BrotherJohnF’s latest Silver Update:
Collectivist Collapse

  1. I would like to hear what “DOC” has to say about the Gold and Silver downfall. My belief is that we are in a rolling ball going straight down hill on Silver and Gold. The Cartel can borrow more money from the the worthless criminal Fed to manipulate prices like QE to infinity.There is no winning this game I believe. Where on earth is the data accumalated that the Central Banks are buying Gold? Does it really exist or just homogenized horseshit to entice us to buy more physical Gold and Silver so all the sellers can make all the money they can? 

    Charts don’t mean a damned thing and the rhetoric is getting stale, by the experts! The only contributor to this site
    that has any idea of what is going on is Eric Sprott and now I am begining to lose confidence in all he says. The Fed plays a game with the World Central Banks that we can not compete on a level playing field. Those boys can do anything they damned well please to hold the line on Gold and Silver and The CFTC is as corrupt as they are! There is no light at the end of this sorry assed tunnel, unless someone can tell me where to connect the dots that I am missing.

    I am holding over 100K of physical that is going no where! I am all in and about all done! 

    • Maybe you should consider selling your physical. Sounds like you may not have the right temperament to stay in the game. Most buy and hold physical for the wrong reasons. They think there will be a day where a lot of profits will be realized. Silver and gold are used as a way to preserve your wealth, and has done a good job of it. Gold and silver are two of the best ‘investments’ this year even considering that is not their function.. What more do you want?

    • Even if gold and silver’s prices went down, inflation will eventually continue to drive their prices higher and then, their prices will skyrocket when hyperinflation arrives. Also, I realized that it is getting harder for the cartel to lower precious metals’ prices compare to a year ago.

  2. Ranger  I hear what you are saying.  All in is a precarious place to be. I was all in and on margin in stocks and ETFs,  all manipulated to the Nth degree.  I’m all in with gold and silver now.  My average buy price for AG is about $33 an oz.  I read everything there is to read about these subjects and others which are only slightly related to precious metals.  SRS Rocco is an authority on the mining of precious metals.  His data can be checked.  Sprott’s invested billions into his gold and silver funds. The math on shortages is inescapable  Boot in the street like us stackers, checking availability of phyzz in the LCS clear demonstrates this inevitable crunch time for commodities.  I don’t like waiting and seeing the prices jacked up and down a dollar here and there. But this price action is pretty conclusive in that there are people and banks who want to suppress the price. They will not be able to do this forever.  The paper trading systems must have some reliance on a physical delivery.  Those banks and vaults which purport to contain precious metals are either drained or being drained.  Jim Willie is one the the silver speakers who has some goot intel on this. I read his hat Trick letter monthly to get the updates.  If any  one of us bought at $8 an oz in 2008, I not being one of those lucky souls, I would be thrilled to see a 300% profit in 4 years.  As it stood, my net worth dropped by 50% in 2008 and did not recover. So much for paper trading.  The only redoubt for me is the real money system of holding physical in my possession and waiting the long game.  It might take 3 more years.  I am will to wait.  The chatter and noise I hear is solid.  I data sift thousands of pages of print and so many videos that I’ve grown a third eye. Skimming the essential data tells me we are right, long and strong. 

    BTW even though Bro Jo is a silver warrior I generally don’t listen to him a great deal. 20-30 minute videos are just too much time involved.

    • “SRS Rocco is an authority on the mining of precious metals”

      I never realized SRSRocco had a degree in Geology and Mining Engineering. Maybe I will pay more attention to what he has to say for now on. 

    • Wow! My average buying is about 37.50$ per ounce only for my pure silver ounces collection so I still have some losses in terms of dollars. Although, the junk silver can recover my losses because in Canada, junk silver have high premiums due to taxes and one of my local coin shop sells me junk silver without taxes.

  3.  I really have never understood how government silver coins came to be known as “JUNK”! There is nothing “junky” about them. In all my travels I have never seen any government coins that were superior to our American coins! Most are definitely of inferior quality. They are 90% pure FOR SURE. The artwork, complexity, detail and attention to detail are second to none! Not to deningrate the quality of private mints, they do some outstanding work. Even are neighbors to the north and south of us with their wonderfull histories of making coins, especially Mexico, can appreciate the superb quality of our coins! So this junk label  (like they are something worthy of a landfill) is rediculous. There must be something else we can call these coins besides junk!

    • The junk are the common coins, not worth collecting. In 1980 more of the common dates/mint marks were relentlessly destroyed as they were melted. Semi-key coins, in my opinion, will be the most valuable, eventually. A lot of these were melted since they fell on the edge of silver/collector value and they were in  a frenzy to melt all that could be had. Junk is not such a bad label, it got it honest. More than you can say about most things in today’s world.

    • How about “Punk Silver”? LOL….
      I’m with you, the older American silver coins are absolutely gorgeous! My favorites are the Franklin half and the walking liberty half, with the mercury dime in a close third place.

    • The old American silver coins represent the true form of money, of legal tender according to the US Constitution and of wealth. Old silver coins represent how back in the days when the currencies had a lot of power.

