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.
The Silvertowne Vault Cast is brought to you by www.Silvertowne.com
Welcome back to another SilverTowne Vault Cast. Today I’m going to read another great article from the economic collapse blog, and then we have some basic 101 knowledge to share about bullion and Silver.
Now lets get into today's precious metals pricing!
Gold - $1578.83 Up $2.09
Silver - $28.70 Up $.14
Platinum - $1579.00 Up $9.50
Palladium - $722.00 Up $2.02
Consumer Spending Drought: 16 Signs That The Middle Class Is Running Out Of Money
Is "discretionary income" rapidly becoming a thing of the past for most American families? Right now, there are a lot of signs that we are on the verge of a nightmarish consumer spending drought. Incomes are down, taxes are up, many large retail chains are deeply struggling because of the lack of customers, and at this point nearly a quarter of all Americans have more credit card debt than money in the bank.
#1 According to one brand new survey, 24 percent of all Americans have more credit card debt than money in the bank.
#2 J.C. Penney was once an unstoppable retail powerhouse, but now J.C. Penney has just posted its lowest annual retail sales in more than 20 years.
#3 In the United States today, a new car has become out of reach for most middle class Americans according to the 2013 Car Affordability Study.
#4 The founder of Subway Restaurants, Fred Deluca, says that the recent tax increases are having a noticeable impact on his business...
#5 Many other large restaurant chains are also struggling in this tough economic environment.
#6 The CFO of Family Dollar recently admitted to CNBC that this is a "challenging time" because of reduced consumer spending...
#7 Even Wal-Mart is really struggling right now. According to a recent Bloomberg article, Wal-Mart is struggling "to restock store shelves as U.S. sales slump"...
#8 Electronics retailer Best Buy continues to struggle mightily. Best Buy just announced that it will be eliminating 400 jobs at its headquarters in Richfield, Minnesota.
#9 It is being projected that many of the largest retail chains in America, including Best Buy, will close down hundreds of stores during 2013. The following is a list of projected store closings for 2013 that I included in a previous article.
Best Buy
Forecast store closings: 200 to 250
Sears Holding Corp.
Forecast store closings: Kmart 175 to 225, Sears 100 to 125
J.C. Penney
Forecast store closings: 300 to 350
Office Depot
Forecast store closings: 125 to 150
Barnes & Noble
Forecast store closings: 190 to 240, per company comments
Gamestop
Forecast store closings: 500 to 600
OfficeMax
Forecast store closings: 150 to 175
RadioShack
Forecast store closings: 450 to 550
#10 Another sign that consumer spending is slowing down is the fact that less stuff is being moved around in our economy. As I have mentioned previously, freight shipment volumes have hit their lowest level in two years, and freight expenditures have gone negative for the first time since the last recession.
#11 Many young adults have no discretionary income to spend because they are absolutely drowning in student loan debt. According to the New York Federal Reserve, student loan debt nearly tripled between 2004 and 2012.
#12 The student loan delinquency rate in the United States is now at an all-time high. It is only a matter of time before the student loan debt bubble bursts.
#13 Due to a lack of jobs and high levels of debt, poverty among young adults in America is absolutely exploding. Today, U.S. families that have a head of household that is under the age of 30 have a poverty rate of 37 percent.
#14 According to one recent survey, 62 percent of all middle class Americans say that they have had to reduce household spending over the past year.
#15 Median household income in the United States has fallen for four consecutive years. Overall, it has declined by more than $4000 during that time span.
#16 According to the U.S. Census Bureau, the middle class is currently taking home a smaller share of the overall income pie than has ever been recorded before. Read More...
Crisis Investing 101: Everything You Should Know About Coins and Bullion
Many crisis investors believe the ultimate portfolio protection is the physical ownership of gold bullion or gold coins. This type of wealth accumulation can weather nearly any economic storm. Not to mention, every society on Earth sees owning actual gold as valuable. Even in the case of a complete economic meltdown, physical gold will retain its value as a means of commerce.
Gold bullion is any bulk quantity of gold valued by its weight. It is generally formed into ingots or bars and sold by dealers and some major banks.
Gold coins are created from gold and used by dealers, some major banks and individual investors as a convenient way to physically hold and trade gold. The value of the coin is based on the amount of actual gold used to mint the coin. The price of the coin is tied to the price of gold and therefore fluctuates with the spot price. The most well-known gold coins are the South African Krugerrand, the Canadian Gold Maple Leaf, the Australian Gold Nugget and the American Gold Eagle.
It's important to keep in mind the U.S. government guarantees the gold content in American Gold Eagle coins, whereas foreign governments may not guarantee the value of their own coins. The value of foreign gold coins is based on the melt value of the precious metal and generally not the overall grade level. The grade is the ranking of the overall condition of the coin. Read More...
Buying And Owning Silver Part 2: Specific Investments In Silver
Silver Itself
The option with the lowest risk would simply to buy silver itself. This in itself sounds simpler than it really is. There are various coins, bars, bullion vaults and ETFs available to investors. Each varies in terms of their relative availability to investors, their tax consequences, and their counter-party risks. Unfortunately none of these is risk free, and consequently diversification is the best option.
The easiest way to buy silver is probably to buy bullion coins (American Silver Eagles, Canadian Silver Maple Leaves … etc.) or bars/rounds (NWT Mint bars, Pan American Bars…etc). Investors who are looking for a lower cost option should consider junk silver coins. Junk silver coins are dimes, quarters, dollar coins and half dollars made before 1965. These coins contain 90% silver and the premium one pays over the spot price is substantially lower for junk silver than for bullion coins, bars, and rounds. Investors should be prepared to store physical assets in a safe place such as an at home safe. The primary risks here are theft and government confiscation, although unlike with gold, silver has never been confiscated by the U. S. government.
If one wants to hold silver bullion coins or bars in a bullion vault, they should be stored in a bullion vault in an account that allows its clients to take delivery of their silver. Absence of such an option should be viewed with suspicion. Read More...
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.
