With the US Mint selling silver at an unprecedented pace, it was only a matter of time before the silver shortage would be spotted across the Atlantic, where distributors ran out of both gold and silver on a daily basis during the first time Europe became insolvent some time in early May 2010. Sure enough, BullionVault.com has announced that it has run out of silver in Germany “due to high demand.” In the meantime, the CFTC’s actions have succeeded in allowing the JPM’s suppression of precious metals markets to continue indefinitely, yet all its actions have really done is to provide a short-lived lower cost basis for the precious metals as there is no indication demand is subsiding. At some point the margin calls will come. Read more…
Hypothetically speaking, if hyperinflation occurs and the value of the dollar becomes worthless, is it feasible to trade sterling silver jewelry as monetary value, as opposed to pure silver bullion? I ask because it seems you could have smaller increments of “value” with sterling silver. For example, rather than trading an entire pure silver coin for food I could simply break a necklace in half to have more “exact change”, without having to worry about getting equal change back so to speak. Would this be acceptable?
By: John on October 21, 2011
at 1:54 pm
Spot on! One of our colleagues bought 100 strings of pure silver Greek Worry Beads a few years back when it was going for a song. Think about it, Rosary Beads, Buddhist Prayer Beads they all come from the same source, coloured ones were usually painted to hide the precious metals inside and it was once common to peel off a bead, to buy a wench or some Mead or whatever;-)
By: rmiglobal on October 21, 2011
at 2:25 pm