I copied this from a r/wallstreetsilver post:
Intro
It is safe to say all of us here are stackers because we believe precious metals, namely silver, are vastly undervalued in their relation to other asset classes and their utilitarian uses. We know that PMs largely have been suppressed since the 80s via the CRIMEX and LBMA to protect the US Dollar's hegemony in the global monetary system and for the Governments to peddle their debt as a better option to real money (i.e. gold & silver). We know this at our core, this is our mantra and our rally cry. We know that cash is trash and all fiat goes to its intrinsic value zero. But its that last part I want to hammer home... If we believe cash is trash and all fiat goes to zero, have we all taken the appropriate amount of time to really understand what that means and what the world will look like around you when (not if) that happens? Have we all mentally prepared and outlined what our personal game plan is as we go through that transition?
HYPERINFLATION AND THE FALL OF ROME
You could argue that Governments have always tried to manipulate PMs, which would be 100% accurate. This is not a new scheme. If you ask most people, what caused the fall of the Roman Empire? Most people would tell you it was because of the Barbarians. Sorry, no... The barbarians have been attacking Rome for a hundreds of years. It was the innerworkings of the Roman economy and politics that allowed the empire to be overrun. Historians cite some of the main reasons the Roman Empire fell was due to a debasement of its currency (Rome had the first recorded massive hyperinflation on record) to cover its deficit spending, massive corruption by political leaders, an over expanded military, the rise of an eastern empire, lacking enough labor to keep up with the economy, and political instability. Sound familiar? If you are an American, this should bring chills down your spine. It should also be remembered that after Rome fell, the dark ages descended on Europe and the feudal system reigned for a thousand years after.
Mike Maloney does a great job outlining the similarities of the current state of the USA and the fall of the Roman Empire in this video
Fall Of Empires: Rome vs USA (Hidden Secrets Of Money Ep 9)
So what can we learn from Rome? Well after it debased its currency all hell broke lose during the hyperinflation and that was the start of its total demise. Life got super shitty after the fall of Rome and the same standard of living would not be achieved for another 1000+ years. Well that's just great to look forward too. We must keep this in our minds as we stack. Moving on.
HYPERINFLATION AND THE RISE OF THE N*Z1S
I'm going to take my time with this section as I feel it is the most relevant and a closer example of what may be in store for the future of the world.
There are striking parallels between the U.S. economy (since 2007) and the economy of the German Weimar Republic of the 1920s. Germany suspended the gold standard when the war broke out so it could deficit spend its way to pay for the war. Sound familiar America? Eh hmm.. Vietnam War 1971? When Germany lost WW1 it agreed (i.e. was forced) to pay massive war reparations at the Treaty of Versailles. After the war a recession hit the German economy, the central bank faced with both the recession and the war reparations, decided to do what all governments do when faced with massive debt, they just start printing (aka counterfeiting) to paper over the cracks in their economy. It printed massive amounts of currency to stimulate business activity and pay their debt. The inflation started out relatively (key word) small, the result of this rise in inflation made the cost of living rise, the middle class was getting poorer, and debt in the economy was growing. Again... sound at all familiar???
Although core fundamentals in the economy was deteriorating, industrial magnates benefited from money-printing. Easy credit enabled business leaders to wipe out their debts with cheap money. They expanded plants, bought companies, and speculated in foreign exchange with borrowed money. Must I say it again?
That expansion of cheap credit made its way into the German stock market. Germany’s booming stock market was the envy of Europe. Michael Burry in his recent twitter posts (since deleted) said it well.
"Speculation alone, while adding nothing to Germany's wealth, became one of its largest activities. The fever to join in turning a quick mark infected nearly all classes. Everyone from the elevator operator up was playing the market."
"The volumes of turnover in securities on the Berlin Bourse became so high that the financial industry could not keep up with the paperwork...and the Bourse was obliged to close several days a week to work off the backlog" #robinhooddown
The current state of our stock market is a direct result of the Federal Reserve printing currency in ever greater amounts and the expansion of more and more debt since 2007, just like it was in Germany in the 1920s. This was the canary in the coal mine. So what happened next?
