Prepare for Disaster by Owning Precious Metals

Silver bars Owning Precious Metals for Survival

If you have been alive in the past few years it is no secret that disasters can happen within the blink of an eye. Whether it be a natural storm or military invasion, the need to be prepared for anything is evident all around us. While your typical disaster preparation might consist of securing shelter and enough food to last you an undisclosed amount of time, the need for precious metals such as gold and silver might not be so obvious.

In fact, you would be hard-pressed to find a person who is equipped to survive disaster who would consider precious metals a necessity to purchase. The fact of the matter is that gold and silver have been valuable for thousands and thousands of years, whereas your paper money has not. If a disaster were to ever happen, the value of your paper money would go right out the window because, at the end of the day, it is just paper. Gold and silver are two great resources for securing and storing your own wealth, especially in the face of a disaster. The simple fact that the scarcer something is, the more value it has, should be ringing through your head. Once disaster strikes, don’t be caught without precious metals as they will likely be incredibly beneficial for you. To fully understand the need to own precious metals, you must first understand the basics about buying gold and silver. These will be discussed in the following few sections

Coins vs. Bars

Silver CoinsThe most basic difference in precious metals is the difference between gold and silver bars and coins. While you may be aware that both exist, they are incredibly different entities, even if the weight and purity levels are the same. Precious metals coins are used as currency in countries and are only able to be produced domestically in the country where they are valued as legal tender. Bars, however, are not legal tender and are produced by a variety of privately owned mints from all over the world.

Since coins are produced only by the government of a single nation, they are much rarer and harder to find than bars that can be produced just as easily in Asia as they can in Europe, and so on. The price and value of a coin, while it is determined by the amount of gold or silver in it, is also decided by just how scarce the coin is. Bars are produced in abundance and while they do come from different companies, a 1 ounce gold bar is a 1 ounce gold bar regardless of who produced it. For your disaster preparation needs I would suggest that you invest in gold bars as they can be found, resold, and bought for less money than most coins. Bars, like coins, come in all shapes and sizes so it is vital that you only make a purchase that you can afford.

Timing Your Buys

Time to Buy SilverLike stocks on the stock market, the spot value of gold and silver is always changing. Sometimes the value goes up and sometimes it goes down, that is just the nature of the beast. Your challenge, however, is to purchase your lot of gold or silver when the spot value of the metal has taken a momentary dip. If you buy precious metals when their values are too high, you run the risk of losing money shortly after your purchase.

While gold and silver may move up and down in the short-run, these metals have almost always been on the rise in the long-run, which is why they are viewed as such safe investments. By making a purchase when the price of gold or silver is down relative to its recent numbers, you are not only making the most of your money but also giving your investment the opportunity to grow in value.

Where to Buy

Now that you know what to buy and when to buy it, the next thing we must look at is where you can purchase gold and silver bars and coins. The most classic, old-fashioned way of purchasing precious metals is to seek out your local coin shop and make a purchase from them. This is a fine way of going about things so long as you are in an area where coin shops are. Some people are not so lucky and would have to end up travelling quite a distance to the closest coin shop in order to make a purchase, and that’s assuming that they even have the item you are looking for in stock.

With the advance of the Internet and e-commerce, buying gold and silver online is quickly being the most attractive way to purchase. Not only do you not have to leave your house in order to buy the metal, it is then delivered to your door at your convenience. If you have no idea where you can go about buying gold or silver online, that is OK, because wheretobuysilver.com is an all-inclusive resource which shows you only the best online dealers. It is hard to know who to trust on the Internet, but wheretobuysilver.com makes it just a little bit easier.

Guest Article By: Michael Wilaski

Silver Coin Collectors and Pawn Shops are Getting Duped: “Very High Quality Fakes”

With rising precious metals prices comes the age-old scam of counterfeits.

Fake gold coins and bars,  many originating from China, have been discovered at dealers all over the world, including some high profile banks. Some analysts have even suspected that central banks, which hold thousands of tons of gold, may have fallen prey to the scam.

