How Reliable is the Old Gold / Silver Ratio?

Many traders, speculators, and investors focus on the gold/silver price ratio in determining which metal is under or overvalued. In recent weeks and months the ratio has collapsed from above 65:1, down to a current low of around 36:1. Throughout the twentieth century, the gold/silver price ratio went to nearly 100:1, occasionally dipped below 30:1, and only briefly hit a ratio of 17:1 in 1980. But few seem to question how misleading this ratio may be, let alone question why the ratio matters for a monetary system that (for the time being at least) is no longer based on gold and silver.

Gold/Silver Ratio as a Relic from Bygone (for now) Monetary System

First off, a quick review of where the interest in the gold/silver ratio comes from. When governments and their people used gold and silver as a medium of exchange, the official mint would dictate at what ratio they would coin gold and silver. In the case of the “American Act for Establishing a Mint” in 1792, all private persons had the right to have bullion coined at “the legal ratios.” The ratio was set by the U.S. government under the direction of the Secretary of Treasury Alexander Hamilton at 15 ounces of silver for every one ounce of gold, often expressed as a gold/silver ratio of 15:1. This relative value had been present in Europe more or less since the late 1500s, when large amounts of silver had flooded into Europe from the huge discoveries made by Spain in Mexico and Peru (which are still the two largest sources of silver today.) This ratio was supposed to be a reflection of the commercial value of gold and silver on the market in Europe—or the proportional value of the two metals in western trade. The European gold/silver ratio of 15:1 was much higher in gold’s favor than in India, parts of Africa, or East Asia, where gold/silver ratios were reported (in isolated cases) as low as 1:1, and generally stayed well below 10:1. Of course, the fixed Anglo-European ratio got out of whack with the market ratio, which is part of the problem with fixed bimetallic systems, but that is another story.

Gold/Silver Price Ratio Is Distorted by Government Bias against Silver

Over the course of the nineteenth century, for various reasons, gold was increasingly favored first by European nations, then by the United States, supposedly as a more stable monetary asset due to its rarity. The prejudice in favor of gold and against silver was due to many reasons, but the bottom line is that silver began to be demonetized in the late 19th century. This demonetization only accelerated throughout the twentieth century as countries from China to the U.S banished their silver from currency circulation. It also did not help matters that huge new discoveries of silver in places like the American West dumped ever more silver on the market. Yet without governments getting rid of silver stockpiles, or refusing to coin new silver bullion at the mint, the monetary demand for silver would not have dropped to as great a degree as it did. Governments took part in a campaign to demolish the monetary value of silver, really, and this cultural legacy has left its scars on the importance of silver as an investment. By the early twentieth century, the value of silver was nearing 100 ounces to 1 ounce of gold, the lowest in history. Yet, the mine production of silver was not 100 times that of gold, nor was the relative abundance of silver money 100 times that of gold.

You should note, then, that the prejudice of the official sector (governments and mints) in the US and Europe has played a factor in the widening of the gold/silver ratio away from 15 to 1, to anywhere from 35: 1 up to 100:1. The dumping of silver on the market by government continued right up until a few years ago. Between 1965 and 2000 governments sold over 3 billion ounces of silver, versus roughly 150 million ounces of gold over the same time period. Moreover, another billion or so ounces of silver was consumed by industry, as opposed to private gold stockpiles actually increasing. The official sector, beginning in late 2009, has begun to buy back some of this gold. They have not begun to do the same with silver. Should we be wondering when they might start?

Keeping with the issue of official sales, governments at present only hold at most 60 million ounces of silver, as compared with 1 billion ounces of gold. Among those who run our world, silver is now far rarer than gold.

With Silver, the Ants (Investors) Will Carry Away the Banks’ Picnic Basket

Given that the official sector can’t dump any more silver on the market, this dramatically increases the importance of the individual investor in the silver market. It means that the vast majority of silver bullion in the world is held by investors. This is quite different from the last silver bull market, where official exchanges and governments stood ready to release several hundred million ounces for consumption.

