ECON Hey Gang! Silver is Over $21!

[Switchback]

Right now happiness is a heavy green sealed mint crate with 500 uncirculated ASE's purchased in 2004 for under $6oz.
At one point in the last run up they were going for over 30K in a bidding war on Bullion Direct trading. I'll never forget that. Might have been around 2007 or so?
This next run will be exciting.

 

[Quiet Man]

At 10:18 CDT, the Dullah is down 1/2 of 1%
On it's way to it's natural value of NOTHING!

Be aware that the USDX is just a measurement against other fiat currencies -- nothing of any real, tangible, value is included. The dollar can 'look strong' by this measure, even though all of the currencies included in the measurement are falling in purchasing power. In short, it's just a trick.

As others have said, just measure your savings in ounces.

 

[Southside]

Be aware that the USDX is just a measurement against other fiat currencies -- nothing of any real, tangible, value is included. The dollar can 'look strong' by this measure, even though all of the currencies included in the measurement are falling in purchasing power. In short, it's just a trick.

As others have said, just measure your savings in ounces.

Oh, there is no doubt, all fiat currencies are in a race to zero. The USD is just the best looking horse at the glue factory.

Stack 'em to the ceiling. Life remains good while we can still trade paper for precious.

Southside

 

[OZARK]

Over $22 bucks. I may win the silver pool come Friday

 

[Dozdoats]

Right now happiness is a heavy green sealed mint crate with 500 uncirculated ASE's purchased in 2004 for under $6oz.

When silver was at its 1980s high, I saw a $1000 face value bag of junk silver priced at something like $32,000 at a gun show. If obtained before 1963, cost would have been - $1000.

 

[Switchback]

It might be a good idea to save your purchase receipts of your metals. Make safe copies. You never know in the future if you might have to prove ownership is on the level. Just thinking how police confiscate cash and the burden of proof lays on the person to prove it was not a result of illegal gains. They might be needed or they might not. Cause you never know.

 

[Dozdoats]

ANYONE who tries to take my PMs will get the lead first.

 

[Earshel]

ANYONE who tries to take my PMs will get the lead first.

Lead is precious.

 

[West]

Lead is precious.

And...

No warning shots, cause it's to expensive and hard to get.

 

[Troke]

I sit here with a very nice 1963 Benjamin half dollar in my hand. Where I live, if converted to FRNs ($7.30) it would purchase three gallons of gasoline. In 1963 the average price per gallon was 30 cents.

It still holds value, right?

deleted

 

[rob0126]

Silver & Gold is for rich folks that already have plenty of stored supplies and the means and know how to use them.

 

[Steel Chips]

I stated last year that when silver thrusts above $21 per ounce that it may begin the drive past $50, thus completing the 40 year cup and handle chart formation at $50. After completion, on a large silver chart, tip the cup and handle formation 90 degrees to the left to get an idea where silver is heading initially. I was not clear on that $21 statement in that I meant that it needed to cross $22. Maybe it will touch $22 this week as it looks like a very good short squeeze is in progress. Is JP Morgan screwing over some of the other short sellers?

 

[Sub-Zero]

It is possible that in America people might lean towards accepting only US coins. Because of that I only have Eagles.

Don't forget heritage silver (pre 65 U.S. coins).

 

[Southside]

It is clear by the action today/tonight, someone out there is feeling some significant pain.


Southside

 

[tanstaafl]

The ASE is legal tender, the others are not.

Actually they are. The Canadian silver maple leaf has a face value of Can$5 and the Krugerrand at one time was legal tender at the spot price of gold. I'm not sure if the Krugerrand thing changed with the new political situation in South Africa.

I wonder if you could make a legal argument that if the US confiscates silver and all you have are Canadian silver maple leaf bullion, and they are in fact legal tender in Canada, wouldn't the US have to pay you the then-currency conversion rate of Can$1 to US$1 rather than the bullion price that exists in the US at that time? You can bet if the feds really confiscated silver there would be a very low exchange rate for each oz, maybe just the US$1 that is stamped right there on Silver Eagles. If it did come down to that, you have to wonder if the Canadian dollar would be worth considerably more than the US dollar (or maybe not, seeing as how closely Canada's fortunes are tied to the US's fortunes). If that legal argument did have any future validity, you'd be getting just US$1 for every Silver Eagle but US$5 (or whatever the exchange rate was at that point) for every Silver Maple Leaf.