All of a sudden, market psychology changed. The jig was up, people woke up to the fact that the money printer switch was stuck on and it wasn't going to be turned off. One minute the rich were borrowing like crazy. Overnight, no one wanted to buy the debt and in an instant the credit collapsed.
To examine how unbelievable quick this took place. While there was rapidly increasing inflation between 1918-1921 and especially what would be an obvious inflation problem in 1922, the serious level of explosive hyperinflation only lasted for a little over a year in 1923, at which point the German mark was worth one trillionth of its original value. People who did not have gold or silver, or things to barter with were totally wiped out and destitute. Unemployment was massive.
Mike Maloney does yet another great job in explaining this event.
VELOCITY & The Money Illusion - Hidden Secrets Of Money Episode 7 - Mike Maloney
As the hyperinflation reached its ultimate end, people had no use for the currency, they burned piles of it in their homes to keep warm. They used the currency as wall paper. They dumped it in the gutter in the streets. It ceased its use as a form a money. The farmers refused to take any form of paper money for their crops. The harvest of 1923 sat in farmers’ warehouses while supermarkets in the cities were empty. Starvation and civil unrest became the way of life. The state itself threatened to break apart. On Nov. 9, 1923, NZ1S Party leader Ad--- H-t-er attempted to seize power in Munich, and was jailed. The damage was done, the German people so battered and bruised by the economic shock it had just been traumatized with, the social dynamic laid the ground work for the rise of the NZ1S party a few years later. We all know how that turned out. We must keep this in our minds as we stack.
Price Expectations
Ahhh the good part. What does all this mean for Silver??? In short, its going to the f*cking moon, but not so fast what does that really mean? Lets examine this chart.
[url=https://imgur.com/ZyWTXqo][img]http://i.imgur.com/ZyWTXqo.gif[/img][/url]
Let's see how you would be counting your currency in silver's terms if you were a German in the 1920s.
Price of Silver in German Paper Marks:
Date: Silver Price/Mark:
1919
Jan: 12
May: 17
Sept: 31
1920
Jan: 84 <-- As a 1920's German do you sell your silver here?
Price deflation after Feb. 1920: prices on imported goods fell by half; German mark strengthened against other currencies.
May: 60 <-- How about here? Lock in your gains?
1921
April rate of price inflation was 6%.
Sept: 80 <-- Here?
1922
Jan: 249 <-- Definitely here, right?
May: 375
Price inflation after July.
Sept: 1,899 <-- HOLY SHIT I'M RICH!!! I'm selling!
1923
Jan: 23,277 <-- DAMMIT!!!!! I should have never sold!
Price stability in the spring.
May 44,397 <-- WTF is going on?
June 5: 80,953
July 3: 207,239 <-- My job just went out of business. Everyone around me has lost their jobs. What are we going to do now?
Aug 7: 4,273,874 <-- OK I'm getting scared what is happening?
Sept 4: 16,839,937 <-- I'm in destitute poverty.
Oct 2: 414,484,000
Oct 9: 1,554,309,000 <-- I'm stealing food to survive.
Oct 16: 5,319,567,000
Oct 23: 7,253,460,000
Oct 30: 8,419,200,000 <-- I wish I never sold my silver.
Nov 5: 54,375,000,000
Nov 13: 108,750,000,000 <-- Let's burndown City Hall!
Nov 30: 543,750,000,000 <-- We need a new strong leader to bring us out of this!
Finally, one U.S. Silver Dollar = 4.2 trillion marks
[About 3/4 of one ounce of pure silver cost 4.2 trillion marks.]
WE KEEP THIS IN MIND WHEN WE STACK!!!!!!!!!!!!!!!!!!! APES STRONG TOGETHER!!!!!!!!! SEE YOU ON THE OTHER SIDE!!!!!
Chart Citation:
https://www.youshouldbuygold.com/weimar-first-deflation-then-inflation/
Nice Post. And I like the way you made clear what hyperinflation means.
