DGC Blog » Silver

Pre-Order Shire Silver Products

Mark — Tue, 15 Jun 2010 22:08:08 +0000

I just placed my small pre-order for some Shire Silver and Gold Products.
Shire Silver is a group of New Hampshire people who recognize that the use of silver as a currency is a very good thing.

Great new products being tested and circulated using real silver and gold. Check out Shire Silver http://shiresilver.com/
New Hampshire folks always seem to be one step ahead!

Shire Silver prototypes shown on Ridley Report

Don’t miss the AFE Seminar in June

Mark — Tue, 18 May 2010 22:25:16 +0000

Anglo Far East Seminar June 11, 2010 DFW, TX

A Hard Look at Gold, Silver Premiums

Mark — Tue, 23 Mar 2010 17:13:06 +0000

by Tarek Saab

Lost in the daily commentary about gold and silver prices is the actual cost of taking possession of these precious metals. Unless you trade in paper GLD or SLV, or you store your bullion in overseas vaults with companies like Goldmoney, the actual cost to purchase gold and silver can diverge from the COMEX spot price by as much as 36% (as I will show below). We have analyzed the premiums for these two monetary metals over the past year and a half, and we hope to offer some perspective on “real” market prices.

For the benefit of novice investors: Spot price is the settlement price per ounce of gold and silver for future delivery through the Commodities Exchange (COMEX). This price fluctuates by the minute, like stocks on the NY Stock Exchange. The “spot” is the price referenced by talking heads when referring to the “price of gold” or the “price of silver,” etc, and it is a value used by dealers when setting bullion prices. The premium per ounce is the markup charged by mints and dealers when trading consumer-grade bullion (i.e. anything smaller than 400 oz gold bars). Together, these two numbers comprise the total cost of purchasing precious metals in physical form. The same definitions apply to platinum and palladium.

In contrast to the spot price, where there is a clear historical price record, minimal reliable information exists concerning fluctuations in metals premiums. This is because measuring accurate market premiums is an inexact science and highly labor-intensive, as premiums vary considerably by mint, supplier, product, weight, order volume, and of course, demand. As part of our ongoing company research, we analyze market moves in premiums by using very basic criteria, focusing mostly on high volume dealers and popular products to paint a broad picture of price movements. Note: These are approximations only.

Image via Wikipedia

GOLD

Data through March 20th

For the purposes of this study, we have included only the most popular gold coins: the one ounce (by gold weight) US Mint Eagles, Royal Canadian Mint Maple Leafs, and the grandfather of them all, the South African Krugerrand. Over the past seventeen months, gold’s average spot price has been $975.15, and its average premium per ounce for an order of twenty ounces has been $58.18. The percentage of premium to total (again, defined as ‘spot’ plus ‘premium’) is 5.6%. This percentage peaked in November of 2008 at 9.4% ($760.86 spot + $79 average premium) and currently sits at 4.2% ($1,119.85 spot + $49 average premium).

Some will argue that ancillary costs such as shipping and insurance should be factored into the total, but since the industry standard is “free shipping and insurance,” these costs are not measured.

SILVER: GOVERNMENT ISSUE COINS

Silver prices vary considerably by marking. Private mints producing silver “rounds” compete for market share with government mints producing silver “coins.” Additionally, the popularity of larger forms of silver such as 100 oz and 1,000 oz bars causes the silver market to vary more widely than the gold market.

We have focused specifically on the premiums for one ounce coins, and the chart below highlights the two most popular government coins: the US Mint Eagles and Royal Canadian Mint Maple Leafs.

Over the past seventeen months, silver’s average monthly spot price has been $14.51, while the average premium for an order of 500 ounces of government coins has been $3.53. The percentage of premium to total is 19.5%. This percentage peaked in December of 2008 at a whopping 36.8% ($10.28 spot + $5.99 average premium) and currently sits at 12.9% ($17.17 spot + $2.55 average premium).

The incredible spike in premiums at the end of 2008 and into 2009 caused many investors to “arbitrage” their government coins. Investors would sell their coins and repurchase cheaper, private issue silver rounds. In doing so, they increased their total silver holdings without any additional cash outlay.

SILVER: PRIVATE MINT

Private issue mints offer a seemingly endless variety of products: from well-known rounds like Sunshine, Silvertowne, and A-Mark, to the no-name brands minting everything from Obama heads to bar mitzvah designs. If it weighs one troy ounce and its purity is .999 or greater, anything silver falls into this category.

As mentioned above, silver’s average monthly spot price has been $14.51 over the past seventeen months. The average premium for an order of 500 silver rounds has been $1.87. The percentage of premium to total is 11.4%. This percentage peaked in December of 2008 at 24% ($10.28 spot + $3.25 average premium) and currently sits at 6.0% ($17.17 spot + $1.09 average premium).

