On The Lookout

I'm not liking the looks of things here so this post is intended to keep you on your toes in the very short term.

What has me bothered is the action over the past 36 hours or so. You'll recall that, back on Tuesday, I typed up a post that drew attention to the incredible resilience silver was showing near $28.60. Over a period of more than two weeks, each time paper silver dropped below that level, it was bought in sufficient size to bounce it back up. Then, at approximately 2:00 a.m. New York time yesterday morning, price was raided in sufficient size to break silver down through $28.60 and $28.40, toward $28.10. Though not surprising to most of us, the move was so brazen that even Uncle Ted mentioned it in his midweek update yesterday: (http://www.butlerresearch.com).

"I’ve commented recently that true market liquidity has been lacking in silver. Last night, at a time when liquidity is at its thinnest when it does exist, the price of silver was smashed for about 50 cents with no notable price weakness in other commodities, like gold. This was no accident and is of the type of expected price stab to the downside I’ve written about recently. There should be no doubt that this was solely designed to induce additional technical fund selling on the COMEX. The good news, in addition to the price struggling back the rest of the day, is that it looks like significant tech fund selling did occur, based upon volume statistics. The bad news, of course, is that instead of free markets, we must endure such intentional manipulation by JPMorgan and other collusive COMEX commercials until the final day of resolution."
 

I view the wee hour attack as a warning. Raids such as yesterday's are not random events and are almost always a sign of future nefarious intent.

Price rebounded yesterday due to overwhelming and significant demand for physical silver, at both the AM and PM London fixes. However, silver has failed to hold the ground it regained and has since slipped back to $28.49 as I type. This is even happening while today's U.S. economic news has been dismal: http://www.zerohedge.com/news/2013-03-28/chicago-pmi-tumbles-production-plunges-september-2009-levels & http://www.zerohedge.com/news/2013-03-28/chart-day-deja-vu-all-over-again & http://www.zerohedge.com/news/2013-03-28/final-q4-gdp-misses-personal-consumption-slides-once-more-full-breakdown & http://www.zerohedge.com/news/2013-03-28/initial-jobless-claims-miss-most-over-4-months-emergency-claims-v-fib

So, now, here's the problem. Not only is London closed tomorrow, it's closed on Monday, too. This means that there will not be another price fix until the London AM of Tuesday. This also means that silver will trade on the very light volume Globex tomorrow, again on Sunday night and all day Monday and then Monday night without a price fix for physical allocation. This gives The Bad Guys all sorts of time to jam price lower and entice even more fresh LargeSpec, momo-chasing dollars. It's entirely possible that they could even round-trip the thing by jamming price all the way down toward $27 and then buying it back up to near $28, all before the Tuesday AM fix. Not saying this WILL happen. I'm simply pointing out the possibility to you so that:

  1. You don't freak out and panic.
  2. You are ready to buy the dip, if it develops.

Here are the charts that spell this out:

And here are the gold charts to accompany:

OK, that's all for now. Hopefully this is nothing but a false alarm, a siren in the distance. However, if things get a little dicey later today and then into Monday, don't say you weren't warned.

TF

398 Comments

Byzantium's picture

youtube censorship

I logged into my account for the first time in about a year.

On checking my favourites, about a third have been deleted.

Hmmm, which ones did they withdraw?

Then it came to me; all my old 9/11 documentaries have gone. Every one of them.

Draw your own conclusions.

القراع عصفور's picture

a quick ramble...

evil works in the shadows.  it does not tolerate light.  evil is inherently weak.  through trickery, fear, all the darker human emotions really, evil gets good yet misguided people to do the heavy lifting. 

rat-tat-tat-tat.  was just outside cleaning up a few things, you know, where i can as the snow retreats.  i can hear my first woodpecker - i can tell he's one of the small urban types by the sound, and because i can't home in on it.  bunch of other birds singing, and i also saw my first robin the other day.  i will appreciate the happy din all day.  a point of view, is all.

thank you all for contributing so much to this community.  Happy Easter to ye of all faiths! 

AlexCojones's picture

Want to Know More About This Fellow Named Bloomberg

Being from the West Coast Best Coast, the A states (Alaska Arizona) where people can openly carry (but rarely do), it seems hard for me to understand that a tiny slice of America controls (Or thinks it does) the entire world.

That would be NY, DC, CT.

