Gold and Silver – Will They Protect You?

by | Jul 7, 2010 | Precious Metals | 38 comments

Do you LOVE America?


    Wild predictions for the future price of gold and silver abound. For investors, watching our current crisis play out in slow motion relative to multi-year trends can be excruciatingly difficult.

    Take, for example, those who invested in precious metals prior to the 2008 stock market and commodities implosion. Many took the advice of gold bugs like Peter Schiff, and had they bought in the first half of 2008, by November of the same year they would have seen their portfolios diminished by roughly 30%; even worse had they bought stocks in gold miners as opposed to the physical metal. Some may have sold and taken the loss, only to see gold rebound to new nominal highs just a year later.

    If nothing else, this demonstrates that the short term swings are very volatile.

    Like 2008, we now have many analysts, including those like Bob Chapman and Howard Katz, who see a long-term inflationary or hyperinflationary scenario in America’s future, updating their forecasts to allow for the possibility of a serious deflationary crisis. While we closely follow their opinions and often agree with their assessments, the predictive quality of information available is quite limited, and in the case of the inflation/deflation debate, directly related to how the US Government and Federal Reserve deal with the crisis. Thus, forecasts are not predictions, but rather, as Gerald Celente often says, merely an interpretation of current events forming future trends.

    The intent of this article is not to make a case for deflation or inflation, though for those interested, we recommend Sooner or Later Deflationary Depression and Purging Will Come and On the Road to Hyperinflationary Destruction. Our purpose in this article is to provide readers, those who desire to preserve their wealth and purchasing power, a basic historical perspective about precious metals like gold and silver in both, inflationary and deflationary, scenarios. If precious metals perform as they have in previous crises, then we don’t have to worry too much about which direction metals will go over the long-term.

    Precious Metals During the Deflation of the 1930’s

    Things were a bit different during the 1930’s then they are today, thus we cannot make an exact comparison simply because at the time we were on the gold standard. It seems, however, that the key factor for precious metals buyers during this period was not that the US was in a severe deflationary cycle, but that times were uncertain.

    The populace in general had no real idea of where the US or the rest of the world was headed, and this may explain the green line in the chart below:

    Gold During the Great DepressionThe red line is the Dow Jones, the green line is the stock price of Homestake Mining, one of the few gold miners for which charts are available.

    Even after President Roosevelt’s 1933 Gold Confiscation Executive Order, the price of gold continued to rise. And though FDR did devalue the US dollar against gold shortly after his executive order was passed, the rise in the price of gold significantly outpaced the devaluation.

    Since stock shares were the only way to really purchase gold on the free market because bullion sales were forbidden, one must ask: why were people buying gold during this deflationary period when millions were out of work and the price of goods and assets like real estate were falling?

    Our view is that gold became the asset of choice for many because it returned to its traditional role during periods of crisis. It was a hedge against uncertainty.

    The hedge paid off. From 1930 to the peak in 1935, Homestake mining shares earned over 500% in returns, and this was during deflation, a possibility many are warning us about today.

    Precious Metals During the Inflation of the 1970’s

    In the 1970’s, when inflation and price increases in essential goods like food, gas and real estate became a concern, we saw gold follow a similar upward pattern:

    Gold 1972 - 1979

    And if you ever wanted to see what the tail end of a gold bubble looks like, we recommend taking a close look at the follow chart of gold in 1980, when it hit it’s peak and subsequent bubble bursting:

    Gold 1980

    During inflation, we saw the physical price of gold from 1972 to the peak in 1980 rise over 1200%. Yes, near the end there was most definitely a bubble, evidenced by the severe decline in late January 1980, but even if we were to use the March 1980 price point of $475 an ounce as our sell point, an investor holding the metal since 1972 would have earned nearly 500% returns.

    Volatility and Uncertainty

    When average citizens are uncertain about their future, be it with job prospects, their ability to pay their mortgage or with their retirements, it leads to volatile behavior in the markets. The action of the stock markets from 2007 through today provide evidence of this in pretty much all asset classes. Wild swings in either direction can happen on a daily basis.