But just because average investors are the ones who hold most of the silver in the world, please do not take this to mean that there is widespread ownership of silver among retail investors! In fact, up until recently, most people who bought precious metals only bought gold. During the decade from 2000 to 2010, the dollar amounts invested in gold far outstripped those invested in silver. Yet in the past few months something has begun to change.

So far in 2011, dollar demand for Silver Eagles has been nearly equal to that of gold. Inflows into the iShares Silver Trust (SLV) have been greater than inflows into the GLD ETF, and Eric Sprott, of Sprott Asset management has similarly reported that investors are buying more silver from him in dollar terms than gold. Additionally, James Turk of GoldMoney is reporting silver sales near gold in dollar terms. These statements, like them or not, mean that in terms of investor interest the gold to silver ratio is 1 to 1. Since there is less silver above ground than gold, it really means that the gold to silver price ratio should be in silver’s favor.

Please Pay Attention to Gold/Silver Ratios in Terms Other Than Price

I understand if you think that this is a bunch of hyped BS from someone getting carried away with an asset that is dramatically outperforming nearly everything else in the investment universe at the moment. But remember, investment manias take on a life of their own, and when the human investing herd changes directions, you need to learn to get out of the way. I write this with old silver and goldbugs in mind, who perhaps understandably can’t believe the price action on an asset many have owned since it was under 4 dollars. I will address the various metrics for valuing silver today in a different article, but rest assured, with the amount of money printing or monetizing going on, silver may be as cheap today as it was when its price was 10 dollars. Hard to believe, but I think its true.

And at some point, more articles online may begin to quote other ratios between the precious metals. For example, about nine times as much silver as gold comes out of the ground each year, but the vast majority of this silver is used by industry, much of it destroyed. And miners, believe it or not, only believe that there is about 6 times as much silver in the ground that can be mined, according to the USGS. I have read or heard others claim that there is 15 or 20 times more silver in the Earth, but much of this may never, under any circumstance, be economical to mine (this ratio, in other words, is the natural occurrence ratio, not the reserve base ratio). In addition, you might think that producers will just be able to ramp up production in silver to increase the amount of silver bullion or coins to a level greater than gold. But this has not happened yet: the amount of new gold and silver bullion and coin production is not that far from 1:1, even if more silver is produced. And over the past decade, 35-40 times more silver was not earmarked for coins and bullion, which is what the price ratio of gold to silver would lead you to believe.

In short, if you are going to use gold/silver ratios, you may want to think about the possible relevance of other ratios:

9:1 is the ratio of silver to gold annual mine production 6:1 is the estimated ratio of economic gold to silver in the ground (USGS) 5:1 is the estimated physical ratio of all silverware, silver/gold jewelry and other stocks above ground (according to CPM Group) 1:1 is the year-to-date ratio of investment dollar demand. 1:3 (more silver than gold) is the physical ratio of gold and silver coins/bullion These gold/silver ratios are not as familiar to traders, hedge fund managers, or the investing public. But I think that someday in the not so distant future they will be.

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick
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Why Junk Silver Ain't Junk!

Those paying attention to world events, inflation, and the destruction of the US Dollar are buying silver. However, there are many forms of silver available for buyers including bars, rounds, American Silver Eagles, foreign silver coins, and 90% US silver coins or junk silver. I believe junk silver coins (dimes, quarters, halves) minted for circulation up to and including 1964 make the best investment for the following reasons:

• First and foremost, during intense bull markets in silver - like the one we're experiencing right now - junk silver tends to outshine (and outperform) silver bullion.


• Junk silver is a finite commodity.


• Junk coins are no longer being produced (the scarcity factor).


• Junk coins are easily recognizable.


• Junk coins are divisible, meaning you're able to use small amounts to pay for something.


• Junk coins require no assaying.


• Junk silver was produced by the U.S. government, meaning everyone everywhere recognizes what you've got, so you don't need to run any tests to prove its value.