Is NY Mayor Bloomberg Most Dangerous Man In US?

mj12's picture

devilish outcome

If the prince of the power of the air can place his thought in your mind ....and he can...it isn't much more of a trick to make you think it's your thought. That is the deception.

57Goldtop's picture

Hmmmm

"I think it is also possible that the plans work for geometrically less time as everything accelerates and that we are seeing less well formed plans."

This is intriguing. A bunch of synapses just shook off decades of atrophy and fired up as I reflect on the life-span of a good plan

I get to review, critique, and refine technology strategy for a living, from large to small, public sector to private sector, private enterprise to publicly listed.  

The declining effectiveness in those plans is the subject of ongoing debate: 

  • Is it the pace of technology advancement as defined by Moore's Law and Metcalfe's Law?
  • Is it because globalization and competition have stripped away the lowest hanging fruit for mediocre strategies?
  • Is it the flawed requirement for growth that forms the basis of a debt-based economy? 
  • Are people just getting stupid?  
  • Have we diluted the fuel of this economic engine by allowing knowledge workers to spend half of their day reading TFMR, posting to Facebook, and video-monitoring their ageing parents scratching their crotch in front of curling re-runs on the television?
  • Is it possible that Moore and Metcalfe falsely assumed that their models would withstand exponential growth? ((duh))

Anyhow, I'll reflect on the 'geometrically' part of your statement as I go for a long walk on a beautiful day and listen to a bootleg of the Dirty Dozen Brass Band. 

'Progressively' is more likely than 'geometrically', but I shan't disembowel your tasty insight by quibbling over semantics.

On with the Vuarnets...cool    queue the horns.

Green Lantern's picture

The French Example

@57Goldtop, Silver66

Very interesting how you are trying parallels to the French example of 1790.   I haven't read the book you mentioned but I have written about the French example a couple of times here in the past. 

To me the French example is a clear-cut three stage inflation scenario.  At the meeting in NY, Sinclair said something along the lines comparing this bull-market to the early 70's which mimicked a three step bull-market and that wouldn't happen this time in gold. 

Bascially, you have a 1st stage inflation where prices are not rising as fast as the money supply.   As a result of this people hold onto their money waiting for prices to get better.  That's not many of us as we are busy trading our fiat away for metals.  But we do see that the masses have pulled out of the stock market and there are mass closings of consumer good stores that people are holding their fiat.   And some of that is people do not have the fiat to spend.

the next step is stage 2 which happened in France around 1790.  People begin to realize their money is loosing value.  And so they want to trade it away for somethign that WILL hold value.  Velocity is increasing people want goods, cars, real estate, equipment etc... Anything with intrinsic value that will be useful and will hold it's value.   We have to remember that the non-dollar asset of choice among the working class (most of us) are the metals for future spending power.   It is not the only non-dollar assett of the wealthy.  Fine art is a non-dollar assett and there are many fine art funds that have arisen in the last couple of years including Jim Rickards firm which has established one. 

At the second stage of inflation in France, as soon as they recieved their new assignant, they traded it away for something with intrinsic value as the assignant fell in value.    My sense is that we are at the beginning stage of a stage two inflation where metal buyers have realized their declining value of the dollar as well as those with some degree of wealth.  The masses have not figured it but but that could change in the next 4 to 6 months as we are seeing an increase of wealth buying luxury goods as I mentioned in previous post on velocity.  Those who are awakened already here on Turd, choose only metals as did a certain population of the French as it is the least risk.

Merchants in France recognized the decreasing value and so began to jack up the prices demanding more fiat for the same goods to counteract the decrease in value.   Goverment kept printing, demand for money decreased, increaseing velocity out of money.

Betweenn 1790 and 1793, France saw a SCARY inflation.  Something that cost 25 assignants ended up costing 1000 assignants.   Nobody wanted the assignant and they kept trading it away for goods or for metals.   This was stage 3 developing and this is where government began it's capital controls.   By enforcing wage and price controls.  This was the first attempt at government to control the descend of the assignant.  Gold and silver was outlawed as well as trade in foreign currencies. You couldn't sell goods above goverment set prices.   So this gave rise to a black market.   Which btw, the penalty was STIFF if you were caught.  And the laws became stiffer 6 years, then 20 years then death for breaking the laws.

