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Fireproof Safe


Do they drink PBR's in 'Oz, Laurie?


Editor's Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next discussion with that very intent.

Prof. McGuirk,

With your reference to the Dow trading at 5X gold in today's terms, I suspect you mean it in terms of gold going up and the Dow tanking. I guess there are going to be multitudes of pairs trades available moving forward in that context. I believe, as a function of what you said today about the actual availability of above ground silver as opposed to gold (Ted Butler believes the same thing), we will see a much larger percentage gain in silver investment than the same investment made in gold. Please don't ask me about the timing...I haven't a clue. 100 ounce bars in a fireproof safe is how I'm accumulating and storing the stuff. I wish I could find a place nearby to buy the 1000's but I haven't had any luck locating such a distributor and I'm not sure if they even ship those...must cost a small fortune!.

I'm glad to hear your Pop had a good birthday. Also, I'm grateful your Mum is getting around ok and is making the Hooligans "pay the price" for their indiscretions. I only hope the delays will stop and her surgery will go on as scheduled. Finally, I really wish you'd stop griping about the age thing. Forty is NOT old (unless you're twenty, of course). I'm 43, dammit!

Minyan Dean

Hi Dean,

Thanks for the good wishes for the folks and I am certainly of the same opinion as you regarding getting the surgery done pronto.

I don't know if the Dow will be at 20,000 and gold at 4,000, or maybe the Dow stays at 10,000 and gold hits 2,000. I also couldn't tell you when, but history suggests it will. Real assets versus paper assets all have cycles and I believe we are ending the "paper cycle" and heading to the "real stuff". The CRB is evidence of such. We just haven't seen the paper stuff diminished as yet but it looks more likely every month from where I sit. I read where some suggest it may be 1:1 but that would be horrendous for the world at large. Let's hope that 5 is about as tight as it gets.

100oz bars are COMEX deliverable. They are highly transportable and easy enough to carry. They only weigh 3 kilos. The 1000 oz bars are a pain in the ar$e to carry around but if they're gonna be used as a long term store of value and not trading often, then they make great doorstops at 30 kilos per bar. I can't help you regarding sourcing such bars, sorry, I have no need to buy silver bars in the USA. Just remember to make sure the bars are stamped by a reputable refiner such as Johnson Matthey or Engelhardt or whoever. I have a great place down here, though! I did run across one source but cannot verify any credentials or give any opinion as to the service. Do your own work looking around.

A fireproof safe is a great storage facility for your metals, although if we have a look at the physical properties of silver and gold, the safe will not make all that much difference in a big fire. The security rating of your safe is a far bigger issue than the fire rating.

Silver has a melting point just shy of 1000 degrees Celsius and liquefies at about 1200C. Gold melts at about 1100C and hits liquid at about 1800C. Steel melts at about 1400C. If you had a fire at your storage facility that is fierce enough to melt your gold and silver, it's a fair bet your safe will be melted as well. But, the metals you own will still exist; it just may not be in bar form! Funny shaped blocks of metal or maybe even little puddles of gold and silver will be present, but it will still be there! The bigger issue is whether it is your house that burns down!

Keep well mate and try to make it to Ojai, as I think a beer (or 3) may be in order. I may even bring some of my own favorite brewski from down here, just in case there's a beer shortage or something.


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