 

[shane]

There is no top price, for me, where I'd cash in my gold/silver.
I don't want an ever riskier pile of depreciating paper currency.

I'd have to have something big, like retirement bugout property
or some life/death essentials, that I was needing to buy with it.

Otherwise, it stays safely parked for kids and grandkids for use
in a future where sanity might eventually take hold widely again.

Panic Early, Beat the Rush!
- Shane

 

[TxGal]

There is no top price, for me, where I'd cash in my gold/silver.

I'd have to have something big, like retirement bugout property
or some life/death essential, that I was needing to buy with it.

Otherwise, it stays safely parked aside for kids and grandkids.

Panic Early, Beat the Rush!
- Shane

This! And, I'd add, if there is indeed an economic crash and bank deposits/retirement income is in jeopardy, property taxes would be covered.

 

[Quiet Man]

Futures popped over $23 tonight.

Wake me up when it reaches $100.

 

[Earshel]

There is no top price, for me, where I'd cash in my gold/silver.
I don't want an ever riskier pile of depreciating paper currency.

I'd have to have something big, like retirement bugout property
or some life/death essential, that I was needing to buy with it.

Otherwise, it stays safely parked for kids and grandkids for use
in a future where sanity might eventually take hold widely again.

Panic Early, Beat the Rush!
- Shane

I should have been more clear with my statement. The same is true for me. I'd have to have my eyes on something important to cash it in. Or an emergency. Selling the silver for profit just to have the cash is a no-go for sure. I prefer a pile of silver to a pile of cash. Not that I have a particularly large stack of either.

 

[hiwall]

I don't think the US would ever confiscate silver. There is just too much of it and not worth enough to try and take it all. The gov could make gold and silver illegal and that is a real possibility.

 

[Dozdoats]

Gold Confiscation? | Silver Confiscation?

With negative interest rates and cashless policies increasing around the world. There remains a consistent concern that under financial duress, governments might move to confiscate or nationalize citi

sdbullion.com

Executive Order 6814 Silver Confiscation
Most silver bullion buyers and silver investors are unaware of 1934 President Roosevelt's Executive Order 6814, which occurred a bit over one year after Executive Order 6102.

The lowest silver price per troy ounce in US dollar terms ever was only 25¢ oz. That lowest silver price in history was reached in late 1932 and into the year 1933.

This order was an effective nationalization of all domestically mined US silver and privately-owned US silver bullion hoards. Exceptions only included circulating 1964 silver coins, foreign silver coins, and a few other items.

All other private silver bullion bar holdings were mandated to be turned into US Mint locations and purchased by the US government at 50¢ oz.

Domestically mined silver got then purchased at a premium of 64.5¢ oz as a political handout to struggling western silver miners at the time.

Executive Order 6814 had a 90 day mandated deadline. Within those three months, some 109 million ounces of silver got delivered to the US Treasury. Another 4 million ounces trickled in before the order got rescinded in 1938.

-

 

[TKO]

There is no top price, for me, where I'd cash in my gold/silver.
I don't want an ever riskier pile of depreciating paper currency.

I'd have to have something big, like retirement bugout property
or some life/death essential, that I was needing to buy with it.

Otherwise, it stays safely parked for kids and grandkids for use
in a future where sanity might eventually take hold widely again.

Panic Early, Beat the Rush!
- Shane

EXACTLY! I always say gold and silver are NOT investments. They are money. I will not trade it for inflated money.

 

[TKO]

Silver & Gold is for rich folks that already have plenty of stored supplies and the means and know how to use them.

I wouldn't say that exactly. When I was in college I was fairly poor. My income was mostly ROTC money. My wife had a low paying teacher job. Newly married and all. I saved to buy our first gold coin.

 

[WFK]

Gold Confiscation? | Silver Confiscation?

With negative interest rates and cashless policies increasing around the world. There remains a consistent concern that under financial duress, governments might move to confiscate or nationalize citi

sdbullion.com

Executive Order 6814 Silver Confiscation
Most silver bullion buyers and silver investors are unaware of 1934 President Roosevelt's Executive Order 6814, which occurred a bit over one year after Executive Order 6102.

The lowest silver price per troy ounce in US dollar terms ever was only 25¢ oz. That lowest silver price in history was reached in late 1932 and into the year 1933.