With silver having recently achieved all times highs and currently trading at around $ 25 per ounce, counterfeiters see a potential boon for their bottom lines. Counterfeiting silver isn’t new, and numerous fake 100 ounce silver bars and U.S. Morgan dollars have been discovered to date. But now the scammers have turned their sights on the official one ounce bullion coin of the United States – the American Silver Eagle. In April, the US Mint sold in excess of four million silver eagles, highlighting the surging popularity of the coin.

With many more millions of ounces being traded on the open market at traditional coin shops, online retailers and popular auction web sites, unscrupulous counterfeiters can easily slip fake coins into the mix. They do so through online auction sites, where unsuspecting buyers think they’re getting the real thing. Those collectors may then end up visiting a broker in their local area who unknowingly purchases the bunk coins and resells them to other buyers. The process happens everyday and is responsible for perhaps tens of thousands of fake silver coins and bars now in circulation.

In Hamilton, Ontario, the problem is so widespread that they have dedicated a special task force to investigate the five hundred fake American Eagles discovered in the hands of dealers and private owners.

Buyer beware, because that 99.9% silver coin you think you may have in your possession may be nothing more than practically worthless silver plated brass:

Police are warning that fake U.S silver eagle dollar coins have been circulating in the city and have been sold to various establishments over the past few months.

“You wouldn’t be able to tell the difference (with) the naked eye. The coins are actually very high quality fakes,” Const. Mike La Combe said in a Hamilton Police YouTube video. “They are silver and nickel-plated, which gives them the look of an actual silver dollar. However, when you cut them open, you can clearly see on the inside, they are brass filled.”

The video shows some of the roughly 500 fakes that have been confiscated so far.

“They are worth practically nothing, just a couple cents each,” La Combe explained.

LaCombe is a pawn unit investigator and says the coins are being bought online, then sold at “golden” times for the seller when shops are busy or with little staff. During the rush, employees may not have the time to do all the proper authenticity checks, giving criminals the chance to sell fast without getting caught.

“Only buy them from reputable dealers, a place that is established, an expert who works there who knows the difference between real and fake. Don’t buy them off the internet. and don’t buy them from people from the public who aren’t considered experts because more than likely you’re going to get a fake,” added Le Combe.

Via: CBC Hamilton

With prices as high as they are, it is in the interest of every potential precious metals investor to take it upon themselves to have a working knowledge of the coins and bars in which they are investing. Here are some tips and strategies for ensuring you are getting the real thing:

  • Ring Test (video) – A silver coin or bar will have a distinct ring, as opposed to fakes which will have a thud when struck or dropped.
  • Weight (video) – Understand that a “Troy Ounce“, which is how we generally weigh precious metals, is different from the popular “Avoirdupois Ounce” used as a more traditional unit of measure in the United States. Just because a coin or bar says it weighs a certain amount doesn’t make it so. If you have a gram-based scale, bring it with you to the coin shop or Craigslist exchange. If you don’t have one, spend $ 30 and pick one up before you spend thousands on precious metals.
  • Nitric Acid Test (video) – You may not be able to test every coin or bar with nitric acid, as it requires a little bit of filing down to get under the “plate” but if you are buying in bulk, the seller may allow you to test a random piece of your choosing after you’ve performed a magnet, weight and ring test.
  • Coin Caliper – If a counterfeiter uses a metal other than silver, chances are that the coin dimensions will have to change – or the coin will weigh more or less than it is supposed to with the specific dimensions. Every minted coin has a specific diameter and thickness. A caliper, usually available for $ 15 – $ 50, will give you the ability to measure the specific inches/millimeters of a particular coin. Cross compare this information, along with the weight, to the mint’s coin specifications and if they match up, then the likelihood of a fake is extremely low – especially if it “rings true.”
  • Low ball pricing – If someone is trying to sell you a silver coin for significantly less than the market value, this should raise alarms. At current demand levels, there is always a buyer out there willing to pay full price, so why would a seller offer the coin for so much less? Probably because it is a fake!