    This is most certainly as true for gold as it is for the Dow Jones. The difference between the two, however, is that when investors are really scared about what’s coming next, they opt for precious metals over paper stocks (in the case of Homestake mining, there wasn’t another option at the time). An example of this can be found by looking at stock markets during the inflationary period of the 1970’s. While everyone was screaming inflation and prices were rising, the 10 year period from 1970 to 1980 didn’t see stocks rise to any significant degree, especially if we compare stocks to gold.

    Dow Jones 1970 - 1980

    Most will attribute gold’s rise to inflation fears. And, when those fears subsided post-1980 gold bubble, the price of the metal dropped to as low as $250 in the 1990’s even though during the period between 1985 to 1999, gold stayed around the $300 range, while inflation stayed around 3% annually. So, inflation wasn’t necessarily the driving force behind gold’s rise.

    If one looks at the price of gold stocks during the Great Depression and the inflation of the 1970’s, seeing a rise during both periods, we can ascertain that the rise in price is attributed not to inflation (or deflation) but uncertainty.

    When governments around the world lose the confidence of the public, few asset classes, one of them being precious metals, will retain their value. In the case of gold and silver, they did much more than just maintain purchasing power – they showed a profit.

    You’ll Want to Spit on Your Precious Metals

    If our assertions about deflation, inflation, public sector uncertainty and volatility are correct, then we can expect similar things from precious metals going forward.

    One thing that must be made absolutely clear to those holding precious metals assets is that you can expect massive swings in both, the upward and downward direction.

    Take a look, for instance, at the Gold chart above for the 1970’s period. In late 1974, gold peaked at nearly $200 an ounce. But, much like the investor who bought gold in early 2008, by late 1976 an investor would have seen nearly 50% shaved off his portfolio.

    While we are not necessarily forecasting a 50% price decline in gold or silver going forward, precious metals investors must be aware that it could happen.

    If the possibility of a deflationary cycle being forecast by some of our favorite analysts like Karl Denninger, Bob Chapman, Marc Faber, Mike Shedlock and Howard Katz does come to pass, we may see gold take a significant hit.

    It will be up to you, the investor, to determine if it’s time to sell or if you will continue to hold. An old friend and long-time metals investors told me recently, that if you own gold, you will come to hate it. “You’ll want to spit on your gold and throw it in the trash, because that’s the nature of gold during times likes this,” he said.

    The historical evidence suggests he may be right.

    Gold and Silver Prices in the Future

    Again, we will shy away from making our own predictions for the price of gold. We will also avoid providing “timing signals.” Because, if the historical charts tell us anything, it’s that precious metals movements are anything but predictable and that the moves they make don’t occur over periods of days or weeks, but months and years.

    The United States, UK, Europe, China, Russia, Japan and every other global player is going through crisis. The people understand this. Times are uncertain.

    Like previous period of uncertainty, we expect precious metals to perform well, regardless of inflation or deflation. Because when the Shit Hits the Fan, like it did in Greece recently, the people know what is going to preserve their wealth and that’s why Greeks were willing to spend as much as $1700 for an ounce of gold.

    In addition to wealth preservation, it’s human nature to also want to turn a profit. While we believe this can be achieved with gold, one may also want to consider silver as a serious wealth preserver and builder. We recently published a piece titled Silver Price Projection: $1000 per Ounce This Decade. Admittedly, we were also surprised at the $1000 price projection, but after reading Lorimer Wilson’s recent piece Gold Ratio Suggests Parabolic Top For Silver of Over $100 per Ounce! we’re convinced that any move in gold will be met with an even stronger move in silver.

