Silver the Best Buy Among Depression Bargains
Jun 30th, 2009 | By Linda Brady Traynham | Category: Featured, Gold, Personal Liberties
It is a matter of almost holy writ with us here in the Whiskey Bar that “the poor man’s gold” is something we should be buying with every spare non-silver dime we have. We believe! We believe!
We believe on fundamentals, technicals, and common sense.
We even believe all this in the face of the recent gyrations in the market.
In May silver shot up dramatically, so why is it falling dismally in June? Beats me, Babes, it truly does. By every standard I can devise silver is still the investment of choice:
- For sixteen years straight mining has not kept up with demand.
- Almost all the gold ever mined is still in existence, barring bits that were hidden from various totalitarian governments and forgotten, or lost, or sunk beneath the briny sea transporting treasure from the New World to Spain.
- Silver is consumed, other than for jewelry and tableware; again, supply is unequal to demand.
- Silver has multitudinous industrial uses, even now that the vast amount once used for photographic film has been reduced to very little.
- Silver has been running less than half of the least classic ratio with gold and slightly over four times the highest one! That varies, historically, between 16:1 and 30:1. At recent levels of 65:1 silver is so wildly undervalued that it is almost insanity not to buy it.
- Only recently has silver become available at spot or close to it; last year those who had wouldn’t sell.
- Mints can’t keep up with demand.
- To really ice the cake, silver is down well over ten per cent. below last month’s highs.
So…why did it fall again today? Quite frankly, I have no idea, and I don’t really care. I like $13.85 silver a lot better than I did $15.50 silver last month so long as I’m purchasing, as I expect to be for some years to come! I chortled happily today when I bought over eighty ounces at $10.85 or $11.32, depending upon whether the weight was in Troy or Avoirdupois. Either way, I did well. I picked up another forty-odd ounces for $500.
Those who are familiar with my “TOIS” (Traynham’s Own Investment System,” pronounced “toys,” because that’s what I buy) know that I read the market via complex technical, psychological, and analytical market runes (otherwise known as Craig’s List and e-Bay.) The torrent of silver available through such markets has reached flood level as 20% joblessness (no matter what the government says) and a minimum of 6% inflation (again, no matter what Obama says) devastate the land.
The short-sighted are turning loose of family treasures and luxury items rather than tightening their belts, and they will regret it bitterly sometime in the next five years.
Never before has the market been so advantageous for the buyer of used vehicles, fine china and other luxury goods, farm machinery, and livestock. As I noted below yesterday’s article on Morning Whiskey, we just bought a pair of very fine horses for a quarter of what they would have cost last year. We want a diesel truck (for reasons covered in past articles), and made a short list quickly and easily of two dozen that would have done splendidly, the most expensive of which was $2,000. MDC (My Darling Charles) chose a Big Bubba that has been in use as a repo truck, meaning it comes with what is virtually a small crane and heavy chains worth a quarter of the price we’re paying.
This country is in big trouble economically from crashing stock and real estate prices. We expect the bond market and commercial real estate to totter next. Taxes are rising, income is falling, hours are being cut, the USA is averaging 625,000 lost jobs a month, and Congress intends to tax our cattle for emitting methane. BRIC is maneuvering to replace the dollar as the standard currency. Nobody more significant than Sri Lanka is discussing a gold standard. The far left is dismembering the carcass of business and distributing the bleeding hunks to favored voter blocks.
MDC and I spent our usual luxurious three hours sitting on the terrace watching the sun go down over the lake and laughing at the antics of the animals. We came up with one slight possibility of an explanation. Remember the Hunt Brothers? Back in the late Seventies they almost cornered the market in silver, and after that splendid idea failed went back to running one of the nation’s biggest trucking companies. It could just be that the increasing costs of trucking and the possibilities of a breakout in silver made surviving Hunts think May was a good time to turn loose of some of their glittering hoard. A look at volumn for the year might be enlightening, along with speculation about whence came genuine Ag, although it may be the rise was promulgated through mining stocks. I still say it doesn’t matter, buy it when the price is advantageous.
I expect the day to come when I have to admit that I erred in not paying what silver cost when I had the chance at current levels. That has happened to far better than I. Silver is particularly vulnerable to this error because there is usually a limited amount of the physical metal to be had at any time. Don’t say that you weren’t warned that my gleeful hand-rubbing today over buying at twenty and thirty per cent. under spot won’t give way to mourning that I didn’t buy much more even though it was $15-20/ounce.
