Thursday, July 25, 2019

first world wealth 3


FIRST WORLD WEALTH 3
You need gold and silver. If you are too poor for gold, silver will do just fine. It is actually my contention that silver will do far better than gold. I've discussed it before but forgive me as I repeat myself ( because, new readers or old readers forgetting ). We have already hit both Peak Gold and Peak Silver Production. Silver supplies are dropping quicker because with China also in a economic downturn less copper and such is used, and a lot of silver comes as a byproduct of mining industrial ores.
*
In theory that could turn around as the western central banks lose control of the derivatives manipulation of precious metal, and silver returns to a free market pricing mechanism. When that happens, you'll probably not be able to afford silver then, so, word to the wise, stretch your ability to the max and buy silver NOW. Not tomorrow, not next week, certainly not next year-NOW. Because silver is going UP, way the hump up. Industrial use of silver pretty much destroys it. Without dirt cheap oil, which we last saw when you had hair and I had patience ( i.e., a long time ago ), it is near impossible to affordably recycle industrial silver.
*
Which means that the insane amounts of silver mined over the last century are for all intents and purposes gone. There is more gold above ground than silver. Forget the gold and silver ratio pricing you've seen historically. Silver will be headed to the moon ( the caveat is timing, of course ). Which is, paradoxically, why I don't buy more of it. A little is going to go a long way. If you don't buy now you are going to feel like a real idiot, but you can also buy as little as ( in theory, granted ) $100 worth now and have a couple of years wages later.
*
Now, that said, silver and gold kind of suck as wealth. They are great preserving value, are easily hidden, but if you ever have to cash them out you are kind of screwing yourself. Because, except for this very short period of history when we turned the last of the oil into tangible assets, gold and even silver are so scarce that once used will probably not be easily replaced. Think about After Oil, when you have one tank of gas left. Once you use it ( ignore shelf life issues for now ), that is it. All gone, sad panda.
*
Precious metals WILL get that way again, I can guarantee it. Why am I so confident? Because almost all ores are now at the bottom of the barrel stage, where huge machines must move huge amounts of earth which contain very little ore. If petroleum becomes too expensive, that ore is not mined. Even with the gold price at $1400, almost all of that is extraction cost. Just in the last ten years, each ounce of gold is now requiring a significant increase in fuel to process. I want to say fifty percent more, but don't quote me on that.
*
Even as companies are busier than ever using silver in solar panels or anti-stank socks or water filters, the amount mined in the last three years has dropped. Followed to its logical conclusion, we are soon out of new silver ( the belief that we will extract it from seawater stretches credibility as a believable strategy ). To my mind, that means that while you must have silver to combat hyperinflation, it is also a very poor move to ever sell it.
*
So, while it is wealth, it is largely a one off store of wealth. It is like your youth. If you don't invest your youth into retirement, it is a one time nonrenewable resource more than it is wealth. That is what paid for shelter is, not wealth but turning wealth into a means of not needing wealth. Not needing energy you only had in youth. Gold and silver is just stored energy, but energy that cannot be replaced. It sucks, but that doesn't mean you don't do it. It would suck MORE if you didn't.
*
Isn't that what wisdom in old age is? The realization that optimism was ill founded :) Now, let us return to a business as wealth. That too is problematic. Not just because the lawyers will steal the assets. And not just because of obsolescence. But because business in and of itself is also going to be an endangered species soon. You all agree that you need to Tribe Up, for security. Guess what tribes DON'T do. They don't practice capitalism but rather communism ( the good kind-and yes, that is a thing ).
*
Capitalism is NOT the best way to run an economy. It is the best way to run an economy with a surplus. It is also the best way to run an empire, but the cost is a central bank ( we've covered that before and I don't wish to get sidetracked ). Capitalism is NOT run for the benefit of the individual but for that of an elite class. Philosophically you have been taught that capitalism benefits everybody, but in real life the benefits always go PRIMARILY to the elite. Some is left to the commoners but that is not because of capitalism but because of the surplus in the first place. Don't put the cart before the horse.
*
You seem to forget that work Unions were primarily because of communism, NOT capitalism. No capitalist wants to give the workers extra wages. That wouldn't be “efficient”. Workers must, let us not mince words, steal the extra wages by force. I personally approve of such an arrangement. I didn't before, but that was at the beginning of the thirty year long wage suppression sold to us under the guise of a free market. Now that we see the end result of all capitalism and no communism, it isn't the great system we thought it was going to be.
*
Without surplus energy, you can't have banking or capitalism. You can only barter. And barter doesn't work all that well in a severe resource scarcity. If there is just enough game to provide meat for everyone, you cannot barter it. That suggests some tribe members will starve ( Food Stamps don't belong in a system of pure capitalism. Want to get rid of them? If you do, you are an idiot. What if you had no choice but to need them? ). That is when pure communism is practiced. Not that it ever had that name, before Karl Marx wanted to write instead of work at a factory.
*
A tribe is just like a family, but without incest. You don't practice capitalism with family. Go ahead, I dare you. You REALLY think that money you gave your sister is a loan? It won't get paid back on the principle, let alone the interest. Family really does run on the NEED principle, certainly not the ABILITY part. Same with a tribe. Capitalism worked, while we had surplus. Surplus is ending, along with capitalism. Forget a business long term.
*
Now, you could plan along the lines of a non-profit business, in that you are generating profit ( at times, perhaps ) but that doesn't guide the business as much as transitioning to a non-capitalistic system does. I'll cover that tomorrow ( last installment, I promise ), along with all the other partially successful wealth storing strategies to generate a whole system of wealth preservation.
( .Y. )
( today's related Amazon link click here )
*
note: good gravy!  It seems the only new PA books out there are either zombies or Super Fem Ninja's.  What are you going to do?  Free for today, another female hero tale HERE
*
Please support Bison by buying through the Amazon links here ( or from http://bisonprepper.com/2.html or www.bisonbulk.blogspot.com ). Or PayPal www.paypal.me/jimd303 

