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Sunday, July 31, 2011

Gold and Silver Market Information

Another source for up to date information on precious metals and solid analysis specifically on the Gold and Silver markets is Private Bullion.

This site, ran by Scott Hage, provides easy to understand links between Gold and Silver and how the National Debt, Stock Market and other economic factors influence each other.

UrbanSurvivalSkills has long said that the smart Survival planner understands that Preparing for the Collapse or SHTF if you prefer, involves much more than stocking guns and ammunition. Surviving anything be it a bad blind date or SHTF requires planning and preparation,.....understanding the threat,...keeping on top of indicators for the collapse and taking the correct measures to ensure you are not caught flat footed.

Private Bullion is also a discreet source for precious metals: Gold, Silver, Platinum or Palladium as well as coins or a numismatic value or for melt value. We have long held that the complete Survival Preparer should have a quantity of at least Silver coins, both bullion and coins for silver melt value, in order to be completed covered for the many and diverse catalysts of collapse that all lead to American's struggling for food and security.

Add the Silver Bullion blog (link at top) to your bookmarks and spend a few minutes visiting their site every couple days or so to stay informed in the economic realm especially as it pertains to previous metals.

Saturday, July 30, 2011

Post SHTF Disease/Healthcare Medical Planning

We received the following comment from a reader,....."I have three kids with insulin-dependent diabetes. In an ice chest, two 2-liter bottles of frozen tap-water will go 2 days without melting. Reserve an area of a open-top, chest-type, freezer to keep as many 2-liter ice bottles as is possible. These provide thermal-capacitance to the chest. In colonial days, ponds would be cut-up in winter -- WHAT?! -- In Northern states ponds could have a 3-ft thickness of ice. These huge slabs of ice would be mule-teamed into underground (giant root-cellars) keeps that stayed at around 55 deg F. Large amounts (actually MASSIVE) amounts of straw would be packed between these huge slabs of ice. Ice could be kept for months like this. With our modern forms of insulation, we can store small items for a long time -- especially if we intermittently get power or have a generator. Regular insulin will keep for a year or better, but ONLY if properly cooled (not frozen). Manufacturers of insulin used to keep a 6 month supply of insulin in powder form -- which could then be re-constituted. They will not sell insulin in powder form. "

UrbanMan's comments::  No doubt the reader with insulin dependent children has read "One Second After", which incidentally just came out in paper back.  This fictional account of survival after a EMP attack does not end well for insulin dependent people in the story.  This is a challenge I am fortunate enough not to have.  It is hard enough to plan for probable routine medical needs and emergency medical situations without having to stock and properly store vital medications for pre-existing diseases or conditions. 

I know of a gent who has a family member in need of home dialysis 3 to 4 times weeks.  Apparently this is through a semi-permanent tube into the body.  This gent's challenge is to procure enough dialysis supplies for a year with the intent at the six month mark to extend the supply by reducing the procedure which in turn would create a bed ridden patient. 

Very tough circumstances to work a solution for.   It seems for the insulin the only solution would be to procure years of supplies and develop a SHTF - Collapse proof cold storage capability.  Which may have to combine cold weather, underground and limited power solutions to work. 

Had anybody out there developed a solution for post STHF storage of vital medications? 

Thursday, July 28, 2011

STHF Prep: The Race for Physical Gold and Silver

From the article: The Global Physical Gold & Silver Reserves Race is the New Nuclear Arms Race. If the ownership of physical Gold and Silver is not important, then why are people, institutions and countries racing toward stockpiling it? Again, the complete Survival Plan must have some Gold and/or Silver. This is the same as having as Bug Out Bag,...having extra magazines for your rifle,....essentially the same as any contingency. Most preppers did not stock 6 months of food overnight, not did they accumulate a SHTF - Prepare for the Collapse Survival firearms battery overnight. This is a continuous process. I would rather have 6 ounces of silver than none; I would rather than 100 ounces when the collapse commenced than just 50 ounces. The purchase of Gold and/or Silver scares people sometimes because it's value can go down,...what about the value of food that you have bought and has spoiled? Or the AR-10 rifle you bought and will (hopefully) never have to use for the purpose you bought it for?

Add JS Kim and the above website to your financial indicators research and tracking list to be prepared for when SHTF otherwise known as the Collapse or Financial Armageddon.

The old Cold War USA-USSR nuclear arms race has been replaced by the East-West Central Bank battle to accumulate physical gold and physical silver reserves. While Western Central Banks and their puppet bullion banks have distracted and goaded private citizens with the invention of fraudulent bogus paper gold and paper silver derivative products, including ETFs more recently, and paper futures contracts for a much longer period of time, they themselves have been making sure to avoid the very fraudulent paper products they have invented and have been diving headfirst into real physical precious metals.