By 1793, there was civil unrest, mobs and riots. People began stealing food.  Ok, these strong measures including putting people to death did stop the run on the assignant a wee bit and it went back to stage two inflation.  But not for long.  Finally, the french decided to put a new currency into circulation, the mandat, which was even WORSE.  As soon as it entered the economy, they entered a stage two inflation.  Make a long story short by 1797 fiat had ZERO value.  By 1799, there was a coup and A new chapter in Frances history.  His name was Napolean;)surprise

So yes, there are some parallels between Cyprus with the controls.  However, I see a couple of reasons that it won't be as overt in the USA.  If we begin bank holidays or overt capital controls as the world's super power and reserve currency, we are telling the world outright what the BRICS already know.  We are faltering.  We do not want to be so overt in our declaration.  I could see more MFglobals and people loosing their money in that way 1st before tight capital controls are put in place.   I could see foreign currency wars escalating, money being stolen, increased counterfeiting of bonds similar to the bearer bond scandals on financial institutions.

I disagree with the notion that fear won't make people put money in circulation.  It has worked time and time again and history will bear that out.   If you waiting to buy a car, and you know the price of that car will continue to go up and up and up, you will choose to buy it now rather than waiting for the future.  This will stimulate velocity.    And this is true especially for those with wealth.   Is that not what most of you are doing with gold and silver with people saying I hope gold and silver don't go up too fast so I can buy it more?  In a stage 3 inflation, the crowd will recognize gold and silver.   

Now, I realize that many people do not believe that is how things are going to unfold because never before have we seen a world currency standing in the shadows.   The BRICs are basically buying the entire African continent.  There are alot of unique things happening that I'm not sure fit neatly into any of the garden variety hyper-inflations and I guess you would have to put peak oil into that category also.

BIGNASTY's picture

Babaganoush....

I was living in La county when the 92 riots happened. I worked in East La at the time. It was surreal as I drove into work  the freeways were wide open. The horizon to the west was filled with smoke from burning businesses. To this day the only time I say the freeways this empty was immediately following the Northridge quake.

People were scared,most people stayed home from work. I was a diesel mechanic for a large company and all our truck drivers started carrying guns and the management thankfully turned a blind eye so they could protect themselves. After the Reginald Denny beating I think the truck drivers would have stayed home if they had not been allowed to carry a firearm.

The police and often fire departments were at best hesitant to respond because of fears of greater unrest/violence. Local business men and women that did not arm themselves and protect their business lost them to the rioters. If they thought someone was going to protect them they were wrong. No one is coming anytime soon WTSHTF.

Byzantium's picture

@ Ancient re People's gold

I was just noting that it is not 8k tonnes of the people's gold that was squandered, but 21k tonnes.

The problem is, we have reached the point where only a minority of people now have wealth to be stolen, with the rest being quite happy to see the wealth-holders taxed in the name of 'fairness.' As further tranches of people are dumped into the 'poor' category by virtue of bank thefts, they too will resent the wealth that still avoided confiscation.

I'm sure that secrecy over the fate of the US gold hoard will be preserved, else the PR machine is already in place to explain it away and distract the people with something else.

I don't know why people disparage Beppe Grillo, the satirist who came from nowhere to steal the Italian election. He is exactly what society needs; a voice that speaks the truth, uncorrupted by the system. Only through men like that do we have the glimmer of a chance for the public to be shown what sits behind the curtain.

Stack'em High's picture

Baba...

I realize this isn't exactly what you asked for, and you may already be aware of Fernando “FerFAL” Aguirre. He has written a lot about what happened in Argentina...

Sorry, if this guy has already been beat to death here in the past. Maybe this will be the first time for someone.

http://ferfal.blogspot.com/

http://www.silverbearcafe.com/private/10.08/tshtf1.html

ancientmoney's picture

How will this all turn out?

It seems pretty clear that the western bankers/pols are holding the short end of the stick. 

1.  A large portion of the world's cheapest energy is in Russia and the ME.  While the U.S. reserves from shale gas/oilsands are huge, they are difficult, expensive, and energy-intensive to extract (low EROI).

2.  Because we have become so indebted to China, Japan, etc. as a nation, the U.S. is beholden to them to prop up our financial system.  China can take us down anytime they want, by simply flooding the market with their stack of USTs.  Japan, could, too for that matter.

