Chapter thirty-eight. Robert Kiyosaki on silver

The author of Rich Dad Poor Dad speaks about silver verses gold.

These two videos explain how this man feels about investing in silver. They are both about four minutes long. So, do yourself a favor and take eight minutes out of your life to watch and see if you agree with one of the best known investment experts ever.

You all know how I feel. I have repeatedly said to NOT take my advice for investing. I repeat that right now. DO NOT. But, when all the predictions about fiat currencies come true, you may wish you had listened to people like Robert here. 

The choice is yours alone. If your investment portfolio is all in currencies and the system crashes - what will be in your safe? If you have silver (gold) in that portfolio what will it be worth if the system crashes? How about if the system does not crash? Will silver (gold) become worthless? Nope. It is a win-win situation.  

The only possible way to lose is if you only have cash to fall back on. 

I know I have repeated this theme throughout my blog. But, it is important to me that my readers aren't able to accuse me of not saying anything! 

Chapter thirty-seven. Counterfeits - How to know

Sometimes, you simply can't!

Do not dismay. This statement is also true about the currency in your wallet right now. Counterfeiters are artists. They earn (sic.) a living by making fake money. And, they are really good at what they do. Even other nations make counterfeit US money. It is simply too expensive for an individual to obtain the equipment needed to make a counterfeit; therefore much of the time they are produced by other nations who can afford that initial expense.

However, there are certain safeguards which you can take to avoid getting stuck with fakes. For that paper in your wallet, you need to simply know what a real dollar looks and feels like. Look for the security watermark for example. Look for that tiny security line embedded in it. And  the best is to compare it to a dollar which you know to be real. Don't bother using that pen with iodine in it which makes a color change to dark black if it is "supposed" to be fake. Most banks have discontinued using that now because all it does is make the iodine react with the starch contained in the cheap paper often used in a counterfeit. So, if they bleached out a one dollar bill and printed a twenty on that paper, you accomplish nothing with that pen. Take some spray starch and treat any paper money with it and that pen it will say it is a counterfeit!

Remember this, if you take a counterfeit dollar - or coin, YOU loose. The banks will not reimburse you. The government will confiscate it and leave you with nothing. If you try to pass it on to the next guy, that is a crime. Once you possess a counterfeit you are simply screwed. End of story.

For collector's coins these things are all the same as with paper "money".

Here is a short video regarding counterfeit American Eagle silver dollars By Mike Maloney:

Fake silver and gold.

UPDATED - 2015.

Here is a great page regarding detection of counterfeits:

14-ways-to-spot-counterfeits

Just as the cruds who counterfeit our coins keep getting better - we  must keep pace!

Here is information on counterfeits of all types from the United States Secret Service: 

Detect a counterfeit

Excerpt from the above cited SS page about coins:

"Genuine coins are struck (stamped out) by special machinery. Most counterfeit coins are made by pouring liquid metal into molds or dies. This procedure often leaves die marks, such as cracks or pimples of metal on the counterfeit coin.

Today counterfeit coins are made primarily to simulate rare coins which are of value to collectors. Sometimes this is done by altering genuine coins to increase their numismatic value. The most common changes are the removal, addition or alteration of the coin's date or mint marks.

If you suspect you are in possession of a counterfeit or altered coin, compare it with a genuine one of the same design and value.

If it is above five-cents in face value, it should have corrugated outer edges, referred to as "reeding." Reeding on genuine coins is even and distinct. The counterfeit coin's reeding may be uneven, crooked or missing altogether."

End of excerpt.

Steps you may take to invest in REAL coins (bullion):

1. Buy only from reputable dealers. Once you can better tell real from fake, you may want to go with individuals, but always be careful! They themselves may not know what they are selling you. Then, once you find out it is a fake - what will you do?
2. Buy certified coins. This is not 100% foolproof, but close. Closer than anything else you can do. This doesn't apply to bullion of course.
3. Befriend an expert. This was my original method. My friend was even employed as a "counterfeit detection" expert at a major dealer at the time. I was safe - for the time being. If you are lucky enough to know someone who can help, let them.
4. Study. Then when you know everything - let me know! Trust me - you will never know it all. I am an amateur and I have been involved since the early 1960s. Today there is a wealth of information online. Search around, read and look. Preserve your wealth by increasing your knowledge. You need to become knowledgeable in this field or you will suffer financially! You need to know enough to buy now - and to sell later.

Always be on the lookout for a good deal. And, always beware if that "good deal" seems too good to be true, it will bite you in the arse!

Blog about fake silver.

Real.

Real for sure - plus you know the condition.

OK, if you are at all serious about investing - buy a scale. One ounce of silver will be 31.1 grams - never more - never less.

FINAL WORDS: Be careful. Be informed. No investment is 100% safe. Silver and gold aren't. It's your investment in your future. Know what you are buying.

I do not sell anything. I am not a dealer. I am not a shill for any dealer. Make your own choices. Don't come complaining to me if you get stuck.

Chapter thirty-six. Overview

In a nut shell I am saying the following:

Our nation, and in fact the world, is faced with an epic financial FAIL! Very soon the usual way of doing business will disappear. That cash in your wallet or bank account will turn out to be worth its weight in paper! Actually very little of what we call "money" even exists today. The vast majority (over ninety percent!) is contained in little bits in computers and simply doesn't exist in real life. Just a bunch of zeros and ones. Nothing more. A flip of a switch and it all goes away!