This order was an effective nationalization of all domestically mined US silver and privately-owned US silver bullion hoards. Exceptions only included circulating 1964 silver coins, foreign silver coins, and a few other items.

All other private silver bullion bar holdings were mandated to be turned into US Mint locations and purchased by the US government at 50¢ oz.

Domestically mined silver got then purchased at a premium of 64.5¢ oz as a political handout to struggling western silver miners at the time.

Executive Order 6814 had a 90 day mandated deadline. Within those three months, some 109 million ounces of silver got delivered to the US Treasury. Another 4 million ounces trickled in before the order got rescinded in 1938.

-

How can a 1934 document exclude 1964 coins??

 

[Dozdoats]

Ummmm..... it didn't. Circulating US coins STOPPED being silver in 1964, they WERE silver up till then.

Exceptions only included circulating 1964 silver coins,

Drop the date and it might read better. I think the author just knee-jerked on that one. It is in the article author commentary, not the EO.

 

[OZARK]

Getting close to $23 bucks and ounce. I believe it will keep moving upward as more people pay attention to this rally. It will get harder to find as well.

 

[Hfcomms]

Paper print up $1.64 for the session at $23.20 pretty amazing. A .50 daily move used to be huge. Will be interesting to see if they can smack it back down. With Sprott announcing huge silver buys of 8% annual global production and they will stand for delivery and not be bought off. The cartel’s nuts are now firmly in a vise and Sprott is squeezing the pliers.

Historically silver is many times more volatile than gold both on the way up and down. As I don’t play the paper game I’m not about to jump into a metal ETF to make fiat but Sprott’s silver ETF is different as it is backed with 100% physical and that does make them a bit different. If I was seeking paper gains I’d already be in that.

 

[Quiet Man]

Bix says 1 billion toz COMEX paper Ag were dumped to push the price down from $23, but it's back up above $23 again.

 

[Dozdoats]

The Barbaric Relic is up $30 this morning, too. $1870.80 spot on Kitco.

 

[Dennis Olson]

Yikes! That’s $200 in 6 weeks

 

[Dozdoats]

It will really be interesting when we have $100 up days in Au.... then I will know fiat/MMT is paying off bigly. Problem is, prices will appreciate faster and supply will diminish just as fast. If you will need it, get it now ... no time like the present.

ETA - and I mean groceries, clothes, etc - not PMs. The PM ship has upped anchor and set sails, it isn't over the horizon yet but it is leaving. I spent an hour last night going over the gun and ammo situation and the same thing is true there, too.

 

[Dennis Olson]

I’d love to get some silver and a gold piece. I won’t have the cash until next month.

 

[Quiet Man]

$100 up days in Au....
Problem is, prices will appreciate faster and supply will diminish just as fast.
I mean groceries, clothes, etc - not PMs.

Right. And, I assume, life/society will be getting much more unpredictable/complicated/dangerous.

 

[Dozdoats]

Probably a safe assumption.

 

[Dennis Olson]

www.foxbusiness.com/markets/gold-silver-surge-best-levels-years

Gold, silver prices surge to highest levels in years
Jonathan Garber
3-3 minutes

Precious metals rallied to their highest levels in years on Tuesday as a fresh economic stimulus in Europe and a weak U.S. dollar boosted prices.

Spot gold rose $24.50 to $1,840.40 an ounce, its highest level since Sept. 9, 2011, while silver gained $1.34, hitting a more than 6-year high of $21.46 an ounce. At the same time, the U.S. dollar index slid 0.54 percent and neared its lowest point in two years.

Tuesday’s price surge reflected "what happened in Europe,” George Gero, managing director at RBC Global Wealth Management and a member of the COMEX board of directors, told FOX Business after European Union leaders agreed on a 1.8 trillion euro ($2.06 trillion) spending package to bolster the region’s economy in the wake of COVID-19.

US DOLLAR TO WEAKEN AS CORONAVIRUS RECOVERY FORGES AHEAD

Precious metals have had a banner year in 2020 as the lockdowns ordered to slow the spread of COVID-19 led to drastic action from policymakers, devaluing currencies and prompting investors to turn to precious metals as a safer store of value.

In the U.S. alone, Congress has already approved $3 trillion of stimulus and is working on another package while the Federal Reserve has slashed interest rates to nearly zero while also announcing open-ended asset purchases and lending programs to support the flow of credit to small businesses and households.