I miss the good old days of the Eighties when I hunted for cyclicals and charted happily every day, but I think we have a better chance to make really big gains now than have been possible for ordinary, sensible people since the Great Depression. I love reading the market suggestions the big guns of Agora Financial offer us regularly, but day in and day out you can protect yourself and your future through small, common sense purchases. Food, fuel, trade goods, sterling you can hold in your hand, ammunition (if you can find it!), tobacco, alcohol, and soap…those will be the daily hard money in the future I see coming.
Why is silver falling? Who cares! Just go buy all you can get your hands on.
Warm regards and happy shopping,
Linda Brady Traynham
June, 30, 2009
P.S.: Afterthought. Writing is how I pull out the conclusions my mind has reached, and even I didn’t know until I typed the words above that my inner Cassandra has started to say, “Stop looking for bottoms and bargains. Pay what it costs to accumulate while the opportunities are there.” Cassandra is right: it is very satisfying to purchase goods at 20% below market, unless six months from now you look at spot and wail, “I could have bought thousands of ounces at the going rate and would have a 35% ‘profit’ on it right now.”
Many hours later: I went and practiced what I preached and contracted for a thousand ounces of sterling, my idea of Really Big Money (RBM, as the Mogambu Guru would say.) Pain, shame, disgrace, some of it I paid as much as $15/ounce for. Unlike the Stock Market, e-Bay is functioning at two a.m.
My thrifty instincts are utterly outraged and I have probably lost all claim to being one of the world’s greatest shoppers, but Cassandra went back to sleep after muttering, “Good, smart girl. Keep doing it until you run out of cash allocated to spend on metal.”
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Can you share the list of diesel trucks? We are in the market as well. Thanks!
Dear Mike:
Depends upon where you are! My darling Charles browsed happily through Craig’s List while I wrote, and there were some in North Houston, Conroe, Corsicana, NE Austin, up around Dallas/Fort Worth, and so forth. Good luck. LBT
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I just came across your site.
I too, think we should prepare for the fall of the dollar and get tangibles.
But, I notice no one really talks about visions of America’s destruction.
I am a Christian, and searching about prophecy about America on the net, shows, some have had visions of a sneak nuclear attack on America by Russia, and our utter destruction!!!!!!!!
I have sent emails to the famous survivalblog website about this topic, and of course no response, and not posted on his website. And he is a Christian.
I think we are going to have some tough times ahead and we may survive for awhile as those who are preparing for this.
But the future…………….. I think we are dooooooooooooomed!!!!!!!!
50,000,000 abortions(MURDER)!
Open homosexuality and other rampant sins openly tolerated and accepted as normal by many.
God always punishes a nation for it’s sin!!!!!!!!!!!!!!!!!!!!!!!!
Since I just came to this site, I don’t know what you believe, but since you say you do research, I wish you to comment on this subject, after researching it of course.
Can America be turned around?
Can this judgment be put off????????????
Remember the story of Jonah and whale?
Nineveh was given another chance when it repented. Read it again in the Bible in the book of Jonah.
Here are some url’s to get started on this research.
Please read these and comment.
http://revlu.com/AAAllen.html
http://www.bereanlife.com/babylon.htm
http://www.bereanlife.com/wakeup.htm
http://www.bereanlife.com/burn.htm
This is a very long read:
http://www.teachinghearts.org/dre17hrev18.html
A snippet:
The precious metals market collapses because they have become useless instruments of trade for the commodities that the world needs … food.
You cannot eat gold.
Mud Cakes. Poverty is so great in Haiti that they are making cookies out of mud, oil and water! They cannot afford to buy food even if it existed. In the end there will be no food to buy.
» Useless Wealth. They will fling their silver into the streets and their gold will become an abhorrent thing; their silver and their gold will not be able to deliver them in the day of the wrath of the Lord.
Severe Famine. They cannot satisfy their appetite nor can they fill their stomachs, for their iniquity has become an occasion of stumbling. (Ezekiel 7: 19)
Their wealth is useless because it cannot buy food. Those who have access to food will not sell it at any price. Wealth will not be able to buy a medical solution for the sores. Wealth will not clean up rivers and seas or stop the heat. When God destroys the infrastructure and there are no poor people to underpay, the wicked will find that their wealth is useless for buying privilege and influence and maid service. But they will have expensive toilet paper. Maybe their spoilt children can learn to make a sandwich. Economic Exploitation
Economic exploitation is a sign of the end of time. It is both surprising and ironic that in this enlightened age that we have turned back to these policies during a time of economic growth.
