The Doc sat down with Sprott Asset Management’s Eric Sprott this weekend to discuss the European debt contagion, the latest gold and silver massacre, the massive rush into physical metals, and his outlook on gold and silver for the rest of 2012 and beyond.

This is a portion of Eric’s thoughts regarding Thursday’s smash in the metals and the crisis in Spain coming to a head.
SilverDoctors’ explosive full audio interview with Eric Sprott is AVAILABLE NOW HERE!

When asked whether Thursday’s gold and silver raid coinciding with Bernanke’s testimony to Congress felt like Deja-Vu to the Leap Day Massacre Eric responded:

It might be that the silver cartels have changed their MO.  The MO used to be that whenever the jobs number came out they’d go to work ,  which let them take a shot at the markets once a month.
The last jobs report backfired, and of course the jobs reports have been so poor.   I think the key thing for the cartel is to time it, and to know when to do it.  Three or four guys acting together can have a bigger impact if you all know exactly what second we’re going to do something.

Of course Bernanke releasing his comments at exactly 10am is the perfect time.  Ok, let’s knock gold and silver down.  It theoretically make’s Ben’s remarks seem all the more important, although you see the action in the market before anyone’s even had a chance to read his comments, but it sort of reinforces it.

I would not be surprised that the MO has changed, and now we do these things when Bernanke speaks or when the Fed announcements come out at 2:15 on June 20th next, that’s when they’ll act.  They like to know when they have a common time when they can all go into shorting mode.

To me, there’s been no reason for precious metals to be weak here.  All of the data is incredibly positive for precious metals.   I focus on gold because the silver data is so poor that we get, but when you see China buying 100 tons of gold in April, Iran’s buying, Turkey’s buying…Kazakhstan announces they’re going to go from 12% of reserves in gold to 15%- all of the data speaks to HUGE VOLUMES OF PHYSICAL GOLD BEING CONSUMED…way beyond the ability of the miners to provide that gold.
Which makes me think the central banks are continuing to lease or to supply the gold into the market somehow…normally through leasing because then they don’t have to sold it.

All of the physical data says that gold is a buy.  All of the financial goings on suggest that gold is a buy, but for some odd reason, and of course to me the odd reason is the central planners of the world don’t like the price of gold going up.  The central planners to their demise think they know how to run the world.   They’ve proven in the last five years THEY DON’T, because they never solve a problem!

Of course gold and particularly silver being in such short supply will be massive beneficiaries when all of a sudden people realize that there’s not as much gold around as people think.  Of course the silver supply would disappear in a nanosecond because it’s a very small amount of money. 

When asked whether central banks were in danger of falling behind the curve, and will need to announce massive new stimulus to stop the deflationary momentum, Eric responded:

The ECB is WAY behind the curve here.  Because the Euro area is quite dysfunctional and you can’t get agreement among 17 groups  and of course there is different interests of the stronger countries vs. the weaker countries- I think they’ve been way behind the curve in dealing with the problem that they have.

Fortunately in the US where there’s one central bank and one huge printing operation it’s easier for them to deal with the problem because they can literally do whatever they want- as we’ve seen them do on many other occasions.   The Fed getting behind the curve may be them getting Europe to solve it’s problems.   There have been Americans that went over to Europe to try to encourage them within the last week, and Obama was on the phone to encourage them to deal with the problems, and here we have the weekend meetings, and undoubtedly they’ll come up with some promise of something, whether or not it alleviates the ongoing bank run we’ll have to wait and see.

The problem is WAY BIGGER than central banks can deal with, and its way bigger than governments can deal with- the whole banking community is massively larger than countries.   The countries of course have no excess funds anyways  because they’re all running deficits, so it’s very difficult for the countries to lean in there and bail them out when their own credit is under attack!

Spain just got downgraded by 3 notches by Fitch, so what are they going to do?  They can’t go in and say we’re going to put €100 billion in our banks- their bonds would probably go through 10% so fast you wouldn’t know what happened!

