Junk silver” is actually a misnomer. Many of America’s coins circulating before 1965 were made of 90% Silver. They are now referred to as “junk silver” because their value is solely based in their metal content instead of collectibility or condition. “Junk” just means they are not numismatic, but make no mistake: junk silver coins still have value.”

Silver coins for the worst-case scenario

“Investors who buy silver and gold for survival purposes fear the worst. Those fears include the Federal Reserve printing so many dollars that the dollar will become worthless, which is the history of all paper currencies not redeemable in gold or silver. Fear of a financial meltdown, which would close banks as in Argentina and Paraguay in 2002, is another. Argentineans and Paraguayans who had to foresight to bail out of the banking systems and convert their assets to gold or coin silver were protected.

Not only did banks close, but also when they reopened depositors were limited in the amount of money they could withdraw. Meanwhile, the Argentinean peso and the Paraguayan guarani sank in value. Shortly after those crises, Brazil defaulted on its international debt and its paper currency, the real, sank. Those are the kinds of situations that investors who buy coin silver and small gold coins for survival purposes want to protect against. In doing so, these investors buy silver and gold in forms that can be used for money or to barter for goods and services.

Buying silver bullion and silver coins for barter
“The best forms of silver for survival purposes are pre-1965 U.S. 90% silver coins and 1-oz silver rounds. The most useful forms of gold would be fractional-ounce gold coins, such as the 1/10-oz Gold Eagles, the 1/10-oz Krugerrands, the 1/4-oz Gold Eagles and the1/4-oz Krugerrands. But, before going forward, it is imperative that we discuss which coins to avoid. That is because hundreds of web pages promote numismatic and collector coins, as well as foreign coins. Such coins are simply wrong for survival purposes.

If the time ever comes that silver coins and gold coins were again used as money, coins would be worth only their metal content. Numismatic (collector) premiums would disappear. Anyone using gold or silver coins to buy goods or services would not be asked, “What’s the mint mark on your coin?” Nor will they be asked, “When was it minted?” The question would be, “What’s the gold content?” Hand someone a St. Gaudens and tell him it contains .9675 ounce of gold, and it will be difficult–if not impossible–to convince him to accept it at more than .9675 times the price of gold.

Numismatic premiums are fleeting in normal markets. Numismatic coins are bad investments for the average investor anytime; for survival purposes, they are simply wrong. If you ever need to use your silver and gold to buy goods and services, you will want silver coins and small gold coins. Additionally, those coins should have certain characteristics to ensure they are readily accepted. First, survival coins should be stamped in English. Most Americans do not read foreign languages.

Second, the coins should have their gold or silver contents stamped on them; except for the modern bullion coins, most do not. In an emergency, having the gold content stamped on a coin could go a long way toward causing someone to accept it. If your furnace goes out in January, the local heating guy may have never seen a gold coin before. If you hand him a $20 St. Gaudens, how does he know it contains a little less than an ounce? If you try to get him to take British Sovereigns, how can you prove they contain .2354 ounce each? Try convincing the guy at the auto parts store that a French 20 franc contains .1867 ounce of gold.

Third, the coins you buy for survival purposes should contain amounts with which Americans are comfortable. Americans understand one-ounce, 1/2-ounce, 1/4-ounce, and 1/10-ounce coins. Americans do not easily grasp the concept of .2354 ounce or .1867 ounce. For survival purposes, avoid arcane foreign gold coins. (Despite more British Sovereigns having been minted than any other coin, Sovereigns are not well known in the U.S.) Simply buy the popular modern bullion coins. Krugerrands are the cheapest and best known. American Eagle gold coins are also readily recognized in the U.S., but carry higher premiums (markups over spot) than Krugerrands.

Both Krugerrands and Gold Eagle come in four sizes: one-ounce, 1/2-ounce, 1/4-ounce, and 1/10-ounce. (If you have been told that bullion coins are subject to confiscation and that old U.S. gold coins and/or foreign coins dated before 1933 are exempt, you really need to read Myths, Misunderstandings, and Outright Lies.) Another plus for Krugerrands and Gold Eagles is that both are basic bullion coins and sell at small mark-ups over the value of their gold content. Generally, however, Krugerrands carry lower premiums than Gold Eagles, but both Krugerrands and Gold Eagles carry smaller premiums than foreign coins of comparable sizes. And certainly, Krugerrands and Gold Eagles are cheaper than old U.S. gold coins.

Silver bullion or gold bullion?
Finally, the question arises whether to buy silver or gold. Probably both, but if you are investing $10,000 or less, go exclusively with one-ounce silver rounds or circulated pre-1965 UD 90% silver coins. Pre-1965 U.S. 90% silver coins are commonly called junk silver coins because they have no collector value and trade for the value of their silver content. If you are investing larger amounts, say $30,000 up, you may want silver and gold. If conditions were to deteriorate to the point that silver and gold re-emerged as the preferred forms of money, you would want lots of small silver coins. If you were buying canned food, you would need silver coins because gold coins, even 1/10-ounce ones, would have great value. If you have only silver coins and need to buy something of high value, then you simply trade a larger number of silver coins. At current prices, an investment in silver results about fifty times the bulk and weight than if the same investment were made in gold. Therefore, large investments in silver create storage and handling challenges for some people. If storage and handling is a problem for you, then go exclusively with 1/10-oz Krugerrands or 1/10-oz Gold Eagles for the first $10,000 or so. Still, try to have some silver coins on hand.

