Rick Rule On Bitcoin, Brought to you buy Gold Silver Bitcoin & Sinn Hooper:
Strange times are upon us. In Italy, a famous comedian blogger who was found guilty of manslaughter in a car accident, killing three people, has led his party, The Five Star Movement, to international headlines as the underdog in Italy. Where fore? In a nation where Communism was once bred in the 1950s by The Agency, people are just sick of seeing the same damned faces. Sound familiar? Read More
Get Your Gold Out of Dodge With Bitcoin
From my time working at a walk in precious metals dealer one of the questions that I remember coming up with relative frequency is what do I do with the metals? How do I store it? Should I keep it at home or in a safety deposit box? These questions were, for the most part, easy to answer as you could present the customer with three quick options for their storage and let them decide which would be the best. On the other hand, the question that never came with a quick simple answer was always, “how do I get my gold out of the country?”
The presumably intentional vague regulation put out by U.S Customs reads like this;
“There is no duty on gold coins, medals or bullion but these items must be declared to a Customs and Border Protection (CBP) Officer. Please note a FinCEN 105 form must be completed at the time of entry for monetary instruments over $10,000. This includes currency, ie. gold coins, valued over $10,000. The FINCEN definition of currency: The coin and paper money of the United States or any other country that is (1) designated as legal tender and that (2) circulates and (3) is customarily accepted as a medium of exchange in the country of issuance.”
As mentioned before, the regulation is conveniently vague because it does not say whether the $10,000 value will be assessed by the face value of the coin, in the case of the American Gold Eagle this would mean that every ounce of gold has the value of $50 USD, or the market value of the gold, being around $1565.00 currently. Either way it is not a value that you want to be assessed by the U.S’s elite and respected TSA force.
People even come up with rather ingenious ways to circumvent the system. I can remember one of my customers devising a plan to take a cruise ship down to a location that he was expatriating to because he said that customs inspections on cruise ships were not as thorough as they were by flight. Still other customers would talk about taking the gold out of the country in increments or to make the gold into jewelry so as to avoid the customs declaration.
All of these ideas are viable options but they remind me of various scenes from the movie Deer Hunter as all these options, if done enough, will lead to the same disastrous wealth confiscation by the proper authorities.
Ah but what about Bitcoin? The great thing about Bitcoin is, as of now, there are no foolish laws that tell you that you must declare them. More importantly there is no way of knowing that you had moved your mathematically encrypted digital files to another country or, were in the process of doing so.
There are large Bitcoin exchangers that you can sell your Bitcoin to and they will deposit money into your checking account or you may even receive a wire from a money sending company. The problem with services like these is there is a record of the payment. Money transactions should always only be between two parties. It is only in our mixed up, central banking, fiat money dominated world, that this reality has been skewed to the public.
But if I take my Bitcoin to another country how will I use it? Well Bitcoin is quickly becoming a form of payment all and in and of itself. More and more vendors are taking Bitcoin as a payment directly but for those that need to still have local currency for day to day living a simple search on localbitcoins.com will reveal where you my meet a local dealer in the country that you reside and sell your Bitcoin directly.
Of course Gold Silver Bitcoin recommends always having physical precious metals along with having Bitcoin. This allows for the maximum security in the preservation of your wealth.
The problem in answering the question a few years ago of “how do I get my gold out to the country?” is that there was not a good answer. That was when Bitcoin was still in its infancy and its potential was not clearly understood. Today however, it is the best option that one has for moving wealth out of whatever collapsing economy one may find they need to escape from without any form of declaration.
[heading]Bitcoin: Silver = 1:1: Trace Mayer & Silver Vigilante Discuss[/heading]
RTG: Hello and welcome to the Run to Gold Podcast. I’ve got with us special guest Silver Vigilante of Gold Silver Bitcoin. One Thing I admire about you is you’ve got an open mind. We’ve got some people in the gold and silver niches who don’t have open minds, whether it is Chris Duane who has been bad-mouthing Bitcoin for two years and continues to badmouth it or people who think they can just ignore it like James Turk at GoldMoney. What do you think is driving BTC?
SV: Well, I think first and foremost it’s the internet. Everyone believes in the Internet. Bitcoin is a microchasm of the Internet that can actually lead it in new directions. Google is going to try to shutdown websites that provide links for users to copyrighted material. They are going to do this the same way they did with WikiLeaks, through a “financial blockade.” WikiLeaks got around that with BTC, and The Pirate Bays will do the same. Read More
Where Does Bitcoin Fit in the Historic Ratio of Gold and Silver?
