Q&A With The Doc: My Life Savings are Invested in Silver & I’m Scared to Death About Surviving Retirement

Glenn writes:

Doc,
Being 71 years old and having lost a lot of my hard earned money like a multitude of Americans have. I have what savings I have left totally invested in Silver. Income wise, going broke monthly. I read your articles several times a day as they change. I applaud you and your staff and contributors for what is posted.

My question to you Sir is what is Silver going to do in price? I get so many mixed signals that frankly I am scared to death about my wife and I being able to survive in our retirement. I am familiar with world economics and the world being awash in Fiat money, but would be honored to know what your opinion is regarding the safety haven in Silver.
Thanking you in advance for your time and look forward to your reply.

Glenn, I believe we are nowhere near the end of the bull market in gold and silver.
None of the fundamentals that have propelled silver from $4 to $49 have changed, and the general public is not close to even considering investing in PM’s.
Unlike cash and fiat currencies, I can guarantee silver will never go to zero.
There is much less risk in silver at $28 than 15 months ago at $49.  A stock such as a junior mining company may likely present much greater risk if its price is cut in half- as the risk of the entire company going off the board are real.    Just the opposite is the case for a physical commodity such as silver.  The lower the price goes the less risk you have in holding the asset.  Unlike the stock of any common company (or bond, currency, or any other paper asset) Silver absolutely cannot go to zero.

The purchasing power of gold and silver have held up extremely nicely over the last 100 years vs. federal reserve notes, which have lost 97% of their value since 1913 when The Fed was started.

I personally have nearly 100% of my holdings in physical gold and silver, and I sleep as sound as a baby at night.
While it’s possible silver could still break down lower over the short term (personally it looks more likely a bottom has been placed, and silver has broken out of its wedge formation to the upside), long term there is no way out of our massive debt crisis besides default and currency devaluation (Quantitative Easing).  I expect the politicians to continue attempting to kick the can further down the road as long as they can (QE) rather than defaulting.
You state your emotions have you ‘scared to death’ – it’s important to separate your emotions from trading/ investing (or do the exact opposite of what your emotions tell you).

The hardest part about surviving a long term secular bull market is not being right, but sitting tight.

-Doc

Comments

  1. At 71 you should have a more diversified portafolio with a mix of less risky assets.

    100% in silver at 71 it’s just not prudent,,, .  You have no time to come back from a bad market.
    Doesn’t matter how good your asset is, 100% silver at 71 it’s a kamikaze move.
  2. Glenn, I’m 62, retired, and 100% all in coins and bars, in my pocession. I Sell monthly, only enough to pay bills and next month get SS. To be 100%, I had to do my homework and research Silver for about 7yrs. Since retired, I am my own Central Bank but it has become a full time job, studing the market worldwide to see daily how it effects silver, I truely believe silver will be more valuable then gold. Will I live to see it? I think so. Our country as we know it is FINISHED. Soon up the road will be total economical collapse! It’s strickly mathematical. The Federal ReserveSystem, the bank system,Wall Street and Washington is totally corrupt! Sad but true, The country you and our parents grew up in is… NO MORE, and we will probably not live to see it return, But I believe it will, after the Next Bloody Revolution Civil War.

    In the mean time, live within your means, Sell the house, move outside urban areas, liquidate all assets, put all in silver, live off SS, and or what ever, and only sell Silver as a last resort, until it starts going over $100, which I believe it will and soon.(Max. time…anywhere before 2015) As I see it, next yr. at this time we won’t recognise this country, esp. if O gets re-elected, and Romney is NO answer either. Only, Possibly Dr. Paul, but things are so bad I don’t think he could fix the mess, so let the collapse happen under the other 2.  Until the Federal Reserve is Abolished, Burned and sent to HELL along with the IRS, NOTHING is going to change only get worst, sending the middle class into serfdum.

    Hunker down, Put all your faith in God, for he IS and always be..IN CONTROL. And chill out, relax and do NOT worry.(The Devil wants and enjoys that) If you have a roof over your head(and by the way RENT) 3 squares aday and your health and GOD in your Heart, Mind and Soul, what else do you need or matters.? Everything else is just..THINGS. At your age, worry about where your going…It’s forever!  May the Peace of our Lord be with you and your Famiy.