Most importantly, you’ll want to avoid auction sites for silver and gold unless you trust the seller implicitly. The only easily recognizable coins  that have yet to be faked because of their small denominations and potential for long-term jail sentences are dollar denominated official US currency like pre-1965 silver quarters and Kennedy/Franklin half dollars. The amount of silver in these coins is fairly small, making them unprofitable for counterfeiters when compared to one troy ounce silver eagles or larger bullion bars. So, if you’re using an auction site to buy coins consider sticking to quarters and half dollars.

The other key consideration is doing business with reputable firms. While we can never be 100% sure, buying from a dealer who’s been in business for many years and has built a reputation for honesty will help reduce the chance of being scammed. Dealers who source their supplies directly from official mints and offer uncirculated coins or bars are as close to safe as you can get because there is no middle man.

If you’re planning on investing in precious metals do your research, understand what you’re buying, know the specific dimension & weight of the product you’re purchasing, and diversify your holdings to include bullion coins, bars, and even official legal tender like pre-1965 U.S. quarters.


SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You

UNPRECEDENTED Shortages Of Ammo, Physical Gold And Physical Silver

Panic Button By John On FlickrAll over the United States we are witnessing unprecedented shortages of ammunition, physical gold and physical silver.  Recent events have helped fuel a “buying frenzy” that threatens to spiral out of control.  Gun shops all over the nation are reporting that they have never seen it this bad, and in many cases any ammo that they are able to get is being sold even before it hits the shelves.  The ammo shortage has already become so severe that police departments all over America are saying that they are being told that it is going to take six months to a year to get their orders.  In fact, many police departments have begun to trade and barter with one another to get the ammo that they need.  Meanwhile, the takedown of paper gold and paper silver has unleashed an avalanche of “panic buying” of physical gold and physical silver all over the planet.  In the United States, some dealers are charging premiums of more than 25 percent over the spot price for gold and silver and they are getting it.  People are paying these prices even though they are being told that delivery will not happen for a month or two in many cases.  Some dealers are feverishly taking as many orders as they can, and they are just hoping that they will be able to get the physical gold and silver to eventually fill those orders.  Personally, I have never seen anything like this.  If things are this tight now, what is going to happen when the next major financial crisis strikes and people really begin to panic?

The shortages and rationing of ammunition at gun shops all over America just seem to keep getting worse.  The following is from an article by a gun owner down in Texas named Brad Meyer

If you’d like to see a normally sullen sales clerk chortle with derisive pleasure, just walk into just about any gun range, sporting goods store or mass merchandiser and try and buy a couple boxes of .22 ammunition.

Gun enthusiasts are up in arms about a nationwide shortage of ammunition. Handgun ammo in general is particularly difficult to find – and when you do find it, there are restrictions on the amount you can buy and how much you’re going to be paying for it.

While the list of hard to find ammo is long, .22 long rifle and 9mm handgun ammunition are particularly difficult to find in quantity. And the few places that have it are charging a premium rate and usually limiting purchases to one box, per person, per day.

Many gun owners try to find ammunition by going on the Internet, but things have gotten so tight that now any ammo that becomes available online is often gone within seconds

There are websites where people across the country post links to where ammunition is available – and it sells out within seconds. Not minutes or hours – seconds.

Unfortunately, all of this demand is also driving up prices.  Just check out what Meyer says is happening to the price of standard .22 ammo…

The demand is driving up the cost of ammunition. Six months ago, standard .22 ammo – the most common type of bullet produced in the world – could be had in bulk for around five cents apiece. It is now going for 50 cents or more on some websites – and people are paying it.

But this shortage is not just affecting private citizens.  According toNewmax, police departments all over the nation are dealing with ammo shortages unlike anything that they have ever seen before…

Sheriff Anthony DeMeo of Nye County, Nev., was told his department’s regular order of 50,000 rounds could take up to a year to arrive.

“This is the first time ever I’ve heard that there’s a problem with a law-enforcement agency getting ammo for their agency,” DeMeo told The Las Vegas Sun.

These departments are not alone. Law enforcement agencies in Oklahoma, Wisconsin, Arizona, and Georgia are among many that are having to limit how much they give their officers due to the shortage.