In fact, wealth will be a liability. So instead of being able to use their wealth to buy better conditions, the rich are forced to abandon all signs of wealth. They must leave their expensive homes, cars and jewelry. Their money is probably lost in bank failures and in a stock market crash. Yet they cannot trade precious metal or other hard currency because it is a useless liability that cannot be eaten.
For several years I have watched as several forms of slavery have returned to the world. While the world experienced many years of economic growth, the number of poor increased. The wealth produced was distributed to the wealthy, it did not trickle down to the poor. Today, there are 27 million slaves on the planet.
As the value of precious metals soar, I have also seen the wealthy switching to gold and precious metals as the asset to purchase and I cannot help but think that this shift is prophetic because God is setting up the conditions for their fall. Divine Justice
The Sins of Power and Excess. The economic forces seem to be deliberately creating a global debt bondage society where wealth is concentrated in a few families or corporations and the rest of humanity is the fodder in a feudal society. Governments are increasingly in the business of creating a fascist state.
Junior
I was involved with the gold industry a few decades ago, about the time I was also studying why people believe dumb things. That Gold 2000 special report smells like a scam or extremely wishful thinking.
Dear Phillip:
Don’t stop THERE, please! What did the Gold 200 special report say that roused your scepticism? What can we learn from your uneasiness?
Regards,
Linda Traynham
Gary: I ran out of room over on the 401K article! Can you put this response up over there, please, or send it to the author?
Rhisiart Gwilym wrote: 12.Rhisiart Gwilym July 6th, 2009 1:32 am :
“Left Wing Congress” — ? Is this on another planet in another solar system, perhaps? Certainly not in the US which so many of the people of planet Earth know to fear and mistrust. Left-wing? The corporate-serving crooks in Washington? Get real! What on earth would you call right-wing, I wonder.
Dear Welsh Person:
My apologies for not being able to discern your gender from your name so that I can address you by the correct honorific, but I have only been to Wales once (delightful, although you will understand why I preferred Ireland) and did not become an expert on (pardon the expression) “Christian” names, there..
I’m having a real problem trying to decide what I would call “right wing” by your definition. One thinks of Genghis Khan, of course, and he DID come from the Caucauses, but he was basically a bandit, not a political thinker. Some of the Egyptian pharoahs, mayhap. Lovely people. Their idea of a truly great century was one in which absolutely NOTHING changed, a system that kept them in power for several thousand years. (AH, if we could only be where we were in 1909, knowing what we do now. Problem is, MY side DID know it.) True, they would fight a war if forced into it, and they liked to win (when they didn’t they just rewrote history, showing startling Liberal tendencies), but all in all…don’t rock th’ feluca. Or does that need two L’s? Probably. Those are the small “houseboats” which traversed the Nile for centuries, and there are still a few around for tourists who don’t mind being shot at or kidnapped by simple agrarian reformers. Yeah, I could like a country/time when we told time by whether it were raining or not and who the king was. (”Second month, day 10 of the Innundation, in the 43rd year of the reign of…”)
Right wing…right wing…with all that term of opprobrium means to “moderate middle-of-the-road progressives.” Dang. Rush Limbaugh is a little soft on issues, and Bill O’Reilly, his fine Irish name notwithstanding, isn’t really atuned to my mind. Not that I would call myself “right wing.” Y’all call us that because we’re RIGHT, you know. Dagny Taggart? Not even close. John Galt? Nope, and dull, to boot. Dagny should have stuck with Hank Reardon, although I’ve always preferred Francisco D’Anconia, myself.
I would describe myself as a laissez faire Jeffersonian “republican,” since all I want to do is live in peace and serenity. That’s the difference: I want to earn everything I get and have done so all my life. I get my hands dirty when need be, although my goal is to be successful enough so that I don’t have to do so. I don’t want to tell anyone else how to live his life so long as he does not complicate mine. In the marvelous words of Ray Stevens, when he recounted his experiences in various barber shops colorfully,” I’m a simple man. I just want to sing my little songs…”
I’m an uncomplicated lady. I just want to raise my crops and animals, take care of my land, keep what I earn from hard work, thrift, and deferring gratification, love the four fabulous men in my life, and give of my surplus MYSELF to those in need, not have government do that for me via extortion. Funny old me. (And don’t you go thinkin’ Ah’m up to somethin’ unsavory. The men are my darling Charles, Gary, my foreman, and my son. I love my daughter, Charlotte, who has been my best friend since 1969, and I’ve got a terrific candidate for true friendship from one of the readers, bless her.)