• Junk coins are utilitarian, meaning you could actually put change into a payphone (remember those?) or a vending machine to purchase a product or service.


• Junk coins were produced by the US government itself - and remain "legal tender". Therefore it is unlikely they will be confiscated by said government.

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles. Rick

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Should I Pay To Store My Gold / Silver?

Many gold & silver sellers today offer buyers the option to store their precious metals for them in their secure vault for a fee. To some concerned about theft or storage, this solution could seem like a good deal. The buyer gets to own gold and silver without the worries associated with keeping these valuable metals at home. So, is it wise to give your precious metals investment to your seller for safekeeping? Heck, NO! Why? See below:

• Conflicts of interest - The seller is running a business. Like every business profit and cash flow are primary concerns. The temptation for a vendor to "sell" you imaginary gold or silver and then charge you fees for its storage at his facility are very real. The situation practically begs for a ponzi scam set up. Even a basically honest seller with sub par business skills could find himself in a financial tight spot if a large amount of deposits are withdrawn precipitously or through plain mismanagement.

Example: Earlier this month, FBI agents seized computers, records and safe-deposit box keys from the Tigard home of Lawrence Henry Heim, president of U.S. Gold & Silver Investments Inc. in Portland. The FBI says the mail and wire fraud investigation stems from unfulfilled investor orders made as long ago as 1998 and as recently as October 2010.

Heim and his company also face three lawsuits -- one in federal and two in state courts -- seeking more than $875,000 and alleging breach of contract. One of the suits was filed on behalf of the estate of the late Portland high-tech pioneer Tom Holce.

According to the lawsuits, first reported in Willamette Week, Heim's company has not delivered on at least $875,000 of U.S. gold and silver coins. In some cases, the suits say, investors asked Heim to store coins on their behalf. In others, Heim entered into contracts with investors for which he would pay interest while holding the coins, according to the lawsuits.

• Bankruptcy & Legal Problems - What happens if a business storing your PM's goes bankrupt, or its assets are seized for civil and criminal legal proceedings? There's just no clear answer to this vexing question.

Example: Bernard Von Nothaus, the founder of the Liberty Dollar was arrested in 2007 and over $7 million dollars worth of copper, silver, and gold bullion owned by investors storing their PM's with the company were seized by the Federal government. Von Nothaus was recently convicted of counterfeiting, and faces 15 years in jail and substantial fines. In addition, the US government is seeking court permission to permanently confiscate all the bullion seized. As it stands now, the investors in the Liberty Dollar stand to lose their entire stored bullion, or at best face long legal battles to regain ownership.

There are plenty of other reasons not to entrust your gold and silver to others, but I hope the above two "horror stories" will be sufficient to dissuade anyone from pursuing this foolish investment choice.

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles. Rick

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Prices Haven't Risen for Over 70 years!

When you're riding in a car the houses and trees outside the vehicle appear to be whizzing past rapidly while you stand still. Of course, every adult knows that the apparent movement of the objects outside the car is only an optical illusion. The motor vehicle in which you're riding is moving. The scenery is actually rooted fast.

The driving analogy above is ideal for describing the inflation of prices in US fiat money (US Dollars). It is not the prices of food, fuel, etc., that are continually moving upwards, it's the value of the US paper Dollar that is plummeting downwards!

To prove my price inflation assertion, let's look at everyday prices on items from 1940 and 2010. All costs will be computed using US 90% silver coins (dimes, quarters, halves) that were minted for circulation up to and including 1964. Coins minted after that date for circulation were made from base metals and fall under the heading of fiat money (money that has no value outside of the government mandated value).

Average Cost Gallon Of Gas

1940 $0.11 cents

2010 $2.75

Present Value $0.11 cents silver money $2.97

Average Cost Loaf of Bread Food

1940 $0.10 cents

2010 $2.79

Present Value $0.10 cents silver money $2.70

Average Cost 1lb Hamburger Meat

1940 $0.20 cents

2010 $3.99

Present Value $0.20 cents silver money $5.40

You can see from the price information above that if you'd saved your 90% US silver coinage since 1940, you could still buy these everday items for the same amount based on their silver content value! In other words, the "real prices" of these items has really stayed relatively the same. The only reason that inflation has appeared to cause prices to rise is that the actual buying power of the US Federal Reserve Notes un-backed by precious metals has dropped precipitously.

