Thinking of selling your CRHing finds?

[jim4silver]

It is tempting with silver so high now, and you never know but silver could drop by half in the blink of an eye if the big speculators and institutional traders unload their futures and ETF positions to take profits (I don't believe this will necessarily happen but I would not mind it either since I could buy more cheaper).

An issue to think about is something called the gov "debt ceiling". This issue will be getting lots of attention in the near future. Right now the US gov debt ceiling limit is $14.3 Trillion. The issue will be whether or not they increase the debt limit so that the gov can continue to pay its obligations. The proponents say if they don't raise the debt limit all hell is going to break loose: gov defaults, etc.

I don't want to turn this into a political post at all, but an interesting point to consider is how much is $14.3 Trillion? How much is even one Trillion dollars? One way to put this into perspective is this: How many years would it take if you could spend a dollar every second of every day of every year until you spent one Trillion dollars? Answer: 31,546 years! That is just for one Trillion dollars.

When I read a few articles recently about this debt ceiling issue and considered how many Trillions of dollars are involved, it makes me wish I had bought more silver when it was below $20 per ounce.

In 2000 the national debt was under $8 Trillion, thus it seems to be growing quite rapidly. It really makes me value silver and gold even more knowing that so many dollars worth of debt have been created. My humble opinion is don't sell your CRHing finds unless you really need the money to pay bills and debts you otherwise could not pay.

P.S. You know that they will vote to increase the debt limit. There will be debates and such, but it will be raised like it has in the past. I would think that this will make silver and gold more valuable in the future.

All just my opinion. Happy New Year everyone!

Jim

 

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[Numismaniac]

I think you are right (of course what do I know ) I'm holding onto all my CRH finds except for the 40% which I sell and turn into Gold or 90%.

Will be interesting to see how this debt ceiling debate/vote turns out.

HSH

 

[SFBayArea]

I think you are right (of course what do I know ) I'm holding onto all my CRH finds except for the 40% which I sell and turn into Gold or 90%.

Will be interesting to see how this debt ceiling debate/vote turns out.

HSH

If silver is at $50/oz, it doesn't matter if it's a 40% or not, it will have a premium. At that point, I don't see an advantage to owning 40%ers over 90%ers. Most of these coins are not being melted anymore. People just keep them in bags as is.

 

[jim4silver]

I think you are right (of course what do I know ) I'm holding onto all my CRH finds except for the 40% which I sell and turn into Gold or 90%.

Will be interesting to see how this debt ceiling debate/vote turns out.

HSH

If silver is at $50/oz, it doesn't matter if it's a 40% or not, it will have a premium. At that point, I don't see an advantage to owning 40%ers over 90%ers. Most of these coins are not being melted anymore. People just keep them in bags as is.

SF Bay,

If people continue buying/selling into the future like they are now you are correct. However, I spoke with a coin dealer who was in business back in the early 80s, and when the prices where being driven up by the Hunt bros, etc, people were unloading every silver item they had but were not buying like they are now. Thus, all sterling flatware and jewelry, and junk silver 40% and 90% was being sent to refiners. The refiners pay less proportionally for 40% and 90% than they do .999. He told me the most his store paid for any silver was around mid 30s per ounce when the futures market was high 40s. This was because the refiners were so flooded with silver they were not paying much to dealers. I guess because of the super high price rise the dealers were afraid the price would drop and they would get stuck with high priced silver, but this part is just my guess.

I don't know how things will play out if silver keeps going up slowly or if it goes parabolic. In any scenario (except perhaps a Mad Max barter scenario) .999 beats 40% or 90% in my opinion. But is it worth losing ounces to trade 40% for 90%, or 90% for .999? That is up to each individual CRHer to decide. If silver were to drop I would rather have .999, or at worst 90%.

I personally think selling 40% to buy gold is a good idea if you have enough 40% to do that.

Jim

 

[fistfulladirt]

I would love to buy up to gold, but I still think silver is the better value if I'm buying.
I also have this worry that if a Mad Max situation does occur, the govt will step in and declare any pm bartering illegal, complete with snitching citizens. That would surely send it all underground.

