Prepping For the Silver Shortage

[beauanderos]

We've all discussed worst case scenarios, and how we would prep for them. If we haven't already taken steps to build a pantry of non-perishable food items and stores of water, capable of sustaining our families for weeks, if not months, then at least those thoughts of "I really should do something about that" impinge on our collective unconsciousness. As well, many have taken steps to defend what they've secured -- lasting stores of real value in metals, that will protect their purchasing power in hyperinflationary scenarios -- through means of their Second Amendment Rights.

If not yet, we are close to exhausting the available stores of investible silver in forms that the average stacker can afford. Few have the discretionary income to cavalierly toss at obtaining 1000 oz COMEX silver bars, so for all intents and purposes, that source is academic. What we are finding to be true, and we are all recent witness to it, is that the existing supply of small forms of silver is inadequate to meet current demand... and this while only one percent of the public is aware of the need to divest from fiat and build their savings in real money forms, ie silver and gold.

The premiums that many complain about are symptomatic of this shortfall, and may lessen or increase from this point onwards. No one can provide a definitive answer in that regard. But let's surmise that this is just the beginning... and it's only going to get much worse. For a moment, forget about gleefully rejoicing as silver and gold prices skyrocket to stratospheric heights (which they will inevitably do, sooner than later would be my guess)... and consider a consequence of investible silver items depletion.

People will awaken to their need for a sizable component of silver and gold asset allocation in their portfolios, and just as present stackers hurry to increase the size of their stacks, their ability to do so will evaporate. Not for lack of fiat... but due to permanent backwardization of silver and gold. A few years from now no one will be willing to sell their (really) priceless tangible physical metal for mere paper, particularly if valuing those metals in rapidly depreciating dollars is shifting at an exponential rate. Silver that was $28 at the moment of a private message has increased $1.50 by the time of a response... and another $3 by the time of a confirmation reply. Who would sell under such conditions? Such an event WILL come to pass, it's only a matter of time.

So, the aforementioned is the scenario, we're not considering everything else concomitant to a huge price rise in the metals... merely this. How would you prep for this forthcoming silver (and to a lesser degree, gold) shortage? If you could only make ONE more purchase today at current prices, even though it might take an eight week delivery... given a budget of $5000, what would you buy now... and WHY? And if you're from the camp of those who are salivating for even juicier prices than what are currently being served up... won't you feel chagrined if you go hungry inspite of your good intentions?

[Z00]

I would look closely at the most reasonable premium for fractionals from a good known brand. If the demand is as you say, with prices in relation to fiat, rising in a hyperinlationary manner, the ability to have small amounts that will not require change to be given, will be a must. The 1 oz round will equate to the 100 oz bar of today.

[Lemon Thrower]

go with 1 ounce, recognizable, lowest premium available. Golden state mint for example. I was able to get some J&M 1 oz bars for 1.99 over as another example.

Cull silver dollars may be good if you can get them cheap enough. most folks have not lowered their prices.

[beauanderos]

For me, the answer is silver fractionals, the smaller the better. This means silver as small as one gram, 2.5 and 5 gram pieces, although for the purposes of minimizing expense and amassing more recognizable forms of silver with easily verifiable provenance... 1/10 oz .999, 1/4 oz .999, and 1/2 oz .999 from reputable mints. 90% silver is going to disappear, and I really do think even one ounce silver rounds will eventually prove unwieldy to barter or resale in a revaluation scenario where we're looking at $800 silver and $20,000 gold. Sure, that might be a huge leap of faith for this congregation to embrace, but certainly it is no worse than the epiphany of comprehension that fiat is totally worthless, and has value only under the current regime. Paradigms change... don't become an extinct fiatsaurus.

[Z00]

For me, the answer is silver fractionals, the smaller the better.

That is basically what I said.
I keep hoping that someone will develop a US brand version of a snap apart bar like Valcambi.

The cost of minting the bars and rounds is pretty much predicated on the stamping unit measure. Once the dies are made, it cost's a 100 times less per stamping to produce a 100 gram snap apart bar than 100 individual 1 gram units.

