Category Archives: Silver

Digital Silver

1/11/2015 Portland, Oregon – Pop in your mints…

A belated happy new year to our fellow taxpayers. While the pages of The Mint have been quiet, The Mint himself has been pressing forward on a number of initiatives. Perhaps the most notable being our renewed interest in Tax Planning and preparation, which is a natural complement to our virtual CFO and associated services. More to come on that.

Long-suffering readers of The Mint are well aware of our views on monetary theory. Throughout the ages, true money has generally taken the form of gold and/or silver. However, for roughly 44 years now, mankind has been on an extremely dangerous experiment in which debt has come to take the place of money in everyday transactions. While it may seem a completely normal manner of transacting business today, it is lost on most that money and debt are actually polar opposites. They are meant to cancel each other out in trade and, in doing so, maintain the quantity of one another and by extension all of world trade and economic activity, in balance.

However, when money becomes debt, then debt can only be cancelled by the issuance of more debt, which means that the primary impulse of all economic activity is not a well thought out response to the laws of supply and demand, but a response to whether or not the supply of debt instruments in the world is increasing or decreasing.

The period between 2008 and 2013 has been marked by a relative stagnation in what was until then a steady wave of increasing credit post 1971. This stagnation was almost fatal to the debt based monetary system that, by definition, counts on an infinite expansion in the quantity of debt for its very existence.

The current expansion, which began in 2014 and is set to accelerate through 2015 and beyond, is already causing cosmic shifts in the economy. Old, established companies and brands are being supplanted by a phenomenon that is best exemplified by social media platforms: Hyper focused content delivery and a wholesale fragmentation of what were, just five years ago, long-established norms around consumer behavior. Large brands are losing the edge as consumers can increasingly tailor the content that passes by their eyeballs on social media and, further, consume almost any type of media on demand.

This shift is once again propelling a large wave of growth, which means that soon, consumers will begin to demand increasing amounts of credit so that they can underwrite their various individual activities necessitated by this shift.

What place does Silver have in this brave new world? At $16.57 an ounce, physical silver is taking a short breather as the world’s best investment. However, a new form of Silver is rising to take its place.

Silver Money
Digital Silver in the form of unsecured credit at your fingertips

Silver Money Service is a simple mobile app that filters hundreds of credit card offers to help you find unsecured credit that suits your needs. While at first this may seem an elementary concept, the utility of the Silver app, which is currently available for Android and iPhone, cannot be overstated.

As much as we are loath to admit it, most consumers will need to increase their credit footprint over the coming year in order to keep pace with inflation. What the Silver app does is simply save consumers tens if not hundreds of hours sifting through credit card offers in the mail and on the internet.  By asking a few simple questions, Silver guides the user to the current credit card offerings that are best suited to their needs.

How does it work?  As we mentioned above, the app asks the user a simple, multiple-choice question:

  1. Which type of card are you looking for?
    • Rewards
    • Cash back
    • Low Interest
    • Bad Credit

From there, it asks the user a second, again multiple choice question based on their response to the first in order to tailor its results to the user’s unique credit needs.  The app then presents a list of the relevant credit card offers alongside buttons that allow the user to contact the credit card provider directly via telephone, email, or directly at their website.


Silver’s refreshingly simple and intuitive approach to assisting consumers in expanding their credit footprint.  You can download this handy app that the Google Play store and the iPhone App Store today and get a head start on your peers.

While physical silver will always be a safe harbor, the Silver app may prove more useful over the coming years as a way to fund the next wave of credit expansion. Even if you are a gold or silver bug, you can use the Silver app to get a credit card to get ahead of the curve by ordering your next tube of rounds or silver bars from your favorite bullion dealer.