    Assuming we will continue to see a longer-term up trend in gold, what can we expect from an industrial and precious metal like silver? First, we need to understand the Gold/Silver ratio, described by Wilson:

    Based on silver’s historical correlation r-square with gold of approximately 90 – 95% silver’s daily trading action almost always mirrors, and usually amplifies, underlying moves in gold. With significant increases in the price of gold expected over the next few years even greater increases are anticipated in silver’s price movement in the months and years to come because silver is currently seriously undervalued relative to gold as the following historical relationships attests.

    Let’s look at the silver:gold ratio from several different perspectives:

    – Over the past 125 years the mean silver:gold ratio (i.e. 50% above and 50% below) has been 45.69 ounces of silver to 1 ounce of gold.

    – In the last 25 years (since 1985) the mean silver:gold ratio has increased to 66.9:1

    – The present silver:gold ratio is range-bound between 63:1 and 70:1 (66.77:1 at the end of June 2010).

    – Interestingly, during the build-up to the parabolic blow-off in 1979/80 silver outpaced gold going up 732.5% vs. gold’s 289.3% causing the ratio to drop from 38:1 in January 1979 to 13.99:1 at the parabolic peak for both metals in January,1980.

    Here is a chart trending the gold/silver ratio since 1900:


    The current gold/silver ratio is sitting around 66. And though nothing is set in stone, take a look at the gold/silver ratio during the most uncertain periods in recent US history when gold peaked according to charts published above (1935 and 1980) and you’ll notice that the ratio declined significantly. This suggests that silver does, in fact, amplify gold’s moves, and if we have yet to reach gold’s ultimate “bubble” price, silver may see very significant moves as well.

    Lorimer Wilson provides some specific numbers based on gold projections from some of the top metals analysts in the world:

    Let’s look at the various price levels for gold and the various silver:gold ratios mentioned above one by one and see what conclusions we can draw.

    First let’s use the mid-year (June 30th, 2010) price of $1243 for gold and apply the various silver:gold ratios mentioned above and see what they do for the potential  % increase in, and price of, silver.

    Gold @ $1243 using the current 66.77:1 silver:gold  ratio puts silver at $18.61 (June 30/10)

    Gold @ $1243 using the above 45.69:1 silver:gold ratio puts silver at $27.20 (i.e. +46.2%)

    Gold @ $1243 using the above 13.99:1 silver:gold: ratio puts silver at $88.85 (i.e. +377.4%)

    Now let’s apply the projections made above by the various economists, academics, gold analysts and market commentators listed above to the silver:gold ratio and see what that suggests is the parabolic top for silver.

    @ $10,000 Gold

    Gold @ $10,000 using the silver:gold ratio of 66:1 puts silver at  $150

    Gold @ $10,000 using the silver:gold ratio of 45:1 puts silver at $222

    Gold @ $10,000 using the silver:gold ratio of 14:1 puts silver at $714!!

    (For what it is worth Jim Sinclair’s projection of $17,000 gold might well mean that silver would reach a parabolic top of $1,215 per ounce based on a 14:1 silver to gold correlation.)

    @ $5,000 Gold

    Gold @ $5,000 using the silver:gold ratio of 66.1 puts silver at $75

    Gold @ $5,000 using the silver:gold ratio of 45:1 puts silver at $111

    Gold @ $5,000 using the silver:gold ratio of 14:1 puts silver at $357

    @ $2,500 Gold

    Gold @ $2,500 using the silver:gold ratio of 66:1 puts silver at $38

    Gold @ $2,500 using the silver:gold ratio of 45:1 puts silver at $55.50

    Gold @ $2,500 using the silver:gold ratio of 14:1 puts silver at $178.50

    From the above it seems that, any way we look at it, physical silver is currently undervalued compared to gold bullion and is in position to generate substantially greater returns than investing in gold bullion.

    source: Kitco

    note: Since the publication of Mr. Wilson’s article, Jim Sinclair has denied that he forecast $17,000 gold.


    Though we cannot predict for sure what will happen in the future, historical evidence and some of the brightest contrarian minds in the business suggest that gold and silver are not yet done with their upward move.

