patrick.net

Gold is killing it.

Has doubled since 1/1/23

Long live Malcom AKA "MEGA."

How do you think 'Gold' will react to this?

Distressed Debt Soars By 29%, Or $66 Billion, In One Week Amid Surge In Bankruptcies
https://www.zerohedge.com/markets/distressed-debt-soars-29-or-66-billion-one-week-amid-surge-bankruptcies
The cascade of defaulted regional US banks is blowing out the circulating inventory of distressed debt which expanded by about $65.9 billion last week as US insolvency courts saw six new, large bankruptcy filings, according to data compiled by Bloomberg.

The heap of dollar-denominated corporate bonds and loans in the Americas trading at distressed levels rose to $295.4 billion in the week ended Friday, a 28.7% increase from $229.5 billion a week earlier, Bloomberg-compiled data show.

Last week’s bankruptcy filings include the Chapter 11 petitions of sports broadcaster Diamond Sports Group as well as SVB Financial Group, the former parent company of Silicon Valley Bank.

In total, there were 48 large bankruptcy filings - those related to at least $50 million of liabilities - this year through March 20. That’s the highest since 2009, which saw 88 large cases through March 20, per Bloomberg-compiled data.

Gold is the ultimate insurance against the failure of the Bretton Woods/Petrodollar monetary system. Biden has, to my personal benefit, greatly increased the price of gold. As in past history, the breakdown of civilization is accompanied by an increased demand for specie, as opposed to fiat currency, because the fiat paper is backed by governments that are not long for this world.

Gold hovering above $2000. I guess all that talk about decoupling from the dollar among the BRICKs is filtering thought to the financial markets.

IDGAF - I'm going back to playing keyboards for a band that plays primarily angry women tunes and torch (alpha widow) songs. I think I'll have a blast watching the Red Pill in action among the crowd.

stereotomy says

. Biden has, to my personal benefit, greatly increased the price of gold.

Yeah, look also at the run up of silver during Obama's first term.

But the gold bugs who are buying at $2000 may be set up for a crash like the silver bugs did after 2011.

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ad says

stereotomy says

. Biden has, to my personal benefit, greatly increased the price of gold.

Yeah, look also at the run up of silver during Obama's first term.

But the gold bugs who are buying at $2000 may be set up for a crash like the silver bugs did after 2011.

,

Gold is NOT and investment. It is an insurance policy against the failure of Bretten Woods -> Petrodolar system. How many Patnetters have fire insurance, or flood insurance? That's all it is. It earns no interest, and there are continuing storage costs. We have been reminded again and again about the consequences of not being prepared for the next fiat currency collapse.

I was lucky enough (Thanks iTulip - RIP) to time the $50 silver trade. I fucked up and bought additional gold instead of stocks in 2011. I could be retired like @Patrick if I had timed the investments better. Woe is me.

EBGuy says

Premium for Silver Eagles is almost 50% over spot.

yes, silver eagles are a safe play as well as silver ETF (ticker SLV) ... i had started a thread on patrick.net about how a silver quarter being equivalent to the price of a gallon of gasoline for the last +50 years ...
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stereotomy says

Gold is NOT and investment. It is an insurance policy against the failure of Bretten Woods -> Petrodolar system.

I agree with you @stereotomy

Gold and silver are great for maintaining value more or less over very long time periods. I still have some silver dollars my grandfather gave me, and they are still worth about the same.

My dream is for silver coins to return, but without the bogus "dollar" deception printed on them. They are just silver by weight. Let's call a pound of silver a pound once again.

Patrick says

maintaining value

yep, it stores values

1 silver quarter (25 cents piece) should continue to buy 1 gallon of gasoline or whatever its equivalent replacement would be

1 ounce gold piece can buy a 3 to 4 very stylish and high quality 3 - piece suits, and it should also do the same in the future

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Interesting site:

U.S. SILVER COIN MELT VALUES
https://www.ngccoin.com/price-guide/coin-melt-values.aspx

One that surprised me was the Kennedy Half Dollar (1965-1970) coins which consist of 60% copper, 40% silver. Current melt value is $3.84.

Also, Eisenhower Dollar (1971-1976), same 60/40 ratio is now worth $8.21 melt value.

stereotomy says

Gold is NOT and investment. It is an insurance policy against the failure of Bretten Woods -> Petrodolar system. How many Patnetters have fire insurance, or flood insurance? That's all it is. It earns no interest, and there are continuing storage costs. We have been reminded again and again about the consequences of not being prepared for the next fiat currency collapse.

This is partially correct. Specie cannot be inflated, and thus it's greatest value is a hedge against inflation(theft). It has use in free economies, but as I've mentioned many times, Griffin tells us bad money drives out good, so it's not widely used. It is a long term investment. It can increase through swaps, but you hold, don't sell unless you really need to use it.

