No, I’m not talking about grocery shopping.
As of August 19, 2016, the United States is $19 trillion dollars in debt. The banknotes and credit cards we use on a daily basis were intended to be backed by hard assets in the Federal Reserve; however, the inventories of gold and silver are far outweighed by the debt which we owe.
How we get back to square one, I have no idea. What I do know, is those of us who are reading this are the lucky few who realize the significance of owning bullion. Throughout history, the one set of commodities to stand the test of time and continue to prove valuable is precious metals.
Perhaps the luckiest of us are those who live in states whose leadership has also come to the realization that owning and controlling gold and silver is essential in the coming days. States like Texas have already passed legislation to begin building a state-run depository to repatriate gold held by the federal government in New York. This would save Texas taxpayers over $1 million dollars annually in storage fees. In addition to the state controlling its own gold, Texas residents will be able to store their gold and silver in the depository and write checks based off bullion balances- payment based on actual assets, the way the Founding Fathers intended.
One of my favorite quotations by economic journalist Bob Adelmann says:
“May this Texas spark set a conflagration that ultimately burns down the entire fractional-reserve banking system along with its chief enabler, the Federal Reserve System. Its ‘Federal Reserve Notes’ are neither federal nor are they backed by any reserves. It is hoped that the Texas experiment will prove the fact, expose the lie, and ultimately end the fraud.”
Texas isn’t the only state to push for authenticity in payments. Oklahoma, Tennessee, Utah, and Louisiana are among the other states who want to see the return of honest money.
What’s the call to action, here? I think what this boils down to for prudent Americans who are paying attention to things beyond the latest viral youtube video is preparation is key. I don’t believe in fear mongering, but I do believe in being aware. There is a severe problem with the Federal Reserve System, and the best way to create stability for you and your loved ones is to put stock in the historically safe investments that, according to the Constitution, will always operate as legal tender. 
For stacking, I would suggest the Provident Metals 10 oz Silver Bar. As a privately minted product, it has a low premium and is American made. It is perfect for efficient and convenient stacking.
For new investors, what do you suggest? How do you feel about the Federal Reserve System and its current operations?
Happy Stacking!
-J
I am not concerned with the Federal Reserve as their goal like that of all central banks is to make the richer even richer.
My concern is with an economy that had a hissy fit when interest was raised from 0.0% to 1/4 of 1% and that sent the stock market into turmoil.
1/4 of 1% interest means if you borrowed $10,000 on a one year note, your interest cost at the end of a year would be $25 !!!!
I do not believe any numbers being put out by the government or any of its federal partners. I think we have been lied to, in order to promote a specific agenda. All of this is now just a house of cards and is waiting for a slight breeze to knock it all over.
I think we are in for at least “a reset” if not some form of depression when everything comes crashing down. If like the last crash, we get more manipulation from the fed or the government, it will whitewash the underlying problems, leaving them to just fester back up again.
As far as what I suggest for the new silver investor, I suggest keeping your holdings in smaller increments, no more than 10oz max per piece. Today 10oz is around $200. I do think we will see $40 silver guaranteed and could see $60 or more before everything settles back down. Therefore, that 10oz becomes a substantial investment at $60 silver and IMHO, one limits their exit options because of the high silver prices. Exiting 10 pieces at $60 each might be far easier than finding that buyer for one $600 sale. I am keeping my holdings at 5oz or less each, thinking about future prices and how easy it will or won’t be to exit.
Thank you for your thoughts, Michael. I agree; I think we will see something significant in the days to come with the structuring of our economy- especially post election.
And, I like your investment advice. Not only does it make liquidation easier, but it lets new investors feel like they have a smart way to start, without being overwhelmed by a huge initial buy-in. Thanks for your comment!
-J
How much silver, in troy ounces current spot being in the mid $19 range, is a reasonable amount for someone with not a lot of money, an amount of silver which will keep them in survival mode for 20 years?
I realize precious metals fluctuate with each and every monetary comment posted, however there has to be a goal to strive for lets say for someone who grosses $40k a year.
That is a tough question to answer. Like another comment mentioned, investing small to begin is best. Provident often has sales with silver just above spot price- less than $1 above. Watching for these sales is a great way to begin your stack without causing disruption in your budget. It’s a great investment, but you don’t want to start too strong and end up needing to liquidate your collection to pay rent! 🙂
-J
Remember the “rolling blackouts” of several years ago from state to state. But not in Texas since they already had an independent from other states power grid. Follow the example on power grid as well as on metals!
Awesome correlation! Texas seems to be on top of things 😀
-J
I think about silver all the time. I am even questioning the things I buy. I think to myself how much silver I can get instead. I have no faith in the road we are on. Keep stacking and amass the real money not the poor excuse for money.
I imagine it can be tough at times passing up instant gratification, but I’m sure the future you will be very grateful!
-J
Gold and silver is such a huge safety net. Anyone who puts all their faith in federally backed currency is asking for trouble. Precious metal is true currency. and will always be sought after. Texas usually does the right things and anyone in our country can follow their lead by collecting true wealth. I personally started off with small sizes and progressed to larger as I began to feel comfortable with quantities I have amassed.
You are wise. I am doing the same, myself.
-J