As of now, there is not much we can do about this looming situation. Most people are unaware and distracted by things like Real Housewives and sitcoms. Or worse - sports! There are many online videos of interviews of people showing how utterly ignorant they are about the world around them. Voting hasn't seemed to help much since the elected people are pretty much the same regardless of party.

There are a few who do see what is happening. A very few. Some have come to understand things due to a religion and others through political studies. Plus a few have discovered through both! I am one of these latter people. I therefore believe what I do based on a religious belief plus a serious study in the secular world.

As a result of my training, I do not believe that storing up silver and silver coins and gold will result in a salvation in any religious way. I know those verses which tell us all not to hold our faith in the material things of this world. But I am not speaking about spiritual salvation in this blog! Salvation - that is to say, being "saved from the second death" spoken of in scripture is not what this is all about. I am trying to write about having a future in this physical world for now, and lasting longer and being better off physically than we might be if we became destitute in the coming months or years. I'm writing about having the wisdom to plan ahead for the foreseeable future. That future where our currencies will undoubtedly become worthless. 

Providing for ourselves and for our families into the physical future must be a "physical" matter.  We are, after all, physical beings. Our physical survival is of the utmost importance. We must eat. We must have shelter. We must continue moving ahead - for now. Yes, have your religion. Yes, provide for yourself and family in those "spiritual matters". But, provide for yourself into the future physically as well!

I am always reminded of the story where this family was trapped in a flood. They had to ascend to their house top to avoid being drowned. After a time along came a boat to rescue them. The father said, "Go away. We are relying on God for help." The boat left. Later a helicopter came over with the same results. The father told them to leave because they were waiting on God to rescue them. Eventually they all were drowned by the rising water.

Upon getting to heaven they asked why God let them down? God responded with: "I sent you a boat! I sent you a helicopter....!"

With that said here are a few photographs to fill the page up:

 

Chapter thirty-five. I will NOT buy certain coins advertised on ebay etc.

False advertising!

I have already mentioned a few things which the sellers get wrong. Lately, I have seen this creep in more and more.

Here are examples of advertisement claims which repel me and keep me from even considering biding on a coin regardless of any other interest I may have in that coin.

The following applies to ONLY PCGS slabbed coins:

1. The claim that it is in an old green holder (OGH). This claim means it should be in the old holder - right? Well the coin pictured by them is often in the newer holder, with an old green label inside that holder. This is NOT an OGH! It is an old green label (OGL) maybe, but the holder is the newer style and is actually a different size. In fact, there are boxes which hold the real OGH slabs and the newer ones will not fit into those boxes.

   

   Some PCGS boxes are green some are blue. These are both the same size and hold only the newer, larger sized, slabs.

   

   NGC boxes are a different size from PCGS. Otherwise, I know very little about NGC.

   

   This is both an OGH as well as a "rattler".

   

   New style and newer larger size holder - older green label.
   

    
   Notice the actual holder is completely different at the edges. It is also a slightly smaller size holder, and will not fit into the newer PCGS boxes.

   
   

   I know the one on the top is a "rattler" because the coin is up-side-down in the holder.  Known as the “rattler” holder, the early PCGS holders were used from 1986-1989 and are still seen sometimes today. The coin rattles around inside the old holder and sometimes moves around like the one pictured. This cannot harm the coin in any way. PCGS cured this problem after 1989, and the revised holders looked exactly the same but held the coin tightly. This "problem" of the coin being spun around can be fixed by the buyer, making the coin right-side-up. I'll keep my method of "fixing" it to myself though,  thank you!
   
   Bottom line is this. There are two style and sized holders. The old size is usually called an old green holder (OGH). Some of these are also a "rattler". The newer sized holders from 1989 forward used to have a green label in them. PCGS switched to a blue label then a gradient blue label more recently. There are other variations as well.

   
   

   I also know that some sellers would disagree with me about what to call a newer holder with a green label. That's fine - but, I AM THE BUYER.  Or . . . NOT!

2. The claim the coin is "proof like" when, in fact it is not. The certified coin pictured in their offering will not have the letters PL or DMPL on it, but the seller somehow knows better - right? His/her claim is that it is PL, in spite of the expert opinion of the grading service's label on the slab which says otherwise! I have even seen coins which have a little gummed sticker on the outside with the letters PL hand written on it by the seller, as if that made it official! Nope - I wont buy from that guy.

   

   What I think is a particularly nice looking MS64+ coin. Notice it is NOT graded PL or DMPL.

   
   

   This one is indeed graded DMPL by the grading service. They know FAR more than I do.
   

   
   
3. The claim of "Semi-proof like". That isn't even a grade. It is simply a made up claim by the seller. If he wishes to tell you how nice the coin is, fine. But the official claims (PL) should be avoided. He could say it is PQ (premium quality) or shiny, or has great eye appeal or blast white. But, reputable sellers will (should) avoid confusing a buyer with "almost" or "semi" this or that grade.



Side by side. Left is OGH. Notice the actual size of the slab is smaller. These require a different storage box. One which is no longer made. They are available on eBay sometimes at a premium. Right is new style holder, blue label in the photo, but some also have other colors including green.

4. And of course, the obvious reasons. The start bid price is already above the value of the coin. I'm sure some people will not do all the research and buy these or bid as the case may be. As for me - nope.

For other than PCGS slabbed coins you are on your own. I have only ever owned a few coins slabbed by other grading services and simply don't know enough to tell you anything about their slabs.