It’s a mess, everyone’s behind the curve, and I don’t think they’ll get in front of the curve quite frankly.    Extending and pretending, program after program, and when the program ends, the markets always go down.   Then they come out with another program, the market goes up, and everyone is anticipating we’re going to have stimulus, the market’s going to go up…but ultimately, there’s NO IMPACT ON THE ECONOMY, BECAUSE THEY KEEP BAILING OUT THE FINANCIAL SYSTEM, NOT THE ECONOMY!!  It’s the economy that’s languishing here.

 

 

When asked whether the European contagion will play out as a slow domino-like collapse through Spain, Portugal, and Italy before reaching France, the UK, and the US, or whether at some point the entire Western system will simply snap, Eric responded:

There’s lots of countries that are worse off than Spain!  Spain’s not one of the worst ones, but unfortunately it happens to be in Europe and they CAN’T PRINT THEIR OWN MONEY!

As far as I’m concerned the US is bankrupt, Japan is bankrupt, I’m sure England’s bankrupt,  they all have HUGE percentages of debt to GDP.  They are all WAY PAST their Minsky Moments- imagine if interest rates were normal and not abnormal!   What would the cost of government be of having a normal interest rate environment?   It’s an untenable situation that is not going to be resolved in any normal kind of manner.

The things they’ve done in the last 5 years- NONE HAVE BEEN NORMAL, whether it’s QE, LTRO’s, unlimited swap lines, maybe we’ll get some new bank guarantees over the weekend- THESE THINGS AREN’T NORMAL!!   We’re dealing with an abnormal situation with abnormal responses which NEVER accomplish anything.

Again, I reiterate that the economy continues to weaken.   Why does it weaken?  Because the 99% are not making any headway on their income gains, if there is a global income gain as unemployment’s going up in the world.  When your costs are going up and your income isn’t, things get tough.   I rather suspect that the 1% is now starting to feel it and if you are living in Europe and are part of the 1%, there’s no way you’re not being impacted today.  I would even say with the recent market sell-off in North America that the 1% is starting to feel it here.  Particularly the financial 1% are going to start feeling it here.
There’s been no solution for the economy here and if there’s no economy then you shouldn’t have a stock market.

The Doc’s full interview with Eric Sprott which discusses the European contagion, GLD gold rehypothecation, Warren Buffett, Charlie Munger, & Bill Gates’ recent gold bashing binge, Sprott’s outlook for gold and silver for the rest of 2012 and beyond, the CFTC’s Silver Investigation, and
MUCH MORE is now available!


LISTEN TO SPROTT’S FULL INTERVIEW WITH THE DOC HERE NOW!

  1. Do others find it interesting that he says the silver data is so poor relative to the information available on gold?

    Other than silver being a tiny market by comparison, one would think that silver, being more of an ‘industrial’ commodity, should have supply and demand data more readily available.

    BTW, ZeroHedge just published a report where someone estimated that gold needs to be re-valued to 8-10 times the current spot price in order to resolve bank debts, and even higher to resolve the overall financial crisis.  Gold would need to be valued $12,800 to $16,000/oz.

    Even at the present ratio of around 56:1, silver would be $229 to $286/oz.  At a ratio of 16:1, silver would be worth $800 to $1,000/oz.  (Such round numbers coincidentally.)

  2. Plebian I find it interesting as well. In fact, I won’t be surprised if there are less silver than gold available at the end of the day. In my opinion silver is at some stage going to surpass gold in terms of price. Maybe I am too optimistic, but we will have to wait and see.

  3. Plebian’s comment that Gold could be worth $12,800 – $16,000 per oz brings to mind one reason to pick up some fractional Gold – say, 1/4 – 1/10 Oz coins.  I believe that selling more than $10,000 means you have to provide information to the buyer, which must be reported to the tax authorities.  So if all you have are 1-Oz coins, your OPSEC is blown out of the water and you would have to pay taxes on what you sold.  Also, the average buyer would likely have less than $12,800 – $16,000 to spend.

  4. Listening to Obama questioned this AM, perhaps the best question was the one asked  “How much time do you spend thinking about the European problem?’  I thought BHO might spend zero time or nearly all his time.   It’s immaterial how much time since his answer was both disingenuous and inept.   Europe is on its own as far as he is concerned,  fated to suffer the same  as TARP I and the  ‘water sinking into the desert sands’ with about the same effect.