Expectations for interest-rate cuts by the Fed forced nominal interest rates lower and caused a drop in real yields, which factor in inflation.

While they may rebound slightly in the near-term as economies recover, James O’Rourke, commodities economist at the London-based research firm Capital Economics, expects real yields to “remain low” and interest rates to stay at current levels as the 10-year Treasury note will be “firmly anchored by loose monetary policy.”

He sees gold ending 2020 at $1,900 an ounce, and remaining “elevated over the next couple of years.”

While gold prices have garnered all of the attention lately, silver has been the big winner since precious metals bottomed in March. Back then, the gold/silver ratio was near 122 – it has since fallen to 85.74.

“Silver has been a misunderstood component of the reopening because the industrial part that held it back for months is now in its back, propelling it forward,” Gero said, noting he sees the metal’s price climbing to as high as $22 by year-end and the gold/silver ratio falling to around 80.

CLICK HERE TO READ MORE ON FOX BUSINESS

“Silver has finally come into its own and it's no longer poor man's gold,” Gero said.

 

[Quiet Man]

I’d love to get some silver and a gold piece. I won’t have the cash until next month.

Disclaimer: Bill Holter and JSMineset.com sell precious metals and mining stocks. (posted as per TB2K requirement).

Just FYI, BillH posted a brief note on availability/wait times/premiums/GSR on their site today.

I found this headline very interesting:

Senate panel approves nomination of Judy Shelton to Fed board seat

Senate panel approves nomination of Judy Shelton to Fed board seat

The Senate Banking Committee on Tuesday approved the nomination of Trump advisor Judy Shelton to a seat on the Federal Reserve Board of Governors.

www.marketwatch.com

Published: July 21, 2020 at 2:48 p.m. ET
By Greg Robb

Controversial nominee approved by narrow party-line vote.

Judy Shelton testifies in February before the Senate Banking, Housing and Urban Affairs Committee.
Getty Images

The Senate Banking Committee on Tuesday approved Judy Shelton, an early supporter and adviser to President Donald Trump, to a seat on the Federal Reserve board of governors.

The committee also approved the nomination of Christopher Waller, head of economic research at the St. Louis Fed, to fill another vacancy on the seven-member board.

Shelton, a controversial nominee, was approved by a party-line vote of 13 to 12. Waller was approved by a wider margin of 18-7.

Shelton has been controversial because she has a long record of vocal advocacy for some form of a gold standard, which would tie the value of the U.S. dollar to the price of gold. Until the Great Depression destroyed the policy, central banks had used a gold standard to set monetary policy.

Democrats united against her nomination because they view a gold-standard as ignoring the plight of workers in policy making.

Sen. Mike Crapo, a Republican from Idaho and the chairman of the Banking Committee, defending Shelton, saying she would “broaden and diversify” the Fed’s perspective. He downplayed her prior support for the gold standard.

In her nomination hearing, Shelton had backed away from her prior writings.

Democrats charged that Shelton had not changed her stripes and would have made the coronavirus crisis worse if she were on the Fed board at the advent of the pandemic.

“A regulator’s job is not to … revive debunked economic theories,” said Sen. Sherrod Brown of Ohio, who is the ranking Democrat on the banking panel.

 

[EMICT]

“Silver has been a misunderstood component of the reopening because the industrial part that held it back for months is now in its back, propelling it forward,” Gero said, noting he sees the metal’s price climbing to as high as $22 by year-end and the gold/silver ratio falling to around 80.

I'm sure he meant to say week-end.

 

[Dennis Olson]

I'm sure he meant to say week-end.

 

[Dozdoats]

PMs have not yet achieved liftoff. Efforts to suppress prices are at full court press at this point, but paper and digits only have so much real power.

This may well be the time I have been trying to warn about here for years, it will not be a certainty until after the fact. But with the acceptance of MMT as Fed monetary policy, it seems more a sure thing than ever.

Even so, put beans before bullion! Calories are going to count for a lot more value in the near future as far as I can tell. On a FRN$ price basis, even lead (ammo) has gone up more than gold of late.

It is getting real out there, folks.

 

[Quiet Man]

Been waiting 35 years. First time the 'getting real' felt tangible to me.

Everything you wrote is spot-on.

Added: It's often difficult to have a clear picture on timing because of the gargantuan size of 'the machine' and it's ability to hold together longer than you think.