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Q: Please address this very important issue, that no one in precious metals seems to discuss. The 10th Amendment Center, writes often about the current legislation and pending legislation occurring now and in the last few years in many states, making gold and silver legal for payment of all debts public and private. This is constitutionally provided for, and most states that do choose to put this legislation forward are successful, because of its constitutionality.

The state of Texas must know that there is something very ugly looming on the horizon. They just voted to open a Texas Bullion Depository, the vote was 7-0, in favor. A side law with this is recognizing silver and gold, whether in bullion or coins, to be used to pay any and all debts public or private. This is for private citizens as well as institutions, government business…everything! It is a voluntary use plan, but states that enact these laws believe eventually fiat dollars will just go the way of the dinosaur.

As far as I can see, this will pass the final vote and will be law by September 2015.

The people that are pushing this legislation forward are saying, that this is the one way they can help end the FED, and its criminal activities, by circumventing the FED all together. I am at a loss as to why ALL states that are being undermined and drained daily, do not look forward and cut the snakes head off in this manner.  Why aren’t you guys helping to push for this to happen? We citizens read far too little about such things, we should be writing about this much more. This is a powerful way to empower citizens, because with this type of legislation, we truly can be effective…and finally do something besides just stacking and worrying! We can call our congress people and demand our states take similar action. Can you imagine if 25 or 30 states simply began functioning with gold and silver to pay all debts, between all parties?

I feel certain that you guys have read and know a great deal about all of this, and would love to see an in depth article about this Phenomenon! When this depository is open, I intend to buy more metals from Miles Franklin and have it sent to them…I may be first in line.


C. Rogers


David Schectman’s Answer:

Mr. Rogers,

We would love to sell it to you. We are not a “political” corporation. We sell precious metals, and also buy them for our personal well-being. The last thing we want or need is to lead the charge against the Federal Reserve on replacing the US Dollar with silver or gold. First of all, it would fail and second, we would be in the cross hairs of powerful people that you should not threaten.

Rothschild told you all you need to know on the subject:

“Let me issue and control a nation’s money and I care not who writes the laws.” Mayer Amschel Rothschild (1744-1812), founder of the House of Rothschild.

Do you think the powers that control the Western World and our currency will peacefully relinquish their power? Look who is behind the curtain now, huffing and puffing and pulling the strings – the Fed, the TBTF New York Money Center Banks, the super-wealthy. It’s THEIR game, they merely allow us to sit at the table, but we can never win.

Want to know what happens when anyone steps out of line and tries to compete with the Treasuries monopoly of money creation? Here is all you need to know…

Defendant Convicted of Minting His Own Currency

STATESVILLE, NC-Bernard von NotHaus, 67, was convicted today by a federal jury of making, possessing, and selling his own coins, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Following an eight-day trial and less than two hours of deliberation, von NotHaus, the founder and monetary architect of a currency known as the Liberty Dollar, was found guilty by a jury in Statesville, North Carolina, of making coins resembling and similar to United States coins; of issuing, passing, selling, and possessing Liberty Dollar coins; of issuing and passing Liberty Dollar coins intended for use as current money; and of conspiracy against the United States. The guilty verdict concluded an investigation, which began in 2005 and involved the minting of Liberty Dollar coins with a current value of approximately $7 million. Joining the U.S. Attorney Anne M. Tompkins in making today’s announcement are Edward J. Montooth, Acting Special Agent in Charge of the FBI, Charlotte Division; Russell F. Nelson, Special Agent in Charge of the United States Secret Service, Charlotte Division; and Sheriff Van Duncan of the Buncombe County Sheriff’s Office.

According to the evidence introduced during the trial, von NotHaus was the founder of an organization called the National Organization for the Repeal of the Federal Reserve and Internal Revenue Code, commonly known as NORFED and also known as Liberty Services. Von NotHaus was the president of NORFED and the executive director of Liberty Dollar Services, Inc. until on or about September 30, 2008.

Von NotHaus designed the Liberty Dollar currency in 1998 and the Liberty coins were marked with the dollar sign ($); the words dollar, USA, Liberty, Trust in God (instead of In God We Trust); and other features associated with legitimate U.S. coinage. Since 1998, NORFED has been issuing, disseminating, and placing into circulation the Liberty Dollar in all its forms throughout the United States and Puerto Rico. NORFED’s purpose was to mix Liberty Dollars into the current money of the United States. NORFED intended for the Liberty Dollar to be used as current money in order to limit reliance on, and to compete with, United States currency.

In coordination with the Department of Justice, on September 14, 2006, the United States Mint issued a press release and warning to American citizens that the Liberty Dollar was “not legal tender.” The U.S. Mint press release and public service announcement stated that the Department of Justice had determined that the use of Liberty Dollars as circulating money was a federal crime.

Article I, section 8, clause 5 of the United States Constitution delegates to Congress the power to coin money and to regulate the value thereof. This power was delegated to Congress in order to establish and preserve a uniform standard of value and to insure a singular monetary system for all purchases and debts in the United States, public and private. Along with the power to coin money, Congress has the concurrent power to restrain the circulation of money, which is not issued under its own authority in order to protect and preserve the constitutional currency for the benefit of all citizens of the nation. It is a violation of federal law for individuals, such as von NotHaus, or organizations, such as NORFED, to create private coin or currency systems to compete with the official coinage and currency of the United States.