3.  The U.S. has been deindustrialized, to the point where we cannot make our own clothes, televisions, computers (to a large extent), and many other products critical to modern society.  The workers are long-retired, the factories turned into loft apartments, the expertise vanished.  We can make bombs and cars, though.  We now rely on the kindness of China and others for much of what we consume.

4.  To stave off destruction of the UST market and our way of life, we have had to allow China to siphon western gold to their shores.  Nobody really knows who owns and more importantly, has physical possession of the gold, where it is located, and how much of it there is.  This is due to the demonetization of the PMs and relegating them to paper-driven futures markets, now traded like pig bellies (bacon--is that good??).

5.  Silver, arguably a more important metal to modern society than gold, is in similar position as gold, described above.

6.  The debt is unsurmountable and unsustainable.  It must be made manageable.  The PTB are seeking ways to accomplish this end while maintaining their own wealth and power.

7.  To accomplish number 6., the public must be stripped of their wealth, their current way of life, and as someone said in an earlier post, made to beg for mercy.  Then, anything the PTB do will be seen as in response the peoples' pleas; you asked for it, we gave it to you.

8.  The rest of the world will soon no longer provide the free ride we in the west have been on for decades.  Our dollars will be ostracized.

9.  If we want stuff from the rest of the world, like clothes, energy, and sundry other itemswe  will need to barter corn, soybeans, gold, silver, wheat, or whatever other tangible wealth we may have.

10.  The world will be a difficult place for many, many people, especially in the west.  And, because the end result has been postponed by the machinations of  the PTB for so long, almost nobody has prepared for it.  Most of those who are starting to pay attention are just starting to wonder why things seem so weird lately.

11.  As evidenced by the preps by DHS, there are many people who DO know what to expect.  Those trillions of dollars and a decade of training fed agents, planning, and building the machinery and camps, and buying munitions for the largest assault known to man were not done for no reason.

Happy Easter!

babaganoush2307's picture

Thanks Bignasty and Stack'em!

Appreciate the responses, closest thing I have ever seen to unrest was at the Chicago NATO protest last year, went with good intentions left shortly after once I realized that everyone there was just a punk ass teenager who was using the opportunity to spit at cops and call them pigs instead of actually protesting the issues, it was really really really pathetic and sad...

Fight broke out with the cops and 12 were arrested and that was the end of that.  This is why the Occupy movement never got anywhere, people turn protests into parties now-a-days...

But I know one day the real riots and protests are going to start and I would like to know what to expect so thanks so much for sharing!  If anyone else has a story I would love to hear it!

القراع عصفور's picture

from bloomberg article - thanks Alex

Grey Eagle comments, "Bloomberg should stop saying he is Republican. He is actually insulting Republicans. He is nothing more than a left wing loon."

this is one of the ways that evil wins.  it's a well known psyops method.  also why i get so frustrated with the politics on Main at times.  i won't explain any further.  just think about the strategy at play here.  thanks for the article.

edit: i will be out enjoying the weather.  just in case this post is misinterpreted i'd like to say that the only difference between bloomberg and let's say pelosi is a label. 

everyone have a nice weekend.

Mad5Hatter's picture

Im am shocked

I believe that was bernie lo, (questioning Rogers), who use to be on "Asia Confidential", bloomberg, asia, but has apparenently, come back to bloomberg. Bernie seems to not care, and will let gold bugs, like B Murphy, do his song and dance. Just after my questions aired on bloomberg asia, Bernie went missing, as the chinese only then disclosed secret buying.  James Rickards indicated on THE KEISER REPORT, that china is probably at 2000 tons, up from the 500 tons of mid 2000s, to 1000 tons announced 4/13/2009, less than two weeks after yours truly exposed it on bloomberg 4/1/2009. Tonnage was missing from the supply - demand number. But who was buying? Not the US, EU as they were activity suppressing through Bank Gold Cartel in the mid 2000s. It was not India, reporting. Japan was out, no serious buying there. Had to be Russia or China, but papa bear announced Russia intent to increase CB gold by 10%. IT HAD TO BE CHINA, no other reasonable conclusion. The suspicions of CHINA gold buying started in about 2006. Within two weeks of questioning an expert, (4-1-2009) on Bloomberg, Bernie Lo, (thanking me by email for the questions), Asian confidential, airing my question if there was any evidence suggesting the chinese were secretly buying gold, put to an expert, who laughed at my questions, yet, two weeks later, the Chinese gave it up, and admitted to secretly buying gold, and bernie was gone.

