Speaking of banks.....

[jim4silver]

Looks like they know something we don't? Better make sure you are not over the limit at any particular bank, and even then, who knows? Never been a better time to own physical gold and silver in my opinion.



http://www.chicagotribune.com/business/chi-wed-fdic-banks-aug27,0,4996966.story

http://www.reuters.com/article/newsOne/idUSBNG28670420080827

Jim

 

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[fistfulladirt]

Lol yeah, but if there's a food shortage, and my family is starving, and my neighbor has 5 chickens, how much is my silver gonna be worth to him?

 

[jim4silver]

Lol yeah, but if there's a food shortage, and my family is starving, and my neighbor has 5 chickens, how much is my silver gonna be worth to him?

For those of us who live in suburban areas, raising chickens, cattle, etc, is not possible. If a person was self-sufficient food-wise that would be a great thing, either in normal times or in a bad economic crisis.

I don't think though things are going to get so bad that people are going to have to barter for items they need, like some people speculate. If it does get that way, there will be major rioting in large and small cities (look what happened during Katrina in a short time) and things will disintegrate so fast that even people who live on farms out in the middle of nowhere will have problems.

As far as FDIC and bank failures go, I think the gov will cover all the banks loses (up to the 100K limit) by simply creating all the necessary dollars (borrowing from fed). The country is already trillions in debt, whats a few more trillion? But this would lead to super high inflation numbers and holding PMs would preserve your buying power, not necessarily make you rich per se.


Jim

 

[ClonedSIM]

Lol yeah, but if there's a food shortage, and my family is starving, and my neighbor has 5 chickens, how much is my silver gonna be worth to him?

This has always been my thought, as well.

If the stuff truly and honestly hits the fan, then gold and silver will be worthless. Things of value will be the same as those thousands of years ago; food, water, shelter, clothing. Those who can eat, can survive. If I had a dozen goats and things got this bad, I wouldn't trade a single one of them off for a pound of gold.

 

[jewelerdave]

Correct, Gold and silver is simply a medium of exchange for store of wealth when viewed as such at good times.
If things get so bad that people are not willing to trade gold for chickens people would just take the chickens if food was that
short.
Think back to the 1955 version Movie War of the Worlds. There is a part where people are panicking trying to get into a truck to get out of town, one man has a briefcase full of money. He tries to buy himself a spot on the truck, he is punched off and a man says, "Its No good anymore mac!" So in an end of the world saga. It does not matter. Guns and Muscle on the other hand, will get you what you want for a while but not everyone will put up with that. Other have guns and muscle too!


The katrina example is an excellent one. Like all bad situations, things do get better no matter how grim. Look at people who survived in WWII Europe. That was bad...or our Civil War/Ware between the states. Also very bad for everyone. But it got better in time.
Things always get better in time. Too many smart people, too many people who like stability. A mad max style world just cant happen.

Now for those who are positioned to profit from such things...that's a different story.

When food shortages happen. It is only on a limited basis. remember earlier this year the things with the Tomatos? Yeah it was mildly annoying for those who could not get one on there burge or salad, I am sure it cost some people fortunes. But it came to an end.

Even if there was a failure of one or two types of crop or food. Prices will rise, we have fewer options. But its not the end of the world.
Say some horrible virus comes in and decimates our corn crop Maybe its only 10% to 15% of what we use. Very bad right? end of the world. NO.
what would happen.
Fuel Prices would skyrocket to too less ethanol. Gas may go up as much as 20 to 40 cents a gallon.
Meat prices would be dirt cheap for a while then out of control as a mass slaughter of cows happens.
Commodity traders would freak out driving the prices of everything else up.
Farmers would be broke causing a major resesion or depression.
The prices of substitute foods would rise on the demand for food, things like beans, rice fruit would probably tipple.
Mexican food would be drastically affected. But even more the mega food producers would not have all the corn syrup to put into food and drinks. What woudl Coke do?

The list goes on. It would be bad. But not the end of the world.
Same goes for any other food item.
But for the average person...
So no more tortilla chips but you can still get potato or pita chips.
ya may have to drink something other than soda like water that is better for you anyway.
the side of corn on your plate is just replaced with some other veggie or just done with out.
the cost of your meals may go up quite a bit more. so you have to cut back on other things

But we go on.

But for silver prices in this...yeah, I think 50 an ounce would be an easy hit from people freaking.

