Maybe what’s ever so fascinating about our business, is all the different ways our universal insurance can be held. I’ve always said that silver takes up so much space compared to gold, that maybe it should not be considered. Then, I thought about all the silver I own, and the various sizes in which silver is manufactured. I have all of them, but I just took a tape measure and checked the dimensions of two sizes: The 1 oz silver Buffy’s of which we sell millions I guess, and the hundred ounce bar, of which we probably sell far fewer. Using the same price per ounce of Friday’s silver spot of $38.13:
500 one ounce silver Buffys, will come in a box 12” X 12” X 4” thick. 500 one ounce silver pieces, which will eventually be a marvelous bartering device. That box will weigh a bit over 31 pounds.
Five – 100 ounce silver bars, will weigh the same as the Buffys, only there will be five bars weighing a bit more than six pounds each. Not too heavy to carry or store, because each bar in its box will be about one inch tall X 3” wide X 7” long. Five 100 ounce silver bars stacked on top of each other will be a stack 5 “ tall, 3” wide, and 7” long. In other words, you can have five hundred ounces of silver, in hundred ounce bars, stored in a fraction of the space required for 500 one ounce ‘Buffys.’ In 100 0unce bars, the cost will be about a hundred dollars less than 500 once ounce coins, so there’s not much savings there, because the one ounce are ever so much more popular than the 100 ounce bars.
The result of the above, means that everyone should have a couple hundred once ounce coins to barter with, but in the areas of savings and space required, the hundred once bars take a fraction of the space that 500 one ounce coins will take. I have a client who has bought nothing but silver, and he’s bought literally a ton of it and more. He loves silver! Yesterday, a client came in and needed some quick cash, so she sold me a Gold Eagle, and in return I gave her a check for $2500 and 40 one ounce Buffys. The difference in price of silver and gold is absolutely amazing. Here’s another comparison. When I started dealing in metals, in November of 1977, silver was $1.25 a once, and gold $250 an ounce. Divide those prices with today’s prices, and the result makes silver ever so much higher in price than gold, compared to 1977. Divide Friday’s silver spot with 1977’s spot and it is 30.5. Meaning that silver has gone up over 3000% and gold has gone up 1350%. Both are classic examples of why you should save not in dollars, but in gold and silver!
While I’m on the subject of insurance, here’s another comparison with gold and silver insurance. Insurance policies have limits as to their payout. You have a $100,000 insurance policy, and upon death, that’s what the beneficiary gets. The policy may be limited as to its duration, and at the end of that period, you have none. Obviously, with inflation, your policy’s benefits stay the same as the dollar goes down, and eventually, the policy will be worthless years from now. When I was a kid, a $5,000 life insurance policy was pretty normal, but now, it would hardly buy anything.
Since the gold and silver insurance, have no ‘policy’ giving the amount and time period, gold and silver have neither. As the dollar fades (inflation) the gold and silver prices go up, at the same level as the dollar goes down. You’re never outdated with gold and silver inflation insurance. You have nothing to worry about. They’re always current! I won’t bore you with more, but I simply cannot understand why everyone doesn’t stop and think about how shallow an insurance policy can be, and how stable a gold and silver one is.
Another thing happened to me last week. I was served a subpoena from a law firm in Chicago, and told to appear there on August 15th. Along with the subpoena, were many copies of receipts of gold and silver the man had bought from me, years ago. His wife was suing him for divorce, and she knew about his purchases. I didn’t go, but rather told him in a letter,what the abbreviations on the receipts meant, such as ML meaning Maple Leaf, AUE meaning Gold Eagle, CS meaning Credit Suisse Etc. I also included in the reply, the current prices of all which he had bought. He more than tripled on every purchase, and his soon to be ex-wife will have done well, I am certain. He got divorce insurance I guess, and his wife was maybe the beneficiary. Nothing I could do about that.
-Don Stott don@coloradogold.com