===

so Bernie is a loose cannon, and Im surprised he is back with bloomberg, resurfacing, after getting dist. And after the "ROGERS FIASCO" on bloomberg, money say, Bernie goes missing again.

====

nope, I am wrong, Rogers said "Carl". Carl better look out.

==

that was CNBC, Bernie new home. So, it seems, CNBC is a little more freelance, than bloomberg, and that makes sense, with Santelli screeching on CNBC.

http://en.wikipedia.org/wiki/Bernard_Lo

Silverivalist's picture

The latest from Jim Willie

JIM WILLIE: CYPRUS IS THE FLASH POINT THAT WILL RESULT IN MASSIVE SHIFT INTO GOLD & SILVER

The Golden Jackass Jim Willie has finally given his long anticipated first public thoughts on Cyprus.

Willie states that Cyprus is the long awaited FLASH POINT the metals community has been anticipating, and it will in time invoke a great awakening as to the reality of today’s Western financial system by the public, and will result in a massive shift into physical gold and silver.

more...http://www.silverdoctors.com/jim-willie-cyprus-is-the-flash-point-that-will-result-in-massive-shift-into-gold-silver/

MrC's picture

volume ..

i don't know what to take on this ... this week the volume on netdania silver chart is just huge.

hourly:

I don't know where netdania takes it's volume from or how accurate it is.

ancientmoney's picture

@Babaganoush re: riots . . .

When I was in HS, the UW-Madison campus broke out into riots over the Vietnam war.  The college students were demonstrating, and got tear-gassed.  Went on for weeks.  One day we played hooky from classes and a bunch of us went to watch, and it was at once invigorating and terrifying.  Luckily, the police and National guard never fired into the crowds with bullets.

There was a university (Science) building bombed by a guy named Armstrong (not the one we all love), who was on the lam for many years before he was caught.  It did a ton of damage, and a researcher was killed in the explosion.

The rioting went on for several days, even weeks as I recall.

Nana's picture

If People Of The World

Could wrap their head around the fact that this is NOT their debt and then demand those responsible for the debt be held accountable the world would be a vastly different place.

I sure wish the real media, which is the internet would all take up a "It's NOT our debt" slogan and push it to the max......each and every webpage, news page and so on.

It's NOT our debt.

It's NOT our debt.

It's NOT our debt.

The Watchman's picture

FUNNY

DeficitDrop.jpg

ancientmoney's picture

@Nana re: not their debt . . .

49% of the people in the U.S. would have to bow out as the Free Shit Army (and those who bought their votes with favors) is a very large part of the current debt problem. 

It IS their debt.

I agree with you on the other 51%--it is NOT their debt.  But we will all be paying for it, one way or another.

AlexCojones's picture

ZH Comment - Pretty Much Says It All - Re:Cyprus

The Big Ching-aso

The Big Ching-aso's picture

I'm starting to see a trend here.   The smaller the country and the greater its resources the more likely it'll be phucked first and phucked hard.      Switzerland however is the exception.    It may be small but they're very rich in lead deposits.

AlexCojones's picture

Jim Willie "Flashpoint" Gold & Cyprus

JW is pretty cool dude. But a flashpoint would indicate a sudden spark, right?

So how much time does it take a so-called flashpoint to ignite?

In a King World Time frame that is.

Mad5Hatter's picture

you mean

vote for the totalitarians, and then say, it aint our debt. Good luck with that one.

In the time honored tradition, you default, dist the fiat, and rebalance with bullion.

so, with markets closed this friday, last week's call, close by friday was out to lunch, but that spike in silver volume, if real, says allot. OK, fireworks next week, its due.

Post below:

a whopping 3,356,500 silver eagles.

that is the best game play, BUST THE MINT, and put them on OUT OF SUPPLY, the headliner, bars and junk are good, but eagles sends the message to the masses.