 

[TxTim]

Correct, Gold and silver is simply a medium of exchange for store of wealth when viewed as such at good times.
If things get so bad that people are not willing to trade gold for chickens people would just take the chickens if food was that
short.
Think back to the 1955 version Movie War of the Worlds. There is a part where people are panicking trying to get into a truck to get out of town, one man has a briefcase full of money. He tries to buy himself a spot on the truck, he is punched off and a man says, "Its No good anymore mac!" So in an end of the world saga. It does not matter. Guns and Muscle on the other hand, will get you what you want for a while but not everyone will put up with that. Other have guns and muscle too!


The katrina example is an excellent one. Like all bad situations, things do get better no matter how grim. Look at people who survived in WWII Europe. That was bad...or our Civil War/Ware between the states. Also very bad for everyone. But it got better in time.
Things always get better in time. Too many smart people, too many people who like stability. A mad max style world just cant happen.

Now for those who are positioned to profit from such things...that's a different story.

When food shortages happen. It is only on a limited basis. remember earlier this year the things with the Tomatos? Yeah it was mildly annoying for those who could not get one on there burge or salad, I am sure it cost some people fortunes. But it came to an end.

Even if there was a failure of one or two types of crop or food. Prices will rise, we have fewer options. But its not the end of the world.
Say some horrible virus comes in and decimates our corn crop Maybe its only 10% to 15% of what we use. Very bad right? end of the world. NO.
what would happen.
Fuel Prices would skyrocket to too less ethanol. Gas may go up as much as 20 to 40 cents a gallon.
Meat prices would be dirt cheap for a while then out of control as a mass slaughter of cows happens.
Commodity traders would freak out driving the prices of everything else up.
Farmers would be broke causing a major resesion or depression.
The prices of substitute foods would rise on the demand for food, things like beans, rice fruit would probably tipple.
Mexican food would be drastically affected. But even more the mega food producers would not have all the corn syrup to put into food and drinks. What woudl Coke do?

The list goes on. It would be bad. But not the end of the world.
Same goes for any other food item.
But for the average person...
So no more tortilla chips but you can still get potato or pita chips.
ya may have to drink something other than soda like water that is better for you anyway.
the side of corn on your plate is just replaced with some other veggie or just done with out.
the cost of your meals may go up quite a bit more. so you have to cut back on other things

But we go on.

But for silver prices in this...yeah, I think 50 an ounce would be an easy hit from people freaking.

Guns, gas and ammo will increase in value with that scenario - stock up now!!!

 

[solariscool]

Stack it deep and stack it cheap. PMs, food, water, etc.

Don't only worry about the fdic insurance limits but worry about your safe deposit boxes. If a bank closes its doors one day how easy will it be for you go get your stash. Not a fun thought.

 

[jim4silver]

Stack it deep and stack it cheap. PMs, food, water, etc.

Don't only worry about the fdic insurance limits but worry about your safe deposit boxes. If a bank closes its doors one day how easy will it be for you go get your stash. Not a fun thought.

I have to agree with you solariscool. While I don't believe that a "Mad Max" type existence is going to happen here, I could see a period where food and water supply could be limited. Such as if some (God forbid) nuclear terrorist event happens here, or something like that.

The general population (often referred to as "sheeple"), like those who don't know about PMs, etc., and who believe everything the nightly news tells them, would be at a great loss when they could not get their stuff from the local Walmart or grocery store. I bet most people have no more than 1 weeks' worth of food and probably less water stockpiled. I think it is smart to have an adequate supply of food and water stockpiled in case there is some sort of problem that cuts off supplies for a while.

Having adequate firearms for self-defense if looters come calling would also be helpful.

Jim

 

[Bean]

I dont think it will get that bad either, but one must always be prepared for shortages on basic items (food & water).
But I also think gold and silver will allways be used as money, Its been that way for thousands of years.
So even though you cant eat silver you could still use it to trade it for stuff you need, if you cant make it or do it yourself.
If you have fields to grow a crop, you'll have plenty to eat but you might not be able to work on your tractor, you'll need someone to fix it,
or to buy parts for it. That person might take some of your crop for the work, but he might not need it so you'll need something else
to give him. He might want a coat, but can you make one? I think most everyone would take pm's as payment.
I look at it like this, silver and gold is a tool just as livestock or crops, the more tools you have the better off you'll be.
If you dont have a farm, then at least have a skill that will be needed so you can trade for food, shelter, water,clothes ect.