    The current economic and political climate in the United States, Europe and the rest of the world implies that we are nowhere near the end of this crisis. In fact, it is our belief that we have already entered the Depression that President Obama and others have said that we avoided.

    In terms of wealth preservation, especially if that includes you owning gold and/or silver, we must understand that we are seeing events play out in slow motion. The crisis will not take a few months to work out. If this is truly a depression as we believe it is, we have many years, perhaps as much as a decade or longer, before we begin to emerge from the depths of economic catastrophe.

    While we do not advocate investing all of one’s assets in gold and silver, keeping your eggs in separate baskets is a strategy that may prevent a total loss of all of the wealth you have built up over your lifetime. Gold and silver should be one of your baskets. Many financial advisers, at least the contrarian ones,  recommend a 15% – 30% precious metals alotment. We’ll leave each of our readers to decide what’s best for them.

    Given the above information, however, we feel strongly that precious metals will be one of the very few global assets that will preserve, protect and potentially build net worth during this time of uncertainty and crisis.

    For those of our readers who are concerned with not just a recession, depression, debt crisis or currency crisis, but what is often referred to as SHTF or TEOTWAWKI (The End of the World as We Know It), a well diversified “portfolio” might include gold, silver and a host of other commodities and assets. For more information, we recommend taking a look at some or all of the following articles:

    Wealth Preservation, Investing, and Prepping in 2010

    What is Money When the System Collapses?

    Surviving Economic Collapse: Tips, Tactics, And Gear

    We wish you the best of luck navigating the waters of global crisis and potential meltdown going forward.


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      1. I wish I had the money to buy PM’s. I’m still getting the ‘Three B’s’ to comfortable levels. If you have a good prep plan and are set on your living arrangements, then holding PM’s COULD make you somewhat wealthy in the future after the dust settles. If you play your cards (PM’s) right, you could be rich. But it all depends on how this shakes out. What if the ‘dust never settles’ in your lifetime? Still, it’s better to have PM’s (if you can afford them) then not.

      2. you’ll NEVER get the 3 B’s to ‘acceptable’ levels… you’ll always want more… grab an ounce of silver for every hundred rounds of .22lr…. a brick of 400 costs what,  $20?

      3. Agreed… I find myself randomly picking up 10 boxes of Mac n Cheese or 25 pounds of rice every time I go to the store.. it’s never enough! haha.

        An easy way to acquire silver on the cheap is buying “junk” over on ebay. You can often get 1 – 20 pre 1965 quarters near spot price and decent shipping costs.. It makes it easy to invest $50 – $100 if you have it lying around… If you spend just $50 a month, by the end of the year you have $600 in silver, plus you are cost averaging in. It won’t kill you if the price of silver happens to crash, and if the SHTF then you’ll at least have some recognizable metals to barter with in the event it comes to that.

      4. I agree…silver is much easier, price wise to collect.   My family is also storing what we can each month.   My wife took  me at my word, when I told her there would be  no toilet paper available, if  every thing comes to a halt.    We must have a 1000 rolls stacked up in our spare bedrooms….LOL
        I seriously thought everything was going to collapse in the fall of  ’08.   But, who knew our government would just pitch out 200+ years of law, and bail out banks and industries, and cheat shareholders and bondholders of those banks and industries?
        I got out of  every mutual fund and closed our IRA’s and slowly bought gold coins with cash money from different coin dealers around the state.
        Gold and silver, in your possession, is the only way you can secure  what wealth you are going to have ,on the other side.

      5. Don’t forget the peanut butter and jelly Mac! They will store for a long time, too!

      6. Missouri – you can never have too much TP or Ag 🙂

        Durango – no doubt about it! I have lots of PB! My wife jarred a bunch of mixed berry jelly in the spring…. i won’t lie – I ate it all (well, me and the kids). I actually picked up a 6 pack of this Dehydrated stuff too:

        It won’t store for 30 years like freeze-dried, but I figure I’ll get 10 years out of it.