CONCLUSION

Several conclusions may be drawn from the data above:

-Gold offers the best premium to total cost ratio. Following this ratio exclusively, gold is a more conservative investment than silver. Similar to spot price movements, gold’s premiums fluctuate less dramatically than silver’s, meaning one’s investment is less beholden to upward movements in spot price in order to realize “profit.”

-Silver’s premiums fluctuate widely, spiking due to supply constraints at the mints and dropping when demand eases. This is especially true of government coins.

-The significant price difference in silver premiums between government coins and privately minted rounds opens arbitrage opportunities during large market disruptions, like in 2008.

If metals prices fall under deflationary pressure, expect buyers to place demand pressure on the markets – especially in silver – and the premiums to rise congruent with 2008 levels, especially with respect to government coins. Should hyperinflation ensue – a scenario I deem less likely in the near term – average buyers may be priced out of the market altogether.

‘Til next time, that’s my Saab Story.

Tarek Saab is the President of Guardian Commodities and a former finalist on NBC’s “The Apprentice” with Donald Trump. He is an international speaker and syndicated author.

Is Washington’s tax exemption on bullion a gold mine? (seattletimes.nwsource.com)
Forget Gold, Win with Silver (seekingalpha.com)

Letter to 1100 State Legislators by Devvy Kidd

Mark — Mon, 15 Feb 2010 17:00:56 +0000

Letter to 1100 State Legislators by Devvy Kidd

South Carolina Now Has A Constitutional Tender Bill (just introduced:-)

Mark — Mon, 08 Feb 2010 21:55:40 +0000

From Bill Greene’s blog:

South Carolina has joined the growing ranks of States which have had Constitutional Tender bills introduced!

On February 2nd, 2010, SC Rep. Michael A. Pitts (District 14 – Abbeville, Greenwood & Laurens Cos.) introduced H. 4501, the “Gold and Silver Coin as Legal Tender” Act. This bill would allow “silver and gold” to once again be legal tender in South Carolina, as opposed to the paper bank notes of Federal Government debt.

The language of H. 4501 is different than our model Constitutional Tender Act bill, but the effect would be the same – making gold and silver coin the only thing allowed as payment to and from the State.

We’ll take that!

Links:
H. 4501
Rep. Michael A. Pitts

States Rights Bills Now Calling for Gold and Silver Money

Mark — Wed, 03 Feb 2010 18:19:32 +0000

From AOCSDirect blog:

Executive Summary – Well this wasn’t hard to see coming. The states are scared of the Fed. The big threat is the Fed declares martial law and closes the state governments making them irrelevant. The states in fear for their own governments existence are passing states rights bills. These basically go back to the constitution reasserting that the states created the Federal Government. The constitution clearly lists the rights the Federal Government has and clearly states any other rights belong to the states. Unless specifically prohibited to the states.

Gold & Silver Money – The states doing this to date are as follows with the respective bill numbers which you can look up yourself:

Indiana S.B. 453 Colorado H.B. 09-1206 Missouri H.B. 0561 Georgia H.B. 430 Maryland H.J.R. 5

None of these bills has yet passed. They basically are saying the state has to operate based on gold and silver. They also say the banking system has to allow people to operate using gold or silver. I believe using a paper note backed 100% by gold or silver would be allowed.

Read the full story here.

Silver Summit and Cambridge House to co-host Phoenix Investment Conference Feb 4 and 5

Mark — Fri, 22 Jan 2010 22:26:58 +0000

Wallace, Idaho – The Silver Summit, Inc ,is proud to announce that it is once again co-hosting with Cambridge House the Phoenix Investment Conference & Silver Summit Feb. 4 and 5 at the Renaissance Glendale Hotel and Spa.

The two-day event will feature noted silver gurus Theodore Butler, David Morgan, Greg McCoach and Jason Hommel in an intimate setting. Analysts Frank Holmes, Peter Spina, David and Eric Coffin, John Kaiser, Peter Grandich, Mickey Fulp, Roger Weigand, Jay Taylor, Michael Berry and many others will join the podium. Segments of the conference will be recorded and broadcast by Al Korelin of the Korelin Economics Report.

Sprott Asset Management and Peter Schiff’s Euro Pacific Capital also will be represented at the Phoenix Investment Conference & Silver Summit.

“We are honored to again be partnering with Cambridge House for this exciting show,” said Shauna Hillman, President of The Silver Summit, Inc. “Cambridge House is the premiere investment conference host in North America, and together we’ve cooked up quite the agenda for silver and precious metal investors,” Ms. Hillman added.

