TOP BREAKOUT,” surging through $50/oz
and commencing the mania stage of the PM bull market…
When this
occurs, I anticipate silver SUPPLY will rapidly deplete; as we saw in
April 2011, when silver reached $50 – under normal market conditions…
Ranting
Andy: Alert! Alert! APMEX (and Likely Nearly All Mints) Out of Silver –
April 28, 2011
…when
only GREED drove new purchases…
Ranting
Andy: Alert! APMEX, Overwhelmed by Physical Buying, Ran Out of Silver Eagles!
– May 9, 2011
Of course,
silver SUPPLY can be drained equally fast during crisis
conditions, as we saw in late 2008 – and to a lesser extent, late 2011
– when the more powerful emotion of FEAR ruled the day…
Understanding the Gold and
Silver Bullion Business – Andy Schectman
…which is EXACTLY what I anticipate in the next 12 months, as the
ENTIRE WORLD finally realizes PRINTING MONEY accomplishes NOTHING but
economic catastrophe and HYPERINFLATION…
We
Are Staring At Economic Destruction & Soaring Inflation – Michael Pento
When
inflation fears rise, fear of fiat currencies like the dollar will
grow exponentially – with less and less people wanting to hold
them. In last week’s RANT – “PHYSICAL EVERYTHING”
– I wrote of Italian and Greek businesses no longer taking credit
cards, for fear of the underlying banks collapsing. Well guess what,
the same fear that Zimbabweans, Weimar Germans, and countless others have
experienced is coming our way – likely SOONER rather than later…
…and
when it does, American vendors will no longer accept dollars. Nor, for that
matter, will European vendors accept Euros and Pounds, or Japanese vendors
accept yen…
The Day the Dollar Died
– NIA
At that
point – BEFORE a new gold standard is formalized – I expect
more and more transactions to be carried out with REAL MONEY; i.e. PHYSICAL
gold and silver. Whether legal or “black market,” it will be
necessary to own goods and/or services utilizable in barter –
and NOTHING conducts trade more universally than gold and silver
coins. Of course, practically speaking, gold coins are too valuable for small
transactions – as it will be quite difficult to buy $30 worth of
groceries with a one ounce coin worth $2,500/oz
– or even a 1/10 ounce coin worth $250. For that matter, even a once
ounce silver coin will likely be worth at least $100, making it imperative
to own low-denomination bullion, if available.
Luckily,
it still is, in the form of “junk silver.” One of the worst
misnomers ever, “junk silver” is among the most valuable assets
you can own. Essentially, it refers to pre-1965 U.S. dimes, quarters, and
half-dollars – which at the time were produced with 90% silver content,
and 10% copper to increase hardness. A “1,000 face value” bag
– weighing roughly 54 pounds – may contain 10,000 dimes, 4,000
quarters, 2,000 half-dollars, or a combination thereof – cumulatively
weighing approximately 715 troy ounces. Actually, most dealers – such
as Miles Franklin – package them in half-bags weighing about 27 pounds;
very manageable, and hideable, for ANY
household.
Given
their small size, pre-1965 dimes are worth roughly $3 today, a far more
manageable denomination for small transactions. Moreover, as the coinage is
ACTUAL U.S. CURRENCY, it is extremely recognizable, and highly unlikely to
EVER be considered for confiscation. Below, Jason Hommel
gives an excellent description of the “junk silver” market…
90%
US Silver Coin Bags, $1000 Face
As with
other forms of bullion, premiums fluctuate with demand – and at times,
such as Fall 2008 and Spring 2011 – supply RUNS OUT. In recent years,
we have seen premiums as low as ZERO, and as high as $4.00/oz – compared to today’s premiums of roughly
$1.25-$1.50/ounce. Thus – particularly with the seeds of HYPERINFLATION
very publicly being sown this month – today is the perfect time to
“arm” yourself with the ultimate
protection.
Finally,
please note that Miles Franklin offers a unique guarantee when selling its
clients junk silver. By weighing every bag, we can see if some of the coins
may have “slimmed” over time, reducing the overall weight to
below the standard 715 troy ounces. If, for instance, the bag weighs just 713
ounces, we will add extra coins to bring the total to 715 ounces.
PROTECT
YOURSELF, and do it NOW!
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