The Inflationary Holocaust Survival Guide

[1Admin]

http://www.kitco.com/ind/Summers/feb012011.html

I don't usually like a lot of the commentary from gold/pm dealers but this was pretty good. A lot of good history from the last couple years.

By Graham Summers
Feb 1 2011 11:08AM
www.gainspainscapital.com
Are you ready for the Inflationary Holocaust?
As I

[Klayton]

The most obvious solution is to buy actual physical Gold and Silver. In terms of gold coins, there are three coins that comprise the bulk of the bullion market. They are Kruggerands, Canadian Maple Leafs, and American Gold Eagles. I’ve been told to avoid Maple Leafs by both a trader and a bullion dealer as they can easily be scratched which damages the gold and reduces the coin’s value.
In terms of silver, the easiest way to get it is in pre-1965 coins (often termed “junk” silver). The bullion dealer I spoke to prices them at 50 cents over spot. However, you can also get silver one-ounce rounds (coin-like medallions) and 10 ounce bars both of which can be bought at 95 cents over spot. Finally, you can buy Silver Eagles at $2.50 over spot.
I cannot tell you which dealer to go with, but look for someone who’s been dealing for years (not a newbie). You should also ALWAYS ask for references from the dealer (former clients you can talk to about their purchases/ experiences).
Some warning signs to avoid are dealers who try to store your bullion. NEVER, I repeat, NEVER store your bullion with someone else. ALWAYS store it yourself. Also, be sure to talk to the dealer for some time and ask him or her numerous questions about the industry, the coins, etc. If they can answer everything you ask in a knowledgeable fashion, their references check out, and you verify everything they say with a 3rd party, you should be OK.

OK I hear alot and I mean ALOT about buying bullion, and every article or forum thread boasts $2.50 over spot (silver eagles) or 1% over dealer cost, yadda yadda yadda. All I can say is HOGWASH. I have been to EVERY buillion listed retailer (either physically, their website, or over the phone) in the San Antonio area. Let me tell you NONE of them will sell at those prices. I am interested in SILVER, not GOLD. Because:
1) I am not rich
2) I would rather give a beautiful 1oz silver coin for barter for something I need and be out $30 for an item that normally runs $3 then give a 1oz (or even half ounce) gold coin valued over $1000 for an item that normally runs $3 but I need it REALLY REALLY BAD (like what, I have no clue, lol)
3) I can stockpile more(quantity) of silver than I can of gold (obviously)

But let me tell you the cheapest "price" I could find (san antonio or through the web), the current spot price for silver is $28+/- and the cheapest I could find for (credible) silver coins, almost TWO TIMES THE SPOT!! That is right, an australia silver piece was the lowest priced, and they wanted $46 for a 1oz coin (valued, spot price, at $28+/-). The American Eagle Silvers are almost NONEXISTENT, and the 2 stores I did manage to find some in stock, wanted OVER $50 for EACH one.

I am a hair away from having a friend in Michigan drive over the border and buy some Canadian Silver Coins. Why? Because the government PREVENTS their bullion retailers from gouging the public, and theycreate (stamp) whatever the demand is (I believe making runs monthly), compared to the US Mint who seems to be pretty darn stingy about making gold and silver coins one, and two they seriously screw the little guy by not selling in bulk to the people but rather ONLY to dealers willing to buy $800,000 purchases at a time. I know, thats a heckuva lot of silver for a single purchase, but the requirement is right there on the US Mint website.

PLEASE, if any of you have a reliable source for Silver that charges FAIR prices, let me know!!

[Patriotic Sheepdog]

Klayton,
I have used these guys www.gainesvillecoins.com here is a Silver eagle for $33.31 (credit card price as of 21:49 on Feb 5th) http://www.gainesvillecoins.com/prod...oshipment.aspx

[Klayton]

OH thank you thank you thank you!!!

My wife thought I was going to have a coronary trying to find "fair" priced silver.

[Patriotic Sheepdog]

There may be others, so look around. I know Rawles has Nothwest Territorial Mint as an advertiser on his site http://bullion.nwtmint.com/?utm_sour...ionads-june-09

NIA (www.inflation.us) has Gainesville Coins rated highly.

[bountyhunter69]

Klayton,have u tried going to coin shows? i went to one today in McAllen and was able to buy 90% silver for 20 to 1..(20 fiat FRNs) for 1.00 silver..this was in dimes,quarters,and halves..most of these guys work jobs and do these shows on week-ends for little profit and pleasure of the hobby..most shows are posted on websites

[Klayton]

Just made my first Gainesvill purchase. Thanks again Patriotic Sheepdog.

[Klayton]

@bountyhunter69: no I have went to a few, but I do not "collect" rare coins per say. Just wanted something pretty to look at instead of ugly old silver bars. :)

[rockriver]

i second the motion that Bounty stated.
--
there was a large coin show in perry ga. last weekend. (middle of state)
here's what i saw...
silver had just jumped to 28.03 on friday. the markets for silver was closed on saturday, but the "buzz" was that
with the middle east imploding, silver would continue to climb. (the buzz was correct!!) i spent the day watching and trying to learn. i visited with many dealers 2 or 3 times. many had obnoxious high falooting attitudes. many were there to do business. some clearly were there only for the high dollar coin collectors.

silver eagles were advertised singly for 32 to 33 bucks
silver eagles in a tube (20) were being sold for 630 usually but could be found for 590 that is 29.50 each.
two real nice ole geezers over in the corner were being ignored. a fellow sat down and talked with them and bought
morgans and peace dollars for $23 each then accepted their offer to sell him silver eagles for $27.00 each..
some morgans and peace dollars were priced at 19 to 22 singly in the little cardboard sleeves. these were usually 25/each and higher
3 big dealers were energetically buying junk (90% silver) paying 18 to 18.5 x face value.
one of these big dealers was telling people he'd sell junk silver for 19.8 x face..
he sold when offered for 19.6 when the purchaser agreed to make a large purchase.
the purchaser in that case was dressed "poorly" didn't look like he had any money.
the dealer was hesitant to take him seriously.
i began to watch that purchaser and realized that's why a lot of the dealers showed disdain when
he walked up.
stupid dealers! most of the stupid ones were the high $$ collector type dealers and didn't have the low priced silver dollars
and junk that poor dresser was looking for any way.
the cheapest morgan/peace prices seen in volume was 21.75 for nearly slicks and 22.50 each for coins that showed a lot of wear.
--
another approach..
a couple of friends are advertising by word of mouth that they are buying silver...
they are completing deals that run about 15% to 20 % less than i discussed above...
partly because the pawn shops in their area are buying junk at 10 to 14 x face!!!
one of my friends has a few pawn shops that routinely sells him their silver.
pawn shop pays 12 x face and sells to my friend for 18 x face... nice profit.