==

Hmmm, which ones did they withdraw?

original copyrighted videos, unless preceded with a commericial, and ALL, and I mean ALL videos that are not politically correct. I use to love comedian joe rogan on youtube, no holds barred, but those days are gone ..... here is a sample

another

Deaglán's picture

Spain opinion

I´ve asked lots of people here in Spain how they feel about what happened in Cyprus and if it can happen here. I don´t know what their shitty TV channels are telling them but the common response is that it could never occur here. Many think Spain is too big and too important to Europe for anything similar to take place. When I point out how bad the banks are I´m met with a interesting range of opinions from "I´ll move my money to Germany" to "It´ll be fine in a few years". Unfortunatley I´ve no contact with the upper echelons here so I´ve no idea of what the big boys and girls are doing/have done

I´ve mentioned Bankia here  before and initially I was critical of anyone who got suckered into the scam but on reflection the people were customers of these banks for many years and I guess with familiarity it´s human nature to trust. I guess the thinking was......"This guy in the suit know what´s best, I´ve known him years, I´ll sign what he tells me"      They have learned a lesson the hard way like we all do sometimes but I can´t help but feel sorry for the hard working pensioners who had their life savings converted to a load of 20 cent shares.

I´m out of here after the Summer, it´s a great place but the future doesn´t look bright. I´ve had a scout visit many banks in Mexico D.F. in a quest to buy silver ounces. There was no silver in some of the the more reliable places. But I did manage to clear a bank out of it´s entire contents of silver ....17 ozs of battered old beautiful libertads.

The Watchman's picture

From Ed Steer-US Mint Ratios 46-1

For the month, they reported selling 62,000 ounces of gold eagles...11,000 one-ounce 24K gold buffaloes...and a whopping 3,356,500 silver eagles. Based on these numbers, the silver/gold sales ratio for March was a hair under 46 to 1.

Year-to-date [first quarter] the silver/gold sales ratio computes out at almost 37 to 1. That's based on 292,500 troy ounces of gold eagles...95,000 one-ounce 24K gold buffaloes...and an incredible 14,223,000 silver eagles.

akhutch's picture

Re: About This Fellow Named Bloomberg

" (Alaska Arizona) where people can openly carry (but rarely do)"

I can't even go on a family picnic here in AK without being armed but it's safer than Chicago.

Dr. Fix's picture

It's not my debt:

Really, it's not.

Since childhood, I have worked hard for everything that I own, and I have paid cash for all the goods and services that I have obtained through the fruits of my labor.

I believe it is my responsibility to protect myself in any way possible from repaying debt that is not  mine.

That is one big reason why I stack, I believe that all of those holding cash whether within or  or outside the banking system, will be left holding the bag for all of those that have been  nothing but parasites.

As a general rule, I never contribute anything to people that could earn it for themselves if they wanted to,

it's exactly how I was brought up, and if more people thought like I do, we would not be facing the problems that we are confronted with.

I've read both sides of this argument, and yes, approximately half the worlds  population does owe an incredible amount of debt, but I'm not  in that half, and I will not be volunteering any payment.

Mad5Hatter's picture

politically incorrect

and others ... found

despite all the sensorship, boot leg copies are still found

jolidacrown's picture

Armstrong

FMOTL's picture

UK VAT free silver

Pre 1920 sterling silver coins in quarter, half and one kilo bags available at 10% over spot (adjusted for sterling)also for sale by weight a range of vintage and secondhand sterling jewellery, cutlery, silverware etc. Find us on saturdays only at Upper Gardner St street market, North Laines,Brighton (not far from train station). Cassie, James, Litty and Steve, spreading the silver love on the south coast.

Cry Me A River's picture

Response To 2 Junk Silver Comments

benny_boom_boom Says,

"sure do love the 90% updates. i go this route. they are not going to make anymore of it. the collector in me loves that sheet. key dates be damned. unless of course you are lucky enough to just find them in the junk. tried to talk my parents into a little $100 bag. nope. no sale. they will let their digits sit in said bank through the weekend....always great when mom starts the conversation with, "so what do you think is going on with silver?"

You're Welcome Benny, Glad To Be Of Service.  I was also a subsequently reluctant party to suggestions  in the direction of one of my neighbors to purchase silver when it was trading at $42. I tried to explain mindsets to him reminding him of dollar cost averaging while advocating the idea that silver is money and not an "investment" so that he would not think of it as a short term loss based on paper price nonsense.

Unfortunately, the idea didn't catch on with him, so I gave up. I have no idea whether he kept or sold his silver, but we don't speak of it anymore.