“Every conference needs a light moment, and in addition to the welcome daylight that Phoenix provides to those of us living above the 45th Parallel, we’ll be roasting Bill Murphy of the Gold Anti-Trust Action Committee (GATA) and editor of the on-line Le Metropole Cafe. Helping us with Bill’s roast will be GATA dignitaries Adrian Douglas and Chris Powell. Mr. Murphy and his fellow travelers were seen by several witnesses at The Silver Summit last September to be wearing tin-foil hats, so who knows what this roast will conjure up?” said Ms. Hillman.

Further information and registration for the Phoenix Investment Conference & Silver Summit. may be achieved by visiting the Cambridge House website or by calling Cambridge House at +1-877-363-3356 or The Silver Summit, Inc. at +1-208-556-1621. In contacting the hotel, attendees should request the special room rate provided using the special promotional code SUMMIT when registering.

The Dollar Bubble (video)

Mark — Tue, 01 Dec 2009 04:52:53 +0000

Salinas Price: It’s time to end World War II

Mark — Sat, 31 Oct 2009 17:33:51 +0000

It’s time to end World War II

Hugo Salinas Price

Oct 29, 2009

The shooting, the bombing and the killing of World War II stopped in August of 1945, and the War was formally over.The United States and Britain knew the War was won, in 1944.

At that time, a Conference was called among the 44 Allied Powers, to determine the nature of the world’s monetary and financial system after the fighting was over. It was held at Bretton Woods, New Hampshire, USA, in July of 1944.

As a result of the Conference, a set of Agreements were signed.

The most important of all the agreements was the one that established that gold should be the money to be used to settle all trade deficits between nations, but in lieu of gold, dollars could be used to settle these deficits; at the option of all Central Banks, these banks could demand gold from the United States Treasury at a redemption rate of $35 dollars for each ounce demanded.

Thus, the United States could pay for its trade deficits either in gold or in dollars. No other nation was allowed to pay for its trade deficits in its own currency; for all other nations, settlement of trade deficits had to be done with gold or with dollars previously acquired in the course of trade with the U.S. or with other nations who had dollars. In other words, dollars – and only dollars – were as good as gold.

General de Gaulle (President of France, 1959 – 1969) has been quoted as saying that this was “an exorbitant privilege”. And so it was, a privilege of the victor in World War II.

Under the rules of war, a country at war may loot and plunder its enemy, if it can do so. Booty has always been a great incentive to get soldiers to fight, and World War II was no exception. When a war is over the looting and plunder stops and nations renew commercial relations, exchanging their goods in peaceful international trade.

In forcing on the Bretton Woods Agreements the acceptance of the dollar as a means of settling international debts, along with gold, the US established the will of a victorious power to continue to loot and plunder the whole world.

Formally, World War II was over. But in fact, World War II was not only not over, but the US had implicitly declared war on the whole rest of the world by imposing the dollar as a means of settling trade deficits, along with gold.

By running huge trade deficits which arose out of its expansion of credit and consequent money-printing, the US was able to leverage its gold holdings and send abroad masses of dollars to pay for imports. The exporting countries received dollars – not gold – for their export surpluses to the US. The dollars began to pile up in foreign Central Banks as “Reserves”. The exporting countries, not being nuclear powers, were afraid to demand gold in payment of their export surpluses, since such a request would very probably irritate the great power, and nobody wanted to offend the USA.

All this export of dollars in payment of trade deficits finally moved General de Gaulle to demand gold for dollars held by the Banque de France. This annoyed the US government and shortly thereafter, not coincidentally, there was an outbreak of rioting in France which threatened to unseat President de Gaulle, who had offended the US by simply asking for France’s gold.

The US, by means of the “dollar as good as gold” provision of the Bretton Woods Agreements, has been looting and plundering the rest of the world, non-stop, since the end of World War II. Very subtly, based on Bretton Woods, the US has continued to act as the triumphant victor in a war; it has never since the end of World War II ” [reassumed] among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle” it, as expressed in the Declaration of Independence, 1776.

The US has not assumed an equal station among the powers of the earth, since World War II came to a formal end. It has continued to impose its Imperial Will upon the rest of the world, as vassal states, and has been duly exacting tribute from the rest of the world, by means of its paying its trade deficits with dollars, which are nothing at all since 1971. The US did not truly “normalize” relations, neither with the Axis powers when World War II was declared formally over, nor with the rest of the world.

Commerce is an eminently peaceful activity. The seller forces no one to buy; the buyer forces no one to sell. The means of payment of commerce, since written history began, has been either goods for goods, i.e., barter, or goods for gold – a perfected form of barter. Silver has also worked well, as a means of payment of commerce. But anything else, any innovation, anything decreed to be a means of payment by anybody whatsoever, cannot be anything but an imposition, a violation of the rules of commerce.