  3. Chafro–diversify into exactly what?

    Stocks? When the market is levitated by the plunge protection team with monopoly money received from the Fed?  When the market is is a long term secular bear market that has not been allowed to happen? When no one knows what true values are because the market has been a rigged casino and has been manipulated for years?

    Bonds? Forgeddaboutit.  Also highly manipulated.  30 year T bills paying 2% when true inflation is running 8% and about to ramp up to God knows what?  And when sovereign defaults are becoming more and more likely?

    Cash? The next round of stagflation will render it worthless.

    Money markets?  Their main holdings are sovereign bonds.  Nuff said.

    Maybe there are other tangibles worth investing in.  Art, land, collectibles, etc.  But there is one reason I am all in on silver and that is there is nowhere else to go!  And, it is suppressed to 20% or less of its true value.  So silver is a no brainer.  Glenn, be patient and you will be rewarded!  This JS Kim article is the best I have seen lately on the necessity of patience for silver stackers and investors.

    http://www.theundergroundinvestor.com/2012/07/the-one-personality-trait-that-all-gold-silver-investors-need-to-be-profitable/

     

  4. If you want to buy metals at the age of 71 then my suggestion is to go with gold.  It’s less volatile and doesn’t do moves up to $49 then crashes down to $27.  Silver has a much better chance of appreciation but also is much more like a roller coaster ride.

  5. I recently scored some junk silver coins at a coin shop, real cheap. Today, they asked well over spot. 30% more than I managed to score (or steal?) June 22nd. Word from the shop owner? Hardly any silver comes loose anymore, the physical market has dried up. The old man is not selling his silver, holds on to what comes in from sheeple needing some cash for old coins. I got lucky that his wife was minding the store last time, and just before me someone dumped a lot of silver, for less than half I would have paid today. 
    Looks I need to go back to buying bullion, junk silver is all but the same price now.

    The store has day prices printed out from the melters, how much they’ll gove for a coin, I say this list. They are paying SPOT for old coins. Some shops still sell the coins 3.5% over spot while buying at -5%. I may be seeing ghosts, but the physical market in The Netherlands may be drying up quickly. In EUR< the price has hardly moved, but the prices of this particular melter have. Same picture in the US, even Apmex hardly has junk silver. 
    Melters are destroying it to satisfy industry demand, and strong hands such as the people who read SD are not selling unless the price is high enough to safely replace the lost ounces the very same day. Even then, if I were offered too much, I’d be wary of fake cash or a bank transfer trick, and whether there really is physical to be had for me.
  6. Hi Glenn!

    At 71, I assume you get SS? Try to cut your monthly bills to the point that you do not spend any more than your SS.

    Let me tell you a little about myself. I am 57 and so is my wife. She got really sick and the docs said she had 30 days to live. We told them we would go home, pray, and take natural organic products and gain full recovery. And… with God’s help – WE DID!

    However – I did not want my wife to go back to work because of the stress. So we pulled all of her money out of her 401k and invested every cent into silver. We then cut our bills to minimum by moving to Ecuador. [you can find less drastic ways of reducing your expenses like JerryMatt said - sell your home.] Which by the way is great advice. You will soon be able to buy another like it for a whole lot less money anyway.

    And sell any and everything you can do without and add it to your silver pile. It won’t be long before everything will be worthless except PM’s, selective commodities and land.

    Unlike you, we do not have any SS. We pay our bills out of silver and continue to weather the storm. As you have most probably noticed – the storm is intensifying. There is so much bad news now everyday that a person would have to be blind to not see it.

    At any rate, I only tell you these things to encourage you to hang in there. Unfortunately, there is nowhere else to put your money right now as Croc987 mentioned above.

    I don’t know how many sites you read but you may want to try some of these:

    http://kingworldnews.com

    http://sgtreport.com/

    http://www.24hgold.com/english/contributor.aspx?contributor=Ranting+Andy

    http://barnhardt.biz/  This lady was the FIRST to advise her clients to get out of the markets after the crooks hit MFG 

    http://www.bullionbullscanada.com/index.php?option=com_content&view=section&layout=blog&id=7&Itemid=56

    http://wealthcycles.com/  Rich Dad Poor Dad’s – financial advisor

    There are more but this is enough to get the point across that you are in the right place – we just don’t know when the time will come for the metals to rocket higher. My thought is – sooner than later because the world is bankrupt 30 times over.

    May God bless you Glenn.