  5. In my opinion Silver will be the new gold later on. Lots of countries are buying gold but very few are buying Silver in great quantities, are they falling into a trap? Buy all the gold you want but the silver is our’s is the Elite’s cry. Maybe that’s why there is not that much data on Silver. Just my Old Farts Mind Going Around and Around. LMAO

    INTERESTING

  6. Good point guys. Fractional gold. If you think you have enough silver (never enough) you may want to think about a little gold. I think it will be a little more liquid in the beginning. The DOC has a good deal going on right now on fractional.

  7. AGXIIK, IMHO, as far as Silver goes – junk silver is #1, ASE’s are #2, Canuk 1-oz coins are #3, and generic rounds are #4. 

    And as far as junk silver goes – Morgans are my #1 favorite, Walking Liberty halves are #2, Franklins & Kennedys are #3, then 90% quarters for #4 and Mercury & 90% Roosevelt dimes are #5.  I set aside all the Barber & Standing Liberty ‘smoothies’ and these will be sold nect time Silver spikes.

    Butf the SHTF, you will probably want to keep your holdings secret in order to prevent being filleted for them.  But after a bit of time passes and things are going back into order, THAT is when your PM stash will have the most value.

  8. Looking forward to the release Doc.  PSLV is trading at a discount right now compared to what it has in the past…I am almost all in on phyzz, but itd be interesting to compare PSLV say to a storage operation for those who have to much to store in your own house.  I haven’t saw anyone compare PSLV to a storage operation before…..

  9. I think that the market being so small and the relatively few players being so large (with those I also mean AAPL and the Pentagon, and medical sector for example) it just makes data not only sparser but also more stonewalled and opague. And probably never been a transparant market.

    Remember the real smallness *is* in the physical market (where else), and the paper market is relatively tiny in USD/EUR/… *because* they can only get away with a, well, say 100:1 leverage. Otherwise it would always be a pumper. Now it’s mostly a dumper in their scheme, but it won’t remain that way me thinks.

    All the banksters do is they skim off. That’s why they needed to be able to “make the market” *cough* HFT, otherwise there wasn’t anything to skim off. Not from the real economy anyway. Gov’ment port, defense, sure, but not out the productive economy.

  10. I agree with Mammoth that you should sell *after* the reset. Don’t get fleeced by the prospect of maybe even becoming a billionaire when a moth after you’re poor again. Only those who are all on the inside will be able to time the selling point. They will by and large be holding gold, btw, not silver.

    I don’t believe the idea that M45 put out. The robber barons (central banks and such being their instruments) are as always eyeing gold (and talking it down). Gold is the elite’s money. They own most. Not so with silver. Some of them might fancy themselves the new Hunt brothers and such a thing would be possible and would be an enormous catalyst, but I think there’s already too much in smallish private hands (strong hands), and of course the silver using industries (very strong hands mostly I think, because for most applications the costs per unit produced is still tiny).

    Best all,

    R3K

  11. Great comments, especially from Plebian.  

    As to gold prices, we need to consider that 13 years ago in 1999, gold was $250 an oz.  Today it is near $1600 an oz. This is an increase of  about 6.4 times. What would happen to the price of gold if it increased just by that factor once again?  Answer:  $10,240 an oz.  
    As is clear from history, anything that has happened before can certainly happen again.  It is especially noteworthy that the financial situation today is MUCH worse than it has been and is likely to get worse yet before it gets any better.  Since deteriorating economics almost always favor rising gold prices, the $10k per oz. price could well be a minimum over the next dozen or so years.  
    As usual, silver will also benefit from rising gold prices plus its own price rises due to scarcity and increasing demand from investors and industry.   A gold to silver price ratio of 20:1 is not an unknown event.  That combined with the $10k/oz. gold price would mean a silver price of at least $500/oz.
    Bottom line:  keep on stackin’!
  12. If valued fairly based on supply and demand alone, it is true that Gold and Silver would be priced at many multiples of their current price.

    Unfortunately, as long as the CME Group, HSBC and JPMorgan control the precious metals markets, investors are not ever going to see Gold and Silver priced fairly based on supply and demand fundamentals.