*** Unless you are in extreme poverty, spend a buck a month here, by the above donation methods ( I get 4% of the Amazon sale, so you need to buy $25 worth for me to get my $1 ) or mail me some cash/check/money order or buy a book ( web site for free books, Amazon to pay just as a donation vehicle ).
*** My e-mail is: jimd303@reagan.com My address is: James M Dakin, 181 W Bullion Rd #12, Elko NV 89801-4184 ***E-Mail me if you want your name added to the weekly e-newsletter subscriber list.
*** Pay your author-no one works for free. I’m nice enough to publish for barely above Mere Book Money, so do your part.*** junk land under a grand *  Lord Bison* my bio & biblio* my web site is www.bisonprepper.com *** Wal-Mart wheat***Amazon Author Page
* By the by, all my writing is copyrighted. For the obtuse out there


18 comments:

  1. A few years back I took out a couple of grand as emergency/property tax funds. Been wanting to convert it to silver for a while now. Who do you go through? I always see that William Devane dude advertising for Rosland Capital, and it seems like a solid company, but I don’t really know. Additionally, I have about $5k that I could spare as an investment. I know nothing about investing, so rather than take a chance in the market, I’m thinking I might just dump it into silver bars. Worst case scenario, it never drops below the value of silver, which will assuredly always be higher in value than the dollar (which will be worth nothing a few years from now).

    Then where to store it? I heard that storing it at a safety deposit box would be a bad idea if there’s a bank run, so that pretty much limits your options to somewhere on your own property. I have a safe, but it’s a crappy safe, and it’s stuffed with guns, so I’d almost need another safe. That, or store it in “plain sight” so to speak, or in some other cleverly hidden way.

    Speaking of property taxes, just got my junk land bill. $19.76. Can’t beat that, now can you. I send my payment in with a smile on my face. Yeah, it’s junk land with no improvements, and it would be a Jeremiah Johnson like existence, but what’s the alternative? You can have a mortgage of a few grand a month, and a property tax bill of at least a few grand a year. And for what? Well, you do have paved streets and grid power. You also have water, and likely sewage and garbage as well. But you pay the price for it in blood, sweat and tears, and are those services really worth all of that.

    ReplyDelete
    Replies
    1. I prefer Golden State Mint. They cast the coins after you order. So, the odds of fake Chinese coins are a lot lower. To store, you can't beat burying it. Preferably under a big auto frame without tires collapsed into the dirt nobody will want to move, or under the cement slab with rebar or similar. My property tax "only" went up 2% this year, rather than 10. Whoopee! Well, small favors :)

      Delete
    2. Buy the silver 1oz rounds(coins)only.
      Hard to barter with a bar of silver.

      2:48

      Delete
    3. I thought the point was just to protect against inflation, rather than a tool for PA. In that case, whatever form the silver took would be fine.

      Delete
    4. Do you want to have to saw a piece of a bar off just to buy a small item?
      1 ounce rounds are the way to go.

