Introducing the Gold & Silver Group on PeakProsperity.com

Adam Taggart
By Adam Taggart on Tue, Dec 11, 2012 - 2:06pm

Today we're introducing the new Gold & Silver group on PeakProsperity.com. It's intended to be the best place on this site for readers to discuss all things precious metals-related.

So if you own a little gold & silver, or are thinking about doing so, or are a full-fledged precious metals "bug", click here to get to the Group main page and then click the Join This Group button.

And to add a little spice to today's launch, I've assembled some of the more interesting 'fun facts' on gold and silver I seem to be endlessly emailed each week. Hope you enjoy (and feel free to add any other good ones in the comments below!)

VisualCapitalist.com's entire Gold Series of infographics is worth viewing. Here's Part 2 from the series:

Gold & silver's role in history:

Gold and Silver Fever | GreatSouthernCoins.com
Presented By GreatSouthernCoins.com visit greatsoutherncoins.com

And here's a good visual of the sources & uses of gold:

The Gold Tree Infographic

From: Trustable Gold

13 Comments

Adam Taggart's picture
Adam Taggart
Status: Peak Prosperity Co-founder (Offline)
Joined: May 26 2009
Posts: 3082
Good visualization of $1Trillion and the US National Debt

Not gold-related per se, but hard to watch without wanting to immediately exchange all of your paper money for bullion:

Petey1's picture
Petey1
Status: Bronze Member (Offline)
Joined: Sep 13 2012
Posts: 64
Thanks for the info!

The video is scary lol.

AustinHorn's picture
AustinHorn
Status: Member (Offline)
Joined: Jan 31 2012
Posts: 18
Nice video Adam

Thanks for posting - unbelievable!!!  And thanks for setting up the group.

BTW, I love demonocracy's stuff.  They have great infographics. 

Wade

bhardey's picture
bhardey
Status: Member (Offline)
Joined: Oct 19 2010
Posts: 11
coin vs. bar

First, Adam - thanks for the Demonocracy clip on Federal debt... very sobering.

Second, I am looking to increase my PM holdings - modest, but it's a start - and would appreciate views/comments re: the pros & cons of buying coins (Eagles, Maple Leafs) vs. bars/bullion.

Thanks,

bhardey

 

 

Adam Taggart's picture
Adam Taggart
Status: Peak Prosperity Co-founder (Offline)
Joined: May 26 2009
Posts: 3082
For gold: coins. For silver: both

bhardey -

Glad you found the video clip worthwile (if not unsettling)

For gold, I recommend sovereign coins. They're the most uniform, widely-recognized, most preferred unit by retail coin dealers (whom you'll likely be selling them back to some day). I'd stick mostly with 1 ounce coins. The premiums are unattractively higher for smaller donimination coins -- and silver can likely be used as a substitute at those lower denominations.

You can buy gold in small-sized ingots, though my experience is that dealers are less fond of them. If you want to go this route, I'd recommend buying the Pamp Suisse ones.

You can also buy gold at larger denominations, like kilo bars, but I'd recommend against tying up so much of your wealth in such a large unit -- unless you have a very large amount of captial to preserve. And I'd only consider doing so after having built up a sizable number of coins first.

For silver, I'd advise a mix of coins (actually rounds) and bars (both 10oz and 100oz).

If we ever get back to a system where the PMs serve as money again, silver coins/rounds will be used for the everyday transations. The dealers I know recommend acquiring rounds versus soverign coins for silver, because you can get a good deal more for your money (the soverign coin premiums can get pretty steep) -- as long as you buy rounds from the several well-known producers whom dealers have confidence in their product quality.

I find that dealers are less fond of buying back junk silver. It's a pain for them to count and test, and if silver demand is high, they may have to send it to a refiner, which introduces time and $ costs. I'm not advising against owning junk silver, I'm just saying be aware of how dealers view it.

Silver bars are a great way to store value. I personally recommend buying bars from the two best-known refiners: Engelhard and Johnson & Matthey. You pay a little extra, but you have the peace of mind knowing a dealer won't underpay or refuse a bar due to suspicion about its quality.

For silver, I recommend starting with rounds until you have a nice base of emergency silver. Then start adding 10oz and/or 100oz bars as you can afford.

bhardey's picture
bhardey
Status: Member (Offline)
Joined: Oct 19 2010
Posts: 11
good info...

Thanks Adam, for your advice and insight.  I will consider these recommendations - and any other's 2 cents worth that they'd like to toss in! - as I attempt to increase my holdings before things get too crazy.  I have a strong sense that in the not-too-distant future, PM's may have exploded to a point where I won't be able to afford them anymore.

nigel's picture
nigel
Status: Silver Member (Offline)
Joined: Apr 15 2009
Posts: 145
Gold can be debased

The video said that gold can't be debased. It can, if memory serves the roman empire started mixing other metals with their gold coins to debase their currency.

