Hi Again

Wanted to take a moment to share a rather unique (albeit simple) product available in the Precious Metals department. No I am not here to tell you gold, or silver, or lead, or any other metal is a good investment. Do your own research, figure out whats a bubble and whats not. Go through the periodic table scientifically looking at elements (there is a better video, but I cannot find it) to see which last the longest and are convenient for use as money. Think about delivery and understand what the word rehypothecate means.  Think about storage, at home or even with burial thieves could steal it, or you loose track of it. In a bank the government can steal it , even many many decades later. (Note, if you read the current wikipedia article on Executive Order 6102 and compare to a version preserved in the way back machine, you will see how liberals distort history. Don’t ya love it how the current versions starts off with a section title “Rationalization”, as if liberals are rational. lol) If your not at least considering these things, you have no business investing in anything. Strike that, if you think gold is an investment, then you may not understand what money is. I’m not saying you cannot speculate on gold, any currency can be under or over valued, but that’s speculation, not necessarily the same thing as “investing” in a business to grow assets. Gold could plummet to 200 dollars tomorrow, are you ok with that? Does that impact why you are even considering buying it?

At this point you probably asking, this is all fine and dandy, but what the heck does this have to do with “Cool Stuff” which is what this site focuses on, right? I mean, how cool can a base metal be? Its just metal. Well, leave it to the Germans to essentially lead the world in making gold that is essentially perfect for preppers. Yes, those some Germans that not only no longer trust the US fed to hold their gold, but have publicly announced it, Yikes, not to mention our Feds response. See there are two things about gold that a prepper should care about. The retail mark up and the divisibility. Preppers inherently don’t want all their eggs in one basket, and many dislike gold because it is not edible (and that is a good point.). I also think prepper, in the vast majority, don’t allocate alot of resources towards gold. Most of us have too many other things of more immediate value to be spending our hard earned, federal reserve pieces of paper that are stamped acceptable for the use of payment of debt. (That screams value ehh?)

If you have looked  at the price of gold recently.

Then you likely realize that’s a whole lot of “value” in a small package. That would be hard to use for an everyday purchase. Now of course, if SHTF, would I hesitate if I needed to cut an ounce of gold in half… Nope, but that doesn’t mean I want to. You could always buy a whole bunch of 1 gram pieces, but at 28 grams to the ounce, that’s alot of 1 gram pieces, and 1 gram is small, very small, and the retail markup, per gram, is quite a bit compared to a one ounce piece. This argument is well know to those that prefer silver, especially pre 1964 coins. Silver is much better from a divisibility standpoint, sure, but it does tarnish, and lets face it, silver isn’t bright yellow. I like shiny things, what can I say.

So the Germans decided to actually solve this very simple problem, with the Valcambi Combibar. Which is basically just a 50 gram piece of gold, stamped such that 1 gram pieces could be easily broken off. This type of bar can be bought at a lower premium than 50 1 gram pieces, although the markup is still significantly higher than the markup on a 1 ounce piece.

My math currently shows.
61.32/gram combibar
54.89/gram 1 ounce bar
64.78/gram 1 gram bar
53.77/gram spot price

(Note: Remember a Troy ounce is 31.1 grams, not 28, I messed that up at first.)

They can be bought in the US, but are somewhat rare. Another advantage to realize is that in a SHTF scenario, you should be able  to demand a higher premium with this, compared to a 1 ounce bar. Imagine you were trying to buy a gun or ammo after SHTF. Your standing next to another buyer for the only weapon you have seen for sale in months. You competition has a 1 ounce bar, you have a Combibar. Its pretty easy to see that the seller place more value in your Combibar. Pretty cool hunk of metal ehh?

Combibar

Now they do also sell Combibars in silver, but looking at the prices, that seems a bit silly. The markups don’t  make sense, and silver is already plenty divisible.