Inflation

[Saabman]

From ZeroHedge:

http://www.zerohedge.com/news/guest-pos ... s-out-hand

"If my monthly expenses are about $3,000/month, I need 45 ounces to cover two years of high inflation, and 90 if it lasts four years."

[OtusLotus]

I am no dummy! I truly get the fact that gold and silver has risen, in stride, with the rising prices of everything else. In other words, a silver quarter today will still buy a gallon of gasoline (almost two). Which is why I stack!!!

However, no one around me takes silver/gold coins for goods. I cannot just walk up to a gasoline station and say here is a 1964 quarter, I would like 1.5 gallons of gas...NO.. it just doesn't happen.

So that means that I then need a place to sell my coin, in exchange for FRNs. And everyone here knows that I am not going to get the full value of the silver in the coin.

And then there is the replacement value of the silver that I sold. Obviously, unless I find them in the wild, it will cost me pretty close to, if not above spot. And then there is the haircut that I must take in order to re-liquidate the silver.

It just seems to me that when articles like this come out, with respect to the product to gold/silver ratio, they are not truly representing reality, because the price of spot is something that no one here can expect to achieve!

[mbailey1234]

There was an interesting chart in that article comparing the price of corn to gold throughout the years form Casey Research. Anyone know where to find other charts like that that go back to the 50's and before? Things like milk, gas, diesel, meat prices, cars, etc.??

[slvrbck]

I am not sure what region u r located nor the market conditions during your liquidation but I have never sold a gram of precious metal below spot

[slvrbck]

Come to think of it I don't believe I have ever paid over spot for a gram either. Be smart my friends.

[Kurr]

You can work trades of your PMs for goods/services, but not through the "corporate" businesses. Find mom n pops, or personally owned business and negotiate with the owner.

A good place to start if you are inclined is, say, your local farmer's market, or local non corporate gas station. We have one here (i have never tried it here) that is "employee owned and operated". Your local 7-11, Thortons, Speedway, etc isn't going to go for the trade deal.

I have traded silver at 3-4 times what I opriginaly paid for it in antique shops to get tools to work with that were either specialty or of a quality they don't make anymore. I hate to trade a durable good like silver for consumables like food and gas, but that is just me. Your milage may vary. Be creative and remember, theres no harm in asking.

[everything]

I'd like to know the secret of purchasing .999 for less than spot, I know it's pretty easy to sell for over spot.

[slvrbck]

c'mon folks, buy low sell high! PM's are just like anything else (cars, houses, land). Stay away from unscrupulous dealers and pay w/ cash if you can. Ive never paid "book" value for a vehicle and never paid market price for a property either. I remember buying a nice lot of BU eagles for $10 a pop back when spot was $11.50. Shop around.

[penny pretty]

the charts were nice,But I cant see a time when you are paying for things like a college education, or an oil change for your car in PMs. If you are paying for anything in PMs, its already hit the fan, and you will be using them for MUCH baser needs.

[Numis Pam]

Good artical... loved the chart... thanks for the post!1

[slvrbck]

Anyone in SW PA i will gladly change your oil for 5-6 silver quarters depending on how many quarts it takes. Several years ago I traded an ol' lawnboy push mower for a dansco w/ 16 ASE's including a 96. Last month i traded 4 of em for a nice 18hp lawn tractor. If that aint inflation I dont know what is. I buy and sell alot of stuff and i always put the option out there to deal in silver. You'd be surprised how many people have old coins layin around that would much rather trade them than part with the bills in their pocket.

[mbailey1234]

the charts were nice,But I cant see a time when you are paying for things like a college education, or an oil change for your car in PMs. If you are paying for anything in PMs, its already hit the fan, and you will be using them for MUCH baser needs.

I agree but the reason I was looking is to see how certain commodities performed vs. gold (or silver) over the past 10,30 or 50 years. I'm sure there have been opportunities to be on the winning and losing side of the fence throughout history. I have found a few on gold vs crude, the dow, T bonds etc but I'm sure there are more out there. One I can't find yet and would like to see is the gold vs the dollar.... In nominal dollars is gold worth more or less than it was in the past, or the same??

[scyther]

One I can't find yet and would like to see is the gold vs the dollar.... In nominal dollars is gold worth more or less than it was in the past, or the same??

Um, nominal dollars? Much more.

[penny pretty]

There was an interesting chart in that article comparing the price of corn to gold throughout the years form Casey Research. Anyone know where to find other charts like that that go back to the 50's and before? Things like milk, gas, diesel, meat prices, cars, etc.??

LOL I think corn has done the best in the past month or so(drought) mmmm CORN!