There are exceptions, of course, to the above rule. Although housing prices have been battered by the recession, they're still hovering above their 1940 silver coin equivalent. The price of a new car is likewise further ahead than its equivalent in 1940 silver coins. However, I expect these exceptions to be liquidated in the future as silver continues to rise versus the empty shell that is the US Dollar of today.

So, the next time you fill up with gas, don't give the gas station attendant a hard time. Remember, it's the Federal government with its money printing presses flooding our economy with worthless greenbacks that you should direct your anger towards.

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

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Silver Eagles vs. Silver Rounds!

A never-ending debate raging within the silver buying community revolves around the merits of owning American Silver Eagles (ASE's) vs. generic silver rounds. Despite the basic logic of one troy ounce of silver is one ounce silver is one ounce of silver, I believe the ASE's are clearly superior to rounds for trading for several market reasons.

Firstly, ASE's are minted by the US government. Silver rounds are minted by numerous private firms. Every American alive today has been raised with the notion that the only valid money is money minted or printed by the US government. Any privately minted items would be subject to inherent prejudice as counterfeits.

Secondly, the American Silver Eagles are uniform in design and weight since 1986. Americans are used to seeing the same basic pennies, nickels, dimes, quarters etc., for decades. Sure, the Mint will change the obverse portrait of Washington slightly and the reverse for the state issue quarters, but anyone can pick out US circulating coins fairly easily. Silver rounds, on the other hand, come in a bewildering number of designs from prospectors to easter bunnies, Santa Claus, and even a wizard (see above)!

Thirdly, the ASE's are one official US dollar. Some silver round proponents think that this assigned denomination will damage the ASE's buying power. However, based on historical hyperinflationary examples in Weimar Germany, Argentina and others, a silver dollar will trade for a lot more than the US paper ones.

Silver rounds will be more problematical because of the wide variety of pieces made. In addition, most companies go out of their way to describe their product as a round or medallion, not a dollar or a coin. The man behind the Liberty Dollar, Bernard Von Nothaus, didn't use the same care as other private manufacturers, and designed coins with recommended dollar denominations that appeared dangerously similar to US coins. As a result, he was recently found guilty of counterfeiting and faces fines, expropriation of millions of dollars of bullion, and 15 years in prison! At any rate, the non-denominational silver round will require a lot more selling and explaining by the prospective trader to convince the product vendor than an ASE holder will likely be required to do.

ASE's are selling for around a 10% premium currently, while rounds are averaging around 5% above the silver melt price. I guarantee that in a case of rampant hyperinflation you will not be sorry you spent the extra 5% over the generic rounds. Besides, I'd feel damn silly as a grown man trying to explain to some merchant why he should accept my coin with a wizard or a freaking Easter Bunny on it! That alone is worth an extra 5% in my book!

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

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Junk Silver for the Apocalypse?

In the preparedness world there is a very vocal segment that believes that TEOTWAWKI (the end of the world as we know it) or SHTF (**it hits the fan) will happen any day now. Some see pandemics and plagues, others see Earth Axis Shifts, Mega Tsunamis, Super Volcano Eruptions, Giant Asteroid Impacts, Nuclear War, and even an avenging God as the key players in the extinction of human society. They hold these apocalyptic beliefs so fervently that all prepping actions they take are with the absolute worst case scenario in mind. As such, they talk endlessly about food, water, self defense, medicine and seeds, sarcastically dismissing precious metals like silver and gold as valueless shiny things that you "can't eat".