  4. For those of you who did not read my post regarding taxes and the sale of precious metals, maybe Doc can drag it back up.  In its essence the tax structure for PMs is pretty strange. THE CHANCES THAT I WILL PAY CAPITAL GAINS ON PRECIOUS METAL SALES IS ABSOLUTELY NIL.
    If they steal our money through illegal taxes; if they steal our buying power through inflation; if they steal our wealth through regulations and laws that burden us with insufferable obstacles that prevent us from carrying on our lives, then I will pay no taxes on the increase in value of real money.  The ability to transact commerce through real money is embedded in our Constitution and that is the only law that I follow. 
    As for Junk Bullion, I call it SENIOR SILVER.   If you were ‘minted’ before 1965 you have silver in your hair.  If coins were minted before 1965 the coins had silver in their mix.  Senior Silver.

    • To avoid paying for the capital gains taxes on precious metals, you can simply sell your gold and silver on Craigslist or Kijiji so that the government will not know about your transactions. Or, the best way to avoid paying for capital gains taxes on precious metals is to not sell them and hold them! 😛

  5. A short FYI on gold and silver sales.
    A dealer is not required to report PM sales under the following terms
    1.  Sale of any number of Gold American Eagles
    2. Sale of less than 20 foreign gold coins
    3. Sale of less than 1,000 oz of silver
    My notes are back home so i would have to review the tax laws I researched early this year.  More later on this subject

    • From the CMI Gold and Silver web site…

      Reportable Sales
      Customer sales to dealers of certain precious metals exceeding specific quantities call for reporting to the IRS on 1099B forms. The 1099B forms are similar to other 1099 forms taxpayers commonly receive; the “B” means they have been issued by a business other than a financial entity.
      Reportable sales (again, customer sales to dealers) apply to 1-oz Gold Maple Leafs, 1-oz Krugerrands, and 1-oz Mexican Onzas in quantities of twenty-five or more in one transaction. Reporting requirements do not apply to American Gold Eagles, no matter the quantities. Furthermore, reporting requirements do not apply to any fractional ounce gold coins.
      Only one common silver product is reportable when sold: pre-1965 U.S. coins. The quantity that causes the filing of a 1099B, however, is not clear. The IRS bases its authority to require reporting on CFTC-approved contracts that call for the delivery of $10,000 face value. Consequently, many dealers do not report sales of pre-1965 U.S. coins unless the sale totals $10,000 face value; others report $1,000 sales.
      Sales of American Silver Eagles, privately-minted Silver Eagle 1-oz silver rounds, and 100-oz silver bars are not reportable, no matter the quantity. Other precious metals products are reportable, but they are not covered here because the average investor does not trade them.
      Most investors have no first-hand knowledge of these matters; consequently, when precious metals dealers talk about cash reporting, 8300 forms, or 1099s, investors are unable to know that they may not be hearing the whole story. Wanting to avoid the government knowing about their precious metals investments, many investors are delighted to learn that their purchases will not be reported and end up buying overpriced coins.
      As explained under “Reportable Purchases,” no precious metals purchases are reported unless cash reporting thresholds are exceeded. Investors wanting to avoid reportable sales should buy American Eagles.
      The above discussions about cash reporting, IRS Form 8300, and bank reporting are for editorial purposes only and should not be relied on as definitive and final. Persons involved in cash transactions should consult their attorney or accountant.
      Investors wanting to buy gold should go with the popular bullion coins: Krugerrands or American Gold Eagles.  These coins move dollar for dollar with the world price of gold and are easy to buy, sell, and trade. Additionally, tracking the value of these coins is easy. No “expert” has to look at them.



  6. Ugly Dog  thank you for the enhancement on the issue of taxes and sale of precious metals with capital gains.  I’ve talked to 5 coin and bullion dealers. Not one of them has this knowledge and none appears to care if a substantial sale involved filing a 1099 B.  As part of my wife’s dad’s estate we liquidated 110 ounces of Platinum to handle distributions to heirs.  Dad was the original stacker with some of the best hidey holes in town. The dealer did not mention a l099 and I had to remind him to issue one so that we were in compliance with the estate tax returns. Under those circumstances and well before my obdurate position on paying taxes on precious metals was formed, the l099 was issued. We paid no taxes as his estate was under the fed estate taxes but it did educate me about the traps selling or trading poses.  If you trade silver for gold or vice versa, the IRS regards these metals as two different forms. Gold is bullion and silver is a commodity.  If you trade and the upleg, like gold is traded at a higher price than your original buy price, you could owe capital gains.  No dealer I talked to knew about this.
    I traded gold for silver over a year ago.  There was no mention of any 1099. This is good info for those of you who bought gold years ago and want to trade for silver.  Mum’s the word and all governments are criminal enterprises.

  7. What’s Silver and Gold? I don’t have any, should I get some? LMAO I own mostly so called Junk Silver and I have never bought any from a dealer, not once (Only AE’s). I buy mine mostly from private parties and or forums I belong to.

    • I only buy junk silver coins from one of my local coin shop who doesn’t charge taxes on these coins while the others do. Also, he sells them for lower than the melt value so I buy whenever I get the chance. For example today, I bought an American Morgan dollar from him for 25$ while the other coin shops could’ve charge for the same coin for 30$!

  8. It’s not just the 12.50$ per ounce bottom line on July 2009 that also counts, the September 2008 bottom to the recent June 2012 bottom line also counts because silver never went lower than that line since 2008. That line represents the amount it costs to mine an ounce of silver.

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