        90 servings per #10 can — solid price at $13.50 a can, if you ask me.

        Note: Mac has no affiliation with .

      7. I just picked up a case of Jack Daniels today to store away.   I don’t drink but it was fun making the choice.  I thought maybe gin would be good but the guy behind the counter talked me into the Jack.    Maybe in the winter I’ll bust open a bottle and me and the wife will have a snort.    Anyway, it’s gotta be good for something.

      8. Good call on the Jack. If we were in Britain and it hit the fan, the gin might be a winner.

        I’ve got a case of Vodka stored up. I don’t drink much anymore, but booze and smokes will be as good as gold, in my opinion 🙂

      9. All good plans.  Include vegetable seeds,  couple of Sun Danzer ac/dc freezers with vacuumed prime cuts of meat.  5 gal Hommer buckets of rice/wheat/pasta pickled with a bit of dry ice and a couple of good pv panels with a 8D gells for back-up.

      10. While gold and silver would be nice to have, its not really needed.  My first priority is to survive the collapse. Lets face it, you can’t eat it, hunt with it, fish with it or defend yourself with it. If the SHTF I give it 6 weeks before an once of gold will be worth a can of beans or a hand full of .22LR.

        If we have a protracted collapse food production skills will be worth there wieght in gold. Simply put, the people who can produce will become the new leaders of America. The attorney, banker, CEO, invester, manager and the likes will all be dependent on the local producer.

        The more skills you have in agriculture, defense, power production and security, the more you will prosper when the SHTF. Some may say its wrong to prosper when the SHTF, but the more you prosper, the more charity you can give away.

      11. Agreed Patriot One. That’s why farmers and veterans, as a group, will be more adaptable to TEOTWAWKI. Precious metals are a way to preserve some wealth until the CHANGES are over and we emerge on the other side of, say, the Pole Shift for example, and civilization begins its new ascent.

        Then, with a precious metal mine, I get to run Bordertown!  🙂

      12. “We cannot predict for sure what will happen in the future”
        Everything else here is pure bullshit.

      13. You two are right.  That’s why I think getting to know the local farmers at the farmer’s market is so important.  They’re not corporations or big businesses.  You can get to know them and develop relationships that may become the most important ones you have when SHTF.  Plus, you’ll be able to trade dry goods for PM when the so-called “rich” begin starving.

      14. For those who can’t throw a lot at PM’s go to https://silversaver/share/43JNH.  They provide a convenient and low cost way for you to accumulate silver.  Plus, you can take possession or leave it in the repository, your call.

        I agree that you can’t eat it but that goes for a lot of other things too.  It’s just one of the many things you’ll need to survive.  All patriots should prepare as best as you are able for the coming storm.

        I’m fairly well set provided I can hole up here at home but this Gulf thing has me pondering on vacating.  I’m on the east central coast of Florida and what I’ve been reading about tsunamis is causing me some sleepless nights.

        Single dad – unemployed.  What would you do?  Your thoughts are welcome.

      15. I’m amazed so many people think the economy will just disappear to be replaced by a mad max barter society.

        Let’s say for instance that the U.S. and other countries default on their bonds and a world currency is instituted.
        I can see 6-12 months on serious disruption, albeit with a STRONG…  military/homeland security/Obama-Youth presence overseeing this period.

        Still, after this transition period life resumes. OK, the standard of living Americans knew is gone, but nevertheless, I see the powers that be VERY MUCH overseeing the tax collection/law enforcement sector.

        I’m not making a value judgment here, but seriously, the Banks/Wall St/ Military/Police/CIA/Homeland Security Thugs are organized and funded (and make no mistake ..they will remain funded as YOUR social security/medicare/unemployment, etc …. benefits are reneged on).

        You dear average citizen are cannon fodder.
        Your government has clearly given signs to this effect.

        Go ahead stupid … keep voting for incumbents.

      16. Very well said Patriot One! 

        Jonny V makes an excellent point too.