[CtrlAltBernanke]

Since this is more of a survival question, if I had one purchase left I would use it all up on junk silver at the lowest premium I could find. If the premiums are higher than private minted rounds then I guess I would turn to the sunshine mint or something like that. I agree that this casino cannot last forever, BUT the fricking government seems to always find away to lie, distort, redefine, whatever it needs to do so the roof doesn't collapse. So even though I totally agree that silver should break triple digits, and gold should double or triple in value, I'm not sure that it will because of all the tricks the government continues to do. Don't get me wrong though, I've been buying as much silver as I could the last two weeks or so because of the price dip and I will continue to. I almost feel that the only way this is going to happen is if China does an all out currency war with the US.

[tedandcam]

half in 1/10 oz gold eagles - half in 1/10 oz silver fractionals from a reputable mint.

[beauanderos]

For me, the answer is silver fractionals, the smaller the better.

That is basically what I said.
I keep hoping that someone will develop a US brand version of a snap apart bar like Valcambi.

The cost of minting the bars and rounds is pretty much predicated on the stamping unit measure. Once the dies are made, it cost's a 100 times less per stamping to produce a 100 gram snap apart bar than 100 individual 1 gram units.

You're right, basically what you said... but as I was typing my answer yours posted, and I wasn't going to go to the effort of rewriting mine

It would be GREAT if someone stateside could do a Valcambi. "Kurr?" "Rodie?" "Silver Addict?" "Nate?" Step up, Brothers... the markets await.

[Z00]

Yeah, make it an RC project. You buy the used coin press, MH can make the planchets, now we need a die maker and a design team.

GO FOR IT!!


EDIT:
Make it a 30 gram unit (3x10 better yet 5x6) so that the pricing will approximate a 1oz bar and will be different from the 50 and 100 gram Valcambi units.

[beauanderos]

Yeah, make it an RC project. You buy the used coin press, MH can make the planchets, now we need a die maker and a design team.

GO FOR IT!!


EDIT:
Make it a 30 gram unit (3x10) so that the pricing will approximate a 1oz bar and will be different from the 50 and 100 gram Valcambi units.

Natsb88 already has a die press, Rodie can do the design

[SilverDragon72]

For me, the answer is silver fractionals, the smaller the better. This means silver as small as one gram, 2.5 and 5 gram pieces, although for the purposes of minimizing expense and amassing more recognizable forms of silver with easily verifiable provenance... 1/10 oz .999, 1/4 oz .999, and 1/2 oz .999 from reputable mints. 90% silver is going to disappear, and I really do think even one ounce silver rounds will eventually prove unwieldy to barter or resale in a revaluation scenario where we're looking at $800 silver and $20,000 gold. Sure, that might be a huge leap of faith for this congregation to embrace, but certainly it is no worse than the epiphany of comprehension that fiat is totally worthless, and has value only under the current regime. Paradigms change... don't become an extinct fiatsaurus.

I do like the fractional silver myself! I've been adding silver dimes and quarters to my stack when I'm able to do so. I like the 1/4 ounce rounds from Sunshine Mint.

I haven't explored getting the really small stuff though, like the 5 gram or smaller denominations. I may have to look into these!

[Kurr]

I have one I carry that I have designed and stamped individually. It's the size of a credit card for easy carry convenience. It's 3 grams high and 7 grams long.

I have yet to get the tooling, that will come after I get a press and upgrade my mill more than likely.

I am currently making as fast as I can, this last order after, recouping from some things and building inventory back up was 589 grams, 500 was spoke for before I even had the material milled.

[reddirtcoins]

So,
According to reports there is 160,000 tons of gold in the hands of the people. So that's .045 of an ounce per person on the planet. I wonder what the figure for silver would be? Seeing that really hits home having a lot of fractional is a good thing. I love dimes myself.

[68Camaro]

The number for silver is <1 oz per person.