If I was a betting person and wanted to be a fussy person with a dictionary I believe that the word debase directly refers to 'base' metals.

Grover's picture
Grover
Status: Platinum Member (Offline)
Joined: Feb 16 2011
Posts: 843
What to hold

bhardey,

I condsider gold to be for long term savings (for major purchases) and silver to be primarily for use as a "bartering" tool. If I planned to use a dealer to convert PMs into fiat, I'd follow Adam's advice. If I were planning to use PMs outside of the fiat system, I'd make sure I had small denomination coins that are identifiable by commoners who have items I may need. As such, I'd recommend having a portion of your silver in pre 1965 US coins. These are 90% silver and are recognizable by just about everyone. You'll have to explain that your coins are worth more than face value at first. If fiat collapses, everyone will quickly learn what value these coins really hold.

Talk with a few coin shops and find out what premia they charge over/under spot for sales/buying. It would be good for you to confirm Adam's advice in your area. I'd say that the lowest overall premia (what percentage would you lose if you bought and immediately sold back to the dealer) would be the preferred vessel. Ask them how it has changed over time? Please report back to this group so we all can learn from your efforts.

Grover

reflector's picture
reflector
Status: Gold Member (Offline)
Joined: Aug 20 2011
Posts: 269
gold cannot be debased, but currency can
nigel wrote:

The video said that gold can't be debased. It can, if memory serves the roman empire started mixing other metals with their gold coins to debase their currency.

 

nigel, as you correctly point out, roman emperors debased their currency. if i recall, emperor diocletian was the prime example of this debasement.

you can't debase gold, it is what it is.

but you can dilute it in your currency with base metals and try to pretend it is still worth the same - whether or not the public believes the lie is another matter.

the american empire is following the same path of debasement, with silver coins being replaced by copper and nickel, copper pennies being replaced by zinc ones, and nixon closing the gold window in 71.

reflector's picture
reflector
Status: Gold Member (Offline)
Joined: Aug 20 2011
Posts: 269
I would second Adam's comments

bhardey,

i would second adam's comments, above, they are spot-on.

and to add my own views:

i am focused much more on silver than gold (90% / 10%). silver's increase in spot price had been tending to out-pace gold at around 3-to-1; that is to say when gold goes up 5%, silver will go up about 15%. but the same is true to the downside, so if you buy silver be prepared for volatility. though i am confident it will pay off in the long run, as long as you're willing to stomach the roller coaster ride.

i've been focused on 100oz silver bars because they will typically the lowest premium over spot, about $1. canadian maples are around $2.50 over, and american eagles $3. that is to say, if silver spot is $33, you'd pay $34/oz for 100 oz bars, $35.50 for maples, and $36 per oz for eagles.

many people prefer eagles and constitutional silver (aka "junk" silver) as they feel these are more widely recognized and accepted forms of silver and in the event of a currency collapse they are more likely to be accepted as payment in a barter situation.

Nate's picture
Nate
Status: Platinum Member (Offline)
Joined: May 6 2009
Posts: 590
spot on
Grover wrote:

bhardey,

I condsider gold to be for long term savings (for major purchases) and silver to be primarily for use as a "bartering" tool. If I planned to use a dealer to convert PMs into fiat, I'd follow Adam's advice. If I were planning to use PMs outside of the fiat system, I'd make sure I had small denomination coins that are identifiable by commoners who have items I may need. As such, I'd recommend having a portion of your silver in pre 1965 US coins. These are 90% silver and are recognizable by just about everyone. You'll have to explain that your coins are worth more than face value at first. If fiat collapses, everyone will quickly learn what value these coins really hold.

 

Grover

Grover,

Spot on.  Trying to educate the public the difference between A-Mark rounds and a pre-1965 dime-quarter-half during a crisis will be difficult.  Gold will be used for major purchases.

Nate

 

Abu Hudhayfah's picture
Abu Hudhayfah
Status: Member (Offline)
Joined: Dec 28 2012
Posts: 8
Great Info

Thank you Adam for the links that you posted. Much Appreciated.

For all you other users out there, I also benefitted from http://www.anglofareast.com/research/crash-course/  it really opened my eyes to the financial choas surrounding the world.  Enjoy

Adam Taggart's picture
Adam Taggart
Status: Peak Prosperity Co-founder (Offline)
Joined: May 26 2009
Posts: 3082
All the gold in the world visualized

Just noticed Zero Hedge posted this new excellent infographic from Demonocracy, visualizing the world's various stores of gold:

gold%20embed.jpg

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