        Personally I see no value in gold or daimonds, but silver has many diverse uses which does give it value to a point.  However, food and provisions are my priority before anything else.  I’m military trained, have 17 years medical field experience and have become more active in agrarian style living. 

        I started a garden this year for the first time and next year it will three times larger than it is now.  Now is the time to learn to grow you own food and make mistakes to learn from.  I’ve fished most of my life, but have yet to learn to hunt.  I do have an uncle who lived to hunt in his glory days but is too old and in bad physical shape to do it anymore.  I plan to get as much information from him as I can and put his knowledge into practice.

        During WWII victory gardens were common place in most back yards in America.  We all need to return to that style of living and provide for ourselves as much as possible.  Unfortunately few of us are willing to learn/do that…:(

        All the precious metals and diamonds in the world don’t do a damn bit of good if your dying of thirst and hunger.

        I think most important of all things is being MENTALLY prepared!  Those of us who have/are mentally prepared for when things really get bad are the ones who will survive.

      17. Brass, Copper, and Lead are the only PM’s I’ve been investing in. I think people prepping with toilet paper are impracticle! Back in my day, my ma used cotton diapers on my a$$ and am thinking a wash rag will do as it is reusable if ya have the water to wash it out with. I may be the one who is impractible, I just have a hard time picturing all these preppers running around the country side with all the toilet paper they have horded!

      18. Yo mm ~

        My family & I also share your concern with living in Florida. We live in Broward County, about 30 miles inland. There are only 2 ways out, either North on IH-95 or North on the Florida Turnpike. Bothe of these will quickly turn into giant parking lots in the event of any kind of an emergency situation. Just us, but we are getting the ‘flock’ out of Florida as quickly as we can. Good luck.

      19. @ Steve;  Just a couple of things.  No one really expects a total “mad max” scenario.  The only thing I could see causing that would be an eruption of the Yellowstone super caldera.  These other disasters are, as you point out, disasters with relatively limited lifespans.

        However, I don’t think that TPTB could just “shit out” a new world reserve currency.  That would take some time.  And even if a “normal economy” did manage to partially survive, there would still be a very large “underground economy”.  We already have and underground economy right now, and it will only get bigger.  So the idea of bartering with a form of currency that people still believe in (PM) isn’t that far fetched.  And, 6-12 months is long enough for you to “lose weight” on a serious level, even if the soup kitchen keeps you from starving……..

      20. @ Cynical Optimist,

        your story sounds a lot like mine, however, if you’ve been in the medical field as long as you say you have (I’ve been in EMS for 15 years), then you know you’ve always got to be prepared for the worst possible scenario – and if you ‘get’ anything less, its a positive.

        Running towards a rollover MVA w/ejection does no good if you don’t have a collar in your bag…

      21. Great comments from all.  I’m not talking about getting to know the local farmer, I’m talking about becoming the farmer, security force or power guy.

        Day 1 of a financial collapse will be clean, neat and orderly. By day 4 people will panic as the power goes out and the car runs out of gas, the grocery store and gas station are empty.

        By the end of the first week every major city will have garbage piling up and sanitation will be a major issue. No one will be going to work and will be at home protecting their families. At the same time you will have gangs coming out of the cities raping, pilliging and plundering everything in their path.

        Do I think we will have a Mad Max senario, no, but I do think many will many will die from lack of water, food, healthcare and the plague.

      22. Mac and anyone else with ladies in the house

        Consider a couple of months worth of tampons.Seriously.I bought a 6 month supply for both my wife and daughter.

      23. Good news everybody!  Buckshot on sale at Cabelas for $2.50 a box.  Let’s see, other people are gonna start out with lots of money, I’m gonna start out with lots of buckshot…………Wonder who’s gonna end up with the loot?   🙂

      24. 15-30% should be in PMs? What about the rest- S&P,DOW ?!!! I really don’t think so!