Just a thought.
Bean

 

[solariscool]

After surviving 8 days without power last winter in an ice storm, I really bulked up my preps. The local stores were emptied out pretty fast, and as a bachelor my pantry was under prepared to say the least. It was a big wake up call/reality check. I wont ever get caught under prepared like that again.

 

[phillips24]

After surviving 8 days without power last winter in an ice storm, I really bulked up my preps. The local stores were emptied out pretty fast, and as a bachelor my pantry was under prepared to say the least. It was a big wake up call/reality check. I wont ever get caught under prepared like that again.

Where are you located at solaris? We had the same thing in Central Illinois in Dec 06. Pretty bad although I was lucky and had power.

On the topic the key, I believe, is while you are preparing don't let anyone know what you do have. Especially PM's and guns and ammo. Well maybe the casual mention of the fact that I will shoot to kill if anyone breaks in my house. Anyways the less your neighbors know the less likely you will be a target if something like that happens.

 

[jim4silver]

After surviving 8 days without power last winter in an ice storm, I really bulked up my preps. The local stores were emptied out pretty fast, and as a bachelor my pantry was under prepared to say the least. It was a big wake up call/reality check. I wont ever get caught under prepared like that again.

Where are you located at solaris? We had the same thing in Central Illinois in Dec 06. Pretty bad although I was lucky and had power.

On the topic the key, I believe, is while you are preparing don't let anyone know what you do have. Especially PM's and guns and ammo. Well maybe the casual mention of the fact that I will shoot to kill if anyone breaks in my house. Anyways the less your neighbors know the less likely you will be a target if something like that happens.

Good advice there Phillips. Since I rent I have to keep the bulk of my PMs in the safe deposit box. I hate doing this because I fear if the bank shuts down I will be screwed. Plus, if I get sued and somehow get a judgment against me, they could seize the box. But this option is better than keeping them at home for now.

If I owned my own home I would install a hidden safe and get a home security system. Both of these would stop all but the most "James Bond" type of thieves. The average neighborhood crack head or cat burglar would not be able to both find the safe and get around the home security system.

Best not to be known in your town as the resident gold or silver guru or aficionado. You might draw attention and become a target for crooks.

Jim

 

[phillips24]

After surviving 8 days without power last winter in an ice storm, I really bulked up my preps. The local stores were emptied out pretty fast, and as a bachelor my pantry was under prepared to say the least. It was a big wake up call/reality check. I wont ever get caught under prepared like that again.

Where are you located at solaris? We had the same thing in Central Illinois in Dec 06. Pretty bad although I was lucky and had power.

On the topic the key, I believe, is while you are preparing don't let anyone know what you do have. Especially PM's and guns and ammo. Well maybe the casual mention of the fact that I will shoot to kill if anyone breaks in my house. Anyways the less your neighbors know the less likely you will be a target if something like that happens.

Good advice there Phillips. Since I rent I have to keep the bulk of my PMs in the safe deposit box. I hate doing this because I fear if the bank shuts down I will be screwed. Plus, if I get sued and somehow get a judgment against me, they could seize the box. But this option is better than keeping them at home for now.

If I owned my own home I would install a hidden safe and get a home security system. Both of these would stop all but the most "James Bond" type of thieves. The average neighborhood crack head or cat burglar would not be able to both find the safe and get around the home security system.

Best not to be known in your town as the resident gold or silver guru or aficionado. You might draw attention and become a target for crooks.

Jim

I rent as well, but I have a very easygoing landlord. I mounted a small safe with some unistrut assembly and LDT'd it to the concrete block in the basement. Not exactly hidden but out of the way and even crazy methheads would have a hard time ripping it off the wall. But even if renting there are creative ways you could hide your stuff even if in an apt. Make some hidden compartments under your bed, in a nightstand or in a dresser. Have a dummy clothes hamper in your closet where in the bottom is a safe that is bolted to the floor. I've been thinking about making a hidden drawer in my dresser using the whole bottom and making a steel case or something. I dunno. I tend to like to go overkill on my home projects, or thats what the wife tells me. For me I would try as much as possible to stay away from safe deposit boxes for the reason you said. Same reason that I don't have any paper investments and have silver and gold. Best situation though would be to live out in the boonies away from people. Grow your own food etc. Anyways I'll stop my rant for now.