And there you have it---the transformation of common sheepish, low-information debt-slaves into monetarily-well-informed silver-savers is two-fold. Not only must you convince them that silver saving is a sound strategy, but you must also make sure they understand the proper mindset that goes along with accumulation of silver over time.

  • Joe Dokes Says,
  • Forgive me if this has been previously discussed here but I've been thinking about the term "junk silver." Isn't it ingenious of the EE to refer to our precious constitutional 90% silver coinage as junk. What better way to negatively frame the average person's perception of the value of silver  coinage than calling it junk? Heck, we citizens of Turdville even call it that.
  • Wouldn't it be more appropriate to refer to it as lawful money silver? Or maybe heritage coinage? Anything but junk silver.

Your post inspired me to look up the term junk.

Of course, the term junk silver refers to non-numismatic coinage that has worn to an average of 715 oz. of silver content for every amount that makes up a total of $1000 face value. This is a some-what loose definition as I've weighed some bags and found them to be as low as 708 oz. and as high as 719 oz. However, in practice, you'll receive "junkier" junk silver when silver is trading at relatively low prices where the dealers have held back much of their silver for sale until prices rise again. 

My experience buying $1000 junk silver bags, (from APMEX in particular), at silver price bottoms has been that it'll be full of their worst worn out coinage along with some very nice new coinage to make up that 715 oz. standard.  This is precisely why I no longer buy junk silver in this way, but seek out coin shops where I'm allowed to sort through their buckets in order to pick out the least-worn coins.

Some day, junk silver will be sold and bought by weight instead of by face value once silver prices stabilize to levels above, say, $50. At that time, you'll be glad your junk silver is mostly Fine, AU, BU, or even Proof.

I was once allowed to purchase Kennedy halves and quarters from a number of 1964 proof sets at junk silver prices where I found 9 Kennedy Accented-Hair Coins.

What exactly is an Accented Hair Kennedy?

The Accented Hair variety of the Kennedy Half Dollar was the first obverse die used to produce the proof coins in 1964. So, of course, it exists only in proof and only for the year 1964.

As the story goes, JFK's widow Jackie Kennedy did not like the design of the hair on the President's bust and demanded that it be revised. Imagine that, a First Lady complains and the US Mint hops to and retools the die just to make her happy!

http://www.ipotad.com/pages/ah2.html

Overly-worn old, non-numismatic silver coinage is probably called "junk" now as a result of an artifact of our previous era where silver was continuously trading at roughly $3-$4/oz. Decades ago, the dominant silver buyer was in the market for numismatic US coinage. Worn out old silver coins were largely melted down. The term has only really became part of the silver-buying community after silver prices started stabilizing at relatively higher prices

 

 

Junk 1  (jubreve.gifngk) n.

1. Discarded material, such as glass, rags, paper, or metal, some of which may be reused in some form.
2. Informal
a. Articles that are worn-out or fit to be discarded: broken furniture and other junk in the attic.
b. Cheap or shoddy material.
c. Something meaningless, fatuous, or unbelievable: nothing but junk in the annual report.
3. Slang Heroin.
4. Hard salt beef for consumption on board a ship.
tr.v. junked, junk·ing, junks
To discard as useless or sell to be reused as parts; scrap.
adj.
1. Cheap, shoddy, or worthless: junk jewelry.
2. Having a superficial appeal or utility, but lacking substance: "the junk issues that have dominated this year's election" (New Republic).

[Middle English jonk, an old cable or rope.]
Word History: The word junk is an example of the change in meaning known as generalization, and very aptly too, since the amount of junk in the world seems to be generalizing and proliferating rapidly.
 
The Middle English word jonk, ancestor of junk, originally had a very specific meaning restricted to nautical terminology. First recorded in 1353, the word meant "an old cable or rope." On a sailing ship it made little sense to throw away useful material since considerable time might pass before one could get new supplies. Old cable was used in a variety of ways, for example, to make fenders, that is, material hung over the side of the ship to protect it from scraping other ships or wharves. Junk came to refer to this old cable as well.
 
The big leap in meaning taken by the word seems to have occurred when junk was applied to discarded but useful material in general. This extension may also have taken place in a nautical context, for the earliest, more generalized use of junk is found in the compound junk shop, referring to a store where old materials from ships were sold. Junk has gone on to mean useless waste as well.
Syndicate contentComments for "On The Lookout"