  7. Glen….Sadly, there are no other logical options.  Everything else is a trap providing negative or confiscated returns.  You must stay with PM and live carefully in the meantime.  Dont worry, your wait wont be long.  Things are falling apart fast now.  We live in a sick new world and you must take a new approach for survival.

  8. Glenn, hold tight, especially since you are 100% invested. Never good to gamble 100%  but in this case you will get lucky.
    I think you have to hold even if it goes way down if you bought high.
    If you have been averaging in buying up to your 100% then I don’t think there is any problem at all.
    Sell only enough to pay bills and live austere, you are going to live longer than the time it will take to collect on your prosperity.
    I am only about two years into educating myself about silver, I consider myself really green, take my advice as such but I say part with your silver and gold last.

  9. Powerball is that enough information?  It is my understanding that there are strategic times to exchange gold and silver for each other.

  10. Skater, your comment left me with the thought to not buy from you because it seems you took advantage and didn’t practice just weights and measures, I apologize if I am reading into it wrong.

  11. Avatar of IndenturedServant says:

    Glenn, I’ve not been able to convince my 70 year old father to be at least 20% in gold and silver. What I have been able to convince him of is to invest in all the things he needs to live monthly. He is buying loads of non-perishable foods, plus meats that can be vacuum packed and frozen. He has two small generators in case of short term electric failures. He buys enough clothing, cleaning supplies and other necessities to last ten years. Anything you can now do to avoid spending money in the future will help. Consider having a home enery and insulation audit done. (some power companies do this for free). Upgrade appliances to more efficient models now to help offset future energy prices.

    All of these things will help to offset the inflation which I believe will ultimately cause the prices of most necessities to skyrocket.

    I’m glad my father is not 100% in metals as it could possibly be a decade before PM’s come into their own. Hell, I thought that the metals would have gone exponential by now when I started buying them in ’06 but as you know, we are still waiting. I believe the continually unfolding disaster will last 10-20 more years before things begin to turn around for good. The great unwinding will take just about as long as it took to wind it up in the first place.

    The last 15 months has been tough on people investing in PM’s. We will eventually be rewarded but not in the manner I feel most dream of. I think many are hoping to get rich quick etc but the truth is that everything you buy just to live will be going up in price right along with PM’s. Investing in PM’s will allow you avoid the crippling effects of inflation.
    I_S

  12. Dear My Life Savings.   I was a little late to this post and can see there are some really good ideas offered above.  I would offer more specific income ideas but you didn’t provide enough information about your income, expenses and asset bases.   Without that data I’ll have to wing it since my wife and I are 61 and 60 respectively and will use some of our strategies to offer a few ideas.   If you’ve read SD regularly I have posted with frequency over the last 6 months about my plans to go “ALL IN” with silver and gold.  We just completed the Self Directed IRA and took deliver of the final shipment last week.  Once we contemplated the  ALL IN results of this I realized that we don’t have SS although I plan to sign my wife up December 2012. Income is now the main item on our agenda  to tide us over until PMs move up in price.  Since we don’d have an ‘income lifeboat like a pension, passive income or annuities to provide lifestyle support, our business income becomes even more important.  We will take  SS FIAT early but don’t see this as a savior income. I’m still running my business part time and do community volunteer work part time.  The business and its income are well off the peaks before the credit crunch since bank loans are harder to get and less businesses are borrowing. That suits me fine since I don’t to work that hard. But keeping active is important.  Besides which I am on financial and tax strike since this pack of egg sucking progressive pukes in the WH and Congress have screwed things up so  badly I fear for the Republic.  Besides which, being off the radar and partly off the grid suits me just fine so I plan to grind jsut enough income to cover personal overhead. If you are 71,  retired and feaful of what will become of your silver stack—STOP WORRYING AND GET ACTIVE IN SOMETHING THAT PRODUCES INCOME.  You are 71 and had the wisdom to accumulate silver.  I will assume it is a considerable stack since you view it as a retirement income source. If your stack is 4 or 5 figure in silver ounces you will do fine.   If your stack is well into the 4 figure that  means you developed a latent in your working years that allowed you to accumulate some extra money. I hope your buy price was in the single digits for silver and not $45 an oz.   Most people your age have a net worth of between $60-100,000.  That ain’t S*** and in the last 5 years the average net worth has gone down 40%  Thanks Obama. Since our business successes were due to SOMEONE ELSE’S EFFORTS maybe you should try something different.  Take those talents and skills and put them to some use; something that produces income and keep it under the radar since you don’t want Obama taking credit for your success.  Keep it under the radar so that your business income helps sustain your lifestyle,  allows you to deduct expenses to the point where you nearly zero your income and produce a very small profit. That way the TAX NAZIS can’t disallow your expensings,  call it a hobby, thereby removing the incentive to get into business in the first place.  If you produce something at little at $1,000 a month doing something you know how to do and can turn into income, you will find you can ramp that income to cover your lifestyle costs.   What this ultimately does is buy you time until precious metals assume their ascendancy as  real money, a source of income and a contribution to wealth.  Now, to the silver problem that is scaring you.  Stop being scared.    Get your mind on something else.  Silver will correct with such a vengence that it will take your breath away.  Actuarially your life expectance at 71so you should be above the dirt for  another 14-16 years.  It means time is on your side.  That is IF you stop worrying and get busy so you don’t croak due to inactivity or stroke out due to the games your mind is playing on you.  Coming from the original worry wart (me) that should work nicely.   The mind and body will respond extremely well to activity and there are few things in life that kick you in the ass and get you  going like running a business. It will keep you young and vital.  It beats internet porn, bocce ball and trips to nowhere you can’t afford.  See if you can engage your grandkids and find out of they have some entrepreneurial ideas. Hang with the youngsters. You can learn from them and they can learn from you.  That’s all for now.  If you email Doc and want to talk to me, Doc may be able to get us connected.  I’ve worked with tens of thousands of business owners so I may have some good ideas in that regard.  All my best.  Now stop worrying and get active.  