    Look for a collapse of any one of these firms to be the trigger event which propels Gold and Silver to their rightful market valuations. In the meantime, we predict continued turbulence in the precious metals markets, with a medium-term correction down below the $1500/$25 levels for Gold and Silver, respectively, over the course of the summer.

    http://www.superiorbullion.com/

  13. All of these events relating to the purchase of gold and silver are still not common knowledge at this point in time. No information is coming into the MSM even with a huge number of gold and silver sellers touting coins and numismatics.   We can be assured that very soon, maybe a matter of weeks or months, the general public will wake up to the fact that they have little time to stock.  It’ll be a Johnny Carson moment when the maestro announced one night that there was a shortage in toilet paper.  The enxt day the shelves were empty.  This was also the era of gas lines, 10% inflation and real economic malaise. People were waking up to the news of shortages and soon silver and gold were up 500-700% in value.    

  14. Mammoth;

    Other look at fractional gold is jewelry . Lets face it if we end up were one needs to barter for goods and services. Then jewelry will be a big part of transactions. So will digital pocket scales to weigh out grains & grams of silver and gold. Jewelry is stamped with the purity and comes in many many weights. It is easily transported in vary small fractions around ones neck or finger. You can still go out and buy sterling silver .925 jewelry as cheep or cheeper than fractional .999 bullion coins. Plus it has a duel purpose someone may want it because they like it. 
    I know this may be hard for some to think about but I have. PMs are only metal we buy them in a form. If we need them to buy good & services we change the form. Take dam bullion coins & bars chop them in bits and pieces. Or you can melt them and pour the in water to turn them into shot/nugets. Walk into the gas station pull out your scale drop a few flecks of metal on it and go fill up. What? Do you think the they wont accept it because it’s not a pretty round any more. Trust me they will have PMs testing tools & scales as well as you will.  
  15. 427, I have a feeling that when cash is no longer accepted and the only way to obtain goods is by bartering or buying using PM’s – the gas stations will not be open because the collapse of the ‘system’ will have caused the supply lines to shut down.

    And back to junk silver- with the spot value of silver dollars at $22.02, I am thinking about picking up a roll of Morgans at $25.00/ea.  These usually go for a premium over spot; not sure if anyone is seeing better deals out there right now.

  16. 427 – Today a pre-1964 dime has about $2.00 worth of silver content. See http://www.coinflation.com

    If you chop up a big bar of silver it starts becoming very difficult to authenticate its really silver without doing some chemistry test.  Then is it .999, .925, .900, .720, etc. 

    Also, a crook might be able to get his hand on a stamp that says 14kt.  Then with a hammer anything shiny can become 14kt gold.  Go ask a pawn shop as I’ve bet they’ve seen this a 100 times where someone comes in trying to sell 14kt gold stamped jewelry and it’s just plate or some other metal.  Jewelry will be very tricky to deal with versus a bonafide coin unless you’re selling to a knowledgable dealer.

  17. PB brings up a good point.  In my 9:33 p.m. post above I listed some 90% silver coins which are recognizable by everybody.  Yes there are counterfeits out there and I always bring along a magnifying glass & magnet when buying – and I usually purchase from private sellers.

    If you visit APMEX, Gainesville Coins and other PM retailers, you will see a LOT of ‘year of the dragon’ coins and other related stuff.  And why is Austrailia’s Perth Mint sucking up to the chinese by minting panda & zodiac coins, anyway?  FUCK that – I am not going to pay homage to the chinese overlords!

    Given the chinese tendence to make fakes, guess which coins are most likely to be counterfeited?  And when the time comes to sell, do you think the buyer would rather buy trusted junk silver from you, or those chinese-looking coins & rounds?  Just sayin’

  18. Ya Mammoth the gas station was an analoge. Well hell if you can get Morgans at that price it’s cheap. Im usually on Ebay a lot but not of late because Im having fun on SD. But at last check there run of the mill Morgans were a minimum 30-32 dollars. And there again I look at those as as fraction to a 1oz .999. Another fraction that nobody mentions is bags of silver shot. This is the cheapest fraction one can buy it comes in .999 & .925. I buy 10oz bags when I can get them at rock bottom prices. It can be weighed out in any denomination I keep it in the factory sealed bag for need of resale at this point. But if the time comes sprinkle a little on a scale to make payment.

