A random encounter can change your life...

... but you already knew that.

Let me tell you about MY random encounter.

In early March I was at Union Station waiting for my train out of town. While waiting, a man came up to me and asked me if I knew what track his train would be on. I said that I didn't know but pointed to the screen where it would display 10 minutes before departure.

I saw that he was carrying a trade show bag, so I asked him what show he was in town for (just to pass the time). Aparently, there was a mining show in town and he's a professional precious metals speculator. Well, it's always good to know a little bit about everything just in case you're expected to have a conversation about it (example: Classical Music - Bach was a very good contrapunctalist (Not you Andreas :-P)). So, I led off with the one thing I know about precious metals... "Cool, gold's way up there now isn't it?"

Well, that opened the flood gates. His statement was that yes, gold is up in the stratosphere, he expects it to undergo a small correction soon and then head for the moon. But what I REALLY ought to be keeping an eye on is silver.

Well, I listened to his reasons (to be covered in another post) and started my usual process... read and think. Read and think. Read and think. Act. Read and think. Etc., etc.

Two weeks later, I made my first silver purchase. Suffice it to say I was convinced at what I saw. I see precious metals as defense against inflation (in 1964, a gallon of gas was about US$0.30. A 1964 dime was 80% silver and 20% copper. Today, 3 80% silver dimes are worth close to US$4... the price of a gallon of gas). Realistically, this isn't really inflation but devaluation, a symptom of inflation. Also, in the event of a currency crisis gold and silver and especially legal tender coins should be exchangeable for goods and services or whatever currency is in use. If the shit truly hits the fan it'll be worth a whole lot more than the paper we're using now (unless we need toilet paper... $5 bills will be good for that at least).

So, based on someone asking me for directions in a train station I've become interested in precious metals as a way of preserving and increasing my wealth. Some may call me a conspiracy theorist (well, some called me that before), others may call me a survivalist (ok... I have a rough idea of what I'll do if we see a complete breakdown of society).

I just think I'm the same old nut-job you already know and love... ok... know and tolerate.

Expect to hear more from me on this one.