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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[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.

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.

Rhodium is a member of the Platinum family of metals, as is Palladium. However, it is platinum that is used in catalytic converters. But all of these platinum family metals have other uses and sometimes are mixed together for certain reasons.

I did read recently that somewhere scientists were able to somehow get silver and rhodium to form a stable compound that might be able to replace palladium in some applications, but I don't know how that all will work or if it will. I don't know how much of that compound was silver and how much rhodium.

Personally I don't invest in any of the platinum metals because I believe they are strictly industrial use metals (vs. money use, like gold and to a lesser extent silver) and I fear a big recession or depression will eliminate demand to some extent if such happens. I know a smart coin dealer though who thinks palladium will go through the roof in price someday and will be even higher than platinum. We will have to wait and see.

Jim

 

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[FreedomUIC]

Thanks for clearing that up for me Jim.

 

[mts]

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.

Rhodium is a member of the Platinum family of metals, as is Palladium. However, it is platinum that is used in catalytic converters. But all of these platinum family metals have other uses and sometimes are mixed together for certain reasons.

I did read recently that somewhere scientists were able to somehow get silver and rhodium to form a stable compound that might be able to replace palladium in some applications, but I don't know how that all will work or if it will. I don't know how much of that compound was silver and how much rhodium.

Personally I don't invest in any of the platinum metals because I believe they are strictly industrial use metals (vs. money use, like gold and to a lesser extent silver) and I fear a big recession or depression will eliminate demand to some extent if such happens. I know a smart coin dealer though who thinks palladium will go through the roof in price someday and will be even higher than platinum. We will have to wait and see.

Jim

I keep seeing the same guy trying to dump his palladium bars on CL locally. He isn't having any luck. I'm with Jim on this one. I wouldn't consider holding any of the platinum metals as physical investments. Not because I don't think they will potentially skyrocket some day. But mostly because they appear to be difficult to sell when you need to. Just look at the difference on APMEX between melt value and the buy price for palladium. The silver, gold, and platinum buy prices are close to or greater than spot (less than 1%). The palladium buy price is almost 4% less than spot and more than 6% less than the sell price. That tells me that APMEX believes that palladium is higher risk and doesn't want to potentially get left holding the bag.

I can put silver or gold on CL and have it sold by the end of the day. I may have to wait weeks or even months to find someone who is interested in buying palladium at a price that is a good deal for both parties. I don't care how much palladium skyrockets. It is only worth what someone will pay you for it. And if no one wants to buy it then it is worthless.

 

[mts]

By the way, looking at the APMEX buy prices is very telling. Only silver has a buy price greater than spot right now (100.1%). The buy price for gold is at 99.9% of spot and platinum is at 99.4% of spot. So the fact that the buy price of palladium is at 96.2% of spot tells me quite a bit. The silver buy price used to lag behind gold and platinum. Now it is leading the pack due to demand.

 

[EpicDeuce]

Sold! (On not selling!)

 

[SFBayArea]

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

Well, I'm ready for the Mad Max situation. Great movie.. Got a couple guns and my V-8 interceptor ready to go. Don't have a barrel of gas ready though.

 

[fistfulladirt]

This is a bit off-topic, but for a little movie trivia:

What car did Mad Max drive in the original movie?

 

[OmegaMan]

This is a bit off-topic, but for a little movie trivia:

What car did Mad Max drive in the original movie?

1973 XB GT Ford Falcon Coupe, a car exclusive to Australia.

 

[Darth Walker]

You will make more money trading it (selling the finds and re investing to find more and selling again) than just hoarding
silver. Money not in movement is just cash, money in movement is cash producing more cash.

Just my opinion.

Darth Walker

 

[mts]

You will make more money trading it (selling the finds and re investing to find more and selling again) than just hoarding
silver. Money not in movement is just cash, money in movement is cash producing more cash.

Just my opinion.

Darth Walker

That's an interesting thought that I haven't considered before. If I had limited funds to invest then I would be more apt to consider that strategy.

 

[SFBayArea]

This is a bit off-topic, but for a little movie trivia:

What car did Mad Max drive in the original movie?

1973 XB GT Ford Falcon Coupe, a car exclusive to Australia.

That car was awesome in the original movie. If I had the funds one day, I wanted to paint my 1988 5.0 Saleen black and put in the supercharger with the manually operated clutch.

 

[clovis97]

You will make more money trading it (selling the finds and re investing to find more and selling again) than just hoarding
silver. Money not in movement is just cash, money in movement is cash producing more cash.

Just my opinion.

Darth Walker

You bring up a very, very good point.