[Engineer]

I'd spend the $5K equally between dimes and 1/10th gold.

[68Camaro]

So, the aforementioned is the scenario, we're not considering everything else concomitant to a huge price rise in the metals... merely this. How would you prep for this forthcoming silver (and to a lesser degree, gold) shortage? If you could only make ONE more purchase today at current prices, even though it might take an eight week delivery... given a budget of $5000, what would you buy now... and WHY?

The answer is going to be very dependent not only on beliefs but on where each person is with their goals for those beliefs. For me, I believe I personally have plenty of fractional silver primarily in the form of dimes. If things get to the point where people will really be trading in fractional silver, people will also have no problems taking a chisel to a larger coin and dividing it - it's what used to be done and it'll be done again (if that same scenario plays out that silver is needed for transactions).

Again (because I've said this many times here) the primary purpose of PM is not for spending during a crisis, but to transfer wealth from one side of crisis to the other side. The most portable form of that is gold. If you ever need to bug-out or move, that ton of silver in the safe isn't going to move with you very easy. I personally am slightly over bought on silver (proportionally) and with that $5000 I would be buying more of easily recognizable gold coin (ASEs, Maples, etc) with it. But that's just me.

[Copper Catcher]

What say you????

There Is No Silver Shortage
http://www.youtube.com/watch?v=6dBL2IY3pYo

US Mint Sells Out Of Eagles!
The mint running out of Eagles isn't relevant
http://www.youtube.com/watch?v=QW2gfyTaiI0

[neilgin1]

its funny Ray......i was just coming into post a one sentene header, "Isnt It So Apparent?"

and the text readsm "what happens next?"

and the first thing i see is your post........i'm sticking with the pre 65 90's and the 65-70 40 halves, and the 71-74 40 Ike, the ASES, .999's, all backed with 95 coppers and 75/25;s 5 cent pieces for change,,,,,,i;ve been calling it the "USA" program since i started,,,,if it doesnt say USA on the coin, i dont want it.....

same way, if its a "city", i dont want it......too many of the 99 that kept their heads in the sand, when the hard times REALLY hit, mannners and deceny will go out the window, i got security in hand, but i dont want to have to get ugly,

metals good, protein good, but in hard timesm you know whats gonna trade GOOD?

Pain relief.........there's gonna be a lot of pain, and people will PAY to get rid of pain,,,

food for thought, huh?

aint scared of hard times....i'm just kinda blue and heart broken its come to this,,,,,It DID NOT have to, n.

[wheeler_dealer]

If premiums were the same across the board I feel it would make sense to consider acquiring small recognizable units. 90% Roosevelt dimes are the most recognizable to the sheeple. If the need to barter arises small denomination should achieve the most impact. Small ticket items seem to be most in line with dimes value. the difference could be made up in nickels and copper cents.
I should pick up some dimes before they are all lost to the strong hands.

[reddirtcoins]

What say you????

There Is No Silver Shortage
http://www.youtube.com/watch?v=6dBL2IY3pYo

US Mint Sells Out Of Eagles!
The mint running out of Eagles isn't relevant
http://www.youtube.com/watch?v=QW2gfyTaiI0

Oh baby! Did you see that pallet of monster boxes?!!!

[beauanderos]

pick up some dimes before they are all lost to the strong hands.

Ding, ding, ding... we have a winner!

I'm pouring every cent I have into whatever I can grab. Luckily I'm buying into a trough... and as it is summertime we may have a couple of months to buy product... if you can source it

[HoardCopperByTheTon]

There actually are members that have coin presses. I considered buying one once from another member.. but the cost of shipping is a killer.

[johnbrickner]

the primary purpose of PM is not for spending during a crisis, but to transfer wealth from one side of crisis to the other side. The most portable form of that is gold. If you ever need to bug-out or move, that ton of silver in the safe isn't going to move with you very easy. I personally am slightly over bought on silver (proportionally) and with that $5000 I would be buying more of easily recognizable gold coin (AGEs, Maples, etc) with it. But that's just me.

