Dollar destruction on the horizon?

This video from the NIA is long, but also compelling.  Highlights for me were the illustrations of just how bad off we are in terms of national income and expenses and our incredibly excessive military commitments around the globe.



Suddenly I'm not worried about paying $1,200 for gold or $18 for silver.

[ad]

What is a good purchase price for silver or gold?

As always, the people at the National Inflation Association are right on the money when it comes to silver and gold prices.  If you're thinking of paying much more than they suggest below--think again.

1) How much over spot is a good price for silver and gold?

A good price for a 1 oz silver coin like an American Eagle or Canadian Maple Leaf is 12% over spot, and a good price for a 1 oz silver bar is 6% over spot.
For gold, a good price for a 1 oz gold coin like an American Eagle or Canadian Maple Leaf is 4% over spot, and a good price for a 1 oz gold bar is 2% over spot.  The larger premium for silver compared to gold indicates a shortage in the physical silver market.

It's worth noting that you can actually buy silver at spot price in the form of 40% silver Kennedy half dollars (and BELOW spot price if you buy the old 35% silver nickels).  I prefer the Kennedy halves as they are so easily recognizable, but below spot has a lot of appeal.

The rest of their opinions on this page are interesting too, but they remind me of one of my favorite quotes:

"It's hard to make predictions, especially about the future"

I'll leave it to you to determine who actually said it, but it sounds like Yogi Berra to me!



[ad]

What will happen in an honest precious metals market?

The National Inflation Association sent out a great letter yesterday.  It's a comprehensive look at the Andrew Maguire/CFTC situation.  Bottom line?  To feel safe buying precious metals now, you don't have to believe that metals will rise, only that the dollar will ultimately fail.

The silver market provides a window into what is happening in the gold market. Because the silver market is very small and its short position is so concentrated, its price is easier to manipulate than gold, but the same manipulation is taking place in gold on a much larger but less noticeable scale. In our opinion, the CFTC is under pressure not to do anything about the manipulation because the lower gold and silver prices are, the stronger the U.S. dollar appears to be. If we saw an explosion to the upside in gold and silver prices, it would result in a complete loss of confidence in the U.S. dollar.

I strongly recommend reading the entire letter, and subscribing to their newsletter while you're there.



[ad]

"Cash for Gold" as proof of no gold bubble?

The National Inflation Association, for whom I have a great deal of respect, offers this video as proof that we have no bubble in gold.  I suppose that the rationale is that there must be many gold sellers to support all these gold buyers.



OK, so there are quite a few buyers in Atlantic City.  Still, I have some serious doubts about exactly what this situation, in this location, means.

For example:

It looks like few, if any of these businesses buy gold "full time."
Who is selling anyway?  Down on their luck gamblers or investors?   I have a guess.
Is anyone selling coins or bullion, or is this all jewelry?

Bottom line is this.  While I agree with the NIA's premise, that gold is not in a bubble and has a long way up to go, I don't think the evidence in this video offers any type of proof.  And I still can't wait for their next video.



[ad]