Now, I'm not saying that big disasters can't happen. The recent earthquake in Japan is just one reminder that we humans live at the mercy of our very geologically active planet, and not the reverse. However, in the last 6000 years of recorded human history mankind has suffered some pretty big kicks to the chops, but has always recovered eventually. We're not immortal, but we're pretty darned resilient. History has proven that much. As such, I always feel a little insulted when TEOTWAWKI extremists assume a human extinction event is not only inevitable, but likely to happen tomorrow or the following day at the latest! They further point out the absurdly obvious conclusion that silver and gold money while pretty handy and valued ever since man started building the first cities in the Tigris-Euphrates River Valley millennia ago, will most certainly be useless when billions are dead and starvation is universal. No kidding, really?!

As far as gold and silver being worthless in a complete and total apocalyptic "gotterdamerung" case, what knowledgeable person could disagree? In a true "Road Warrior" lawless state, food, water, seeds, guns and medicine will most certainly be king, not silver or gold pocket change. However, I like to examine all the percentages before I commit my scarce funds.

Historically, we've had numerous cases of rampant inflation and hyperinflation in the last 100 years of civilization. On the other hand, we've had zero mega tsunamis, a few widespread plagues since Ancient Rome fell, one dinosaur level asteroid extinction strike in the last 65 million years, one super volcano eruption 75,000 years ago, and zero axis shifts and nuclear wars. Statistically speaking, therefore, we should be a lot more worried about inflation and hyperinflation than any of the other known human-impacting events. Junk silver coins (pre-1965 USA dimes, quarters, halves) plainly won't help you if a Mount Everest-sized rock traveling 10 times faster than a speeding bullet splashes next to your oceanview villa, but during hyperinflationary times these shiny coins have saved many thousands in Weimar Germany, Hungary, Yugoslavia, Argentina, Iceland, and Zimbabwe, etc., when their paper fiat money crumbled to dust.

Conclusion: Most definitely have emergency food, water, seeds, guns and meds. In my mind, that all goes without saying. However, trust in gold and silver as the American dollar is openly and systematically undergoing devaluation leading to ultimate destruction by our so-called leaders. Inflation is already here, and hyperinflation is a vicious beast whose hot breath can already be felt breathing down our collective necks! First things first, I say!

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

CLICK ADS BELOW FOR FREE DISCOUNT!

SHTF Survival First Aid

Many accomplished survivalists are well prepared to defend themselves and their families with a variety of firearms and a cornucopia of ammunition. They also tend to have food, water, generators, and silver and gold for trading. However, one major area of survival is often neglected - Health/Medical/Dental/First Aid. This sector may often be ignored, but it's at least as important as self-defense and food.

I'd like to offer the following suggestions for your medical preparations:

• Adventure Medical Kit - a good first aid kit is crucial. Unfortunately, many of the kits on the market today are composed of substandard materials with gaping holes in important first aid categories. My favorite manufacturer is Adventure Medical for quality contents at an affordable price. They also include a rugged, water-proof pack that's easy to transport.

• Medical Info: The Adventure kit includes easy-to-use water-resistant First Aid instruction cards and A Comprehensive Guide to Wilderness & Travel Medicine. I recommend you purchase the SAS Survival Guide pocket guide. It's a complete survival guide with a good health section that's water-proof and fits in any pocket.

• Add ons: Den-Tek Tootache Kit and CELOX First Aid Temporary Traumatic Wound Treatment. A toothache when no dentist is available can be extremely debilitating. The Den-Tek kit allows anyone to quickly supply a pain-killing temporary filling. The Celox wound treatment causes quick clotting of bleeding wounds to prevent excessive bloodloss.

• Painkiller & Antibiotics - Over-the-counter painkillers like ibuprophen and Tylenol are must haves for any survival kit. Antibiotics can save a life in the case of a bacterial infection. If you have an understanding doctor you can get your prescriptions from him. If not, get some fish! The antibiotics in pet stores for fish are the same meds that are manufactured for human use. Buy The Pill Book to read more about what diseases each medication treats and recommended dosage regimes. Note: Never self-prescribe medication while there are doctors available to consult. Obey all State and Federal laws.

