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Greek drachma replacing euro

Will the drachma be replacing the Euro soon?

The polls in Greece have now closed and from all appearances those voting “No” have won the referendum.  What now? That’s a question no one can answer with certainty at this point.  One thing is certain, there are literally billions of dollars at stake not to mention the future of the Euro and the political future of the European Union itself.

From Zerohedge is a glimpse of how Deutsche Bank sees it –

Here is how the German megabank sees the possible outcomes of what is shaping up to be a “No” vote:

  • N1 – Soft deal: The most unlikely scenario is that the euro-area partners offer a much softer programme to Greece.

  • N2 – Default-and-stay: Moderately less unlikely is a scenario where Greece defaults but stays in the euro thanks to a direct recapitalisation of Greek banks by the euro-area partners, with the Greek government using only domestic resources for the country’s fiscal needs.

  • N3 – New deal: The third scenario is one in which the rising economic and political cost of a closed banking system results in the Syriza government being replaced by a new government of national unity and a new deal with creditors being reached.

  • N4 – Grexit: In our view, Grexit and Scenario N3 are the most likely – with about equal probabilities. That said, we see the probability of Grexit increasing the larger is the margin of victory of the NO vote. Even with a NO vote, the cumulative probability of the first three scenarios still exceeds that of Grexit.

As we see it the best option for the Greek people in the long term is scenario N4, if Greek politicians are wise enough to put in place the necessary economic steps (read as: reject socialism) to take advantage of the opportunity.  Based on their history however I view this (the rejection of socialism part) as highly unlikely, especially with SYRIZA in charge.  Regardless, the one thing we can predict with certainty is that the road ahead for Greece will be a rough one economically.

Most people made the right choice for the wrong reasons – magical thinking that things will go back to the way they were before the economic crisis, but regardless, the die has been cast.  We wish the best for the Greek people going forward.


Where Do We Put our Money?

by Silver Coin Guy on February 12, 2015

Investing in 2015Looking ahead at the rest of 2015 one has to wonder where they can put their investment dollars in hopes of a reasonable return.  What are the options:

Cash – you can stick in a bank and earn anywhere from 0.60% to 1.0% on your money.  Not only pathetic but once you factor in inflation, taxes and fees…say an overdraft or two, and this is a guaranteed way to lose value over time.   Even in a 5 year CD you’d be lucky to earn 2.5% and again, after inflation and expense you end up behind.

Stocks – Pumped up by QE and the FED and cheered on by the main street propaganda machine stocks are currently at an all-time high, which might make them seem at first glance like a good bet to earn some appreciation on your investment money. The problem, there are a few flaws in this plan.

Factor in inflation and the ever present taxman and, averaged over the last fifteen years you’re still behind. On March 24, 2000 the S&P 500 peaked at 1527.  As I write, on Feb. 11, 2015 the S&P 500 closed the day at 2068.53, a gain of 35%.  Impressive. Now let’s factor in inflation, which has averaged over 20%.  Plugging 1527 into the inflation calculator at the Bureau of Labor Statistics Inflation calculator and we get…2099.28.  This is before we subtract any capital gains taxes and of course the ever present fees.

Stocks are a sucker’s game.

Bond’s – Bonds have the same problem as cash in the bank – low yields.  10 year treasuries are currently yielding 2%!  That’s 2% for sticking your money with the Government for a decade.  Sure, your investment is arguably safe.  Certainly safer then investing in Euros or gambling in Vegas, but in light of the risks your money will be exposed to over the next ten years that’s a paltry return.  And if (when) interest rates rise your investment is going to be crushed. Again, a sure fire way to lose money.

Real Estate – Everyone’s favorite investment.  In fact, real estate has created more millionaires than any other asset class yatty yat yat ya.  Real Estate is in a bubble brought on by massive money printing and speculation.  In other words, real estate is poised to take a beating just like it did in 2007-2008.  Now does not seem like the time to invest in real estate.

So where do you put your money, especially the money you want to keep safe.  Well, seeing that this is a website extoling the virtues of investing in silver and gold you might guess that I’ll suggest exactly that and you’re right.  It’s my opinion, and this is certainly not investment advice, that putting away a chunk of money in precious metals, mostly gold but some silver as well, is a very smart strategy.

Precious metals may fall in value, just like every other investment listed above, but it also may rise.  In addition, if you buy physical gold and silver, meaning coins, bars or bullion, you have tangible wealth you can hold in your hand.  There is value in that. To Invest in Silver Coins click here!

And unlike any of the other investments there is no counterparty risk with gold or silver, which means you’re not relying on the good faith and credit of anybody.  All you need is the gold.

Do yourself a favor in this crazy world today and protect yourself.  Protect your family.  Protect yourself with gold and silver coins.

(c) Can Stock Photo


Numismatic coins and silver investing

January 25, 2015

Numismatic coins are defined as coins with a higher value than their face value.  Arguably a junk silver dime composed of 90% silver, which is worth far more than $0.10 (worth $1.30 as I write today, 24 Jan 2105) is a numismatic coin, but this isn’t want we’re talking about.  For investment purposes however the […]

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New Year’s 2015 – A great opportunity for Silver Investing

January 2, 2015

This post is going to be more of a rambling, free flowing stream of thoughts and observations.  As I look back on the past year it all seems to have flown by so fast, for me at least, especially as I’m starting out 2015 in a completely different place…mentally, physically and financially, than I started […]

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401K or Precious Metals – Preparing For A Rainy Day

April 7, 2014

Being able to save enough money to retire comfortably is one of the more popular myths of our era.  It is virtually impossible for the majority of people to be able to retire with enough savings in the bank to retire comfortably, especially with interest rates basically non-existent. The Truth – Unless you are one of the […]

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Time to buy Silver Coins, and that means Junk Silver Coins

April 13, 2013

Silver is trading lower…around $25.85/Oz. as I write this, which means it’s a great time to buy silver.  We all know we should “buy low and sell high”, but in the real world most of us do the opposite.  Here is an opportunity to buy at a low. (When do you sell silver?  The short […]

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The Cyprus Situation and Silver Coins

April 13, 2013

The events surrounding the unfolding banking crisis in Cyprus lends evidence to the argument that banks shouldn’t be trusted to hold all of your money. The problem with digital money, and in keeping your money where it can be easily seized and taken “for the greater good” is just that…it can be seized and taken […]

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Silver Investing with Morgan Silver Dollar Coins

February 16, 2013

Morgan Silver Dollar coins are ideal for building up a nest egg of junk silver coins.  Minted between 1878 and 1904, each Morgan dollar is composed of 90% silver and 10% copper.  Weighing in at 26.73 grams this means you get 24.057 grams of silver. or roughly 3/4 of an ounce. (Always keep in mind […]

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Silver Ornaments for Christmas

November 25, 2012

Silver Ornaments are a great way to add pizzazz to your holiday decorations as well as being a good way to invest in silver. Let’s face it, while silver coins are the best way to invest in silver they can be boring, unless of course you’re a coin freak like me.  Luckily silver has a value […]

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Economic reality in the USA – Sept 2012

September 29, 2012

Investment silver is an asset for tough economic times.  Silver coins have been used as a way to preserve wealth in times of economic turbulence…times like we are living in today. But perhaps we are out of the economic malaise that has plagued the USA, and in fact the rest of the world, since 2007.  After […]

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