I have a couple of remarks:
Actually, the Romans introduced the feudal system long before that, in the form of coloni. These were people settled on land, connected to that land. These people were only allowed to leave after having obtained permission from the Dominus. The lands were parted in two: dominian lands, to pay for the privilege to be a well, not serf, but sort of, and mansi.
Why? Because land yielded not that much. 2:1 was a good harvest. On top, in the regions with thicker soil life was terrible, as the agri technique of the Romans was not fit. The German plough made of steel made a huge difference, but that was only around 900 when these changes began.
After the fall of Rome, the institutions, money, laws etc, remained the same. The only difference was the administration was run by somebody else. See Ravenna, Goths.
Actually, they did not lose. What happened was that Germany had an extensive social welfare program, started in 1870 under Von Bismarck. So, when all these soldiers came back from the war, a couple of things happened.
Civil war in Bavaria. two opposing peoples Republics were at each others throat.
Massive amounts of social spending was needed to pay all these millions of jobless soldiers.
The economical output was not well received by the Western powers. So, the needed funds to pay for the social welfare AND the reparation was not enough.
To head disaster off, Germany tried to negotiate a Union with France, where France would be the security guarantor and Germany the economic motor. France said no.
As a consequence, France and Belgium went in and stole all the manufacturing industry from the Rhineland, the last remaining intact German industry complex, after having lost Silesia and Prussia to Poland. Just imagine, with a third of industrial capacity to provide for all.
The depth of the Allied hatred towards Germany,is beyond imagining. And reading about it, it is difficult for me to accept such blatant lack of empathy.
In addition to your post on hyperinflation, I would add that the jokers pulling the levers of power, lack empathy, and could not careless whether either one of us makes it to the other side.
Getting there is in our hands alone. Prepare accordingly.
that's the spirit of the stacker!
The question is how much silver will be enough to get you thru the worst of it? I know this is like asking how long is a piece of string, but can you, or anyone else here offer any sort of advise as to what the average person should be aiming for? Is it 10kg, or 100kg? Also most of my stack is in bars, have recently got 1kg in Australian pre-46 coinage, like US junk, but 92.5%. There was a video recently where a dealer recommended one bag of junk silver per family member, but didn't give any indication as to "bag" weight.
Am thinking there would be lots of ppl wondering the same. Thanks in advance :)
Someone in another thread pointed out that in Venezuela today a day's wage is paid daily, goes entirely to food and little more. If you try to save, the money you hold halves in value by the next day so there's no point.
However 1 oz of silver will get you groceries for a month. As the currency deflates, the silver is constant in value and continues to have its buying power (meaning as fiat currency drops in value, silver rises compared to that currency)
Junk silver (pre 1965 quarters, dimes, and nickels) is great because it contains a fraction of an ounce. It goes by face value.
$1 face value (4 silver quarters, 10 silver dimes, 20 silver nickels) give you ~0.7 troy ounces. For smaller purchases you don't want to be shelling out 1oz denominations as change could be scarce.
That's where the junk silver comes in.
Great thing is that you can always liquidate silver for fiat if need be. Shop for deals to get the best bang for your buck. You'll always pay a premium ive r the spot price (current market value)
When selling, if it's to a retailer or refiner, they'll pay you under spot but if you sell among the community ypu can sell for above spot (but less than retailer premium)
I just ordered $10 face value quarters for 218 and $10 face value mercury dimes for $208 from members of a community. Significantly less than what retailers would charge.
Thank you. Yes have been thinking I need a whole lot more junk, theres a dealer close by who sells for spot, just need to get my hands on some cash to purchase :) Already have 1kg in junk, but looking at it doesn't seem like it would stretch the distance.
Again, great post
1kg is important but so is denominations. You'd ideally want to have much smaller. If youbwant a $1 item and only have $100 and the seller can't break change, you're in trouble!
Yes, the 1kg bars I have covered, but only 1kg in junk, some shillings & pence etc, mainly Florins. Im wondering if 3kg in junk will be enough? Have sunk most of my cash into kg bars.