  13. Ok at 71 you have at least another 30 years to go.   I’m 70 and feel fine.   Age has nothing to do with anything.   If you plan with age in mind and are 25 you could get hit by a bus tomorrow.

    At 71 you should have a good pension.   No debts.   Property all bought and paid for.
    I have two properties and live in a country which is not my birth country.   One of the properties I rent for holiday makers.  A big stack of Silver in Mat Via and I’m slowly diversifying into Gold coins.
    If you haven’t done this by 71 what have you been doing?
    Don’t invest in stock or bonds.   Don’t have savings in a bank.  Gold is for safety.  Silver is for fun and the roller-coaster ride.
    Above all now is the time to enjoy things.   You can have all the money in the World but if you are sitting in a wheel chair and breathing through a machine what’s the point.
    Get out and have fun.   
     
  14. Sorry about lack of paragraphs   I used edit twice.

  15. welcome to the club.     we are all scared.    the U.S. GOV’T has backstabbed the baby boom generation in the back.      they stole the inheritances we were going to leave to our children.     buy as much gold&silver eagles as you can afford, hide them, & slip them to your children when it is time.    educate your children that if they trade it in for paper money they will be dirt poor.    

  16. One more thing. Here is a business idea. I just checked coinflation.com  to find the base metal value of the nickels produced in the last 40 years or so.  Nickels were worth about  about 6 to 6.7 cents per nickel based on the metal value.  Today they are worth about 4.9 cents since base metals are off a bit.

    But on the same site there was reference to Ebay and what  collector quality nickels are going for if they are numismatic grade.  Buy a coin grading book and a magnifying glass or fresnel lens to help with old eyes. 

      On Silver Doctors there is a poster named 2OZ  He has the incredible knack for finding silver and gold at great prices. He makes it his business to cull every store, garage sale and any other site to find PMs.    He is one of the many silver soldiers on this site who  post regularly about their findings. It makes me veryjealous.

    You could take some of your spare time to see what you can scare up.  Alternatively you can go to your local bank and buy large numbers of dimes, quarters and half dollar  rolled coins.  Slide the coins out of the bank wrapper, keeping it intact and scan the edges of the coins to see if you can spot some  l965, or better yet pre 1965 silver coins.  Anything after 1965 is mostly  bimetallic and shows up with a coppery edge.  The 90% silver coins have a more worn edge and a dull silver color.  Get a few 1964 or earlier dimes and quarters and line them up side by side with the 1966 and later  You should be able to quickly find the good ones. 