For in the blow off phase, it won’t matter how much unsecured debt one has to pay back, but what real assets one has on hand to confront the gradual disintegration of the real economy.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Key Indicators for January 11, 2015

Copper Price per Lb: $2.79
Oil Price per Barrel (WTI):  $47.58

Corn Price per Bushel:  $4.00
10 Yr US Treasury Bond:  1.97%
Bitcoin price in US: $276.80
FED Target Rate:  0.12%
Gold Price Per Ounce:  $1,225

MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  5.6%
Inflation Rate (CPI):  -0.3%
Dow Jones Industrial Average:  17,737
M1 Monetary Base:  $3,157,800,000,000

M2 Monetary Base:  $11,769,400,000,000

The Mint Money Supply Digest – June 24, 2013

6/24/2013 Portland, Oregon – Pop in your mints…

And then there were two.

The liquidity drain initiated by the People’s Bank of China has caused a fire sale on financial assets across the globe as Chinese banks scramble to make various margin calls in the face of double-digit overnight rates.  Lee Adler, over at the Wall Street Examiner, offers some insight into the big squeeze currently underway:

US and Japan Pump It, Chinese Dam It and Suck, And Europe Sullenly Suffers Shrinkage

For the uninitiated, we beg of you to take a step back and to leave, just for a moment, any thought of “efficient market” hypotheses and market fundamentals behind and see the financial world for what it is:  A bunch of corporations with large credit card bills to pay and margin calls to meet.

Like anyone who has a large credit card bill to pay or margin call to meet, the ability to meet the obligation is more often than not determined by the willingness of other large corporations in similar situations to lend them money.  If they can, great, the credit rolls over.  If not, assets must be liquidated so that the debt can be paid.

The flaw in efficient market theory, with regards to financial markets, is that it implies stability when, in fact, most debtors, especially big ones, only liquidate assets as a final option.  As such, this type of liquidation often occurs suddenly and with little warning, hence the feeling of panic and cascading financial markets.

At their core, equity markets represent decisions at the margin. They often reflect this type of liquidation in an exaggerated manner.  In an odd way, this sort of whiplash seems to be the only way to spur Central bankers into action.

The actions of the PBoC suggest that they have had enough of the easy money policy that has dominated Central Bank actions for the past five years.  They have pulled the plug.  Does it have anything to do with Mr. Snowden?  Who knows, but it is what it is.

As it stands now, the Federal Reserve and Bank of Japan now stand alone on the mountain of insane monetary policy, watching the smoke plumes rise.

Anyone who has perused The Mint no doubt has noticed that we keep a relatively small collection of coins online.  This serves a dual purpose.  First, it allows us to quickly grab marketing copy should we have a particular coin in stock.  Second, it allows us to savor the coin as we attempt to put its dual faces into words.  Normally, this can be a tedious and relatively dull process.

1 OZ .999 Fine Silver First Anniversary Mount St. Helens Harry Truman Commemorative Round – 1981
1 OZ .999 Fine Silver First Anniversary Mount St. Helens Harry Truman Commemorative Round – 1981

Today was different, as we came across a relatively rare 1 OZ .999 Fine Silver First Anniversary Mount St. Helens Harry Truman Commemorative Round, minted in 1981.  For those who are unfamiliar with Harry R. Truman, we offer our marketing copy as a brief descriptor:

On one side of this coin is a bust of Harry R. Truman, the caretaker of the Mount St. Helens Lodge at Spirit Lake who stubbornly refused to leave his home even as the historic eruption was imminent. Truman was 84 when the Mount St. Helens erupted and is presumed to have died along with his 16 cats and 56 others that fateful day on May 18th, 1980. Truman’s bust is surrounded by the inscriptions “Courage,” “Spirit,” “Determination” above and his name, “Harry R. Truman” and the years he was born and died, “1896 – 1980″ below. The letters “KU” appear to the right, their meaning is unknown.

On the other side of this reeded coin is a depiction of Mount St. Helens erupting flanked by the inscriptions “One Troy Ounce” and “.999 Fine Silver,” to indicate its weight and silver content. The top of the coin, just above the smoke plume, is adorned with the inscription “First Anniversary.” Below the mountain are inscribed “1980 – 1981,” and the words “Mount St. Helens.” These beautiful coins are a great way to inspire your friends, loved ones, and co-workers by recalling the finer qualities of a man who became a hero for sticking by his desire to ride out a violent act of nature, come what may.