 

[SFBayArea]

I think you are right (of course what do I know ) I'm holding onto all my CRH finds except for the 40% which I sell and turn into Gold or 90%.

Will be interesting to see how this debt ceiling debate/vote turns out.

HSH

If silver is at $50/oz, it doesn't matter if it's a 40% or not, it will have a premium. At that point, I don't see an advantage to owning 40%ers over 90%ers. Most of these coins are not being melted anymore. People just keep them in bags as is.

SF Bay,

If people continue buying/selling into the future like they are now you are correct. However, I spoke with a coin dealer who was in business back in the early 80s, and when the prices where being driven up by the Hunt bros, etc, people were unloading every silver item they had but were not buying like they are now. Thus, all sterling flatware and jewelry, and junk silver 40% and 90% was being sent to refiners. The refiners pay less proportionally for 40% and 90% than they do .999. He told me the most his store paid for any silver was around mid 30s per ounce when the futures market was high 40s. This was because the refiners were so flooded with silver they were not paying much to dealers. I guess because of the super high price rise the dealers were afraid the price would drop and they would get stuck with high priced silver, but this part is just my guess.

I don't know how things will play out if silver keeps going up slowly or if it goes parabolic. In any scenario (except perhaps a Mad Max barter scenario) .999 beats 40% or 90% in my opinion. But is it worth losing ounces to trade 40% for 90%, or 90% for .999? That is up to each individual CRHer to decide. If silver were to drop I would rather have .999, or at worst 90%.

I personally think selling 40% to buy gold is a good idea if you have enough 40% to do that.

Jim

I watch CNBC everyday.. and they talk about the precious metals stuff all the time. They say this latest drive up in prices is not the same as the Hunt Bros trying to corner the market. The demand is coming from elsewhere like China & India which all have a billion people there so they have a big impact on the market if they all choose to. Central governments are also increasing their gold holdings. I think it's really people everywhere concerned about the weakening dollar and people not trusting the increased printed money. I just got a $50 bill from 1981 and wished I had $50 worth in 1981 value. Everything goes up in price and metals go up with it but not paper money. Is there really a way for the U.S. government to pay of the debt? I just don't think so. At least no anytime soon. People always have this we're just concerned about now attitude but what about the future?

The increases are slow and so you won't see everyone trying to melt away their silverware immediately. Of course I was in diapers during the Hunt bros saga. My guess is the price increased dramatically quickly so people woke up the next day with silve at $50/oz and said let's sell. If silver moves slowly over the course of time, people are not as quick to sell. They probably think well what if it keeps going?

 

[Generic_Lad]

All this talk about silver and gold.What do you think about platinum im thinking of buying platinum its not discussed in her too much.If silver and gold falls ive had people tell me platinum will hold its ground until hell freezes over.Is this true.

The problem with platinum is it is an industrial metal. The vast majority of platinum use is used in catalytic converters. So when it comes to demand for platinum, it is highly tied to the auto industry, not just the auto industry but the conventional engine industry. So it depends on what you think will happen with the auto industry (and other industries that use platinum) if you think that the auto industry is going to rebound with conventional (gas) engines, platinum might be a good investment. However, if you think that the auto industry is going to rebound with more focus towards non-conventional (electric, hydrogen, etc.) engines, the demand for platinum in its historic primary use would decrease sharply.

Gold on the other hand is primarily used for jewelry and to a smaller extent in industry. Silver has more industrial applications than gold but it doesn't depend on industry like platinum.

 

[Rich Hartford]

I would love to buy up to gold, but I still think silver is the better value if I'm buying.
I also have this worry that if a Mad Max situation does occur, the govt will step in and declare any pm bartering illegal, complete with snitching citizens. That would surely send it all underground.

So what ? Meet plenty of Indian business owners and make friends. I don't know of course, but I would think that being a snitch in a "Mad Max" situation would be a very dangerous occupation
HH
Rich

 

[Rich Hartford]

All this talk about silver and gold.What do you think about platinum im thinking of buying platinum its not discussed in her too much.If silver and gold falls ive had people tell me platinum will hold its ground until hell freezes over.Is this true.

