Regarding Jim C's most recent blog-post. Gold, Gold, Gold. It initially appeared to have less meat on the bone than I prefer ... and Ninja - well lets just say it is my preferred morning coffee machine.
So, why did Jim C. take the time to post it?
Seriously, what does Jim C. think of metals other than Gold Gold Gold? Perhaps he has shared more historically about such on his blog - I wouldn't know.
Serendipitously, a quick trip back to resetus.us answers that in short order as Jim C. explains with great enthusiasm various opportunities regarding metals under the [hyperinflation] menu item. It contains some unique and potentially very clever scenario planning strategies and examples, but not so much basic co-side-rations when procuring it.
Metals procurement primer:
1. (as a buy-hold) Metals (gold and silver) may be a wise part of any financial portfolio - as a hedge against many worst-case possibilities and probabilities; For example, Martin Armstrong, Jim Rickards, Catherine Austin Fitts and other well-known successful money mangers generally suggest holding up to 10% -20% of a portfolio in metals as "insurance".
2. Consider metals an investment of last resort that historically not only holds value in the worst of troubling economic times, especially during times of war, but typically surges. The cleanest dirty shirt - scenario.
3. Depending if or when you buy, it may go down in value before going up. That said - as an insurance policy it may be better to buy it and wait versus waiting to buy. Initial purchase price may be less important; however, If you "won't" emotionally stomach that dynamic - then you may want to pass for now.
4. Additionally, you may want to more frequently (trade-it) buy(low) and sell(high) for potential of increasing cash-flow, but you would likely need have a bit of experience how to do that and typically people don't do that as much with the actual metal vs. stock market-based ETF's like GLD or SLV which are not as likely considered "insurance". Nothing appears to beats physical metal as the ultimate insurance - keeping it close to one's chest.
5. Both Gold and Silver appear to have historically both surged upward, together, during either a currency, government bond crises, war etc. Gold more-so during war. Both during a sovereign debt crisis.
6. For metals purchase, I have had great experience with both Miles Franklin (privately owned but very established) - which has online services, but they wisely prefer to assign actual inside representatives for new accounts or people who are new to purchasing metals. There is a bit of a procurement learning curve and it might be wise to prioritize a bit of hand holding. Your mileage may vary.
7. Otherwise, I have found Apmex.com to be a wonderfully simple online mega broker - once you know the purchasing processes. Your mileage may vary.
8. Martin Armstrong (blog: armstrongeconomics.com) arguably the leading international investment adviser to countries, central banks, large institutional investors - seemingly recommends buying only easily recognizable US Government "minted" Coins like Gold or Silver "Eagles" as "insurance" during times of international volatility.
9. A "minted" coin will cost more than the spot-value of raw gold or silver as it has adds additional value to it - that premium is called "seniorage". It may appear initially as a negative, but typically that premium is recovered when you sell depending on the sale price.
10. Silver Eagles are currently selling for about $32/oz where-as Gold is around $2270/oz - so ounce per ounce it "currently" takes a total of 71 - 1oz silver eagles to equal the value of a single (1) - 1oz gold eagle. That impacts both shipping and storage weight etc.
11. However, on the upside, silver may be much easier to trade with others for "things". You won't eat gold or silver during an hit-the-fan "event", but silver may save your bacon as a unit of "trade" or barter.
12. Either metal may also be cleverly hypotheticated - see Jim C's website for that and other details.
All my best,
Jim B
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