Mr. Truman, may he rest in peace, in many ways represents the Fed and BoJ today.  The other Central Bankers of the world have stepped cautiously back, away from the dreadful inflation for which the eruption of Mount St. Helens will serve as a handy metaphor of today.

1 OZ .999 Fine Silver First Anniversary Mount St. Helens Harry Truman Commemorative Round – 1981
1 OZ .999 Fine Silver First Anniversary Mount St. Helens Harry Truman Commemorative Round – 1981

Not Mr. Bernanke and his Japanese counterparts.  Both the US Dollar and Yen have been on the mountain longer than many of their counterparts, and their current caretakers are convinced that the bubbling inflation that their policies are stoking will simply blow over as they has in the past.

Are they right?  Or is it time to move away a safe distance from the mountain?

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for June 24, 2013

Copper Price per Lb: $3.03
Oil Price per Barrel:  $94.85
Corn Price per Bushel:  $6.53
10 Yr US Treasury Bond:  2.55%
Mt Gox Bitcoin price in US:  $122.89
FED Target Rate:  0.10%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,283
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.6%
Inflation Rate (CPI):  0.1%
Dow Jones Industrial Average:  14,660
M1 Monetary Base:  $2,432,200,000,000
M2 Monetary Base:  $10,621,100,000,000

The Mint Money Supply Digest for May 20, 2013

5/20/2013 Portland, Oregon – Pop in your mints…

While the rally in equities continues relatively unchecked, the measure of the M1 monetary base has taken a marked dive of roughly 6.2% since last week, leaving it at a level not seen since April 15th (see the current M1 measure below).

For the uninitiated, the M1 money supply is what we call cash on the street, coins and bills.  In other words, what most people consider spending money.

By nature and by the FED’s own admission, money supply data is highly volatile and subject to revision.  Even so, our own observation has been that folks are short on cash.  While this brief drop is not likely to signal a change in the trend, it has certainly caused some unexpected hiccups in dollar land.

Perhaps not coincidentally, precious metals have continued their near term price collapse.  The price of silver, our preferred investment at The Mint, tanked to nearly $20 overnight Sunday.  While the near term price is somewhat irrelevant, it may be indicative of a rush to meet short term debt obligations by holders of precious metals.

Most media reports read much into price movements, as if they mean something about the real economy.  Unfortunately, the real economy is nothing more than a yo-yo at the end of a string of debt obligations.  Until they wind up the yo-yo and let it be, real economic growth (or contraction of that matter), in terms of debt laden USD land, is nothing more than a myth one reads about in text books and in the main stream financial media.

Eventually, the avalanche of FED funds guaranteed as long as their latest QE pledge is in effect will begin to consistently run into real world asset and commodity prices.  It will feel good, but participants are advised to keep their eye on the punch bowl.  Once it is removed, it will be best to swim near the edge of the pool.

The vanilla crisis is hitting some chocolate patches, try to avoid them.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for May 20, 2013

Copper Price per Lb: $3.33
Oil Price per Barrel:  $96.71
Corn Price per Bushel:  $6.49
10 Yr US Treasury Bond:  1.97%
Mt Gox Bitcoin price in US:  $119.75
FED Target Rate:  0.11%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,395 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.5%
Inflation Rate (CPI):  -0.4%
Dow Jones Industrial Average:  15,335
M1 Monetary Base:  $2,482,200,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,538,200,000,000

Silver bullion storage options in Singapore now available at Bullionvault.com

The following is a brief public service announcement from The Mint.  Our affiliate, BullionVault.com, is now offering silver bullion purchase and storage services in Singapore.  This is great news for a variety of reasons.

First, silver has taken a significant drop in price over the past month.  While there is rarely a bad entry point into the precious metals market given that the fundamental debasement of every currency on the planet is ongoing, the past month has offered a unique opportunity to stock up at the lowest prices of the year.