       
  19. Powerball;

    Yes in a way right now our mind set says that. Im talking if there is no dollar that one would want.
    You mention PAWN SHOP. Do you walk into a pawn shop with a ring and get fiat for it YES. But after they test and weigh it. Because it’s shinny metal with a stamp on it. There business is geared for that type of transaction. In fact what ever you bring them they will know,find or set a value for it.
    Now what Im saying is any business that is going to want to stay in business will need to change with the times as well. It used to be you payed with cash or paper check, then a business had to get equipment to handel credit cards & debit cards. Now there talking about using you cell phone.
    Do you not think that that a business will not change for what ever the time dictates. There is not that much silver coin out there for the buyers to use. And back to the point if 1oz is worth $500 fiat that dime is $50 now you still may need to cut it up
    A business will have what ever they need at the time to complet a transaction
  20. There is an interesting point being made here.    American coins, whether Junk bullion (particularly Morgans) or Silver American Eagles, will the the coin of the realm if it comes to that.  It is unlikely we will see widespread counterfeiting but there is a chance it could happen.  But with a good scale you can check that. American silver could even have a premium due to its near universal acceptability too.

     If you have a $100 bill it can be verified with a special pen so silver coins should pass muster.   As Mammoth outlined, the silver pecking order of Morgans and silver AEs will be very high on the list of desireability.  Canadian Maple leafs and other foreign coins should be acceptable.  Chinese coins might be suspect if China becomes our enemy.   Maybe converting some of our rounds we stacked in the last few years to silver AEs might be wise.  Just a thought but who knows how things will shake out.       I converted a couple of old  100 oz bars bought a 20 years ago  to rounds with a $1 premium at the LCS since the bars were inconvenient to handle or exchange.

  21. AG:

    There will definitely be a pecking order there is one now right. My primary buys in silver are Silver Egales, Johnson Maythee, Engelhard,US Stockpile, Academy 1oz, 5oz,10oz bars & rounds.
    I like my silver to be well known and in some ways an attachment  to governments or trusted by the banking system. I even sold all my Buffalos because there just a round made by many mints. 
    But I brought up the point with fractional silver you are paying twice as much for it. And to think your buying it for a smaller denomination to buy something when TSHF is a wast of fiat.
    1) silver will clim higher in value like that $500 100oz bar is now $3000+
    2) Money needs to be devisable to buy anything with it so a 1/10,1/4,1/2, will still not be small enough to make change in all instances.
    3) Any business willing or having to barter in anything will put in place what ever they need to complet the transaction.
    All im saying is when TSHTF and you need to shop for goods. You will need a diversified pile to the point of grains & grams. That means chopping up some of you silver before heading out the dore. And you will be coming back home with some bits and pieces of silver as well like change in your pocket
  22. Collectors are already beginning to see counterfeit $1 silver dollars like Peace, Morgan and 1oz Walking Liberties.
     
    http://www.youtube.com/watch?v=ePxp2dsZ2-Y

    However, what I haven’t seen reported up to this point is counterfeit junk silver dimes or quarters.  The only instance might be someone heister trying to cash in on a rare date.  So junk silver dimes and quarters seem to be a good way to go especially if you want small bartering currency.  The point should be that even if the worst happens there will always some type of FIAT currency even in worse case scenarios like the Weimar Republic hyper-inflation.  So you’d take that junk 90% silver coin to the dealer and get the $35 or $40 and then go buy food, etc.

  23. I Just Noticed This: It’s A New Silver Round With A Denomination From The Free Lakota Bank Available At Provident: The Reverse Reads, “FIFTY”. I Think They Get Around The Secret Service Rules By Not Printing “Dollars” Anywhere—(They Also Do Not Sell Them–They Rely On Dealers). Interesting, I Hope The Secret Service Doesn’t Swoop In and Raid This Place!

    As the Free Lakota Bank does not sell silver, we invite you instead to access our Currency either through the network of AOCS Approved Trade Coordinators or by purchasing directly from the AOCSMint.
    Your purchase may be delivered to you or directly to your account at
    our Bank. This is by far the fastest and easiest way to fund your
    account.

    It is our goal to provide you with reliable access to investment-grade precious and semi-precious rounds at a fair market price.