    Slide the coins out of the bank wrapper.   Check for the silver coins. If you find some, remove them and replace with a post-1965 to keep the roll count intact.  Slide the regular garbage coins back into the wrapper and return these to the bank. Lather rinse and repeat.  I have heard people are finding these coins regularly using this method. You have time on your hands so this is a virtually free way of culling junk bullion at the source with little hard labor.  It is tax free too boot.  Unless you sell a large quality of junk bullion coins for their real values, you can start accumulating some serious phyzz.   A $1,000 face value bag of junk bullion goes for about $20,000.  You do the math.

  17. There are those who say the system is on the verge of collapse, etc etc.  Whether or not that is the case, never underestimate the lengths to which those in power and those who are dominating the existing system would try to keep the status quo going.
    As such, no matter how sure you are that you have the winning hand, the point is to never go 100%.  This isn’t a game of poker where you can go all in and walk away from the table if you lose.  Individually, we do not have unlimited resources whereas the powers that be are in a position to lose longer than we can win.
    However, this comment and those preceding it are just hindsight since you already have established a near 100% position and are “income wise, going broke monthly”.
    All that can be said for those wanting to go 100%, remember that your individual situations are all different – family/support network resources, health (physical+mental), existing income streams, existing assets, etc.  Based on this, you need to look at what is the purpose and the end goal of your investments.  What scenarios do you expect to realistically happen and what would be enough to survive.  Never truly go 100%, think about what you need to maintain your existing lifestyle and what sacrifices you would need to make in order to both keep a satisfactory lifestyle and (in the context of this website) diversify your assets into Precious Metals.  The When and IF of the worst case scenario occurring is Unknown, you can only prepare to a decent amount, going further is a gamble.
    Be careful of all advice, there are zealots (for PMs, Stocks, business ideas) out there that will blindly spout out what they have read on the internet without knowing the true reasoning and mechanics.  Then there are those who can make callous assessments because they have nothing to lose and everything to gain from blind followers.. if their call is wrong and people are out their life savings, they can just wipe their hands and say “oops, wrong call.” and walk away..  All that can be done is to keep your exit plan in your back pocket.
  18. (note, not saying anybody above is giving the wrong advice or business ideas)

  19. My question to you Sir is what is Silver going to do in price? I
    get so many mixed signals that frankly I am scared to death about my
    wife and I being able to survive in our retirement. I am familiar with
    world economics and the world being awash in Fiat money, but would be
    honored to know what your opinion is regarding the safety haven in
    Silver.

    Silver is a precious metal and it is going to do exactly what it has done for 5000 years.  It is going to act as a store of value.   We do have some price manipulations happening but it looks like that is going to come to an end over the next year.   (JP Morgan is under the microscope for price manipulations in everything from the energy market to LIBOR.   Position limits are going to kick in on the COMEX in 45 days.  Physical metal exchanges are opening up in ASIA which will force an arbitrage of physical metal out of the western exchanges towards the east if they slam the price.  And lastly, the informed sources say the LBMA is being drained of precious metals.)

    The US Geology Service says we have 10 years of silver left on the planet at current production rates.  At worst case, if they push and hold the price at a couple of dollars per ounce, what do you think happens in 5 years when people realize the metal is almost gone?

    You are going to be fine.  In a year I expect you are going to be sitting fat.

  20. Glenn, I think you will be all right.  Don’t worry too much and don’t take advice from people who are selling it.  You should have no debts and adjust your spending so that ss covers monthly expenses.  Have enough cash for a year’s worth of high bills like property tax, insurance, home and car repairs, etc.  Then you can comfortably wait for the silver price to rise.  If you have a problem it may be because you are living beyond your means.  Maybe you should downsize to a more modest house or stop buying a new car every few years.  (Mine is 17 and runs great.  No need to insure it because it isn’t worth much.)  Choose carefully the things that matter to you.  (I have no TV so no cable bill but high speed internet is a must.)  Stop buying the latest style of clothes and the newest electronic gadgets.  Eat at home more often.  I have mostly PM equities and they are down a lot right now.  I only trade on company news and I won’t diversify because I understand the sector.  I don’t see anything else that is worth the risk.

  21. What is this “Pension” you old tymers speak of….? Im 30 and want to retire tomorrow, I was doing some math last night. If around $5 an ounce I would have bought $11,000 worth of silver and bought about $3,000 worth of silver every year for ten years and sold when it was $50/ounce last year would have been a 900% increase and averaged out to 90% per year…. I couldve had over 10 million bucks! not sure how good the math is, i was using a compound interest calculator. 