• Red Cross First Aid Course - Take a first aid class from the Red Cross. A little knowledge will go a long way in saving lives when the SHTF!

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

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How to be Prepared for Hyperinflation!

You're part of the 1% of Americans who have the vision to see that hyperinflation is coming to America, most likely within the next few years. Believe me, you've already taken the most important step which any twelve stepper would second - you agree the US HAS A PROBLEM! Our country has become a SPEND-A-HOLIC!

The next steps you take could mean the difference literally between life and death for you and your family. My recommendations are as follows:

Firstly, take stock of your financial situation. What monies do you have available that you can put towards preparation. Include any non-precious metals collectibles you own (stamps, numismatic coins valuable due to rarity or condition, antique items, baseball cards, old comics etc.,). How much could you get for them if you sold them on eBay? Be realistic, please. Remember most collectibles took a serious value hit during the present recession. Sell these items ASAP. During hyperinflation the masses can't afford to eat properly. History tells us that during times of extreme national stress like economic collapse, items not related to basic survival revert to their inherent worth...nothing! Owning the first Superman comic book ever printed is cool, but a starving man won't trade a sandwich and a glass of clean water for it when the SHTF (..it hits the fan).

Secondly, divide the money into two groups on a 50-50% basis. Half the money should go for food & water, fuel, medicine, and self defense. The other half should go towards the purchase of junk silver coins (pre-1965 US dimes, quarters, and halves) and American Silver Eagles.

Long term storable survival foods like MRE's (meals ready to eat) and freeze dried foods made by Mountain House are the best. I like the MREdepot for Class C MRE's and you can find more info here on Mountain House foods. Water is the most important item of all, and it is very difficult to stock adequately. If you have a well, make sure you can still draw water if the electricity is out. Wilderness water filters and purification tablets are good to have as well. Camping fuels can be stored easily for cooking purposes. Keep over-the-counter pain killer pills well stocked, and web chatter says fish antibiotics are made by the same companies that make human antibiotics. I really can't say about this last point - but always obey the law. The defense part of the equation is necessary to defend your family should lawlessness breakout as prices soar and food becomes harder to get. A good selection of rifles, shotguns, and Glock pistols that you can shoot along with a healthy ammo supply is best.

Lastly, your remaining 50% should be spent building up a supply of silver for trading purposes. Both silver and gold have been used as money for 5000 years. In previous national hyperinflation experiences these precious metals have allowed owners to preserve their standard of living while others starved and froze. If you have a large amount of funds available for this purpose, you might want to buy American Gold Eagle one tenth of an ounce gold coins as well as silver. Keep the gold and silver in a safe and/or hidden away where you can get at them. Safe deposit boxes won't do you any good if the banks are closed by government mandate.

The above information is just the Reader's Digest version of what you need to know. See my other blog articles for more information and do your due diligence.

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

CLICK ADS BELOW FOR FREE DISCOUNT!

Gold or Silver for Survival Trading?

A financial disaster (severe hyperinflation, SHTF, TEOTWAWKI, or a complete US dollar collapse) has occurred. Things are finally improving, and law and order is restored to your area. People and businesses are buying and selling again. Some people are using barter, but carrying around a basket of tomatoes while looking for someone with eggs is tiring to say the least. What type of gold or silver would be best to have on hand at this point to make commerce easier?

Let's review junk silver (pre-1965 US coins), American Silver Eagles (ASE's), and Gold coins and their utility in a post-economic disaster trading environment. Junk silver coins like dimes, quarters, and halves can be thought of as singles, fives, and ten dollar bills respectively. An ASE is like a twenty and a ten dollar bill. A gold ounce coin is like a thousand dollar bill.

I believe junk silver coins and ASE's will have the most utility in trading due to their lower value. When you buy food and gas today you usually use lower denomination bills because it's easy for the business you're patronizing to make change. Imagine the look on a convenience store clerk's face if you paid for your twenty dollar purchase with a thousand dollar bill! Chances are he'd turn you away because he couldn't make change. I imagine the same thing would happen after a dollar collapse as well. If you're dead set on having some gold coins, then purchase the one-tenth of an ounce US gold coins. They demand a higher premium than one ounce coins, but at least they're more like a hundred dollar bill - large, but not too big to make change.