I'd shop around for some 1oz coins as well. But 3kg of junk is quite a pile :)
Thank you so much, 3kg of junk is the now the goal :)
This thread should have garnered more interest than what it has, it makes me wonder just how "awakened" ppl actually are.
It should have. Especially with the x22 report being constantly pinned (I have mixed feelings about x22 report, but his financial analysis is on poiny regarding inflation and the undervalued nature of precious metals)
Bitcoin shows us just how little our dollar is worth when it takes 57,000 dollars to buy one.
Gold when adjusted would be around 35,000 an ounce if you keep the ratio to dollars when it was first introduced.
Thank you, I read every word. I keep seeing that silver is more valuable than gold because silver has practical functions and is scarcer. Is this true? I find it hard to imagine. Also, what about platinum or copper? Or other metals? Or even gemstones? Do you have an opinion on these?
Pennies before 1982 are 90% copper but copper is so relatively cheap. $4 per pound and it takes a lot to make a pound but it can't hurt to look and stash.
How about junk copper, like wire bundles? Are they also going to hold value as coins would?
No idea but if you have wires/cables, strip them from their insulation. Barebright copper is paid out FAR higher than copper inside coatings/insulation.
My father would bring in hundreds of pounds of cables, I'd strip it with a blade or a simple stripping machine I bought and I'd make over a dollar a pound more when prices were 1.60 for uncut ans 2.60 for barebright.
For what it's worth, i save every penny pre-1982 in case copper surges. But copper is too available and too cheap to be relevant. A 1 troy ounce coin of copper with the dealer premium goes for like 1.50 while a silver coin with dealer premium goes for like $32
Ship around for scrappers. Sometimes one shop to another will vary by 10-60 cents per pound on copper. 100 pounds is 10-60 bucks difference. 500 pounds is 50-600 bucks difference.
Silver is artificially suppressed so heavily it has the highest potential to rise exponentially. Gold will be worth more but its at like 1800 an oz now vs 26.50 an oz of silver.
Silver is the most conductive metal so uta induatrial usage is paramount. But It's the most artificially suppressed metal BY FAR so it should yield the beat value.
In fact I recommend "junk silver" which is currency like old quarters, dimes, and nickels from pre-1965
Best value you can get, and the amounts of silver within each coin is basically this.
$1 face value of junk silver (4 quarters or 10 dimes or 20 nickels or any combination) adds up to about 0.71 troy ounces of silver. So you don't want to have all 1 ozt coins or 100ozt bars because if shit hits the fan and silver becomes the de facto money after fiat fails you need small amounts for small purchases.
In venezuela, 1ozt of silver buys a mo th if groceries someone told me. The inflated fiat is so bad that a day's wage is spent all on groceries and that same day. Tomorrow your money will be worth half of what it is today so theres 0 point of saving money.
Meanwhile the value if silver goes up as the fiat drops so that 1ozt keeps up with inflation.
Check out http://www.reddit.com/r/wallstreetsilver. And look at the sidebar for a bunch of further reading.
Thanks for reading my post through and through!
As for other metals, diversify! But other than gold, I see platinum's price tied to the luxury of having a working society. If things collapse, I think gold and silver are the standard.
But platinum has many industrial uses, like silver. As you said, the price of silver is artificially suppressed, do you think the price of platinum is more reflective of its true value? Maybe even a bench mark for a comparably useful metal like silver? I think platinum is more scarce though.
Never, ever take investment advice from the internet.
That’s like saying never use recipes you found online. I’m just gathering info, mom.
Alright, then. Don't complain if I recommend getting with these on the ground floor.
Okay I won’t?
Welcome aboard. (See the team chat in the upper-right of the app.)
Lol... not for me. I’m just a simple stacker novice.
You can't possibly lose a dime.
One thing that didn't get a ton of attention on Friday the FED didn't continue the Standard Liquidity Ratio.....
https://seekingalpha.com/news/3674412-bank-stocks-fall-after-federal-reserve-board-lets-slr-temporary-rule-expire
They are yanking the plug on the stock-market.