 

[jim4silver]

After surviving 8 days without power last winter in an ice storm, I really bulked up my preps. The local stores were emptied out pretty fast, and as a bachelor my pantry was under prepared to say the least. It was a big wake up call/reality check. I wont ever get caught under prepared like that again.

Where are you located at solaris? We had the same thing in Central Illinois in Dec 06. Pretty bad although I was lucky and had power.

On the topic the key, I believe, is while you are preparing don't let anyone know what you do have. Especially PM's and guns and ammo. Well maybe the casual mention of the fact that I will shoot to kill if anyone breaks in my house. Anyways the less your neighbors know the less likely you will be a target if something like that happens.

Good advice there Phillips. Since I rent I have to keep the bulk of my PMs in the safe deposit box. I hate doing this because I fear if the bank shuts down I will be screwed. Plus, if I get sued and somehow get a judgment against me, they could seize the box. But this option is better than keeping them at home for now.

If I owned my own home I would install a hidden safe and get a home security system. Both of these would stop all but the most "James Bond" type of thieves. The average neighborhood crack head or cat burglar would not be able to both find the safe and get around the home security system.

Best not to be known in your town as the resident gold or silver guru or aficionado. You might draw attention and become a target for crooks.

Jim

I rent as well, but I have a very easygoing landlord. I mounted a small safe with some unistrut assembly and LDT'd it to the concrete block in the basement. Not exactly hidden but out of the way and even crazy methheads would have a hard time ripping it off the wall. But even if renting there are creative ways you could hide your stuff even if in an apt. Make some hidden compartments under your bed, in a nightstand or in a dresser. Have a dummy clothes hamper in your closet where in the bottom is a safe that is bolted to the floor. I've been thinking about making a hidden drawer in my dresser using the whole bottom and making a steel case or something. I dunno. I tend to like to go overkill on my home projects, or thats what the wife tells me. For me I would try as much as possible to stay away from safe deposit boxes for the reason you said. Same reason that I don't have any paper investments and have silver and gold. Best situation though would be to live out in the boonies away from people. Grow your own food etc. Anyways I'll stop my rant for now.

I also have a good landlord who I rent my house from. An elderly person who actually let me draft the current lease agreement. I did change the locks though without his/her knowledge because I dont think the landlord changed them from the last tenant, and I dont want to take chances. I hate the thought that someone has keys to my place and could enter when I am not at home. Took care of that issue.

I am torn between the safe deposit box and stashing at home, but if I weigh the relative risks for now, I feel safer with all my gold and most of my silver in the bank. If anything crazy happens here such as a national disaster, etc., I will haul a$$ to the bank and take it out as soon as I can. It is a cost/benefit decision that I think about on a weekly basis.

I could always take out extra insurance and just keep everything at home, but I have heard it is hard to collect if something happens. It seems to cost about 150 bucks a year for every 10K in insured PMs if you keep them at home. If more banks fall apart I may do this. If I do keep at home, I would pay for the insurance.


Jim

 

[alpha105]

Take ur silver and gold....hoard till prices skyrocket, as you know if it skyrockets fast that will be right before it becomes useless.......sell most and buy what you need quickly to survive......MRE's, weapons and find a place to ride it out before this country is taken by another power.....and put into another crude system of money......then use the rest of the bullion you have to trade for that system of money and be set =)

 

[solariscool]

You mean kinda like when silver goes from $7/oz to $21/oz and gold from $350/oz to $1050/oz? The time to put back supplies is now if you haven't started already. We're about a fart away from some serious economic rough times. Don't get caught with your pants down.

 

[MalteseFalcon]

As for profiteering during disasters, look at how much money Home Depot and hardware stores are making in New Orleans right now....Hurricane Gustav may or may not show up there, but people are already going nuts buying plywood, batteries, nails, etc.

 

[alpha105]

You mean kinda like when silver goes from $7/oz to $21/oz and gold from $350/oz to $1050/oz? The time to put back supplies is now if you haven't started already. We're about a fart away from some serious economic rough times. Don't get caught with your pants down.

Somewhat.....but for those like me who can rarely afford and silver =P (We hope theres still a little time we can save silver B4 we have to dump it.)

 

[jim4silver]

Only one bank was closed down this week.


http://www.bizjournals.com/atlanta/stories/2008/08/25/daily84.html

 

[jim4silver]

Another Friday, another failed bank.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a55QTm6H2NPw&refer=home


Jim