Could you imagine waiting for “up to a year” to get more ammunition?

A recent article posted on CNSNews.com had some more examples of police departments that are reporting that there is a massive wait to get more ammo…

Chief Pryor of Rollingwood, Texas says of the shortage:

“We started making phone calls and realized there is a waiting list up to a year.  We have to limit the amount of times we go and train because we want to keep an adequate stock.”

“Nobody can get us ammunition at this point,” saysSgt. Jason LaCross of the Bozeman, Montana police department.

LaCross says that manufacturers are so far behind that they won’t even give him a quote for an order.

“We have no estimated time on when it will even be available,” LaCross says.

This is insane.

What in the world could be causing such an ammo crunch?

Well, certainly the demand for guns and ammo has been trending up in recent years – especially since Barack Obama was elected.

But that doesn’t fully account for the shortages that we are witnessing at the moment.

So what is going on?

Well, some people believe that the federal government is responsible.  It has been reported that they have signed contracts to purchase “up to” 1.6 billion rounds of ammunition.  According to Forbes, this amount of ammunition would be enough to fight a “hot war” in America for 20 years

The Denver Post, on February 15th, ran an Associated Press article entitled Homeland Security aims to buy 1.6b rounds of ammo, so far to little notice.  It confirmed that the Department of Homeland Security has issued an open purchase order for 1.6 billion rounds of ammunition.  As reported elsewhere, some of this purchase order is for hollow-point rounds, forbidden by international law for use in war, along with a frightening amount specialized for snipers. Also reported elsewhere, at the height of the Iraq War the Army was expending less than 6 million rounds a month.  Therefore 1.6 billion rounds would be enough to sustain a hot war for 20+ years.  In America.

Could this be a way that the Obama administration is trying to restrict the amount of ammo that gets into the hands of private citizens?

That is what some people are suggesting.

According to talk radio show host Michael Savage, the ammo contracts that the federal government has signed give them priority over all other purchasers…

What Homeland Security is doing here is they’re issuing a contract to buy up to that amount of ammo if they want it…

It’s a way to control the amount of market that’s available on the commercial market at any time.

If they go to the ammo manufacturers and say give me 50 million rounds, give me another 30 million rounds… if they periodically do this in increments, they’re going to control how much ammo is available on the commercial market.

As part of their contract it stipulates in there that when the government calls and says give us another quantity, that everything they make has to go to the government priority one before any of it goes to the commercial market.

So, if  they get nervous, all they have to do is use that contract that they have in place… and they just say ‘give us some more.’

So whenever the government wants to tighten the supply of ammunition, all they have to do is invoke their contracts and order more for themselves.

Meanwhile, Obama appears to be doing other things to restrict the amount of ammo that gets into the hands of private gun owners.

For example, there are reports that the Obama administration plans to use executive orders to greatly restrict the importation of ammo from overseas.

So if anything, the shortage of ammunition is only going to get worse, not better.

Meanwhile, the “panic buying” of physical gold and physical silver that we have seen lately has really run down inventories.

According to Reuters, demand has become so intense that the U.S. Mint has suspended sales of gold coins for the first time since 2009…

The U.S. Mint said it has suspended sales of its one-tenth ounce American Eagle gold bullion coins as surging demand after bullion’s plunge to two-year lows depleted the government’s inventory. This marks the first time it has stopped selling gold product since November 2009, dealers said.

At the same time, precious metals dealers all over the country are scrambling to meet the voracious demand that they have been seeing this month.  The following is an excerpt from a letter that the CEO of Texas Precious Metals recently sent out to his customers…

The physical silver market is, in a word, ugly. There is no telling at this point when mint inventories will return to normal, but you can be sure it will not happen within the next 8 weeks. Most dealers, at this point, are selling their current customer demand forward, meaning they are selling product they do not presently have, expecting to pull from future mint allocations. Consequently, future allocations will face pressure from today’s demand. It is not my intent here to comment on the business practices of other companies, but I will say that no one can possibly predict future allocations at the time. The US mint, for example, releases its allocations weekly, and until then, dealers have no insight into allocation levels. Last week, we turned away business in excess of 100,000 ozs of silver because of stock depletion. However, we stand by the notion that it is better to lose a sale than lose a customer by delaying delivery two months (or more).