Second, Singapore is one of the safest countries on the planet in terms of banking sector fundamentals, and the country’s competitive advantage is its friendliness to foreign investment and intolerance of corruption.  What better place to store your precious metals.

Third, Singapore is outside of the reach of bankrupt western democracies, which makes it unlikely that gold or silver stored there would be confiscated.

You can even make gold and silver purchases and sales on the go using BullionVault.com‘s convenient iPhone and Android apps.

BullionVault gives you all of the benefits of owning precious metals with the comfort knowing that the security experts at Brinks Global Services are keeping it safe and accessible when you need it.

What could be better?

 

On Rumors that Zimbabwe will officially adopt the Bitcoin

4/16/2013 Portland, Oregon – Pop in your mints…

Much has occurred since our last correspondence.  First, tragically, another act of terrorism has rocked the land of the free.  Our thoughts and prayers go out to all affected.  Once again, we are reminded of Robert Kennedy’s speech on the menace of violence.  For those who have never heard it, it is well worth a listen.

Source IMF via the Money Game.
Source IMF via the MoneyGame

Well before the twin blasts interrupted a peaceful Boston afternoon, two of our key indicators and our investment of choice here at The Mint, silver, took an unprecedented bath.

No, the data below on both the Bitcoin and Gold price are not typos.  As a Goldman Report put it:  “There are weeks when decades happen” or something to that effect, with regards to the action in the gold markets.

Essentially, 500 tonnes of gold were sold in the most recent selloff.  Where it will come from or whether or not it will actually be delivered, nobody knows.  It is certainly fodder for those who claim these markets are manipulated.  Even so, there is no divine law as to what the price of things in US dollars should be.  As such, those involved in the trade must accept their random fate, no matter how unjust it feels.

The Bitcoin somehow found its footing around $65 USD after crashing down to the canvas from $260.

However, the amazing, or perhaps not so amazing, if you have read our most recent eBook, part of the story is that it is still trading around $65 USD.  This is an amazing commentary on the state of national currencies.  How long can the central bank issued national currencies compete when a lifeless logarithm is doing their job better than they ever could?

Bitcoins: What they are and how to use them
Bitcoins: What they are and how to use them

We, along with the rest of the Bitcoin community, have been developing some innovative ideas about how to make Bitcoins more accessible to the general public.  If you have $150,000 and care to help us launch the initiative more quickly (as an investor, naturally, this is not a charitable endeavor, at least, that is not the intention!) please email us for more information.  You could significantly reduce our launch time in what will soon be a highly lucrative and competitive market:  Building the Bitcoin infrastructure.

Perhaps our seed capital will come from none other than Zimbabwe.  Those who have followed currency matters will recall that just five years ago Zimbabwe gave the world a rare glimpse of hyperinflation and one trillion dollar bill.  In the now infamous words of Gideon Gono, Governor of the Reserve Bank of Zimbabwe:

“I’ve been condemned by traditional economists who said that printing money is responsible for inflation. Out of the necessity to exist, to ensure my people survive, I had to find myself printing money. I found myself doing extraordinary things that aren’t in the textbooks. Then the IMF asked the U.S. to please print money. I began to see the whole world now in a mode of practicing what they have been saying I should not. I decided that God had been on my side and had come to vindicate me.”

In a page that has since been removed from CNN’s ireport {SEE UPDATE BELOW}, we saw a rumor that Zimbabwe was poised to adopt the Bitcoin as its official currency.  Perhaps Mr. Gono got a hold of our book?

