re: All Things: Gold & Silver

Silver is such a manipulative scam. Crap goes down like crypto. And no upside for well over a decade.

bumping Spaghetti Plate’s thread from 2025 … ($1 to Fat Sexy)

SP opened the original thread with a chart showing the increase in central bank accumulation compared to sovereign treasuries. (see pg. 1)

Since then … the trend has gone parabolic …. here’s the same chart, updated to reflect the latest year.



Central banks worldwide know what’s up …. and the debasement trade appears to be alive and well.

Given the level of global debt, it isn’t any surprise that the global broad money supply of printed paper currencies, which hit $150 TRILLION in June, has increased by a staggering 50% since 2020.

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Such open currency debasement now hiding in plain sight not only explains why currencies like the USD have lost 87% in absolute purchasing power since decoupling from gold in 1971, it further explains why the world’s central banks are stacking gold at an unprecedented pace in 2026.

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Just my dos centavos, but the case in support of gold continues to improve and should be a consideration for any asset portfolio …. especially given the level of worldwide currency debasement.

Good fortunes ….

Central banks are stacking gold. Their buying is picking up.

Commercial banks like JPM are stacking silver.

Why? Because gold and silver are where the money is.

Fiat currencies live an average of about 50 years, throughout history. We went off the gold standard, and the dollar became fiat currency in 1971, 55 years ago.

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and then you have to factor that cost into both purchase and sale, then you have taxes, shipping risk of loss, etc.

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The costs for acquisition and secure storage of hard assets aren’t that dissimilar than many ETF fees. Moreover, certain bullion products are exempt from federal cap gains.

I never pay for shipping unless I’m a seller. Insurance? …. it’s really no more than hedging other asset classes.

I also gain a tax advantage from from artwork that we have on loan to a traveling gallery …. that allows me to write-off annual storage & insurance costs of an appreciating hard asset.

BTW, … it would never even cross my mind to store other valuables in the same, secure, tax advantaged storage facility

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but, you need to need a strong stomach to deal with 30% buyers premiums.

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So true! That’s my experience with Hertage Auctions for coins. They’re a big auction houses as opposed to a metals dealer. They’ve got great support and systems, and credibility that is second to none ….. buuuut if you’re the sort that falls in love with numismatics, you’ve really got to be disciplined and be intimate with the coin’s value when bidding.

But man, they sure do feature some premium coins. There’s a current auction for some early Spanish reale coins (silver) …. that is really sweet stuff.

I’ve got a few auction stories on silver, mostly small regional auction houses. They’ll build a warehouse of 5-6 estates every quarter, plus a lot of collectables. They always save the silver coins for the end of the day … and by that time the bidders are mostly bargain hunters, bullion collectors, and mebbe a coin dealer or jeweler from nearby communities.

That’s when it gets fun because the in-person participants have a 10-12% financial advantage over the online bidders in the live auctions.

Stacking Baws are out there buying the most proven assets on the planet while getting ridiculed for it by most of the crowd...

The miners are starting to look tasty .... another week or two and GDX/GDXJ will enter the loading zone, IMO:

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August CPI came in at 0.4%, pushing the odds of a Fed rate hike next week to 85%.

If the Fed hikes rates, expect a bit more downside in precious metals. If they hold steady, the correction is likely over, and prices could shoot higher, especially miners.

In a worst-case scenario, escalating attacks on energy infrastructure in the Middle East could send oil shooting above $120, triggering an October surprise, and broad market selloff.

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That chart from Bloomberg is analytically incorrect. If you overlay the price of gold denominated in dollars with the growth of gold as at other central banks IN US DOLLARS, it's the same chart. The price of gold has gone up therefore the value of the holdings have gone up. In kind. By the same amount. Because it's the same thing. Likewise, the price of UST bonds have gone down because interest rates have gone up... starting in 2022... when the line starts to dip on that chart. I would suspect that it's mainly T-Bills so it corrected on its own in short order. That Bloomberg chart (or any other like it) doesn't say or tell us anything useful.

To be analytically correct, the chart has to show the change in the physical weight of gold being purchased compared over various other timeframes and then compare it to the purchasers' growth of their own money supply while also considering whether they are an export centered economy carrying a huge trade surplus (i.e., China and emerging markets).

In other words, it's the wrong charts for the argument.

Interesting news out of Missouri .... they become the first state

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Missouri has enacted a sweeping Constitutional Money Act that gives gold and silver legal-tender status.

The law also provides protections against state-assisted confiscation, allows employers and employees to agree to compensation in gold and silver, and requires the state to accept certain electronic gold and silver transfers for taxes and services.

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no more regulation on silver and gold ..... no state cap gains upon sale

LINK

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States are taking taxes and refs away from it.

If you weee holding gold and silver , would you sell it now, or hold it for decades?

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Not sure what you mean by the “taxes and refs?”

Regarding the timing of a liquidation, … it kinda’ depends.

It depends on the reasons you purchased it ….
It depends on exactly what type of physical metal it is ….
And it depends on the state you live in …
And lastly, it depends on how badly you need the funds.

Only my dos centavos, but with the gold bull poised to resume its run, I would not sell at this time if I didn’t need to.

Good fortunes, friend