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Working middle-class "Main Street" individuals are commonly hard-pressed to acquire any substantial amounts of fine gold simply because it currently sells between $1,250 and $1,300 per troy ounce. And still another good reason: When one barters with another with a troy ounce of gold, it is very difficult to "make change" in that gold-based transaction (unless the seller has substantial "survival silver" reserves, that is).

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One other valid point to remember: Most gold is recycled and not "used up" because its' value dictates every financially feasible means to recover gold and recycle it. Indeed there is a shortage of gold, but silver is "used up" and when one researches the matter, they will discover that "in-the-ground production" of silver does not meet demand (for some 20 years' time) and the "shortage" is taken from "above-the-ground" silver reserves that are nearly depleted and are not being replaced. Back in the 1980s silver went from a low of $2 per troy ounce to $50, and then dropped back into single-digit prices. But things are considerably different in the 21st century.

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Today silver is used in industial manufacturing, including things like a variety of coatings, cellular phones, computers, electronics, jewelry, medicine, photography, water purification, etc. as well as a "value investment" hedge (in the forms of coinage and bullion) against anticipation of inflation and hyper-inflation of "fiat" paper currencies around the world, especially in the Western world. Since recycling of silver is not (yet) financially feasible, the silver used is eventually "used up" and must therefore be continuously replaced in meeting the needs of a world-wide demand for the products requirng silver in their manufacture and production cycle.

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"Scared capital" relates to the fact that your money in the bank only earns rates of return of 2% or less on average, and the "fiat" paper currency manufactured by the U.S. Federal Reserve is devaluating through the growing national debt and the printing of billions and even trillions of dollars without silver or gold to back it up at value. People are learning how to "hunker down" and find ways "to get value for value received." With silver and gold is an easily-recognized "universal currency" (especially when the language on the coin is in English as opposed to Spanish, French, etc.).

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Why circulated and worn "survival silver" instead of numismatic grade coins? Simple: Numismatic coins are just fine for long term investment purposes when there is a growing demand for ever-more-rate coinages, but today they are too expensive at acquisiton to simply purchase today and spend tomorrow or next week or next month. :Survival silver, on the other hand, if you purchase it correctly at the "melt value" of the precious metal content of the coin, can be readily used in a financial downturn or in the event of most other possible catastrophes..

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My own clients have asked me what they can do toward wealth retention for the future, and I tell them these days that "to get value for value received" one needs education, land, and work skills. Silver and gold can adapt quite easily to meet that goal "to get value for value received" in commercial and public use as an alternative to Federal Reserve Notes...I do recommend that your savings for the future should include 15% to 20% investment in silver, 5% to 10% in gold, investments into skills education for your children, and the rest in land and other investments, usually including a modest personal residence for the long term.

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But for the short term, I also recommend reasonable and responsible personal use of the November 2nd 2010 ballot box, band aids (and medications), batteries, beans (and canned goods and dry goods), blankets (and other coverings), bullets, bullion (silver primarily, gold secondarily) and no more b***s***. from either Washington D.C. or from Wall Street.

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At least food for thought, is it not?

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Respectfully submitted,


Thomas Avery Blair, Enrolled Agent

1-888-250-5687 or e-mail to Tom@TomBlairEA.com

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Tags: Retention, Silver, Survival, Taxes, Wealth

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