The problem with platinum is it is an industrial metal. The vast majority of platinum use is used in catalytic converters. So when it comes to demand for platinum, it is highly tied to the auto industry, not just the auto industry but the conventional engine industry. So it depends on what you think will happen with the auto industry (and other industries that use platinum) if you think that the auto industry is going to rebound with conventional (gas) engines, platinum might be a good investment. However, if you think that the auto industry is going to rebound with more focus towards non-conventional (electric, hydrogen, etc.) engines, the demand for platinum in its historic primary use would decrease sharply.

Gold on the other hand is primarily used for jewelry and to a smaller extent in industry. Silver has more industrial applications than gold but it doesn't depend on industry like platinum.

Very true ! I'd stay away from platinum.
Rich

 

[Rich Hartford]

I think you are right (of course what do I know ) I'm holding onto all my CRH finds except for the 40% which I sell and turn into Gold or 90%.

Will be interesting to see how this debt ceiling debate/vote turns out.

HSH

I agree. I'd trade the 40's for gold if I had enough.
HH
Rich

 

[jim4silver]

All this talk about silver and gold.What do you think about platinum im thinking of buying platinum its not discussed in her too much.If silver and gold falls ive had people tell me platinum will hold its ground until hell freezes over.Is this true.

Gold on the other hand is primarily used for jewelry and to a smaller extent in industry. Silver has more industrial applications than gold but it doesn't depend on industry like platinum.

Gold's primary use is that it is seen as an alternative "currency" by governments and central banks, as well as many people around the world. This may not seem as true nowadays as in times past, but I believe you will hear about more and more countries buying large amounts of gold, as countries like China (and many others) are doing now. They say that virtually all the gold in the world ever mined is still around someplace due to its high value.

I personally think both gold and silver are good to own as "hedges" on the economic situation. Even though silver may have better returns percentage wise if prices keep going up, a person should still own some gold. If for some reason we wind up in a big depression and industry is stalled, gold should hold up better than silver.

Either way, I really don't see average citizens ever stepping up to buy silver like some say when they call it "poor man's gold". By the time the average Joe learns silver and gold are good to own, both will be out of his reach, and Joe may be trying to pay the rent instead of thinking about investments by the time that happens.

I think the big money players--institutions, hedge funds, central banks, governments, etc, will be the deciding factors driving up or crashing down PMs. Those of us "little people" that were smart enough or lucky enough to get some PMs before the big rise in prices could wind up doing well financially with PMs riding the coat tails of the big money players. But the real movers of ounces (or really tons) will not be regular folks in my opinion.

But I am just guessing at all this.

Jim

 

[EpicDeuce]

All this talk about silver and gold.What do you think about platinum im thinking of buying platinum its not discussed in her too much.If silver and gold falls ive had people tell me platinum will hold its ground until hell freezes over.Is this true.

Heck unsurprised there isn't more talk about copper!

 

[SFBayArea]

I would love to buy up to gold, but I still think silver is the better value if I'm buying.
I also have this worry that if a Mad Max situation does occur, the govt will step in and declare any pm bartering illegal, complete with snitching citizens. That would surely send it all underground.

So what ? Meet plenty of Indian business owners and make friends. I don't know of course, but I would think that being a snitch in a "Mad Max" situation would be a very dangerous occupation
HH
Rich

Yeah that would be bad.. in a Mad Max situation, they could send you to the Thunderdome. LOL

 

[SFBayArea]

All this talk about silver and gold.What do you think about platinum im thinking of buying platinum its not discussed in her too much.If silver and gold falls ive had people tell me platinum will hold its ground until hell freezes over.Is this true.

Gold on the other hand is primarily used for jewelry and to a smaller extent in industry. Silver has more industrial applications than gold but it doesn't depend on industry like platinum.

Gold's primary use is that it is seen as an alternative "currency" by governments and central banks, as well as many people around the world. This may not seem as true nowadays as in times past, but I believe you will hear about more and more countries buying large amounts of gold, as countries like China (and many others) are doing now. They say that virtually all the gold in the world ever mined is still around someplace due to its high value.