    When you convert to Lakota silver, you directly support our ability to take back control of our future. Value for Value!

    READ MORE

    Welcome to the Free Lakota Bank The Free
    Lakota Bank is the world’s only non-reserve, non-fractional bank that
    issues, accepts for deposit, and circulates REAL money: .999 fine
    silver. All of our demand deposits are liquid, meaning they can be
    withdrawn at any time in minted rounds.

    In 2008, the Free Lakota Bank became the first
    bank to offer what has now come to be known as Commodity Banking. In
    this new banking system, value is stored in easy to monetize commodities
    as opposed to government-issued, controlled, inflated and deflated fiat
    currencies.


    Continue to Learn More.

    Lakota Nation Currency

    Our first priority at the Free Lakota Bank is to help
    people convert from paper to silver. As awareness grows regarding the
    fraud that is paper debt money, so does the demand for silver. The
    Lakota Nation commissioned our currency in partnership with the American
    Open Currency Standard. We use our currency for private trade within
    our nation, and also authorize the global sale and exchange of our
    currency. Lakota currency is available in copper, silver and gold in the
    following units:

    Value: “Two        Value 5000

    Transaction Fees

    At the Free Lakota
    Bank, we charge 1oz of Silver per month to secure your property. This
    fee includes unlimited online account access and transfers to other
    Lakota account holders, and unlimited to accounts at other ICBA member
    bank. It also includes thirty (30) Out-of-Band Authentication requests
    per month. Each additional set of thirty (30) Out-of-Band Authentication
    requests costs 1 ounce of Silver, and OOB requests are added to your
    account in blocks of thirty (30) requests.
  24. Comments On This Video

    —Great to hear from you. It’s good to see the Free Lakota Bank moving
    along here. I hope that you are very successful. Just be careful how you
    go about bringing this to fruition. I’d suggest to do it as gradually
    as possible.  It seems that if something catches on too quickly, then
    the FBI pays a visit ala the Libery dollar raid.

    —What they could do is ask for Americans who support their cause to
    make deposits with pre-1964 junk silver, Morgan dollars, and Peace
    dollar coins. That silver could be melted down and reissued as Lakota
    silver money.

    I don’t know if they will use the old 3-6-3 Rule to support lending
    i.e. borrow from savings at 3%, loan out at 6%, and limit credit
    creation to $3 per $1 in assets. Loans should be simple interest only
    for short term borrowing and savings could be compounded quarterly

    —Not only is this the start, my brothers and sisters, it is the beginning
    of a great unification of tribes. We need to become our own
    states…not in this government, but in the new one evolving from and
    for the People! Yes, all the tribes are welcome; and those friends that
    wish a better life for themselves! It is coming together, and we need
    not fear it or fear the ones that wish to stop it. They will not be
    able to stop it! It must come! We ALL (HUMANS) deserve true Liberty and
    Freedom!

    —Time is money :) Currency and money are different. I think an hours
    program would help them get free from the fed faster because they can
    issue the hours themselves interest free. They don’t have enough gold
    there to work as a currency do they? They would need to trade their FRNs
    for gold and silver to use right? Thats going to take forever but is
    possible. Sending you an email right now bro.

    —It’s great to see real money being created by private mints. Can there
    really be such a thing as honest banking? Honest money is a start. May I
    recommend the book: “End the Fed” by Ron Paul to all how visit this
    site. God bless you all in your quest for real liberty, for honest and
    limited government, and for honest, earned prosperity

  25. Copper does go back a long way Ag-nostic. If you have some, hang on to it. No one knows what will happen. With all the non-silver/gold stacking people, copper may just be a hot commodity. If you have PM’s + copper, so much the better. Don’t let any commodity go. Great thought.

  26. Ag-nostic and 2 OZ. I absolutely agree.

    I should probably do a stock taking of my copper. I’ve started to collect copper pennies and silver coins when I was still pretty much wet behind the ears (lol I am still wet behind the ears, but to a lesser degree I hope). I’ve already done a proper stock taking of my silver, but I stil need to get to the copper. It currenlty serves as a decoy stash. Besides coininflation.com, do you guys know of any other sites that can help to establish the amount of copper in coins, U.S. and otherwise?