A similar thing is happening over in Asia.  According to the Financial Times, soaring demand has caused a shortage of gold at the Hong Kong Gold & Silver Exchange Society…

Haywood Cheung, president of the Hong Kong Gold & Silver Exchange Society, said the exchange had effectively run out of most of its holdings as members looked to meet a shortfall in supply amid rampant retail demand for gold products.

“In terms of volume, I haven’t seen this gold rush for over 20 years,” he told the Financial Times on Monday, adding that the exchange only had around twenty 1kg bars, and 100 five-tael bars left in its inventory. “Older members who have been in the business for 50 years haven’t seen such a thing.”

But most disturbing of all is what Jim Sinclair told King World Newsrecently.  Apparently his friend went to get his gold out of a Swiss bank the other day and they refused to give it to him…

A person that I know with significant deposits in one of the primary Swiss banks, in allocated gold, wanted to take out his gold and was just refused on the basis of directives from the central bank….

They told him the amount was in excess of 200,000 Swiss francs and the central bank had instructed them not to do it because it has to do with anti-terrorism and anti-money laundering precautions.

I really wonder whether those are precautions or whether the gold simply isn’t there. Now you tell me that a London delivery has basically failed. It has to raise our suspicions that the lack of physical gold behind the paper gold is literally so severe that we are coming to understand that it is in fact not there.

The gold that people think is stored is not stored, and the inventory of the warehouses for exchanges may not be holding deliverable gold. There has always been speculation about whether or not the physical gold the US claims to store is in fact in those vaults.

The greatest train robbery in history might be all of the gold, and it would only be something like we have described above that would happen right before gold makes historic highs.

There simply is no gold behind the paper. One example is AMRO, a second is your example with Maguire, and a third is my dear friend who was refused his gold on the basis that its value was too high. Remember this friend of mine had his gold in an allocated account in storage at a major Swiss bank. I repeat, there is no gold.

So are we going to see more of this?

Will it soon become evident that there is simply not enough physical gold to cover all of the promises that the banks have made?

Jim Sinclair sure seems to think so.

In another interview, John Embry expressed similar sentiments to King World News…

This gets back to the tip of the iceberg when the Dutch Bank ABN AMRO came out and literally said that if you have allocated gold with us, you can’t have it.

That, to me, is a default, and it gets back to what Jim Sinclair related when one of his friends went to a Swiss bank and couldn’t get his allocated gold.  I mean that’s preposterous.  If it’s allocated it should be there, but it’s clearly not there.  I think this is the beginning of the end of the massive Ponzi scheme in paper gold.  I have been talking about this for some time, and it will have an enormous impact on future gold and silver prices.

When it becomes widely known that all of the people who think they own gold in fact don’t own gold, that it’s been hypothecated and re-hypothecated so many times that there are 100 claims for every single ounce of physical gold, that is when the prices of gold and silver will really go berserk to the upside, and at that point the shorts will have serious problems.”

If those that helped engineer the recent takedown of paper gold and silver were hoping to scare people away from physical gold and silver, then they failed miserably.  For even more on this, please see my recent article entitled “10 Signs The Takedown Of Paper Gold Has Unleashed An Unprecedented Global Run On Physical Gold And Silver“.

All of this is just another example why I encourage people to get prepared while times are still relatively good.

Once disaster strikes, it may be too late to get the things that you need.

Right now there are a whole lot of people out there wishing that they had stocked up on ammo when it was much cheaper and much more readily available.

We are moving into a time when everything that can be shaken will be shaken.  Use the stability provided by the false bubble of economic hope that we are experiencing right now as an opportunity to get prepared.  The next major wave of the economic collapse is rapidly approaching and time is running out.


SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You

Gold and Silver Update: “Have the Courage of Your Convictions and Hold Fast”

Crackpot Preppers

The last couple of weeks have seen stock markets bounce around inexplicably and reach new highs, all in the midst of an economy that is, once again, about to buckle.

Likewise, during this time period we’ve seen the price of gold and silver fluctuate significantly, primarily to the downside.

This has left many holders of these metals, as well as potential investors, quite nervous.

Is this the end of gold’s decade-long run?

Hardly.

Despite media claims to the contrary, there is no gold bubble (yet) and this ancient metal is nowhere close to the levels of value it will achieve as the global economic and geo-political situation worsens.

We once opined that the price of gold would do wildly amazing things throughout the course of the various intense crises facing the world, so much so that those who own the metal will hate it so much they’ll want to spit on it. This is why we’ve recommended that those who buy gold as a hedge against the collapse of pretty much the entire world not lose a wink of sleep over short-term price movements.

Those of us who hold physical assets do so not to make money on leveraged trading accounts. We do it to preserve our wealth over the long-term.

Gold is money, regardless of what Chairman Bernanke wants us to believe.

As we move forward we must keep in mind that not everything that’s happening in the ‘free market’ is as free as we may think.

Adam Taggert of Peak Prosperity suggests that what’s happening right now is that our convictions are being tested and there’s no fundamental reason for us to back down from why we invested in precious metals  to begin with (or other collapse-proof hard assets, for that matter):

It’s hard to swallow that these charts are evidence of a free and efficient market. Otherwise, a pattern this predictable would be quickly removed as traders and HFT algos piled in to a “sure” bet.

Instead, this is behavior one would expect to see if powerful interests wanted to suppress the price of gold: hit the price hard and early at the start of the trading week to prevent the price from building upward momentum, as well as to make capital think twice before entering the gold market.

Who is doing this selling at the market open? Is it TBTF (“too big to fail”) banks making profit on large short positions? Is it the Fed, through proxies, keeping the gold price contained so as not to signal how badly QE is devaluing the dollar? Allegations swarm across the Internet that it’s one of these – or both. But we don’t know for certain. The exchanges don’t make that information available to the public.

But while these charts above are not enough evidence to prove that the gold price is being manipulated, they sure exhibit the symptoms one would expect to see if it is.

So, the big question is: if the precious metals market is being manipulated, is it wise to be in it?

From our perspective here at Peak Prosperity, for all of the reasons explored in the Crash Course and discussed here daily, we firmly believe that fundamentals will ultimately matter most. And when they fully express themselves, there will be a tremendous re-pricing of assets  largely higher for tangible assets that require energy to obtain, and markedly lower for paper claims on wealth (stocks, bonds, and their derivatives).

But as we’ve often said, the corrective process may very well take much longer than we ever expected to arrive. Frankly, we’re amazed that the system has held together so well over the past 5 years with all of the thin-air money printing, trillion-dollar deficits, and $ 100 oil. If you are playing to the fundamentals, as we are, you need to be eyes-wide-open that you may be frustrated for far longer than you’d like to be.

It’s only human to have your confidence shaken when the market acts so completely differently than you think it should for so prolonged a time. Chris and I feel the same pain, both constitutionally as well as in our wallets, as much of our net worth is invested in the PMs.

But every time we go through the exercise of challenging our assumptions, we walk away feeling certain that our charted course is the correct one – and that at some point, fundamentals will prevail.

As for what those fundamentals are, there’s a seminal piece Chris wrote back in 2011 called The Screaming Fundamentals for Owning Gold and Silver that is even more true today. I highly recommend revisiting it.

Chris has mentioned many times that this market feels an awful lot like 2007, when asset prices powered ever higher month after month, even though the underlying data was deteriorating fast. As then, he sees a high and rising potential for a violent correction that will take the market by surprise and vaporize a lot of wealth before players are able to react.

Full Analysis: Gold’s Regular Morning Mugging

The take away is that the moves to suppress precious metals by the powers that be are to be fully expected. You see, while they play paper shuffle with the price of gold and cause confusion in markets on the one hand, guess what’s happening in the other hand?