See, we have found common ground! YOU don’t believe such a thing as a wild-eyed, radical, Left-Wing, fascistic lunatic exists, despite the evidence of your own eyes, and I can’t come up with a single reactionary, oppressionistic, right wing monster. Dang, you grinders of peasants’ faces into the dirt, where are you? Haven’t you got a medieval bone in your bodies, you slackers? Get out there and give the government some competition by building slum housing.
Y’all write again, now, you hear, Rhisiart? DO enter my contest and write me an essay on all that you think is wrong with the Jeffersonian Agrarian Republic–and tell me where you live, please. As though I didn’t know. I’ll bet you a week at Mildew Manor as my feted guest that you live on the Left Coast, on the Atlantic seaboard, in a large city, or along the Southern border of the US. Where else WOULD you live? See my archived article, “They Ain’t No Lib’ruls in Feed Stores.”
Keep an eye out for an upcoming piece on the Normas vs. the Saxons, Sugar, ’cause I guarantee it will give you heartburn for a week. I have given up on you compassionate, M-O-T-R, “progressives” being able to learn to tell time, and there is no way to the results of your “Great” Society and other socialistic programs will fail to bring the USA to its knees. When people are starving and rioting in the streets because Bernanke and the gang raping the economy have run their course, don’t expect any sympathy from me.
You have a nice life, now, for as long as the wheels stay on the fascistic freight train and so long as vehicles with 18 of ‘em manage to get food to where you live. “Just in time” inventory means that there is at most a three-day supply, and after that you’ll have to figure out who you can wrest sustenance from, ’cause Helicopter Ben, et al., will have destroyed the dollar.
Lordy, thanks for the fun! Y’know th’ real problems with Lib’ruls? Y’all got th’ hearts of union leaders an’ th’ souls of particularly grim social workers. Learn to lighten up. Life can be marvelous…when we get the government out of it.
Cordially yours,
Linda Brady Traynham
Dear Junior: NOW we’re having fun! I adore mail. I’m going to copy your e-mail here, but I’ll have to use all caps so you can find my comments.
I just came across your site.
I too, think we should prepare for the fall of the dollar and get tangibles.
But, I notice no one really talks about visions of America’s destruction.
I am a Christian, and searching about prophecy about America on the net, shows, some have had visions of a sneak nuclear attack on America by Russia, and our utter destruction!!!!!!!!
I have sent emails to the famous survivalblog website about this topic, and of course no response, and not posted on his website. And he is a Christian.
I think we are going to have some tough times ahead and we may survive for awhile as those who are preparing for this. WITH YOU ALL THE WAY, JUNIOR, ALTHOUGH I DON’T WORRY ABOUT ARMAGEDDON. IS NO MY YOB! I WOULDN’T BE SURPRISED IF IT HAPPENED IN 2012, BUT I’M NOT READY TO GO PUT ON A WHITE NIGHTY AND HOLD SIGNS THAT SAY “REPENT, FOR THE TIME IS NEAR.” THE MAYAN CALENDAR ENDS 21 DECEMBER 2012, BUT LET’S BUY CHRISTMAS PRESENTS JUST IN CASE?
But the future…………….. I think we are dooooooooooooomed!!!!!!!!
50,000,000 abortions(MURDER)!
Open homosexuality and other rampant sins openly tolerated and accepted as normal by many.
God always punishes a nation for it’s sin!!!!!!!!!!!!!!!!!!!!!!!!
Since I just came to this site, I don’t know what you believe, but since you say you do research, I wish you to comment on this subject, after researching it of course. SWEETIE, THE WORLD HOLDS IT TO BE A MORTAL SIN TO BE A PROFESSING CHRISTIAN, BUT I AM ONE, AND I ASK HIM EVERY NIGHT TO SPARE THOSE OF US WHO LOVE HIM, EVEN IF HE HAS TO LANCE A FEW BOILS FULL OF PUS. HOWEVER, HERE WE FOCUS ON ECONOMIC ISSUES, PRIMARILY, SO WHY DON’T YOU AND I DISCUSS THEOLOGY ELSEWHERE? I’LL BE GLAD TO. GARY, PLEASE GIVE JUNIOR MY ADDRESS, OR SEND ME HIS.
Can America be turned around?
Can this judgment be put off????????????
Remember the story of Jonah and whale?