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

How to ID a Junk Silver Coin

Finding out whether your US coin is 90% silver or not is easy.

1. The first test is to check the date. If your dime, quarter, or half dollar is dated prior to 1965 your coin is 90% silver.

2. Another test is check the reeded edges for the "copper/nickel sandwich". If you see a band of copper around your coin that means it's made of about 92% copper sandwiched in by 8% nickel. Be careful! You have a fake zombie coin on your hands!

On the other hand, if the reeded edges are all silver colored, then you're 90% silver and all good!

3. If you got good ears and a lot of patience, you can try the "ring test". A silver coin when hit makes a clear ringing sound, while base coins make more of a short plink. Sometimes it worked for me, but most often I just ended up dropping the coins all over the floor!

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

Inflation Stole My Houses!

In 1913 the Average House cost $3,400 - a millionaire could buy about 295 average homes.

If you bought gold in 1913 with your million dollars at $20 an ounce you'd have bought 50,000 ounces. The value of the 50,000 ounces today would be about $60 million dollars.

In 2010 the average house cost around $200,000 with gold at $1200 per ounce. With $60 million dollars you could buy about 300 homes!

If you kept the cash in, well, cash... you could buy 5 WHOLE HOMES now! What happened? The government and the Big Bankers stole your money using a sly instrument called INFLATION.

If a man offers you gold or silver and you decide to take green paper instead - then I've got a bridge in Brooklyn for SALE with your name on it!

Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick

CLICK ADS BELOW FOR FREE DISCOUNT!

Flying Money

Around 800 AD, The Chinese Tang dynasty invented the first paper money. China was a big country, and the rulers of China didn't like the idea of having to transfer all that heavy gold and silver around on a constant basis. The money certificates were exchangeable by merchants for the stated amount of precious metals in any city in the Empire. This remarkable innovation in trade was nicknamed "flying money" by the Chinese merchants, due to the frequent problem with the valuable paper blowing away on the slightest breeze!

A couple hundred years later the Song, Chin, and Mongol rulers began to use paper currency throughout China. By 1309 AD, the currency called the Yuan, had depreciated 1000%. Often the government would refuse to exchange the old money for new as the old became battered and useless. By the end, the great innovation that so impressed Marco Polo had ceased to have any connection to gold or silver, and reverted to it's inherent worth...nothing!

Every paper currency that followed in Europe, America, and around the world has either collapsed or become substantially devalued. In 1950, a US silver dollar bought 4 gallons of gas. It would do the same today due to its silver content if you sold it for US paper dollars. A paper dollar saved from 1950, however, wouldn't even buy half a gallon of gas at your local pump. That, my friends, is inflation and currency devaluation. Please keep in mind as well, that this loss of buying power occurred during the period of time where the USA was the Mightiest nation on Earth!

Is worthlessness the inevitable future for the US Dollar? In a word, yes. It's purely a matter of time. Perhaps it will be a matter of days, months, or years, but it will eventually become WORTHLESS. The process of paper currency devaluation is like an hourglass with an elastic neck, the sand will continue to slip away, only the rate at which it falls is open for debate.

There are a few truisms in historical economics. Governments will always seek to debase currency because it allows them to spend without raising taxes (which everyone who votes generally hates). Think about that for a moment. If you had a printing press and could print your own money seemingly without a reckoning, wouldn't you print away 24/7? When the government gets print-happy, however, the money supply soars leaving manufactured products & supplies in the dust. Too much money chasing too few goods means inflation, or worse, hyperinflation.

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Time is running out fast! Hyperinflation seems unavoidable as fiat paper money is being printed as fast as the US presses can run. To protect your wealth and your family, buy gold and silver now from these top companies, APMEX Gold and Silver and Silver American Eagles.

Rick