      Delete
    5. I've been getting my silver (rounds & bars) from JM Bullion. So far so good, they're always running specials on different things you can get for very little over spot prices if you aren't particular about what youre buying as far as design, year, etc.. Silver is silver for the most part, right? And free shipping on $100 orders and above. Just throwing my 2 cents in. No affiliation with them, just a happy customer.

      Delete
    6. I'm sure there are a dozen or more really good companies. I just look at the Chinaman as a natural enemy as far as products go. Hey, I'm sorry my great great grandpa overdosed your great great grandpa on opium. Jesus, get over it. There are worse ways to go ( like eating poisoned baby formula or pet food ).

      Delete
    7. 6:56-when a one ounce round of silver is $1600 in today's buying power ( I think it will go even higher than 100x, this is just me being cautious in my prediction ), a one ounce coin is too much for barter as well. You might as well stock up on cigarettes.

      Delete
  2. Okay, so silver post-reset will be irreplaceable and you would be foolish to get rid of it except in a dire emergency. I agree. Would your strategy be to save it for ONLY paying property taxes? Are there any other expenses where you believe it would be proper to spend silver on, post-reset?
    Peace out

    ReplyDelete
    Replies
    1. Anything you spend it on is wrong, but...if you have no choice, what can you do? That isn't much of an answer, but it is like asking, when is it okay to barter irreplaceable ammo? No right answer. Die immediately from lack of food or meds or bandits threat, or die later when you can't defend yourself. In the end of course, it is only a bonus that isn't critical in the great scheme. So, it does reflect our surplus bias.

      Delete
  3. In other news, Rutger Hauer has passed away (If you don’t recognize the name, you would almost assuredly recognize the face). It seemed that he was always playing East German terrorists, but that might be a by product of my poor memory. This was prior to the PTB deciding that it was the goat wrangler’s that wanted to kill us all, or convert us :D

    ReplyDelete
    Replies
    1. Actually a rather good actor. Goat herders as American Enemy #1 serves two purposes. They have oil, and it vilifies goats. Leftists hate meat eaters. A two-fer in social engineering, turning us into soyboys.

      Delete
  4. My Lady hates my saying as I get older and read the obits in the paper (on-line) everyday,
    THEY ARE DROPPING LIKE FLY'S!
    I'm just a few years wiser than you Dr. James, but reading the names of people I have known in my life leaving before me is really starting to piss me off!
    Next week will be 1 year since I danced with the reaper and I out danced him!
    I have been doing what you have just started since you became a sofa lizard, homebody, townie.
    Been walking and walking for the last 12 years.
    Keep it up! THEY ARE DROPPING LIKE FLY'S!

    ReplyDelete
    Replies
    1. In the end, The Reaper always has the last laugh. Not a very challanging job, though, other than guessing the timing.

      Delete
  5. Yup - capitalism is how you divide a surplus, or, how you harness ingenuity. Middle ages did fine with serfs/feudal lords. Was money still involved? Sure. But theoretically the king had a vested interest in the health of the kingdom, if nothing else to give something good to his kid.

    Lord James of Dakin, 1st Duke Wheatley.

    Have a ring to it?

    ReplyDelete
  6. For silver I prefer junk dimes. The Chinese were faking quarters. I don’t think dimes would be worth their while. Also dimes are small and the diameter of a roll is small and can probably fit inside a 1/2” pipe. More ways to hide it in plumbing or whatever, without breaking the bank on the cap ends.

    PM’s assumes there is enough stability that someone can sit there in a store front and exchange your metals for fiat later, so you can buy stuff in normal stores. Gold is a vehicle of inter generational wealth transfer. Otherwise too value dense for trade. Get used /broken gold jewelry for the metal value at yard sales, auctions and estate sales. Try to ignore the stones and only pay for the metal. You can sometimes pick up silver jewelry cheaper than the metal value that way too. If you have to hock any of it later, some broken jewelry will say poor rather than a coin which will say maybe this guy has a stash and let’s follow him home to get it.

    ReplyDelete
    Replies
    1. My issue with junk silver is you aren't necessarily getting the full amount of metal, from decades of handling. I have some, but being a tight ass that was all from working retail and buying it face value as it came in ( none after Y2K, but until then somewhat regular as stoners and drunks didn't catch them as they went to buy booze or cigs ). Having said that, ANY silver in any form is better than nothing. We won't be having this discussion too much longer, acting like there is a Best way. The supply will dry up soon, period. Make haste my minions.

      Delete

COMMENTS HAVE BEEN CLOSED