Nineveh was given another chance when it repented. Read it again in the Bible in the book of Jonah.
Here are some url’s to get started on this research.
Please read these and comment.
http://revlu.com/AAAllen.html
http://www.bereanlife.com/babylon.htm
http://www.bereanlife.com/wakeup.htm
http://www.bereanlife.com/burn.htm I’VE GOT INTERNET PROBLEMS AT PRESENT, BUT WHEN I CAN, I WILL.
This is a very long read:
http://www.teachinghearts.org/dre17hrev18.html
A snippet:
The precious metals market collapses because they have become useless instruments of trade for the commodities that the world needs … food.
You cannot eat gold.
Mud Cakes. Poverty is so great in Haiti that they are making cookies out of mud, oil and water! They cannot afford to buy food even if it existed. In the end there will be no food to buy.
NO WONDER YOUR COOKIES DIDN’T TURN OUT RIGHT. YOU FORGOT THE SUGAR! » Useless Wealth. They will fling their silver into the streets and their gold will become an abhorrent thing; their silver and their gold will not be able to deliver them in the day of the wrath of the Lord.
Severe Famine. They cannot satisfy their appetite nor can they fill their stomachs, for their iniquity has become an occasion of stumbling. (Ezekiel 7: 19)
Their wealth is useless because it cannot buy food. Those who have access to food will not sell it at any price. Wealth will not be able to buy a medical solution for the sores. Wealth will not clean up rivers and seas or stop the heat. When God destroys the infrastructure and there are no poor people to underpay, the wicked will find that their wealth is useless for buying privilege and influence and maid service. But they will have expensive toilet paper. Maybe their spoilt children can learn to make a sandwich. VERY TRUE. THAT’S WHY WE DON’T JUST ACCUMULATE “METAL,” AS WE REFER TO GOLD, SILVER, AND SO FORTH. LEARN TO GROW YOUR OWN FOOD.
Economic Exploitation
Economic exploitation is a sign of the end of time. SORRY, ECONOMIC EXPLOITATION IS A SIGN OF BEING HUMAN. It is both surprising and ironic that in this enlightened age ENLIGHTENED AGE? YOU BEEN SMOKIN’ TH’ GOOD STUFF? that we have turned back to these policies during a time of economic growth.
In fact, wealth will be a liability. So instead of being able to use their wealth to buy better conditions, the rich are forced to abandon all signs of wealth. They must leave their expensive homes, cars and jewelry. YUP, HUNKER DOWN, LOOK HUNGRY, LIKE EVERYONE ELSE. Their money is probably lost in bank failures and in a stock market crash. Yet they cannot trade precious metal or other hard currency because it is a useless liability that cannot be eaten. THERE WILL ALWAYS BE THOSE WITH SURPLUS, AND THE SILVER WILL COME IN HANDY.
For several years I have watched as several forms of slavery have returned to the world. THEY NEVER WENT ANYWHERE. While the world experienced many years of economic growth, the number of poor increased. The wealth produced was distributed to the wealthy, it did not trickle down to the poor. Today, there are 27 million slaves on the planet.
As the value of precious metals soar, I have also seen the wealthy switching to gold and precious metals as the asset to purchase and I cannot help but think that this shift is prophetic because God is setting up the conditions for their fall. Divine Justice EASY, NOW, JUNIOR. I DO NOT PRESUME TO READ THE MIND OF GOD. TRUST AND OBEY AND LEAVE THE DRIVING TO HIM.
The Sins of Power and Excess. The economic forces seem to be deliberately creating a global debt bondage society where wealth is concentrated in a few families or corporations and the rest of humanity is the fodder in a feudal society. Governments are increasingly in the business of creating a fascist state.
JUNIOR, YOU HAVE A LOT OF INTERESTING COMMENTS, BUT HERE ON MORNING WHISKEY WE DON’T BRING RELIGION INTO THINGS. I LIKE A GOOD, ROUSING THEOLOGICAL DISCUSSION AS MUCH AS ANY AND MORE THAN MOST, SO LET’S SEE IF WE CAN MOVE THIS CONVERSATION OVER TO WHERE IT BELONGS. THANK YOU VERY MUCH FOR WRITING. LINDA
Junior
Hi Linda – excellent article!!
Just a quick counterpoint to Junior’s observation…
The bible says: There is desirable treasure, silver and gold, and oil in the dwelling of the wise…
Proverbs 21:20
Sounds like the Bible is telling us how to be good stewards of the resources God has given us. I love your articles – keep up the great work!