Buy silver bullion coins or junk silver coins?
When buying for survival purposes, many investors have a tough time choosing between one-ounce silver rounds and junk silver coins. Rounds have their silver content and purity stamped on them. However, circulated pre-65 US. 90% silver coins once served as money in the US. and could do so again. Actually, US. 90% silver coins were used for money in the US as recently as the late 1960s, and many Americans remember using them. Yet pre-65 silver coins do not have their silver content stamped on them, but if the dollar were repudiated people would quickly learn the value of pre-1965 U.S. 90% silver coins. Another difference between 1-oz silver rounds and junk silver coins: With junk silver coins, you get many more pieces of silver. For example, a $1000 face value bag of junk silver contains right at 715 ounces of silver. Buy a bag of dimes, and you get 10,000 dimes; buy a bag of quarters, and you get 4,000 quarters. Buy 715 one-ounce silver rounds, and you get 715 pieces of silver.”

Deutsche Bank Turns on the Silver-Fix Cartel
by F. William Engdahl  / 19.04.2016

“The first time I came across evidence that select Wall Street and other major international banks, in cooperation with the Federal Reserve, were deliberately suppressing the world gold price was in the aftermath of the global stock market crash of October, 1987. That was when the Dow Jones stock index lost 23% in one day. John Crudele, an exceptionally persistent financial journalist with the N.Y.Post and John Williams of Shadow Government Statistics and an exceptional economist, informed me at the time of the gold manipulatipon reports. The reason for the fix, which then-Fed chief Alan Greenspan reportedly orchestrated, was to prevent a stampede by panicked investors out of risky stocks and bonds into gold. Had gold profited from the stock panic, it could well have been an early end to the dollar system. It worked then to prevent a gold rise.

Now, on April 15, in a case tried in United States District Court in New York, Deutsche Bank wrote the Court that it has agreed on a mutual out-of-court settlement with the group of market traders suing the bank. Included in that settlement is a bombshell. Deutsche Bank will also turn over evidence it has to aid the traders in similar lawsuits against other major banks accused of being in the gold and silver price-fixing cartel. The German bank stated to the Court that it will turn over instant messages and other communications to help further their case: “In addition to valuable monetary consideration to be paid into a settlement fund, the term sheet also provides for other valuable consideration such as provisions requiring Deutsche Bank’s cooperation in pursuing claims against the remaining defendants,”the bank’s attorneys wrote to the Court. The traders bringing the lawsuits against Deutsche Bank and others allege that the banks abused their position of controlling the daily silver and gold price fix to reap illegitimate profit from trading, hurting other investors in the silver market who use the benchmark in billions of dollars of transactions.

Notably, the Commodity Futures Trading Commission (CFTC), the US government agency allegedly mandated by Congress to regulate those banks and their commodity derivatives trading, initiated its own investigation in 2008. After a five-year-long “investigation” into allegations of price rigging in silver markets, in 2013 the CFTC dropped the case. The chairman of the CFTC was Gary Gensler, a former senior partner at Goldman Sachs, probably just coincidence. Today Gensler is Hillary Clinton’s presidential campaign finance manager.

The same banks implicated in the gold and silver market manipulations have also been sued for manipulation of the London key international interest rate, LIBOR, as well as manipulating specific currencies. Just days before the Deutsche Bank bombshell, Wells Fargo and Goldman Sachs admitted to defrauding the United States government for nearly an entire decade, a fraud which subsequently led to the housing market collapse. Running the bailout of his Wall Street cronies as US Treasury Secretary for that Tsunami collapse was former Goldman Sachs chairman, Henry Paulsen. In short some of the largest banks in the world are being exposed as criminal enterprises.

The daily London gold price is “fixed” in a special room at Barclays Bank under the auspices of the members of the London Bullion Market Association. The bullion fixing banks are Bank of Nova Scotia–ScotiaMocatta, Barclays Bank, Deutsche Bank AG London, HSBC Bank USA NA London Branch und the French Société Générale. In addition to Deutsche Bank, banks being currently sued in New York for being a part of the rigging cartel include HSBC Holdings Plc and Bank of Nova Scotia and the giant Swiss UBS. The list is about to expand and we can be sure JP MorganChase, Goldman Sachs and select Wall Street banks are already in the targets of hundreds of class-action lawsuits being readied. One day after the dramatic Deutsche Bank news, two class action lawsuits seeking $1 billion in damages on behalf of Canadian gold and silver investors were launched in the Ontario Superior Court of Justice.

The first class action alleges that the defendants, including The Bank of Nova Scotia, conspired to manipulate prices in the silver market under the guise of the benchmark fixing process, known as the London Silver Fixing, for a fifteen year period. The case is “on behalf of all persons in Canada who, between January 1, 1999 and August 14, 2014, transacted in a silver market instrument either directly or indirectly, including investors who participated in an investment or equity fund, mutual fund, hedge fund, pension fund or any other investment vehicle that transacted in a silver market instrument.” An identical class action lawsuit was launched for gold manipulation.

Now that the price-fix dam has broken and Deutsche Bank has in effect agreed to turn on its fellow commodity-fixing bankers, it’s certain that countless discussion between aggrieved traders and investors and their lawyers will result in a flood of costly litigation chocking Wall Street and City of London banks and their Continental co-conspirators. Interestingly, this ought to unblock the blockage in gold markets worldwide just as China, obviously fed up with the Wall Street gold price games, has created a Shanghai Gold Market intended to replace London and New York under quite different rules. This could well be the dawn of a new golden era, literally and figuratively.”




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