This week, the inevitable HYPERINFLATION came closer to reality, as the ECB announced what appears to be an open-ended sovereign debt monetization scheme – lamely “euphemized” the MOT, or “Monetary Outright Transaction” program. Likely, the Federal Reserve will announce its own, euphemized ‘QE3’ program at its September 13th meeting; once and for all, SHOUTING TO THE WORLD that “QE to Infinity” is GURANTEED.
Once the Fed puts this “icing on the cake,” I expect the WORLD’S MOST IMPORTANT MARKETS – Euro Gold and Rupee Gold – to race through their ALL-TIME HIGHS, followed shortly thereafter by “DOLLAR-PRICED GOLD” – perhaps by year-end. As for silver, its ALL-TIME HIGH is closer to $800/oz – in inflation-adjusted dollars, six centuries ago. My current “price target” for silver is $1,000-$4,000/oz – in today’s dollars – so obviously I expect silver to surpass its ALL-TIME HIGH as well; albeit, not simultaneously with gold reaching its own record milestone.
However, as long-time readers know, I believe silver will shortly complete the “ULTIMATE QUADRUPLE TOP BREAKOUT,” surging through $50/oz and commencing the mania stage of the PM bull market…
When this occurs, I anticipate silver SUPPLY will rapidly deplete; as we saw in April 2011, when silver reached $50 – under normal market conditions…
Ranting Andy: Alert! Alert! APMEX (and Likely Nearly All Mints) Out of Silver – April 28, 2011
…when only GREED drove new purchases…
Ranting Andy: Alert! APMEX, Overwhelmed by Physical Buying, Ran Out of Silver Eagles! – May 9, 2011
Of course, silver SUPPLY can be drained equally fast during crisis conditions, as we saw in late 2008 – and to a lesser extent, late 2011 – when the more powerful emotion of FEAR ruled the day…
Understanding the Gold and Silver Bullion Business – Andy Schectman
…which is EXACTLY what I anticipate in the next 12 months, as the ENTIRE WORLD finally realizes PRINTING MONEY accomplishes NOTHING but economic catastrophe and HYPERINFLATION…
We Are Staring At Economic Destruction & Soaring Inflation – Michael Pento
When inflation fears rise, fear of fiat currencies like the dollar will grow exponentially – with less and less people wanting to hold them. In last week’s RANT – “PHYSICAL EVERYTHING” – I wrote of Italian and Greek businesses no longer taking credit cards, for fear of the underlying banks collapsing. Well guess what, the same fear that Zimbabweans, Weimar Germans, and countless others have experienced is coming our way – likely SOONER rather than later…
…and when it does, American vendors will no longer accept dollars. Nor, for that matter, will European vendors accept Euros and Pounds, or Japanese vendors accept yen…
At that point – BEFORE a new gold standard is formalized – I expect more and more transactions to be carried out with REAL MONEY; i.e. PHYSICAL gold and silver. Whether legal or “black market,” it will be necessary to own goods and/or services utilizable in barter – and NOTHING conducts trade more universally than gold and silver coins. Of course, practically speaking, gold coins are too valuable for small transactions – as it will be quite difficult to buy $30 worth of groceries with a one ounce coin worth $2,500/oz – or even a 1/10 ounce coin worth $250. For that matter, even a once ounce silver coin will likely be worth at least $100, making it imperative to own low-denomination bullion, if available.
Luckily, it still is, in the form of “junk silver.” One of the worst misnomers ever, “junk silver” is among the most valuable assets you can own. Essentially, it refers to pre-1965 U.S. dimes, quarters, and half-dollars – which at the time were produced with 90% silver content, and 10% copper to increase hardness. A “1,000 face value” bag – weighing roughly 54 pounds – may contain 10,000 dimes, 4,000 quarters, 2,000 half-dollars, or a combination thereof – cumulatively weighing approximately 715 troy ounces. Actually, most dealers – such as Miles Franklin – package them in half-bags weighing about 27 pounds; very manageable, and hideable, for ANY household.
Given their small size, pre-1965 dimes are worth roughly $3 today, a far more manageable denomination for small transactions. Moreover, as the coinage is ACTUAL U.S. CURRENCY, it is extremely recognizable, and highly unlikely to EVER be considered for confiscation. Below, Jason Hommel gives an excellent description of the “junk silver” market…
90% US Silver Coin Bags, $1000 Face
As with other forms of bullion, premiums fluctuate with demand – and at times, such as Fall 2008 and Spring 2011 – supply RUNS OUT. In recent years, we have seen premiums as low as ZERO, and as high as $4.00/oz – compared to today’s premiums of roughly $1.25-$1.50/ounce. Thus – particularly with the seeds of HYPERINFLATION very publicly being sown this month – today is the perfect time to “arm” yourself with the ultimate protection.
Finally, please note that Miles Franklin offers a unique guarantee when selling its clients junk silver. By weighing every bag, we can see if some of the coins may have “slimmed” over time, reducing the overall weight to below the standard 715 troy ounces. If, for instance, the bag weighs just 713 ounces, we will add extra coins to bring the total to 715 ounces.
PROTECT YOURSELF, and do it NOW!
Call Miles Franklin at 800-822-8080, and talk to one of our brokers. Through industry-leading customer service and competitive pricing, we aim to EARN your business.