  22. Hi Glenn;

    To be honest, anyone who isn’t at least a little scared isn’t paying attention.  This concern is a good thing and should provide you with the incentive to put into action some of the excellent ideas provided above.

    Of all the information and suggestions, I strongly encourage you to think long and hard about AGXIIK’s advice about generating some additional income.  No matter what you did for most of you adult life, I can assure you that there are people willing to pay you to either do it for them on a “piece-work” basis or advise them on how they can do it themselves.  Utilize the internet and find ways to sell that information or run ads locally offering to advise others on how to save money by doing things themselves.

    I hope this helps
    PhilAZ

  23. Hi Glenn, I am all in with a low income. I have stopped following the market every day as I am now satisfied that I have a ‘position’ in silver and it is medium – long term. Best thing for you is to stop thinking about it and get a little part-time job and stay well and be happy. This is what I aim for.

  24. “Doesn’t matter how good your asset is, 100% silver at 71 it’s a kamikaze move.”

    Agreed.  Diversification is one of only 2 free lunches that any small investor can get… so use it!

    As to what else to invest in… how about the big mega-cap companies that pay dividends and have been around for darn-near-ever?  How about oil, coal, and gas companies that provide the fuels that create heat, light, and transport?  How about REITs?   How about commodities?  How about utilities? How about low-cost mutual funds that are doing well now?  Get creative.  Avoid bonds.  Avoid the stocks of companies that have very little to no earnings but high prices (can we say FacePlant… er, FaceBook?)   Own the shares in your own name, not in street name, and have the certificates mailed to you.  Keep them in a vault.

    I’m not suggesting that people avoid PMs here.  PMs have a great place in anyone’s portfolio but they should be limited to whatever seems appropriate for that individual.  In my case, that is 15-20% but others may be comfortable with more or less than that.

    If the PM flag-wavers are correct, then even a 10% allocation to PMs will become worth several times their price today and your buying power will remain about the same as before any financial crash.

    Just remember, folks… in spite of the current very poor leadership in the US, this is a VERY strong country.  Many have underestimated the power of the American people to over-come adversity.  We survived several years of war against the most powerful country on Earth at the time, then the US civil war, WW I, the Great Depression, the dust bowl, WW II, etc.  We will get through this and on to better days.  Hell, even Russia collapsed, recovered, and is doing better today than ever.  If a pack of vodka-swilling Russkies can do it, then by God so can we!

  25. Hi,

    First, silver prices are volatile, as in highly speculative. This involves greed and fear. This affects the price as much as gold does. The other big one is pricing silver coupled to the price with gold, which is more unvolatile, if I can coin a phrase. Silver statistically has  held to the gold price in terms of percentage rises and falls; so much so it is safe to say, watch the price of gold for the price of silver. To make a long story short, silver right now is undervalued in relation to the historical rise and fall with the gold price. Recall the highs of near 50.00 an ounce and now, lows in the 26 to 27 range. Much of this had to do with once in a life time QE3 announcements that were not to be. We are in uncharted waters economically, to say the least. Silver will see a bigger jump percentage wise when gold jumps, just to catch up with gold, the rise with gold. Make sense? Then watch the historical gold price rise and fall to see also silver rise and fall in an uncanny, almost predictable manner, minus any unpredictable speculative  momentary lapses of reason. OK, now what will jump start the gold price increases? If gold goes ballistic, then silver will follow. But what will get the gold show on the road? Well aside from betting on the total collapse of the dollar based on misguided policy from the WH in 2007 and 2012, we have something much more short term. Well, this coming week, the two day Federal Open Market Committee (FOMC) meeting that starts July 31 will give clues as to the QE3 inoculation. I bet it will happen, one, before the election, and two, besides the election outcome, will give the POTUS money to spend next year as well. My thinking is that the QE3 will be announced soon so as to give the current POTUS a chance to drop some more cash from the helicopter this 2012, and more paper fiat next year. This Congress will pass anything related to the TPTB wants and whims, this a rush to get QE3 on the books, now! They will not take a chance on a Tea Party Congress, so we see QE3 very very soon. In fact, I am placing more stack orders Monday in anticipation of the next big jump….silver under 30 and gold under 2k is a good place to be. So if you are all in with silver, the next QE3 announcements will pay high dividends, higher than 50.00 an ounce, IMHO.   