I personally think both gold and silver are good to own as "hedges" on the economic situation. Even though silver may have better returns percentage wise if prices keep going up, a person should still own some gold. If for some reason we wind up in a big depression and industry is stalled, gold should hold up better than silver.

Either way, I really don't see average citizens ever stepping up to buy silver like some say when they call it "poor man's gold". By the time the average Joe learns silver and gold are good to own, both will be out of his reach, and Joe may be trying to pay the rent instead of thinking about investments by the time that happens.

I think the big money players--institutions, hedge funds, central banks, governments, etc, will be the deciding factors driving up or crashing down PMs. Those of us "little people" that were smart enough or lucky enough to get some PMs before the big rise in prices could wind up doing well financially with PMs riding the coat tails of the big money players. But the real movers of ounces (or really tons) will not be regular folks in my opinion.

But I am just guessing at all this.

Jim

We as ordinary citizens unfortunately don't have any control over what happens as the top 0.01%ers who control oil, pharmacueticals, health, technology, etc do. Lots of big players can manipulate the market. Central banks and governments especially have a lot of power to control the market. In China, the government can buy a ton of gold as a hedge and order its billion people to buy gold too and with a billion people buying gold, that would drive up the prices dramatically. Remember the population of the U.S. is only 300 million, one third of China and India. I'm not saying overpopulation is good because it's not but with that many people becoming new consumers, they drive up prices. On CNBC, they also talk about food prices going up because of the emerging markets. More people with more money to buy things, drive up prices.

 

[golden silver]

Jim, Great info as always. I had to let go of some 40%ers out of necessity but I am holding on to the rest for a rainy day. I think Silver and Gold are headed way up but I wonder what condition the economy will be in at that point.

Golden Silver

 

[drplaztics]

I'm LMAO!!!! I hope no one here is holding gold or silver for a potential
"Mad Max" situation. Gold and silver will be worthless then. Only GUNS
and GRAIN will have any value.......LOL. I hope I die at the beginning of
the apocalypse

 

[mts]

I'm LMAO!!!! I hope no one here is holding gold or silver for a potential
"Mad Max" situation. Gold and silver will be worthless then. Only GUNS
and GRAIN will have any value.......LOL. I hope I die at the beginning of
the apocalypse

The world is not black and white. There are an infinite number of lesser scenarios in between where we are today and "Mad Max". I don't disagree that gold and silver will be mostly worthless if the world ever truly gets to a "Mad Max" stage. But then again, I don't think we'll ever get there anyway. Nonetheless, I have guns too. Diversification is always the key. Have some each of silver, gold, grain, gas, and guns. Each serves a different purpose and has different strengths and weaknesses for various situations.

Jim, as someone else said, great information as always!

 

[Hi Ho Silver!]

I think you may be on to something. I have held off for a while now after taking a little cash off the table in 40% Silver

 

[Silver Stripe]

I traded most of mine into gold for portability reasons- kept the older stuff for making silver bullets when the time comes. Of course I'm still hunting so still accumulating them pesky 40%.
HH all, Mark

 

[FreedomUIC]

All this talk about silver and gold.What do you think about platinum im thinking of buying platinum its not discussed in her too much.If silver and gold falls ive had people tell me platinum will hold its ground until hell freezes over.Is this true.

The problem with platinum is it is an industrial metal. The vast majority of platinum use is used in catalytic converters. So when it comes to demand for platinum, it is highly tied to the auto industry, not just the auto industry but the conventional engine industry. So it depends on what you think will happen with the auto industry (and other industries that use platinum) if you think that the auto industry is going to rebound with conventional (gas) engines, platinum might be a good investment. However, if you think that the auto industry is going to rebound with more focus towards non-conventional (electric, hydrogen, etc.) engines, the demand for platinum in its historic primary use would decrease sharply.

Gold on the other hand is primarily used for jewelry and to a smaller extent in industry. Silver has more industrial applications than gold but it doesn't depend on industry like platinum.

Perhaps my information is incorrect but I was told that Rhodium is used in Catalytic Converters and not Platinum. Platinum and Palladium are by products of Rhodium mining.