As Central Banks continue to significantly devalue all major global currencies through excessive creation of new supply out of thin air in a digital world where “new money” is never even printed into paper/cotton form but only is created as digital bytes that are sent across international borders, the private families that are the majority shareholders in the world’s most powerful Central Banks have engaged in heavy buying of physical gold in particular, and to a lesser degree, physical silver. In 2010, Central Banks as a group, became net buyers of physical gold after two decades as net sellers. EU Central Bankers became net buyers of physical gold for the first time during the 1st Quarter 2011 since their introduction of the heavily flawed Euro into circulation in January of 2002.

As of April 2011, China was, according to “officially reported” statistics, the sixth-largest official holder of gold, with 1,054.1 tonness, according to World Gold Council estimates. The U.S. was still reported to possess the largest gold reserves at 8,133.5 tonnes. However, all of you know by now that I believe all “officially reported” statistics, whether the statistic is GDP, unemployment, inflation, or gold reserves, to be a charade and mockery of the truth. To this day I am highly skeptical of the US reported reserves of 8,133.5 tonnes, especially since these reserves have neither been independently audited nor independently tested to ensure that they meet good-for-delivery bar status since Dwight D. Eisenhower was the US President in the 1950s. As for China ’s “officially reported” holdings of only 1,054.1 tons, anyone that takes these reported stats at face value as the truth is a fool for any number of logical reasons. One , China reported that its “official” gold holdings were a constant 600 tons from 2003 to 2009 and then reported that it had increased its holdings to more than 1,000 tons overnight in 2009. Since China lied about its gold reserve holdings for more than 6 years, one cannot and should not assume that their “officially” announced 1,054.1 ton level was truthful. Since China made that announcement in 2009, their “official” gold reserve level has not increased at all.

Anyone that believes that China has not accumulated more gold, and lots of it, since that time, does not understand the Chinese government and Chinese bankers. Chinese bankers have been studying the best ways to invest in gold and silver for many years now in preparation for this global monetary war and they realize that one of the best ways to invest in PMs is to own the real thing. Furthermore, there are multiple mechanisms by which China could be secretly increasing their gold reserves out of the scrutiny of the public eye. In 2008, China replaced South Africa as the largest gold producer in the world, but nobody really knows exactly how much gold China produces or how many proven/ probable reserves or how much measured/indicated resources they own. Thus, China could be increasing gold reserves significantly on in-house production alone. Certainly we know that China is increasing its silver reserves through a policy of decreasing its domestic silver exports and increasing its foreign silver imports.

For example, last month, China ’s General Administration of Customs reported that its net imports of silver nearly quadrupled year-over-year in 2010 to more than 3,500 metric tons. Also of important note is the fact that in 2010, China exported 1,575 metric tons of silver, 58% less than in 2009, and imported 5,159 metric tons of the metal, 15% more than in 2009. This is a huge change if one realizes that from 2005 to 2010 China transitioned from a net exporter of 2,900 metric tonnes of silver to a net importer of 3,500 metric tonnes.

From 2005 to 2010, China increased its gold holdings in its State Administration of Foreign Exchange (SAFE) more than tenfold from a very small starting point of USD $4.2 billion to USD $48.1 billion. However, China could be increasing gold (and silver) reserves significantly through purchases in its Sovereign Wealth Fund – purchases that are not made available for public inspection or consumption. For China to publicly announce their buildup of gold and silver reserves that would drive up the price of the very commodity they wished to accumulate more of would be akin to then-Chancellor of the Exchequer Gordon Brown’s foolish decision to pre-announce in 1999 that the UK would be selling half of its gold reserves.

Also of important note are the following facts. China only recently deregulated gold in 2003 to allow gold prices in China to mirror international prices. The Shanghai Gold Exchange only opened in October of 2002. In late 2009, the Chinese started making gold and silver bullion easily accessible to its citizens through introducing physical sales of multiple size bars at its banks and China finally legalized ownership of 99.999% pure silver bullion. The Chinese typically have a tendency to buy PHYSICAL gold and PHYSICAL silver, not the fraudulent paper gold and paper silver derivatives invented by bankers to suppress the price of gold and silver. For the first time ever, Chinese citizens will be able to buy silver futures in Hong Kong this week and later in Shanghai ; however, since the Chinese are fond of owning Physical metals, perhaps even the majority of Chinese may settle these futures contracts with physical delivery. Furthermore, even when the option to buy gold and silver ETFs in China becomes a reality, the average Chinese citizen may shy away from these products due to his or her propensity for owning real gold and real silver.

For Asians in general, gold and silver have always been money. In Thailand , the word for money “ngen” is also the word for silver. In China , the word for bank combines the characters for “silver” and “movement”. In China not only is private demand strong AND relatively young, but even in India , private ownership of gold bullion bars was not legalized until 1990. Thus, the war between East and West over gold and silver will intensify in coming months and coming years. The objective of the East will be to release the gold and silver price from the clutches of Western price suppression schemes while the objective of the West will be to hoard gold in an attempt to prevent citizens of Western nations from owning the asset that will protect them the most from their currency devaluation schemes.