We all know the system is rigged(see Gamestonk). And we all know you can't predict a top. And if you've paid attention to real money, you also know it can be harder to get now days, and value has not been at spot for years(decoupled from fake paper market). If you stay un-diversified, you will lose everything at some point, and you won't be able to find any specie you can buy at any reasonable price, and take immediate ownership of.

This is the scenario, protect your wealth, or lose it all. You can also invest in your own business, land, crops, livestock, and guns and ammo. Will need the last regardless to protect what you have, but at least no one will instantly drain with the flick of a switch. You will have a chance to keep it. And in that case, gold silver is most transportable form of wealth.

I've never paid storage fees in my life, nor would I trust anyone else to protect my asset and not steal it when shit hits the fan.

ad says

yes, silver eagles are a safe play as well as silver ETF (ticker SLV)

Keeping in mind the comment above, ETF's are paper, so will lose all value with everything else that isn't real. Eagles command a high premium, and premiums always disappear over time. Rounds are a better bet, or WHATEVER you can get the most most ounces for.

ad says

Patrick says

maintaining value

yep, it stores values

1 silver quarter (25 cents piece) should continue to buy 1 gallon of gasoline or whatever its equivalent replacement would be

1 ounce gold piece can buy a 3 to 4 very stylish and high quality 3 - piece suits, and it should also do the same in the future

.

This is more relevant when you also state the inverse. Fiat paper always loses value over time.

"IF GOLD IS GOOD FOR CENTRAL BANKS, WHY NOT FOR US, TOO? “A [recent] annual poll of 83 central banks with a combined $7 trillion in foreign exchange assets, found that more than two-thirds of respondents thought their peers would increase their gold holdings in 2023.”

In fact, since 2015 they’ve bought three times as much gold as treasury securities, and in 2022 central banks bought more gold than any other year since data began in 1950. "Gold is now up 20% in six months and the heavy buyers are central banks, who are sharply reducing dollar holdings in favor of a safe alternative. Presently they account for 33% of monthly gold demand.” See Financial Times article"

https://www.ft.com/content/e9c78b99-8a29-47e2-b5bf-9f7542608cf6

"LOCAL MONETARY NETWORKS. When folks ask me about the dollar crashing or how will you use silver and gold as money after CBDC is installed, I am always a bit frustrated. For me, of course, dealing with metals all these years it’s no problem but not so for most folks. This morning my son Justin gave me the answer: create local monetary networks that use gold and silver right now. Create social media groups whose members offer their goods and services for payment in silver or gold. Accustom yourselves and others to using gold and silver. Stop waiting for somebody on a white horse to save you and begin to save yourselves, and others.

Here’s a way to get started: familiarize your self with the website Catherine Austin Fitts and I put up, https://silverandgoldaremoney.com./ You can punch in any paper money amount and it will tell you ho you can pay it in silver or gold. It even has a way you can enter the premium on the item.

Wait! How do you know what the premium is? Simple, the prices I send y’all daily are wholesale prices and if you’ll look at the price table you’ll find the premium on the far right hand side in both percentage and dollar terms. Use the percentage in the silver and gold calculator.

Finally, remember that a price is what a willing buyer and willing seller agree on. If you agree one it, it’s the “right” price.

Also, your state doesn’t need any special law for you to use gold and silver as money. That’s a private contract between buyer and seller, and you can use any money the two of you agree on. You are free to choose!! “Legal tender” only apple when no particular money is specified."

- Franklin Sanders

Silver has been dead for a long time.

ad says

silver eagles are a safe play as well as silver ETF (ticker SLV)

SLV and GLD are fine investments for your non-taxable IRA account, but do yourself a favor and don't hold them in a taxable account. Those funds sell a tiny bit of their metal holdings each month to fund their daily activities. As an owner of the instrument, you need to make a complicated entry on your taxes for each month or part of a month that you own them. For those who have already made this mistake, here's a website that can help you: https://www.costbasistools.com/silver/SLV.php

SunnyvaleCA says

SLV and GLD are fine investments for your non-taxable IRA account, but do yourself a favor and don't hold them in a taxable account. Those funds sell a tiny bit of their metal holdings each month to fund their daily activities. As an owner of the instrument, you need to make a complicated entry on your taxes for each month or part of a month that you own them. For those who have already made this mistake, here's a website that can help you: https://www.costbasistools.com/silver/SLV.php

Don't buy any silver or gold unless you have physical possession. Otherwise, you're just trading more paper. There are IRA's that allow this.

clambo says

Silver has been dead for a long time.

Silver is more important than gold for money, always has been. And the two are very closely linked, so you're statement would have to apply to both. And in the end, silver will make the bigger gains, not gold.

Nothing like a series of bank failures to buoy gold. Currently above $2010.

Someone on Patnet once posted the amount of gold or silver (or both?) one could buy without raising suspicion. It seemed to be a nice dump of info but I can't find it anymore.