  26. Glenn, it’s MORE than enough to know how the banknote scheme perpetuates itself in order to derive a solid choice in your course of action.

    Banknotes are loaned into existence as principal at interest. That’s paramount to understand! It means that ALL currency is .. Loan. Principal. The interest service funding is a  non-existant mathematical operation and therefore IS NOT be created, until it TOO is borrowed into existence by SOMEone, someWHERE, as NEW principal at interest.

    Once you comprehend the inter-relationship between banknote currency and interest, you can clearly see that they co-generate each other perpetually (in theory). Since the interest is inflating the currency, which in turn expands the interest burden, the currency’s resulting value is automatically depreciating, making it increasingly difficult to do enough business (constantly raising prices to ‘bridge the gap’) to meet the debt load. A point comes where the realities of limited materials for production meet the limits of willingness to increase debt and a ‘Debt Saturation’ takes hold … seizing up the creation of interest service currency creation and defaults begin.

    How quickly ‘Debt Saturation’ unveils itself and its effect on defaults snowballs, will determine how much longer the banknote scheme can hold together. By the looks of events around the world … that ain’t long to go in duration! So, hang tough, Glenn … take unshakable faith in the math. 2+2 DO equal … you win!

  27. Glenn,

    I read quite a few precious metals-related websites, but I registered to this one today specifically in order to respond to your post. I know this might come across as braggadocio, but my goal is neither to offend nor incite; I only want to reassure you, and my experience can likely help in that regard.

    To make a very long story short, I became extremely well-versed in monetary theory and fractal analysis quite a number of years ago and was able to retire comfortably at age 35. I’ve been traveling the world ever since and enjoying every minute of it. Please believe me when I say that silver is THE most undervalued commodity in the world at this moment in time and that one of two things will happen — either silver will reach prices, as measured in fiat currencies, that will shock the layman who doesn’t understand how the world’s financial system is currently structured, or the point will be reached where there are no fiat currencies with which to measure its price and you will use your silver to buy goods and services directly. And, so you’re aware, the amount of goods and services you will be able to buy under the latter scenario far exceeds what you can buy with your silver today.

    Pay no attention to anyone who tells you to “diversify” and that being 100% in silver is crazy. “Diversification” is a platitude echoed by those brainwashed by the financial media and self-serving stockbrokers who have zero interest in making money for you. Being right and sitting tight, as the Doc said, is the path to true wealth. The fact that you are 100% in physical silver shows that you are a shrewd financial analyst. Trust me, your thesis will not take much longer to be proven correct. The fractals do not lie; the price of silver has a long, long way to run, and the next major upleg isn’t far off.

    –sh

  28. Glenn…You have received 26 different opinions so far.  However, common to all is a position in precious metals.  And I concur.  My only recommendation, and there are several reasons for it, but stick with regular U.S. issued gold and silver coins. 

  29. Glenn, you did good. Don’t worry. Get enough food to carry you and sell only enough silver to buy the essentials. I am 82. My first money spent was for food then a little cash for emergency purchases when the grid goes down and the rest in silver. The fiat currency will go to no value at all.

  30. “So many positive waves, how can we lose?  I’m in.”
    - Oddball

  31. Glenn, like you, I am 100% all-in, a bit younger, but also like you slowly bleeding every month because of less income than expenses. I agree with sovereignhuman above and many others —don’t worry about diversification unless it really speaks to your heart and makes concrete financial sense in these precarious times. 

    I believe it was Warren Buffett that said (an I am paraphrasing poorly here) “If you wish to be truly massively wealthy take a huge position and be right”).  I drank the kool-aid back in 2005 (tho I had a “proper” Austrian economics education—dad was friends with Milton and Hayek—and i understood fiat money since I was a wee one) and converted all equity from the home I sold then (yes, I “knew” the RE market was going to implode/explode and the timing in hindsight was perfect) and made the decision to rent for 5 or so years. I am off a few years, but the move to metals has been a 500% move so far and we are JUST beginning.  Hang tough.
    If you can, stick with it and stock up as others have suggested. It is going to be a wild ride and daily I pray for wisdom, patience, and try to maintain my joy every single day. I find that gratitude for anything and everything in my experience is one of the blessed things that allows my consciousness to remain open to the great goodness that the Infinite has available for each and every one of us all the time.
    Never let a problem to be solved become more important than a person to be loved.
  32. PS Love conax’s quote. That sums it up…

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