Emphasis mine.

Transferring wealth or value. Portability, proportions and privacy.

You've got your Cu, CuNi, Ni, Ag, and Au. All concentrate value and listed from a lower to higher concentration. For many of us, Ag seems to be the main or more popular stack and many diversify into several if not all. However, unless you are going to make your stand on your stack you must consider the bug-out option.

As '68Camaro points out, "that ton of silver in the safe isn't going to move with you very easy". The same must be said for your Cu pennies and Ni nickels (or alloys of CuNi). If the bank is open they can be converted to FRNs. Maybe not the preferred option, but portable.

At some point, you have to move up the concentration value scale and put your wealth into a more portable form. Again, as '68Camaro points out he would be buying AGE's or Maples, etc. to keep the proportions in line with his way of thinking. I have to agree and like the way he thinks. But, at some point the stuff continues to get to darn heavy and is no longer easily portable.

So with my $5,000, I'm buying a ton of concentration in an extremely small package. I'm buying a bit less than a carat of a good quality, fancy yellow colored diamond. What I would consider the next step in wealth concentration, portability, and privacy. Unless things have changed, last I read such a purchase is not reportable. Black and yellow colored being at the bottom of the scale. At the top of this scale would be a red colored diamond at the same size/quality for something less than $1,000,000. Pink and Blue (just below red) are perhaps more popular colors.

[beauanderos]

the primary purpose of PM is not for spending during a crisis, but to transfer wealth from one side of crisis to the other side. The most portable form of that is gold. If you ever need to bug-out or move, that ton of silver in the safe isn't going to move with you very easy. I personally am slightly over bought on silver (proportionally) and with that $5000 I would be buying more of easily recognizable gold coin (ASEs, Maples, etc) with it. But that's just me.

Emphasis mine.

Transferring wealth or value. Portability, proportions and privacy.

You've got your Cu, CuNi, Ni, Ag, and Au. All concentrate value and listed from a lower to higher concentration. For many of us, Ag seems to be the main or more popular stack and many diversify into several if not all. However, unless you are going to make your stand on your stack you must consider the bug-out option.

As '68Camaro points out, "that ton of silver in the safe isn't going to move with you very easy". The same must be said for your Cu pennies and Ni nickels (or alloys of CuNi). If the bank is open they can be converted to FRNs. Maybe not the preferred option, but portable.

At some point, you have to move up the concentration value scale and put your wealth into a more portable form. Again, as '68Camaro points out he would be buying ASE's or Maples, etc. to keep the proportions in line with his way of thinking. I have to agree and like the way he thinks. But, at some point the stuff continues to get to darn heavy and is no longer easily portable.

So with my $5,000, I'm buying a ton of concentration in an extremely small package. I'm buying a bit less than a carat of a good quality, fancy yellow colored diamond. What I would consider the next step in wealth concentration, portability, and privacy. Unless things have changed, last I read such a purchase is not reportable. Black and yellow colored being at the bottom of the scale. At the top of this scale would be a red colored diamond at the same size/quality for something less than $1,000,000. Pink and Blue (just below red) are perhaps more popular colors.

Certainly something to consider... thinking outside the box there, good on ya

BUT... isn't DeBeers just the opposite of JPMorgan? Keeping prices artificially high by suppressing release of what is reportedly millions of carats from reaching the markets? I read some marketing stuff from the sixties and seventies about how they popularized diamonds with women (good reading btw) and how there are huge diamond fields in Russia... but that a diamond cartel keeps prices artificially high by only permitting a trickle of stones into the market each year. Is this an urban myth?

[68Camaro]

Actually I had a typo above - the context of the sentence was gold, but then I typed ASE when I meant AGE. I would be buying gold with that $5000.

Diamonds... good thought, but my problem with diamonds is that they are made from a common element carbon and can be synthesized, and even the natural diamonds aren't actually rare, just made artificially scarce and the desire ramped up for women by the cartel(s). There are faux diamonds that are as attractive (if not more so) like moissonite.