Yeah, I personally think this is a really big deal. I expected the markets to react dramatically, but it essentially just dipped and recovered. Now I think we're going to live out the fantasy as long as possible.
Most all of the reports I saw about SLR on Friday underplayed it saying the banks have billions in reserve so it won't be a big deal.......I just get the feeling this isn't the case.
I am one of the Silverbacks on Wall Street Silver. https://www.reddit.com/r/Wallstreetsilver/new
The Silver Squeeze in REAL! Follow The Happy Hawaiian as his posts have been VERY TELLING before they've been deleted:
https://www.reddit.com/r/Wallstreetsilver/comments/lq49p9/post_of_thehappyhawaiian_censored_on_wsb_reposted/
I will ONLY sell my silver WHEN I NEED to sell it for a home in which my family can live for 20 to 200oz----then I will trade for it.
I will ONLY sell to someone outside the banking world, someone like another Silverback, and NEVER TO A banking group like JPMorgan, Goldman Sachs, Barclays, et al.
These PEDOPHILE KILLERS HAVE CONTEMPT FOR HUMANITY AND THEY MUST BE DESTROYED LEST THEY DESTROY HUMANITY!!!!!
#EndTheFed ♠ #DethToDavos ♠ #SaveTheChildren
Also the PMsforsale sub has great value (cheaper than exchanges) and has a nice built in system to combat fraud.
I have 13 oz of rounds coming on monday that I got for 30 an oz + 8 for priority shipping. I also have $10 Face Value slver quarters that I got for $21 a pop and was the best value by far compared to any exchange.
I only buy from sellers who have verified sales but new people can use a trusted middleman who work for free and only charge the shipping from them to the buyer (seller and buyer negotiate as to who pays that shipping)
Mostly collector items but you can ask for anything or look through what others are willing to sell. Take advantage as that means the silver stays in the community.
I know it sounds like im shilling, but I think it's really important that we stay a step ahead either before the price rockets when they can't deny the squeeze and SLV is shown to be based on empty air (their last audit was a year ago)
There are several of us. I have seen a lot of little references, and a lot of people on there are surprisingly based. Some libs as well but despite being an apolitical movement, you can see the conservatives speak out against dem policies and the bullshit Fed system.
WSbets always had a hardon for JPow and the money printer because it propped up the markets temporarily which was great for calls and other options.
So what would 4.2 trillion marks buy you back then? Could you get a house, a street or a city? A loaf of bread?
A piece of silver is of little worth if the ratio to what you need stays the same.
Right now in Sweden, one ounce of silver would buy you about 20 litres of gasoline.
In the case of hyperinflation, would I get more fuel for my car than today?
Anybody please explain, I’m genuinely curious.
What a detailed and insightful explanation. You did a hell of a better job than me!
I like the stack! Also invest in weapoms and ammunition because they will be coming for your stack.
Heldiggrisen, you seem to have your head screwed on in the correct manner, I like that.
The question is how much silver will be enough to get you thru the worst of it? I know this is like asking how long is a piece of string, but can you, or anyone else here offer any sort of advise as to what the average person should be aiming for? Is it 10kg, or 100kg? Also most of my stack is in bars, have recently got 1kg in Australian pre-46 coinage, like US junk, but 92.5%. There was a video recently where a dealer recommended one bag of junk silver per family member, but didn't give any indication as to "bag" weight.
Am thinking there would be lots of ppl wondering the same. Thanks in advance :)
By that point you don't exchange silver for money so much as you use the silver as money for other goods/land.
Silver has been a backbone of exchange for thousands of years while almost every single fiat currency has failed.
We seem to be in the failing stage with exponential debt increases via bailouts, giveaways, and "quantitative easing"
The problem is you have learned to think in terms of fiat currency.
The best way to look at it is answering the riddle of what would 28 grams of silver (in lower quality than .999 fine) have bought you? Try answer it without exchanging it for fiat. There is no fiat. only silver coin.
If you know that, then you can expand it to other items.