The present ruinous condition of the world’s finances and its lopsided industrial development has not yet corrected itself. If anything, we are in the “eye of the hurricane” for the moment.

If all governments in the world were to collapse, commerce would not disappear; it would arise out of the disorder, and its money would be gold or silver, or both. Gold and silver are the natural means of payment for humans. Such is the intellectual decline in the world, that those in power have forgotten this; they and their paid lackeys in the financial press and financial media are dreaming when they think that they can come up with some effective but artificial, fiat means of payment, decreed by some governmental body. Any such fiat means of payment will inevitably preserve privileges for some, and impose burdens on others. Commerce cannot thrive under those conditions; it will go into permanent decline, along with our industrial civilization.

“Regionalizing” fiat currencies will only have the result of pitting region against region – as illustrated in Orwell’s “1984″. This is the fallacy underlying all talk about a “multi-polar world” while ignoring the need for a neutral, real and time-tested medium for exchange of goods.

The world’s principal powers should convene and come to an agreement for the establishment of the world’s monetary and financial system on the basis of gold as the exclusive medium for settlement of international trade deficits – a neutral, real and objective medium for commerce and finance.

If the governments of individual nations want to allow their banking systems to diddle with fractional banking and inflation, it is their right to do so. But when it comes to settling accounts with other nations, they must come up with the required gold.

Only then will we be able to say that World War II has ended.

27 Oct, 2009

Hugo Salinas Price

President

Asociación Cívica Mexicana Pro Plata, A.C.

Mexico City

email: plata@plata.com.mx

website: http://www.plata.com.mx

A Store That Accepts Silver Only— Opens

Mark — Fri, 23 Oct 2009 18:38:43 +0000

From the Ellis County Observer

There’s a store (AG Trading Post) near Dallas that opened Monday that will not accept Federal Reserve Notes, commonly referred to as our “currency.” Instead, this store will accept silver and gold for payment.

Direct Link: http://www.agtradingpost.com/

The Mental Militia Forum: http://www.thementalmilitia.com

It’s a Ridley report. He is in north Texas talking to a guy named Rob Grey who is opening a store that will not accept FRNs. Called the AG trading post just north of Dallas in Farmers Branch. The store will only accept gold, silver or “things of value”. They will have a vending machine avalable so you can exchange FRN for silver.

In his words “We have it set up a little tricky so we don’t have to actually touch FRNs. We certainly recognize that people do live in a cash world, and the dollar is highly regarded in some circles. So we want to be able to appeal to the audience of new people that want to come out and learn about this concept, as well as people now that are holding onto open (silver, gold) currency. We will accept silver and gold eagles as well as bullion.”

Ridley: “I understand you claim to have allot of merchants accepting silver in the area?”

Rob: “Thats right we have about 600 merchants in the DFW (Dallas-Fort worth) metro-plex that will trade in and barter in silver and other local trade currency’s to keep trade flowing through this economic hard time.”

Ridley: “Considering the harsh crackdown the federal government has enacted against the Liberty dollar, What kind of dangers do you think you will face in doing this.”

Rob: “I really don’t see any at all. The Liberty dollar kinda went out of their way and picked a couple battles years ago that got them to the point where they are now. I certainly believe the Liberty dollar will come out victorious in the end. But we have studied the model in depth and we have done allot of things differently so we avoid those kinds of pitfalls.”

Ridley: “I forgot to mention that you are with the AOCS, the American Open Currency Standard”

Rob: “Thats correct.”

Ridley: “And you have an official title with them.”

Rob: “I am the executive director of the AOCS, my job is to help create a bridge between the world we live in now that respects fiat currency’s and a world where value is actually equitably traded in the market place.”

Ridley: “Alright, anything else that you would like to add?”

Rob: “yea allot of thing coming soon, I want people to get excited about real money. People will always talk about the obvious solution to the federal reserve is to get back to gold and silver but it’s not practical, you can’t do it. And it’s not true we are doing it every day. We have people jumping on board all over the country. The free state project has the porcupine piece coming out, so we are making it happen right now in a big way and we are hoping to motivate people to vote with their wallets by taking FRNs and converting them into real money and extending their purchasing power and trading with merchants that are happy here to accept those things.”

Ridley: “Alright thanks Rob good luck.”

American Open Currency Standard Web Site

DGC Blog » Silver

Pre-Order Shire Silver Products

Don’t miss the AFE Seminar in June

A Hard Look at Gold, Silver Premiums

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Salinas Price: It’s time to end World War II

A Store That Accepts Silver Only— Opens