21 February 2011

Up, Up And Away?

No one could be sure when the ascent would begin. But many experts have been predicting it eventually HAD to begin...
Inflation, and the rise in the price of commodities...
Gasoline/ petroleum related products, (and what isn't?).
Precious metals.

Regular readers know I have an interest in the price of Silver.
I reported on 29 January that the price of silver had topped $31/oz. but had then retreated.
Surprisingly to me and many, inflation has been slow to rear its ugly head.
But last night I was somewhat surprised to see the price of silver has now topped $33 per ounce, an increase of two dollars in less than one month.

Remember, I'm a workin' stiff with just enough investment savvy to be dangerous.
But an increase in the price of $2/ounce in less than thirty days may indicate a sleeping giant is beginning to awaken.

I still think it's a good idea to be prepared.
Or don't.
Your choice.


Red Shoes said...

Most of this upheaval is now directly due to the political unrest in the Middle East, and most significantly, Libya. Who knows where these prices will stop. I notice the Dow is down a bunch this morning.

That will kill any hopes of a significant economic recovery.


Old NFO said...

I'm buying ammo... just in case... :-)

Red Shoes said...

I think ammo is a better investment than gold right now... ;o)


Bloviating Zeppelin said...

Funny thing is, when you think about it, "precious metals" possession isn't as wonderful as one might think. In a, say, Weimar Republic situation where a wheelbarrow full of cash can buy only a loaf of bread, what will you get for a gold coin? That means you have to, literally, hand that gold coin over to someone and, with that, that's one gold coin LESS that you have now. The value of gold or silver is only in the "holding" of it, and that only during a robust and viable economy and situation.

When you have to actually "spend" a gold coin to "get" something, then you have actually LOST.

And "holding" a ton of gold and silver when you can't get bread or gas or food doesn't really do much when you're thirsty or hungry or have to go to work. If you're lucky enough to have a job.

Here's what we may have to do in the near future. As gangs already know, there is power in numbers. And in a bad economy or a crashing depression, the only people who will survive will be those who band together in order to coalesce and join forces to create power and wield power for survival.


Greybeard said...

PM will be money when money isn't money anymore, BZ. Those with PM who, for instance, buy Real property when the fire sale starts will come out on top when the economy finally recovers.

You're right about Gold and the problems you'll have when you try to use a little gold coin worth $100,000 after the 15,000% change in value...
That'll be mighty hard, and is the reason I thought buying pre-1964 junk dimes...
90% silver, and in small enough increments to be flexible, was a better idea.

Everyone should be making plans for as many different collapse permutations as you can imagine. I've already had discussions with my neighbors about how we'll protect our properties, and found we're all pretty much on the same page. Those with a plan will be WAY ahead of those caught by surprise.
If you haven't started planning folks, start now...
And hope we never need to implement them.