Long time investors in gold, silver, platinum and palladium as a means to protect themselves against the debilitating effects of inflation, brought on by the central bankers and their failed monetary policy, are all to aware of the fundamentals of the precious metals market and how ratios are crucial to wealth building during our current dissent into economic collapse. After all the ratios are the simplest ways to analyze the blatant manipulation (suppression) of the fair market value of metals in general.
Take the easiest and most suppressed monetary metals as a primary example. Silver and gold comes from the ground historically at a ratio of around 15:1. This means that for every 15 ounces of silver you have acquired through your labor you should be able to exchange it for an ounce of gold. Insiders in the silver market will even say that the ratio of silver to gold is closer to 10:1 do to industrial demand for silver but that is for another date and time.
A helpful website to look at for the current market rigged ratio of gold to silver is metalratios.com. Through this website one can find what the current ratio is which is around 53:1 meaning it takes 53 ounces of silver to be able to obtain an ounce of gold. Can I get an SEC witness? Probably not, but for those with the slightest bit of intelligence and who are willing to let their minds work on logic rather than rely on all thoughts and beliefs to be fed to them by the Main Stream Media (MSM), they already know the markets are rigged and as of right now are doubling down on their purchases of silver or, for the extra savoy sound monetarist , trading their gold for silver.
One can do quite well by taking advantage of the paper suppression of these assets. For instance, during the run up of precious metals from January 2011-May 2011 the silver/gold ratio went from 53:1, roughly what it is now, to 31:1 by May before the central planners had to intervene in the markets and artificially collapse the value of the metals. For those that traded gold to silver in January of 2011 and were able to trade back before the take down they were able to stack a considerable about of gold.
During that time Bitcoin was having its own remarkable climb moving from 5 dollars a coin to 10. A 100% return is never a bad thing and Bitcoin had its own disastrous downturn about a month later but remember that we are looking at the ratios.
Back in May of 2011 it would’ve taken you 4 bitcoin to be able to get one ounce of silver. Even recently the best that you could hope for was 2 bitcoins in order to get on ounce of silver. That was however before bitcoins recent rise of nearly 40% for the beginning of 2013. Click here for more on that rise.
The point is that, for the first time in bitcoin history, holders of the digital silver (bitcoin), will be able to exchange their digital tangible assets for physical tangible assets! This one to one ratio coincides perfectly with a bullion company that takes bitcoin for precious metals. Through www.goldsilverbitcoin.com you can move your bitcoin to silver without having to cash out of the bitcoin and find a dealer that will sell the metals to you in USD.
No one knows what the rate of climb will be for bitcoin. Could it overtake silver? Of course but taking a portion of your bitcoin now and buying some hard metal is never a bad idea. Especially for the first time that you can do it on a 1 bitcoin to 1 ounce of silver basis.
Bitcoin: The Money of The Internet (Read: 21st Century)
Since Bitcoin arises out of the Internet, there is certain to be not only a generation gap in understanding, but also skeptics the world over who make good points about the monetary options’ legitimacy and viability. But, above and beyond the practical applications of Bitcoin, there is a moral aspect. Feuerabend, in his book Against Reason, wrote that, in scientific inquiry, “anything goes.” When it comes to undermining the dominant financial system and declaring our own independence from the historical rulers as a collective, GoldSilverBitcoin believes “anything goes.” Each individual will find his or her own comfort in using alternative currencies, and so they should only do so within their comfort.
The digital gold standard known as Bitcoin has shown impressive strength in the mist of the recent drop in all precious metals. Gold lost 40 dollars in a 24 hour period to close for the weekend at $1610.30. This loss reflects a 2.4% drop. Silver had a more significant drop falling from $31.00 to close at $29.80 dollars an ounce. This reflects a 3.4% drop in the common man’s gold. These drops have occurred
despite, as Harvey Organ reports, the gold demand for the quarter was 6% higher year-on-year at $66.2bn marking the highest ever Q4 total and driving annual demand in 2012 to a record value of US$236.4bn. Read More
For those long time purchasers of precious metals, understanding what is fundamentally money and the difference between it and currency, is easy. Why precious metals have been money throughout history is logical to all those that are willing to pull themselves out of the false paradigm of legal tender fiat currency printed by central banks at the interest of private holders. After all, there are no laws that need to be passed that require gold and silver to be taken as payment for goods and services, as the qualities of precious metals easily avail themselves to people that would accept them as payment. Their luster is desirable to all peoples throughout the world regardless of culture, education, or any other demographic that one can find. Precious metals are of course “precious” meaning that they are limited in their availability and the enormous time and resources required in order for one to be able to attain these metals. Bitcoin too is money because it contains all the aspects of money that precious metals do, just in the novel, complex and beautiful digital world of the present day. Read More