Von NotHaus, who remains free on bond, faces a sentence of up to 15 years’ imprisonment on count two of the indictment and a fine of not more than $250,000. Von NotHaus faces a prison sentence of five years and fines of $250,000 on both counts one and three. In addition, the United States is seeking the forfeiture of approximately 16,000 pounds of Liberty Dollar coins and precious metals, currently valued at nearly $7 million. The forfeiture trial, which began today before United States District Court Judge Richard Voorhees, will resume on April 4, 2011 in the federal courthouse in Statesville. Judge Voorhees has not yet set a date for the sentencing of von NotHaus.

Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism,” U.S. Attorney Tompkins said in announcing the verdict. “While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country,” she added. “We are determined to meet these threats through infiltration, disruption, and dismantling of organizations which seek to challenge the legitimacy of our democratic form of government.”

The case was investigated by the FBI, Buncombe County Sheriff’s Department, and the U.S. Secret Service, in cooperation with and invaluable assistance of the United States Mint. The case was prosecuted by Assistant United States Attorneys Jill Westmoreland Rose and Craig D. Randall, and the forfeiture trial is being prosecuted by Assistant United States Attorneys Tom Ascik and Ben Bain Creed.

Until 1933 Federal Reserve notes were redeemable in gold or silver. That changed for gold in 1933 and for silver in 1964 (the end of the Silver Certificate and silver was removed from coinage too).

As I recall, during President Kennedy’s reign, the Dollar was changed from a Federal Reserve Note to a Treasury note. JKF died on November 22, 1963. Kennedy had authorized the Treasury to replace the Federal Reserve Notes with Treasury Notes. Some Treasury Notes (One Dollar bills) were printed up and put into circulation. Then Kennedy was killed and the project died along with him. There are some who feel that this was THE reason that Kennedy was assassinated. Who knows, but one thing is clear; no matter who you are, including a state, or maybe even a president, those in power will not allow competition to their “fiat” currency.

I have heard that the Hunt brothers were accumulating silver in the late 70s (some say to use as the basis of a currency in Texas?). I hope my memory serves me right here, and you all know what happened to the Hunts.

I think the lesson is clear. The Constitution may specify that silver and gold are the only legal tender (Specie) but that hasn’t stopped politicians and bankers from resting control away from the people and bypassing the Constitution with paper money that is “borrowed into existence.”

Q: I do have Harry Dent’s book The Demographic Cliff. He really likes to throw around the demographic charts and they make sense to me in a normal world.  However when he said it was time to get rid of PM he lost me. My conclusion is he is all about numbers but can’t see the big picture beyond the numbers.

I’m coming around to the conclusion that there probably won’t be a black swan for this next meltdown in the way a black swan event is described. Rather a series of steps that lead up to restructuring of the world financial system.

Here are the steps:

1.  Asian infrastructure bank becomes operational.

2.  IMF adds Chinese Yuan to the world currency basket.

3.  Chinese announce the Yuan backed by Gold.

4.  Saudia Arabia announces that oil will be sold in Yuan.

At this point there would be a shift to the Yuan and the dollar would still be part of the reserve currency basket but the leading currency would be the Yuan. The only viable currencies will be ones that can be backed by gold.

So what do you think of my theory  and what do you think would happen to the U.S. stock market?

Jim in Phoenix 

Bill Holter’s Answer:

I think it all sounds viable and will happen to some extent, the only thing you are missing is the debt collapse caused by lack of viable collateral.  China in my opinion will get themselves caught up in all of this as they are also a margin call waiting to happen.  Unlike Harry Dent, I believe the dollar will ultimately crash as it is debt based …gold will not as it is no one’s liability and “liabilities” are what people will be fleeing from.  Their own and others!

Q: I have a question for your Q&A day on Wednesday.  

How do you think this will effect the price of silver.
Inventory monitored by the Shanghai Futures Exchange almost tripled to 341.5 metric tons April 9, the highest in a year, from 122.8 tons in the final week of 2014, according to weekly bourse data compiled by Bloomberg. Stockpiles on the Shanghai Gold Exchange also more than doubled this year to 263.97 tons on April 3, exchange data show.

Chinese silver producers delivered the metal to exchange warehouses amid falling physical demand, said Jin Xiangyun, a senior precious metals analyst at Beijing Antaike Information Development Co. China’s economy expanded at the weakest pace since 2009 last quarter, indicating a deepening slowdown. The global benchmark price has fallen 17 percent in the past year.

“Silverware and jewelry makers said they wouldn’t produce much because of weak demand,” Jin said in a telephone interview 

April 22, citing their recent survey of producers. “Fabricators usually purchase large amounts of refined silver after Chinese New Year holidays. That didn’t happen for this year.” The break was from April 18-24 this year.

Andy Hoffman’s Answer:

Yes, they have tripled.  But they are still 70% below their highs of a year or two ago, and only about 15% of total Chinese consumption in a single year.  Moreover, like the COMEX in NY, or the LBMA in London, how much do we really believe such numbers anyway.  After all, they are published by the Chinese government – which is more infamous than even the U.S. government for lying about data.

That said, the fact that such numbers are so incredibly low compared to demand – as they are on the COMEX – should tell you all you need to know of just how tight the physical market really is.  And as for trusting the word of “Jin Xiangyun, a senior precious metals analyst at Beijing Antaike Information Development Co.,” who the heck is he?  I don’t even know he exists, or that what he says is either true or unbiased.  Or, for that matter, if it reflects on the entire world, or just his.

I wouldn’t worry about it too much.  There is an awful lot of propaganda out there, but the fact remains that PMs are more necessary today – to protect assets from money printing – than ever before.  And thus, if Chinese gold demand is hitting record levels, my guess is Chinese silver demand – which is far harder to track – is not far behind.