Central banks and governments are buying tons (literally) of gold and stockpiling their vaults. Others are doing their damnedest to repatriate their international holdings, as recently evidenced by Germany’s move to return all of its 3,400 tons of gold currently held at the U.S. Federal Reserve. And they are not alone; Holland, Venezuela and a host of other countries are doing the same.

For those who are not invested in precious metals for reasons that may include budgetary issues or the notion that one “can’t eat it,” it’s still highly recommend that you watch the precious metals markets, as they provide insights into what investors and governments are doing. Massive capital flows are taking place right now in these markets, which suggests individuals, conglomerate, cartels and governments are positioning themselves for near and long-term events that will have serious implications for the entire world.

Gold, while often cited as a hedge for inflation, is actually much more than that. Throughout history it has been a hedge against instability and uncertainty, and believe it or not, it was at one time actually used as money to exchange for goods and services, and as a way for governments to back the value of their paper currencies.

It is still money.

And when all of the machinations and manipulations taking place today end because of currency destruction and governments collapse in on themselves because of massive debt loads, it will be one of the few investments left standing.

Naturam Expelles Furca, Tamen Usque Recurret
(Horace circa 20 B.C.)

“Nature can be expelled with a pitchfork, but nevertheless always returns”

They may manipulate our markets, our money, and our political processes.

But nature will always correct the imbalance.

And, as we know, nature tends to be quite violent and destructive when that happens.


SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You

U.S. Secret Service Bans Sale of Silver and Gold Liberty Dollars on Ebay

In early 2011 Bernad Von Nothaus was convicted by the US government and identified as a domestic terrorist by Federal prosecutors for minting his own silver and gold coinage, and then offering those coins for sale to clients. He dubbed the  coins “Liberty Dollars” and by doing so brought upon himself the ire of the U.S. Secret Service, Federal Reserve and a host of other government agencies.

According to the government, Von Nothaus was a counterfeiter, though he made no attempts to actually counterfeit U.S. currency, but rather, provide another mechanism of exchange through the use of precious metals.

After Von Nothaus’ conviction, the Secret Service warned they would be confiscating all Liberty Dollar coins manufactured by Nothaus’ company, NorFed.

Since the shutdown of VonNothaus’ operation, many of the coins have been offered for sale or trade on mega-auction site Ebay, and this week the Secret Service took action. They contacted Ebay, which in turn advised sellers of the coins on their site that they could no longer engage in the trade of silver coins with the Norfed Liberty Dollar hallmark:

The United States Secret Service has requested the removal of all Norfed Liberty dollars on the eBay site as counterfeits. … Please do not relist this item(s). We appreciate that you chose to list this coin on our site and understand there was no ill intent on your part. Your listing fees have been credited to your account.

There is nothing special about the Liberty Dollar coins other than the fact that they are pure silver; and, of course, that they actually have intrinsic value as compared to general circulation U.S. legal tender which is, by most accounts, essentially worthless in terms of metal value.

The government disagrees with this argument, and in a press release issued by the US Department of Justice, said that the trade of such coins amounts to nothing short of terrorism because it poses a direct threat to the stability of the United States:

Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism, U.S. Attorney Tompkins said in announcing the verdict. While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country, she added. We are determined to meet these threats through infiltration, disruption, and dismantling of organizations which seek to challenge the legitimacy of our democratic form of government.

The Secret Service has gotten involved in order to ensure buyers don’t get confused by thinking they are acquiring legal U.S. tender. Apparently they believe that someone who buys a silver coin for $ 35 may, in a state of confusion, then attempt to exchange it for a $ 1 soda pop in the open market.

Today they are targeting the Liberty Dollar because it “represents a clear and present danger to the economic stability” of the United States. It wouldn’t be that far a stretch of the imagination to suggest the government could make the same argument for any mechanism of exchange or store of value, especially those which contain gold and silver.

They confiscated gold in the 1930′s for much the same reasons. They may very well do it again, but this time you may be a terrorist if you have silver or gold coins at home when they come looking.

Hat tip Steve Quayle


SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You