A SIMPLE QUESTION

[Mortblanc]

The situation we have here is that the banks are insured for the deposits they hold.

If a bank goes under the assets, liabilities and accounts are merged into another insured bank and you never know your bank failed unless you read it in the news. Your bank statement just comes to you on a new letterhead next month.

And it is an insurance program. The banks pay premiums based on their stability, size and loan values.

Over here we had a major melt down back in 1991-1992. More banks failed and were "bailed out" by the insurance program than were before or have been since. I believe it was more than 3,000 individual banking corporations. It left the program with its funds depleted, but intact.

What was the result?

The insurance premiums were increased.
The individual deposit insured were increased from $100,000 to $250,000.
More types of deposits were included in the insured class.
Many smaller banks were consolidated into larger organizations by the new costs.
Rules allowing our individual states to regulate banking were almost eliminated and National rules written.

Regular depositors did not lose a penny of their insured funds. The biggest losses were to individuals with uninsured funds and assets. Banks were selling bonds, Certificates of Deposit and offering various high yield accounts that were exempt from the insurance. When the banks went under that was wiped out with no compensation for the depositor. Don't gamble with what you can't afford to loose.

My own bank account is the place where my pension check is deposited. The amount left is not enough to worry about.

If by good fortune I wind up with a surplus from month to month, above my emergency fund, I withdraw it and buy something durable. That is why there is an RV, garden tractor, shed filled with garden tools, SUV x2, fishing boats x2 a nice TV and a very comfortable leather recliner to rest in.

Occasionally I will even take a holiday.

Precious metals are not something for one to consider over here if they have a brain in their heads. We do not have a history of our government confiscating bank accounts but we do have a history of our government confiscating precious metals!

Yep, they will make ownership of precious metals a crime with confiscation of the wealth and prison time attached. Ownership of gold bullion was illegal between the 1930s and 1970s. Only gold jewelry of specific carrot limits was allowed.

[Straight Shooter]

To answer S13...as Steve said..( right again ) you will be offered bank stock or bond backed by a government bond ....just like they did in Cyprus...which amounts to be worthless, because you at not allowed to cash it in.....even if you could ...who ? would buy them, besides lets say you did have 85k in your account....just ring your bank and ask if you can have it ALL out in cash ....say in one week...let me know how you get on?.....try walking in tomorrow and as for 5/10 k in cash right now.....the first thing they ask is WHY and WHAT your want it for....they never fucking ask when you are putting it in though......do not take my word....go try...tell us what you find !

[Scythe13]

Didn't only 12% of the bullion get handed in or something really low like that?

Here in the UK, silver needs to go up by a fair amount, to make it worth selling. I brought a load at £12 an ounce, sold it over £30 an ounce, and am happy to repurchase again now. But for what I believe is going to happen shortly….I'll be holding what I have, and increasing it, over the next 3 years.

I think most people holding metals do so as a hedge against a weakening currency. Think about silver or gold 45 years ago. If you looked at the purchasing power of the dollar, against the purchasing power of an ounce of gold/silver, the difference is significant. Anyone who had their money (£1000, for example) in silver or gold from 1980, was sitting prettier than anyone whom had the same quantity of cash in that year in savings (£1000 for the same example). Back in 1980, £1000 was a fair chunk of money, and in value of gold was also £1000. The purchasing power of £1000 whether gold or cash was, for this example, 10% of a house purchase price. Two up, two down. However, the house has not changed, neither has the gold. Neither has the percentage of the house that the gold can purchase, e.g. 10%. However, the £1000, can now only buy 0.5% of the same house, e.g. 2 up, 2 down.

That's the real reason most preppers are holding metals. There are only a few that are using it as investment. These are the ones that are able to pay extra close attention and can check the prices and movements of it's prices more regularly.

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Thanks for the info mate. Where did you read that? Interesting point you made below though.

(24 June 2015, 22:33)Straight Shooter Wrote: besides lets say you did have 85k in your account....just ring your bank and ask if you can have it ALL out in cash ....say in one week...let me know how you get on?.....try walking in tomorrow and as for 5/10 k in cash right now.....the first thing they ask is WHY and WHAT your want it for....they never fucking ask when you are putting it in though......do not take my word....go try...tell us what you find !

The most interesting part, any transactions above £5000 are reported and tracked by the gov. I think it's the same in the US, but with $5000. This is to stop fraud and money laundering (not technically illegal! Only illegal if you've not paid tax on the money. Moving money without anyone knowing is 100% legal…which is the true/original definition of laundering). You're right though. I remember trying to take out £8000 for a massive party at uni, and the bank was not at all happy with it. So I just took out £1000 a day over the next 2 weeks until I had the money for the party. If I had pressed to take out the £8000, they said I would have had to wait a day or 2 so that they could get the money together! SCAREY!!!!!

[Straight Shooter]

Best you increase over the next 3 months S ....three years you will not afford to buy Silver let alone Gold my friend.....only my view ! besides Gold and Silver are on offer right now!....buy it while you still can.

[Mortblanc]

On offer???

What are you talking about???

Gold prices are set by the spot market daily, right there in London and hold true world wide. based on supply and demand of the daily market.

The spot price is posted in the newspapers and on the internet so there is no secret group of people that have better access to the prices or know ahead of time if there is to be a great change.

And they do not decide to go "on offer" and have a clearance sale now and then.

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If PM prices are low it is because your economy is considered extremely strong, not because they hae lowered the price so you can "stock up" for your expected crash.

[Midnitemo]

I think SS mean's relatively cheap but he is right , where I buy mine(infrequently)does knock 1,2 and even 3% of certain products periodically , I can only surmise they swallow this in there margin's....bullion by post based in Birmingham(England not Alabama)

[Straight Shooter]

Gold prices are set by the spot market daily, right there in London and hold true world wide. based on supply and demand of the daily market.

The spot price is posted in the newspapers and on the internet so there is no secret group of people that have better access to the prices or know ahead of time if there is to be a great change.

your half right MB...i will not waste my time or yours with further explanations .

Yep, they will make ownership of precious metals a crime with confiscation of the wealth and prison time attached. Ownership of gold bullion was illegal between the 1930s and 1970s. Only gold jewelry of specific carrot limits was allowed.

Bang on MB
and anyone buying PMs ....will be giving their names addresses and records of the amounts of transactions will be automatically logged ....so they know the when the amount and regularity of all out flows of metals....so if required by governments....where to come get it and confiscate it....a major flaw in holding any PMs ...as you point out the History.....people should be aware of what the risks are as you point out.

As for the price of PMs my opinion....which has been moulded by people i consider know what their talking about...is the price right now is bargain basement....time will tell ....history tells more.

[Steve]

Harrods have a bullion bar - you can buy Gold for cash and only transactions over a certain amount are recorded.

Perhaps this is an indicator of what the rich are doing. There is nothing to stop you from buying a few thousands pounds worth of gold with your weekly food shop, unrecorded.

[Straight Shooter]

Very true Steve....there is gold being sold via vending machines in London but i am not sure if this is only via a credit card.

[Midnitemo]

you can collect in person and pay cash with my vendor by appointment have done once as I was passing , no paperwork involving id or address involved...was a small amount though...sub 1k......once you've got it in your mit's how would they prove you still have it...could be lost/stolen/gifted how would they know and more to the point prove it?