      25. Comments…..Pm’s will always be worth something. They have survived as money for thousands of years, and they will survive the next crash.  I believe in any economic disaster, PM’s will find their own value , as people will trade them for whatever is important to them. The open barter exchange market between people will determine the value of everything, sooner or later.
             some type of “money” will always be needed.  the only thing keeping the US dollar afloat, is the perception of it’s value.  There is nothing backing it up, and everyone knows that.  Witness foreign governments dumping US treasury debt as fast as they can.  The perception of the dollar as a thing of value is almost over. 
              Over the last year, I have been buying PM’s as I’m able. Within the last couple weeks, I have witnessed more and more buyers in the coin shops that I frequent, there for the first time.  They all arer saying the same thing.  “We feel we need to get some PM’s, as we feel something bad is comimg soon.” Their gut is telling them the time is now, if they ever want to buy. I consider this an indication that many people know the dollar is over, done, and will soon be replaced with something else.  When it all starts going down, everyone, and I mean everyone willrush to buy PM’s. Witness  what’s happening in Greece and Europe.  A rush by all the regular folks to by gold at any price, to protect what money they did have.  This will happen here also.  it’s just a matter of time.
              Don’t waste any more time.  When the masses figure out the dollar really is worthless, the rush will start. Remember this–the rush has already started.

      26. Absolutely Patriot One! We must become as self reliant and independent as possible, individual by individual, family by family. The main reason I moved to the WEST decades ago from the midwest was the possibility to become self sufficient and self reliant. I felt the West offered that prospect. 

        It worked for me and I would encourage those that can to pull up stakes and make that change, too.

      27. Jonny V: I for one am expecting a “Mad Max” scenario down the road, when the Poles shift, and I believe they will. The scientific data shows that they do so every few hundred thousand years (on average) and it has been more than 700 thousand years since the last “Flip”.

        Statistically, its wayyy over due. The North magnetic pole has already moved significantly towards Russia and there is a large magnetic anomoly in the South Atlantic currently under observation by NASA and others. The CHANGES are upon us.

        As for the New World Currency, the Russians physically introduced it in the G-8/G-20 meetings not long ago. Its on the way. It will be backed by precious metals, which is why China and Russia buy all of the gold production in the respective country, and why many central banks have been buying gold, like India, which does not produce any gold itself.

        Don’t count on Trump, Jonny V, for those silver and gold coins. Get a detector and a pan. There’s gold in those Washington hills and creeks!

      28. I know DK!  I’ve got several pans, a good sluice box, lots of #2 shovels, pickaxes, and buckets.  Not to mention topo maps with most known gold bearing locations marked out in highlighter.

        If Trump came to see me, I probably would refuse to sell to him.  I don’t like, or respect, the modern “business man” (paper pushing pogue).  I think that if all the big shots from the financial world were rounded up and shot dead, the coming disaster would be of much less duration.

        One more thing, these “changes” people keep mentioning, that’s the magnetic pole reversal right?  I hope no one here thinks the world will suddenly turn itself over (physically).

        Lastly, I used to live in Colorado for many years, and if your nickname alludes to your location, then the only thing I can beg of you is to stay the hell away from Denver.  Those people are far below average in intelligence (they like the Broncos for chrissakes) and most all of them are doomed to fiery destruction in the coming melee……:)

      29. Yeah, I’m in Durango for the summer. Whether the earth will actually physically shifts with the magnetic shift is anyone’s guess, since no one wrote down a description of what happened last time. However, there are serious changes happening to the mass and gravity of the earth right now as parts of the inner core are moving. Think of it as a slow moving “lava lamp”. Remember those?

        So it is quite conceiveable, perhaps probable, that in times past the earth shifted physically: before, after, or in conjuction with a magnetic change. The number and intensity of earthquakes seem to be increasing, and this may be an effect of the approaching Pole Shift. Or the Pole shift may be a cyclical event associated with the movement of the inner “blobs”. Its kind of a chicken or egg thing. Scientists don’t know which comes first, but they know one does happen and the other is happening.

