My name is Shawn Ozbun, and our goal is to keep you up to date with what’s going on in the world of Gold and Silver by providing you with current news and precious metals pricing.
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Hello and welcome back to the SilverTowne Vault Cast. Today we are going to talk a lot about Silver and how silver and gold may be the superheroes of wealth preservation. Silver may reach the $100 marker and how no matter what the government does, it appears it’s going to be a painful economic road ahead of us. All this and more on today’s show.
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Now lets go ahead and get into today's precious metals pricing!
Gold - $1722.76 down $3.72
Silver - $32.60 down .06 cents
Platinum - 1569.00 down $13.50
Palladium - $627.00 down $2.49
Financial News:
Playing Economic Chicken
With the election behind us, I had hoped our politicians would get beyond games of chicken. No such luck.
First, you need to understand that the upcoming game of chicken isn’t about how much or when we cut the budget deficit, or even whether the upcoming “fiscal cliff” poses a danger to the economy.
The nonpartisan Congressional Budget Office warned last week that the automatic tax increases and spending cuts scheduled to start in January amount to too much deficit reduction, too soon. They’d put the economy back into recession and push unemployment to about 9 percent. But the CBO also warned of an economic crisis ahead if the United States doesn’t stem the growth of the nation’s exploding deficit.
That’s the bind we’re in. Reduce the budget deficit too quickly, and we’re in trouble. But fail to address the deficit, and we’re also in trouble.
It’s really a matter of timing. That’s why I think any deal should include a trigger mechanism that begins to cut spending and raise taxes when the economy has two consecutive quarters of 6 percent unemployment or less, and 3 percent annualized growth or more. Read More...
$100 Silver? Yes, But When?
There are many predictions for the price of silver. Some say it will crash to nearly $20, and others proclaim $100 by the end of 2012. The problem is that some predictions are only wishful thinking, others are obvious disinformation designed to scare investors away from silver, and many are not grounded in hard data and clear analysis. Other analysis is excellent, but both the process and analysis are difficult to understand. Is there an objective and rational method to project a future silver price that will make sense to most people?
Yes, there is!
I am not predicting a future price of silver or the date that silver will trade at $100, but I am making a projection based on rational analysis that indicates a likely time period for silver to trade at $100 per ounce. Yes, $100 silver is completely plausible if you assume the following:
• The US government will continue to spend in excess of $1 Trillion per year more than it collects in revenue, as it has done for the previous four years, and as the government budget projects for many more years.
• Our financial world continues on its current path of deficit spending, debt monetization, quantitative easing (QE), weaker currencies, war and welfare, ballooning debts and business as usual.
• A massive and devastating financial and economic melt-down does not occur in the next four to six years. If such a melt-down occurs, the price of silver could skyrocket during hyperinflation or stagnate under a deflationary depression scenario.
Still with me? I think most people will accept these simple and rather obvious assumptions.
Many individuals find it difficult to believe any projections for silver, either higher or lower, because silver is hated, loved, often ignored, and seldom recognized as another currency. However, most people know that the US government national debt is huge and will grow much larger during the next decade. Read More...
Silver and Gold: The Superheroes of Wealth Preservation
Back in 1964, a gallon of gasoline cost about 25 cents in the United States. That’s right. Believe it or not, way back in 1964, you could buy a gallon of gas for a quarter.
It just so happens that 1964 was the last year that the US Treasury minted silver coins, including the humble quarter.
(Actually, any numismatist worth his salt will tell you that the so-called Washington quarters minted between 1932 and 1964 weren’t made from 100% pure silver — but at 90% silver and 10% copper, they were pretty darn close.)
Now fast forward to this week.
Depending on where you live, the national average price of a gallon of gasoline was approximately $3.50 per gallon. Meanwhile, the melt value of a 1932-1964 Washington quarter was hovering around $5.88 — which means that a silver quarter that was used to buy a gallon of gas in 1964 still has enough value to buy a gallon of gas (and then some) almost fifty years later.
The lesson here is that precious metals such as gold and silver act as a reliable store of wealth. That’s true because gold and silver exist in finite quantities and have inherent properties with real value.
It’s no coincidence that gold and silver have been recognized as a medium of wealth by virtually every civilization in the world over thousands of years.
On the other hand, unlike gold and silver, a fiat currency (like the US dollar) has no inherent intrinsic value. Nada. None. Zilch. And although fiat currencies efficiently facilitate commerce by acting as a medium of exchange that is far preferable to bartering — just like silver and gold do — their value is based purely on faith. I know.
Of course, the biggest downside to fiat currencies is that they can be created out of thin air with impunity, as the Federal Reserve has been doing to the US dollar with alarming frequency.
Over time, excessive money printing greatly diminishes the value of the currency and the resulting effects can be seen via price inflation. If things get too out of hand, then faith in the currency begins to wane and hyperinflation can eventually result, which typically leads to the death of the currency and a painful economic collapse. Read More...
Thanks for listening to the Silvertowne vault cast. You can find our show on YouTube and I would love it if you would subscribe and as always our show can also be found in the iTunes store. Please make sure to take a few minutes to leave us some feedback in the comments or you can email your feedback to me at vaultcast@silvertowne.com
For the best source for acquiring gold and silver please contact Silvertowne at 1-877-477- coin, that’s 1-877-477-2646 or you can visit us at www.silvertowne.com. Silvertowne has been a trusted precious metals and numismatics dealer since 1949.
One of the most common ways to invest in silver is with silver ingot . They are affordable, portable and easy to stack and store. Popular SilverTowne Trademark Silver Bars, featuring a classic prospector and his donkey, are guaranteed .999 fine silver and available in 1, 5 and 10 ounce sizes and SilverTowne is currently offering free shipping for these ingots. Contact Silvertowne today.
[Disclaimer] Shawn Ozbun is not a licensed financial adviser, there is risk associated with all investment including gold and silver. You should seek advise from a licensed financial expert before making a purchase.
