Meaning paper is worthless at that point.
Posted on 05/12/2010 10:46:10 AM PDT by blam
Did similar for many years at the rate of 3-4 a month back when spot was in the 6-8 range. Dollar cost averaged I've done pretty well.
But I never bought them to sell them unless the SHTF.
L
Or, Gold could come down to a more reasonable level. Or (most likely) something in-between.
Never, ever, ever. Not for any reason.
Got it? Never.
Why? Nothing is absolutely safe. Chance of confiscation or chance of fire, theft, gun to the head to open safe etc etc.
During the Roosevelt Administration bank safe deposit boxes were searched without the consent of the owner and any gold was seized without the slightest shred of due process.
If I had any, and I'm not saying I do or don't mind you, I'd rather have it in the fire resistant safe that's bolted to my floor in my home than in any bank.
What do I care if it melts? It's still gold or silver.
Theft? They're going to have to bring in a crane, rip out a couple of walls, and then pull up a substantial piece of concrete slab.
Gun to my head? Possible I suppose. Not very probable. And the outcome wouldn't be what the thieves were counting on. They'd need to get past the Neighborhood Watch, some alarms, a couple of dogs, and a video surveillance system to pull it off.
There are softer targets right up the street.
I ain't Ft. Knox, but anybody f****** with me has a way better than even chance of ending very dead very rapidly.
Safe Deposit box -
upon your death, the bank is required to have a representative of the IRS present when your box is opened to make sure you are not passing on your inheritance via prescious metals to avoid taxation.
Yep. A few years back I actually worked in that very Department of a very large Chicago bank. I read the Death Notices in the papers every single day and then paid a visit to the Vault to seal the Safe Deposit boxes. I was then required to notify, in writing, the IRS as well as anyone else on the holders record.
It was actually a bank Vice President who told me to never put anything other than jewelry and important papers into a box. Jewelry was exempt, gold or silver coinage was not.
Do not use bank Safe Deposit boxes for anything other than paperwork or jewelry.
Ever.
Thanks for the reply.
I guess a good spot and a couple dogs for an early warning system would trump the box; that is for anyone that has any to worry about.
Which, of course, you and I do not. Thank Heaven for that, eh?
As you know about such things, does the govt get to look in the box upon death, if the box is held jointly with a still living person? I was under the impression that they couldn’t.
Good thing papers is all that’s in mine.
I can tell you what the procedure was back in the mid-80's. I have no idea what the current rules are.
Upon receiving notification of the death of a box holder I went to the vault, notified the Supervisor, and watched while the box was 'sealed'. Basically they stuck something that said "Sealed" into the keyhole.
I then checked the holders information card (yes it was a paper 3X5 card back in those days) and if there was a co-holder on it they got a copy of the letter I generated to the IRS.
My responsibility ended there. I can give you no further information as to what happened then or as to what may happen now.
Sorry. Wish I could be of more service to you.
Nope...you pay all costs.
Meaning paper is worthless at that point.
Why no safe deposit boxes (for other than family papers etc)? Because in 1933 when FDR outlawed most private gold, a clause in that law ordered banks not to open “your” safe depostit box except in the presence of an IRS agent, by appointment.
Goldbug ping
Google “gold silver ratio” on a rainy weekend afternoon for an interesting avenue of research.
Mail me to get on or off the Free Republic Goldbug Ping List.
We don't have to harken back to the one-time FDR confiscation or even an individual's death -- banks have come up with a new method of safe deposit theft that they spring on regular folks on a regular basis:
San Francisco resident Carla Ruff’s safe-deposit box was drilled, seized, and turned over to the state of California, marked “owner unknown.”
“I was appalled,” Ruff said. “I felt violated.”
Unknown? Carla’s name was right on documents in the box at the Noe Valley Bank of America location. So was her address — a house about six blocks from the bank. Carla had a checking account at the bank, too — still does — and receives regular statements. Plus, she has receipts showing she’s the kind of person who paid her box rental fee. And yet, she says nobody ever notified her.
“They are zealously uncovering accounts that are not unclaimed,” Ruff said.
Her great-grandmother’s precious natural pearls and other jewelry had been auctioned off. They were sold for just $1,800, even though they were appraised for $82,500.
California law used to say property was unclaimed if the rightful owner had had no contact with the business for 15 years. But during various state budget crises, the waiting period was reduced to seven years, and then five, and then three. Legislators even tried for one year. Why? Because the state wanted to use that free money.
California became so addicted to spending people’s money, that, for years, it simply stopped sending notices to the rightful owners. ABC News obtained a 1996 internal memo in which the lawyer for the Bureau of Unclaimed Property argued against expanding programs to notify rightful owners. He wrote, “It could well result in additional claims of monies that would otherwise flow into the general fund.”
Silver is undervalued versus gold with the gold silver ratio at 60:1 ($1050oz/$17/oz). This is particularly the case on a long term historical basis. The long term historical average gold to silver ratio is 15:1 and this is because it is estimated that geologically there are some 15 parts of silver in the ground for every one part of gold. In 1980 the ratio nearly reached 15 ($850oz/$50oz=17) and the average in the 20th century has been around 40:1.
Many analysts believe that silver's ratio to gold will revert to its mean average, in [of?] recent years, below 40:1. Even if gold only remained at some $1,000/oz this would see silver rise to some $25/oz:-
($1,000oz/40=$25/oz).
__________________________
Me--- I think the ratio will stay high and not get better than 40:1 ....... Though in a panic (1980 for example) or a prolonged chaos maybe the ratio goes to 1:17
If that’s not theft, what is?
So the state is resorting to outright theft.
Rev II is not far off.
Of course, this is an actual STATE doing the theft instead of the fedgov, so those residents will have to move in order to avoid the tyranny.
So, it's a good thing that I bought two kilos of silver bullion (70 oz) at just a hair over $14 an oz?
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