        Super Continents have existed before where all of the land mass was connected, divided, came together, divided, etc. I would imagine that some physical shifting of the earth in its orbit actually took place during those processes. No reason to think that some physical shift couldn’t or wouldn’t occur again, whatever the circumstances for that change.

        I personally believe that a physical shift will occur with the magnetic shift and will be reflected in the physical changes predicted by Cayce, Nostradamus, and others. After the shift and tilt, world powers will realign, and the USA may be pissing into the wind, as the changes Cayce predicted for North America are extensive.

        I believe that as a nation we will be financially exhausted by then under current leadership of both parties, and that we will be so engaged in getting our own house in order, and addressing the effects of those physical changes, that we will not be meddling in the affairs of other nations.

        World leadership will pass to China, Europe, and Russia. Got Milk?
        Make sure it is powered. Stores better that way.

      30. You got that milk plugged into regular 120 house current, or did you go for the 220 oven/dryer outlet instead?   😉

      31. Hey Durango Kidd – can you give us some ideas on how you made that transition?  I wouldn’t even know where to start something like that.  Lots of stuff to consider, no doubt.  Thanks.

      32. mm:   Well, 35 years ago I emptied my bank account of a couple thousand dollars, packed everything I owned into my VW bug, pointed it west, put my foot to the floor behind a semi-trailer, and slip-streamed him from Chicago to St. Louis  …….

        That strategy worked pretty much all the way to Phoenix. 🙂

      33. MM:   I read your earlier posts. I didn’t mean to be flip with my answer. I might have some serious suggestions for you if you want them. Have Mac send me your email address, or he can send you mine, thats ok too. I would need to know more about your situation and what your variables are to make any intelligent suggestions.

        See that you are unemployed, so really, there is no better time to think about relocation than now and put a plan together.

      34. Three phase, Jonny V, go three phase. You’re smoking that Candian Cannibis again tonight aren’t you?

      35. I know who you are DK!  I know who you are…..  I told you before, I can’t afford the wonderful produce from Canada anymore.  Brutal times in construction right now.  The upside is that I have time at home to get on my prepping projects and really get organized.  Finishing up house remodel projects too, as well as a little fishing.  The Canadian went away a long time ago, besides, I’m in my 40’s now, can’t risk a home invasion my “law enforcement” officers for the sake of some pot.  Crown Royal is cheaper, and legal too.

      36. lostinmissouri, I’ve done pretty much the same things as you have, minus the toilet paper. What I’ve also done is construct two small alternative energy generator systems (solar and pedal power) to supplement a gasoline generator. Even if I never have to use these things, the pedal power generator was fun to build and educational and the solar saves money off existing fossil fuel bills from the energy company. Also, I purchased a Berkey water filter and that too saves on having to buy water bottles at the store (wife doesn’t like the well water due to the sodium chloride from our water softener). Of course its use in true SHTF times is indispensable.

        I’ve also thought about constructing things like a solar oven, outdoor shower station, and some other things, but just haven’t had the time.

        I too have been waiting since 2008. Never could have guessed it could drag on this long, and therefore have (grudgingly) come to the conclusion it could last a great deal more.

      37. The very real concern is this president’s quest for power & wanting to maintain it, and the easiest way to accomplish that when your popularity is plummeting is to start a war (facilitating Isreal against Iran), and you will undoubtedly have four more years of Obama.  Four more years to gut the US dollar.  These ares the most obvious factors in precious metals exploding, and the time table will be sooner than later. 

      38. I am extremely interested finding out what the precious metals market did overall in the 1930’s.

        I’ve seen the homestake mining chart vs dow before.

        do you have any more information?

        Even if you could give me a list of other companies: seniors and juniors(and their exchange they were listed on) from back in the day, I love it.



      1. Prediction: Silver Will Go To Parity With Gold - [...] hovered around 60:1, meaning that an ounce of gold costs 60 times more than an ounce of silver. In Gold…

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