The current talk in the mainstream financial media about gold being a bubble at $1,600 an ounce and of silver having already reached its top of its long-term peak at $50 an ounce is simply rubbish. A bubble is never defined by high prices, the perception of high prices or even a decade long rise in prices. What defines a bubble is a meteoric rise in price that is not supported by fundamental reasons. For example, the US NASDAQ stock market was a bubble because stocks that had zero earnings were trading at impossible valuations and sometimes double and triple digit dollar values per share. However, the fundamental reasons that have driven gold from $250 to $1,600 and silver from $4 to its current $39 – $40 range are even stronger today than they were at the beginning of this precious metals bull. Therefore, it is impossible for a bubble in gold and silver to exist at their current prices and at this current time.
And for this reason, this is precisely why the global nuclear arms race has been replaced by a global physical gold race. Welcome to the new global war in precious metals.

J.S. Kim

JS Kim is the Managing Director and Founder of SmartKnowledgeU, a fiercely independent investment consulting and research firm that devises investment strategies to protect Main Street from the fraud of Wall Street.

Tuesday, July 26, 2011

SHTF - Financial Armageddon with the Collapsing Economy

Very bad times we are living in now. The collapse of the whole financial system may be just a short few weeks or a couple of months ahead. Consider the National Debt,...a political football and economic anvil all the same. If the Government doesn’t work a miracle and come to an agreement on how to proceed, then the inaction will bankrupt this country, driving the value of the dollar down, driving fuel and commodities prices up and very possibility lead to riots in the streets. Yes, we are facing financial SHTF and the question is how are we going to Survive the Collapse.

Even if the Government comes to some sort of arrangement in any case increasing the Debt limit, the Country is screwed. The Fed, acting separate from the government will print more money.....this would be QE 3 – more paper fiat currency to flood the market and deflating the value of the dollar.

If the Government cuts spending,..imagine that concept,....the cuts will have to come at least partially from entitlements which would place more people in the have not column.

Just look at Gold and Silver: Gold has recently hit record highs, probably staying above $ 1,580 an ounce for the short term before going up,....and up. Two years ago, the silver/gold ratio was above 83, with gold selling at $804.60 and silver at $9.64. Last month it was 43.04!

The bailout of Greece will reduce the availability of European Nations to buy U.S. Debt. We'll soon see a distressed and broke Federal Government trying to bail out a couple of our failed States,...California and Illinois comes to mind as both drive up taxes in a pathetic attempt to generate revenue only to drive an average of 5 businesses a week out of their respective state.

Experts in the Economy are saying that housing prices are going to decline another 20%!! And that we are, for the very least, in for a 4 to 5 year recession which are going to make times very tough for at least 100 million Americans.

Have you wondered why the last International Monetary Fund (I.M.F.) head, Dominique Strauss-Kahn, was removed and attacked so vicious and swiftly? Wondering why Timothy Geithner is about to leave his position shortly?

In the past week, Cisco, Lockheed Martin and Borders announced a combined 23,000 in job cuts. Meanwhile, state and local governments have cut 142,000 jobs this year. Whats going to happen when the Federal Government cannot pay for the massive amount of employees they have hired? Another 30,000 to 60,000 people on the street at once!

The common folk know the deal and it is bad. Here are just a few quotes I have from people who have been contacting me:

“The SHTF is coming. I'm have been taking money out of my 401K and buying something real and useful with it, rather than leave it there and have to load it in a wheel-barrow to buy a loaf of bread after the dollar collapses. Government causes inflation and uses it to reduce their debt in terms of buying power."

"Bernanke's agenda is that the dollar MUST be destroyed. Everything he does is toward that end."

"There has never been in a situation in my lifetime where a guy (President Obama) increases the debt by 40%, and GDP growth is on the way down, use of Food Stamps are up exponentially, millions more are unemployed -- and to accomplish this we spent $4 trillion of money we had to borrow. Way past time to prepare. Should have did it by now. The time now is to seek cover."

”I quit my job; took what I could out my 401K plan and moved the family to my in-laws farm. I am currently waiting it out. I’d like nothing more than to be here a year from now and have to move back to the city to get a job, but if not, then so be it, we’re ready.”

”Thanks for your site. Good interesting look at survival needs against the coming collapse. I took all of my savings out of the bank, bought a little silver, a bunch of food, sold my luxury sedan (eliminating a payment and bought a used truck). Now learning to grow my food. The question is not if the Shit Will Hit The Fan, it is when.”

Well, looks to me like many people thinking we are not going to have a successful conclusion to our country’s economic woes.