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Smokey-Seven
29th March 2010, 06:06
The Black Market

I've maintained my position that Silver is a nice thing to have and stack, but as a static entity, will not grow as fast as other, "things" will at various times.

As an example, I bought anti freeze during the first energy crisis and I bought it locally. It was late summer and I tried to place my normal, annual, fall order with a couple of my major distributors. I was told they would not have it for a couple more weeks. I thought, "Give me a break! International Harvester has no anti freeze in late August?"

I immediately started shopping at the local suppliers. I was astounded as to how little was around. Some retail stores had 20 -30 cases and I had plenty of free storage on site, so I sent my pick up truck off on a mission. "Buy all you can anywhere you can and check in with me, I'll be on the phone setting you up with pick up points. Call in at each pick up."

It was $1 - $1.25 a gallon retail. I did negotiate a couple discounts since I was taking all they had. Boy did they screw up.

I bought everything I could put my hands on. By February, it was 9$+ a gallon. I sold out from Jan - Feb.

Ok, that's just one story.

With the soon to come inflation, probable VAT and other hidden cost increases, I think at a point in the future, the black market will start out in earnest. If you can obtain a product, sell it with no sales tax, no VAT and no recording of profit on the books to pay fed taxes on income, it certainly seems feasible that clipping 30-50% off the price will force the creation of a black market.

I read an article on South Africa yesterday. It described the severe limitations on permits, licensing, fees and requirements for black people in SA to obtain a rifle or pistol legally. On top of those restrictions, the cost of an AK47 was over 550$ and after fees and taxes, averaged closer to 650$. Now on the black market, with no papers, no taxes and no restrictions, other than you are breaking the law, you could buy an illegal AK47 for a little more than 100$.

That is the makings of anarchy.

If you add in a nasty inflation curve to my VAT prices, then look out, you have just switched on the black market.

I am looking forward to a list of products you would start to stockpile for trading purposes. Silver is in there as a given. Swapping money for products that will maintain a good profit margin under VAT and inflation is my area of interest here. Comments?

TheLoneRanger
29th March 2010, 06:37
I would have to see the article to believe that the Black South African Goverment would put special restrictions on their Black South African Citizens.... on everybody perhaps... but not special restrictions on Blacks as the OP implies.

Did you see this story about a bank robbery

http://www.cnn.com/2010/CRIME/03/24/phone.in.robbery/


Somehow your statements regarding black market and tax evasion and what to sell sort of reminded me about the bank robbery story.

Argyria
29th March 2010, 06:54
Liquor. Store good quality stuff for the highest value/volume ratio.
Ammunition is too obvious.
I have a bunch of soap that I bought when it was really cheap. Wasn't necessarily thinking about selling it, but sure won't need to buy any again for like 10 years.

nmreich
29th March 2010, 08:09
Liquor. Store good quality stuff for the highest value/volume ratio.
Ammunition is too obvious.
I have a bunch of soap that I bought when it was really cheap. Wasn't necessarily thinking about selling it, but sure won't need to buy any again for like 10 years.

Soap. That's good. I was living in Germany during the collapse of the Berlin Wall. I remember reports that SOAP was a hot item. A friend of mine came back from East Germany and brought a sample of the soap they had over there - it was pretty rudimentary stuff and I don't know what it was made of but it looked very crude.