However, Adam Smith already told us, during the silver coin age, that price is a matter of value, and in the right circumstances you will gladly part of your silver for a liter of fresh water.
Also remember from last year: the oil price in Federal Reserve notes was MINUS 40. Meaning, you would buy a barrel of oil and get paid $40.
Somebody got paid. But it does show, the system is actually broken.
Great post, thank you.
Forwarded this post, some GME info, how the market is corrupted & manipulated via shorting to a friend who's into bitcoin. She replied with the comment that when bitcoin finishes its bull run she will invest in silver.
I have friends that folow cryptos fanatically. They said their will be a bull run but will sell by November. Not sure why but that's their plan.
Yes said friend says something similar re timing on the run, cant remember what month she predicted exactly, she has been accurate so far, but who knows.
Last ditch effort to spam PMs at high prices while all of Europe is back in lockdown, Bitcoin's rise has stalled, and 10yearT rates going parabolic.
Price remains stagnant despite HUGE SURGE in silver pyrchases including enormous purchases of hundreds of millions of ounces/tons by countries like India and Poland as well as a shit ton on a coordinated raid last Monday by WSS
Taken from a WSS post https://www.reddit.com/r/Wallstreetsilver/comments/m99tr8/huge_silver_demand_leading_to_shortages_seen/
Below is a list of some of the countries and posts where you fine Silverbacks have shared excellent insights into the tightness in Physical silver markets!
Each of these stories is individually powerful and when taken together...well decide for yourself how close physical silver may be to becoming 'unobtanium'.
• US COMEX - 26m in warehouse drainage over the last 6 weeks
• China - 8.5 Million Oz of Silver Removed From Shanghai Exchange (SGE) on Mar 18th
• India
• 6m oz / 80 tons of Silver removed from the MCX (India's COMEX) &
• India to help empty COMEX
• Amazon.in - India. It is all sold out (was available at 40% premium...now gone)
• India's silver imports in 2015 accounted for nearly one-third of global mine supply, in 2020 it was only 8%...
• Australia
• Perth Mint...can they keep up with demand? &
• Perth Mint Inventory Shortage Evaluation
• Mexico - Silver Shortage (BBVA / Banco Azteca, etc...)
• Poland - Mint of Poland completely out of investment silver
• US
• US Mint Silver Squeeze Inventory &
• U.S. Mint Boxed in by Legislation
• US Silver Eagles sales - comparison back to 2017
• Austria - 1.4m ounces of Silver removed from small Austrian ET
• Netherlands - Silver shopping PAUSED
• England - Royal Mint gold rush causes chaos for customers: 1) Reddit, 2) Original article
• Ireland - national online dealers not shipping silver, u/DoctorJTattoo buying their Silver from Bulgaria and Estonia!
• Malaysia Silver Bullion is also out of silver bar and very minimum on coins. The next restock is at least 4 weeks. per u/GreEn_rEtarD in comments below.
• Russia - Russians boosted precious metal investments during Covid crisis "... the demand for gold and silver coins tripled in 2020 compared to a year earlier..."
• South Africa - ???
Online retailers:
Monument Metals - coins got cancelled due to lack on inventory
Is a Silver run on the banks happening right now?
Request: What have I missed? If you see or write a post about supply tightness somewhere in the world, let me know (or add a link in the comments) so that I can add above!
WSS is a global community, giving us eyes and ears in many many countries. Stories about what you're seeing in your local market are very much encouraged in the comments below as well!
Welcome to our new members. Please note that while this is not investment or financial advise, if you cannot find physical silver, consider local coin shops, shares of PSLV which are backed by physical silver which goes a long way or see this list of sites compiled by another Redditor.
Below graphic was tweeted on Feb 14.
https://preview.redd.it/wrtvqa3db8o61.png?width=1280&format=png&auto=webp&s=d334bf54e3e9ff1f369de9130522bc0de747d9b8
So crash is imminent, but PMs, that do very well in crashes, are overpriced?
Great post!! Stacking and holding!!
I love seeing my apes out here!
Yes!!