 

[Rich Hartford]

Good video !
Rich

 

[$ilver$urfer]

Video kind of reinforces reason to keep your CRHing finds for the long term, or at least for a few more years.

http://www.youtube.com/watch?v=A1MASsKbWQs

Jim

Great video - thanks for sharing!!!

HH,

$ilver$urfer

 

[blkcwbyhat]

Just my 2 cents here...As far as selling 40's for 90's,or 90's for gold,you are just trading dollars.Sure,if we go mad max,its more portable,but who are you going to sell it to? In a total meltdown,nobody will want or need something they can't eat.The ideal time,to me,is when there are riots and such in the street's,take the money,THEN buy your guns and food!

 

[jim4silver]

Just my 2 cents here...As far as selling 40's for 90's,or 90's for gold,you are just trading dollars.Sure,if we go mad max,its more portable,but who are you going to sell it to? In a total meltdown,nobody will want or need something they can't eat.The ideal time,to me,is when there are riots and such in the street's,take the money,THEN buy your guns and food!

I don't think our society will ever go what people call "Mad Max". Maybe it is just wishful thinking on my part. But if it does happen, 99% of the population would not survive. Anyone who lives in urban areas would be gone, and many in rural areas too. Over time the stronger mobs would venture into rural areas to take what they could. Whatever force was in charge (military, police, foreign gov, etc), would crush anyone they wanted no matter how many guns or cans of beans they had in a matter of days.

That being said I do believe a person should have means to protect themselves and survive in case there was something that happened short of a Mad Max scenario, where food/water supplies were cut off for a time and the locals decided to riot to get what they need--like LA riots or during Katrina. My view is that if something like this happened it would not last forever and once things settled down gold/silver would be THE asset to be holding as far as money is concerned.

But you're correct I believe that in a Mad Max gold and silver would be useless, but so would virtually anything else other than extraordinary luck.

My 2 cents.

Jim

 

[fistfulladirt]

Just my 2 cents here...As far as selling 40's for 90's,or 90's for gold,you are just trading dollars.Sure,if we go mad max,its more portable,but who are you going to sell it to? In a total meltdown,nobody will want or need something they can't eat.The ideal time,to me,is when there are riots and such in the street's,take the money,THEN buy your guns and food!

Not trading dollars, trading PM's....and if shtf, bartering, when gold and silver are REAL money, and fiat is worthless.

 

[blkcwbyhat]

I think my mad max idea was taken wrong.A hurricane,earthquake,volcano,pick a disaster,is only a temporary local event.You can still drive a way down the road and get food,water,so on.The only time that PM will be a viable currency would be a total collapse of the current govt or banking system.I doubt that will happen soon.Now if a supervolcano like yellowstone,or the new madrid fault,or an asteroid hits us,then its game on! As a side comment,I work and deal with a lot of survivor type people.Dehydrated food,water filters,guns and tons of ammo....And junk silver!

 

[cdickrun64]

Scenario #87. Society collapses, and food, water and shelter are at a premium. I'm wandering down a lonely country road, and come across a guy who has stockpiled food and water, more than he can ever use. I ask him what will he accept in barter for 3 cans of beans and a six-pack of Piels Light. He hesitates, then asks "what do you have"? I tell him i have silver...silver coins. Even though the govt is long gone, they still have value as a trading medium.....ala money. Not as much as food, water, shelter, or ammo....but my silver still has value, and is easily transportable, i.e. I dont have to lug around a case of creamed corn until i find someone who wants it!! Besides, anyone still left over after a meltdown are proly gonna be survivalists who already have water, food, etc. Conclusion? Having some silver is a good idea......but food, Piels Light and my gun come first.

 

[FreedomUIC]

Scenario #87. Society collapses, and food, water and shelter are at a premium. I'm wandering down a lonely country road, and come across a guy who has stockpiled food and water, more than he can ever use. I ask him what will he accept in barter for 3 cans of beans and a six-pack of Piels Light. He hesitates, then asks "what do you have"? I tell him i have silver...silver coins. Even though the govt is long gone, they still have value as a trading medium.....ala money. Not as much as food, water, shelter, or ammo....but my silver still has value, and is easily transportable, i.e. I dont have to lug around a case of creamed corn until i find someone who wants it!! Besides, anyone still left over after a meltdown are proly gonna be survivalists who already have water, food, etc. Conclusion? Having some silver is a good idea......but food, Piels Light and my gun come first.

Good Strategy you have except one flaw. You need gun(s) not gun. Preferably shooting all the same cartridge. I.E. Remington 700 .308 and the Bushmaster in .308 or the old Henry rifle shooting .44 and a .44 pistol. Keep it simple but keep as many as possible.

Just my .02 cents on the issue.