Was that you @NuttBoxer? I'm pretty sure it was you.

How does anyone know how much specie you are buying to start with? I don't believe the dealer has any reporting requirements. But they should be someone you can trust regardless. Now with the reporting changes from the IRS, I think they want banks to tell them about ANY cash withdrawals at $600 or more, which I think a lot of the smaller banks are against doing. But if you're paying by check, again, not sure anyone is reporting anything.

I can tell you I certainly don't disclose my buying habits to anyone outside my dealer and my family. The less people know, the better.

Buy simple chain jewelry. Jewelers, esp the ones that sell chains, aren't banks.

Also, if you're late for a gift selection: Dual Use!

NuttBoxer says

How does anyone know how much specie you are buying to start with? I don't believe the dealer has any reporting requirements.

The dealer has reporting requirements for cash transactions over $10k. There is a pretty nuanced list of scenarios at:
https://www.pacificpreciousmetals.com/reporting-requirements-buying
Note: The dealer will not consider a cashiers check over $10k to be CASH (doesn't have to report), but the bank will have to report.
https://www.irs.gov/pub/irs-pdf/p1544.pdf

Here is the size of transactions that trigger a 1099-B being issued by the dealer when selling your precious metals to them.

clambo says

Silver has been dead for a long time.

Silver has been on a tear since March 8th when the gold/silver ratio hit 90. Silver is up over thirty percent and the ratio is now below 80. Pretty convinced any time the ratio hits the high eighties (on the upslope), it's pretty close to sure thing (for at least a 10 percent boost). YMMV.

AmericanKulak says

Buy simple chain jewelry. Jewelers, esp the ones that sell chains, aren't banks.

Government issued coins (constitutional or bullion) are easier to verify and trade.

Onvacation says

Government issued coins (constitutional or bullion) are easier to verify and trade.

Current premiums are 50% over spot for Silver Eagles and 30% for Silver Maple Leafs. Yikes. Gold is a bit more reasonable and available (4% over spot for Gold Eagles).

Buy any well known coins that give you the most ounces. And always remember to take the ratio into consideration. Right now it's high, so only buy silver. Rounds carry some of the lowest premiums.

EBGuy says

The dealer has reporting requirements for cash transactions over $10k. There is a pretty nuanced list of scenarios at:
https://www.pacificpreciousmetals.com/reporting-requirements-buying
Note: The dealer will not consider a cashiers check over $10k to be CASH (doesn't have to report), but the bank will have to report.
https://www.irs.gov/pub/irs-pdf/p1544.pdf

Here is the size of transactions that trigger a 1099-B being issued by the dealer when selling your precious metals to them.

My guy won't accept cashiers checks. And he's out of state, so no cash. Has to be personal check, or bank wire only. I think he does that to get around some of the reporting you mentioned.

I wouldn't worry about your coin dealer anymore than your gun dealer. Your bank is the one most likely to sell you out.

Rather hold 1 ounce silver eagles

They seem to have more liquidity than gold coins

"GOLD WORKS IN ZIMBABWE, WHY NOT HERE? Plagued by hyperinflation, on 8 May 2023 the Reserve Bank of Zimbabwe (RZ) announced it will start selling gold-backed digital tokens with minimum price of US$10 and denominated in milligrams of gold. These tokens will be convertible though the banking system into physical gold coins. Of course, the International Monetary Fund advised Zimbabwe against this move. Sounds to me as if the IMF is going to hell itself and doesn't want to see anyone else saved."

- Franklin Sanders

https://www.pindula.co.zw/2023/05/08/buying-rbzs-gold-backed-digital-tokens-here-is-what-you-need-to-know/
https://www.pindula.co.zw/2023/05/09/imf-advised-zimbabwe-against-adopting-gold-backed-digital-currency-for-economic-stability/

Would anybody trust any currency Zimbabwe makes?????

Sure they have the gold...you can trust 'em this time.

Misc says

Would anybody trust any currency Zimbabwe makes?????

Sure they have the gold...you can trust 'em this time.

As long as you can convert it, you should.

Did you know in the 1920's, there was a propaganda campaign that encouraged people to move to using dollar bills instead of gold coins? Only "hicks" used gold coins. Government always steers you in the wrong direction.

If you live in Zimbabwe, convert to gold, always.

It's that time again - GOLD GETTING KILLED!

Just the latest of many, many articles I've seen about central banks buying gold. Now if you know a currency is about to collapse, and the new one isn't out yet, and you don't want to get screwed on the conversion...

https://www.zerohedge.com/markets/central-banks-are-buying-gold-record-pace-what-does-mean-inflation

It goes up. It goes down.

South Korea rolling out gold vending machines..

https://zerohedge.com/commodities/gold-bar-vending-machines-rolled-out-south-korean-convenience-stores