  27. 40oz;

    I do not understand why this is difficult  to understand. OK the lofe a bread that I am selling is $55. fiat are you going to give me two dimes for it? Because im not giving the bread for less than I say it cost.
    Not that long ago in the USA americans bought and sold things with money that the government did not deem to be the only money.
    Lets try this skip the $. My lofe of bread cost 3grams of silver today are you going to give me a whole dime for it?
    California Gold Rush dose anybody think the miners only option was to go to the assay office trade there gold in for a currency  so they can buy things. They went to the general store gathered what they needed. The store owner said you owe 650 grams of gold. the miner pulled his fat pouch of gold dust out and poured some out in a scale. 
    The store owner was vary happy to have that sale, with gold, unmarked, not assayed to a purity, not minted into something. the fact is the business men selling to the miners got richer than mine in the end.
  28. Sorry My store dose not except copper, payment made with silver & gold only please.

    Unless you have something else I could use that has value to me.
    ha ha ha 
    Ya your going to need to dig deeper then the pluming in someones home to pay me
  29. I think one way to get pass the small change problem is to have an account at a relevant dealer. You then deposit say, 3 ounces of silver with him, to cover this month’s expenses in terms of food and other goods. This of course calls for a good relationship between you and the trader.

  30. Having an account with a regular, trusted merchant seems like the way things would evolve to.  Better than the alternative:  “Here, you hold that silver dime on the cutting board, and I willchop it in two with my axe.

    BTW, I did pick up that stack of 20 Morgans, paid $25/ea.  Keep on stackin’.

  31. It’s a fact today theres more gold above ground than silver.  Gold doesn’t get thrown away, never has.  Silver gets trashed by the boat load connected to computers and crap.  We should all know this it’s nothing new.  The inevitable moment of “oh shit theres no silver” has absolutely no chance of ever happening in gold.  This and many other reasons make investing in silver over gold a no brainer.  When I realized gold would have  to go to $5,000 an oz. for me to have fifty grand and comparing what silver would have to be for that figure I sold all my gold for silver.  That was in 2007 I’ve been adding to my silver stack and at one point already surpassed that fifty grand total in silver.  Go tell them gold bugs who talk mad shit about silver at the site fofoa to put that in their pipe and smoke it, that is if that site is even up and running, as apparently there days of being relevant have come and gone.

  32. @SB…  ”
    Unfortunately, as long as the CME Group, HSBC and JPMorgan control the precious metals markets, investors are not ever going to see Gold and Silver priced fairly based on supply and demand fundamentals.”


    Yes, all of us here know this to be the case.  But we also know that this is a fool’s game.  The cartel has to do more and more of their paper manipulations to have less and less effect upon PM prices.  Lately, they have had to dump PM paper in the amount of hundreds of millions of ounces of silver and millions of ounces of gold in a very short time to affect the price of silver by so much as $1 an oz. and gold by $30 an oz.  Doing less than this barely affects PM prices at all, sometimes for only a few hours before they recover their before-the-attack price levels.

    Additionally, as they attack silver and gold and drive their prices lower, BIG money from the Middle East and Asia is loading up on cheap PMs via buying into the paper PMs and then standing for delivery.  The knuckleheads at CME, London, and elsewhere are doing nothing by their actions but dropping PM prices slightly and emptying their vaults all the faster.  PMs are flowing from West to East because of this activity.  At some point, and I would think sooner rather than later, they will not be able to sustain this farce. Everyone will at long last recognize this point by the collapse of CME’s share price and their failure to deliver PMs to large paper PM holders who demand delivery of physical PMs.  At that point, the whole lying, cheating, and stealing charade will collapse and PM prices will “cry havoc and let loose the dogs of war”… as in a massive rise in prices and a matching scarcity in the market.  We aren’t there yet but it is close.  Can you smell it?  I can.

    Of course, as a stacker who will continue to stack as long as I can, these attacks are nothing but gifts that allow me to buy more PMs for my fiat than I could if PMs were priced on their fundamentals rather than on the paper machinations. Would I like to see $500 an oz. silver or $10,000 an oz. gold?  Yes, but not until I have converted all of my excess fiat into PMs! 
    :-D


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