{UPDATE 4/17/2013: The page has been updated and can be seen here.  It now appears that Zimbabwe rumor is now official, though unverified by CNN.}

Meanwhile, as Bitcoin, Gold, Silver, and Oil crash, the monetary measures continue to spiral out of control.  There are some big naked shorts out there, and Mr. Bernanke may, for a finale as Fed Chairman, borrow a page from Mr. Gono’s playbook circa 2009 in an attempt to cover them.  Given the IMF’s global growth forecast, we deem it a virtual certainty.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for April 16, 2013

Copper Price per Lb: $3.44
Oil Price per Barrel:  $88.97
Corn Price per Bushel:  $6.63
10 Yr US Treasury Bond:  1.72%
Mt Gox Bitcoin price in US:  $68.00
FED Target Rate:  0.15%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,374 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.6%
Inflation Rate (CPI):  -0.2%
Dow Jones Industrial Average:  14,757
M1 Monetary Base:  $2,655,000,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,636,100,000,000

Jobs, Gold, and Bitcoins

4/5/2013 Portland, Oregon – Pop in your mints…

Today’s BLS jobs report was seen as an unmitigated disaster.  This should give the Federal Reserve the cover they need to turn Japanese with regards to their QE program (the BOJ came out with a QE program that is roughly 30%! of GDP over a year, by way of comparison, the FED has pumped out 15% of GDP in 5 years).

Bitcoins, gold, and silver jumped.  The management of what the world calls currencies is heading for the exits, and from the looks of things, so are many Dollar, Yen, and Euro holders.

Don’t bother to turn off the light or lock the doors, just get the heck out.  A four alarm fire coupled with an earthquake is on the verge of breaking out in the currency markets.  The monetary premium is looking for something to affix itself to, and it will trample many an asset class in search of it.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for April 5, 2013

Copper Price per Lb: $3.38
Oil Price per Barrel:  $92.70
Corn Price per Bushel:  $6.29
10 Yr US Treasury Bond:  1.69%
Mt Gox Bitcoin price in US:  $142.88
FED Target Rate:  0.14%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,582 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.6%
Inflation Rate (CPI):  0.7%
Dow Jones Industrial Average:  14,565
M1 Monetary Base:  $2,534,800,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,501,300,000,000

 

Pacioli’s Gift or Bernanke’s Curse? is Now Available! and thoughts on today’s flight to safety

3/28/2013 Portland, Oregon – Pop in your mints…

At long last, the much anticipated fifth volume in our “Why what we use as Money Matters” series is available in on Amazon’s Kindle and over at Smash words.com for your immediate reading pleasure.

Pacioli's Gift or Bernanke's Curse?
Pacioli’s Gift or Bernanke’s Curse?

The volume has a hero, Luca Pacioli, the Franciscan Monk who not only taught mathematics to Leonardo Da Vinci but dissimenated to Western Civilization nothing short of an economic super power.

It also has a villian, Central Banking, born of the super powers of dual-entry accounting, it uses this super power against humanity and has become dual-entry accounting’s arch nemesis.

How will it end?  At this point, you’ll have to shell out $0.99 and a couple hours of your time to find out.  However, by doing so, you may end up changing the world for the better.  Not a bad return on investment!

We pray you will enjoy it.

Today, Bitcoins traded near $100 USD, silver and gold continued to mysteriously get crushed, and US stocks, perhaps more mysteriously, continued to defy gravity.  What does it mean?

The events in Cyprus have once again caused a sort of flight to safety.  Unfotunately, the flight to safety is a very crowded trade, and is causing the US Dollar to suffer from an unwelcome bout of strength, or potential deflation.

Bernanke and the Fed will never stand for it.  US Dollar strength cannot be tolerated, and will be swiftly dealth with.  As it is dealt with in the coming weeks, Bitcoins, gold, and silver will seem like a steal at today’s prices.

Then there is the matter of the brewing war in Persia, but speculation on that scenario must wait, for the Passover is at hand.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for March 28, 2013

Copper Price per Lb: $3.40
Oil Price per Barrel:  $97.23
Corn Price per Bushel:  $6.95
10 Yr US Treasury Bond:  1.85%
FED Target Rate:  0.12%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,597 THE GOLD RUSH IS STILL ON!
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.7%
Inflation Rate (CPI):  0.7%
Dow Jones Industrial Average:  14,579
M1 Monetary Base:  $2,425,500,000,000 LOTS OF DOUGH ON THE STREET!
M2 Monetary Base:  $10,547,600,000,000