July 23, 2013 -- Issue No. 6

From the Owners

Well, it’s been nearly three months after issue no. 5 of the Rocklin Coin Shop Newsletter, so where do we begin.  First, to all of our readers, you have our apologies that we’ve been a bit lax on getting newsletters out.  Business, as well as our personal lives, has been rather crazy lately.  But, now we’re ready to get back on track with some quality content and brilliant ideas.  So, what’s been new?

For those of you who don’t already know, we’re expanding our market to firearms.  Over the last several years, we’ve had no shortage of clients asking if we buy or sell guns along with precious metals.  Sadly, the answer had always been “no.”  But, if there’s one thing that we pride ourselves on, it’s our ability to listen to the needs of our customers, and respond to those needs to the best of our ability.  So, sometime in mid-April, we started the process.  Now, we’re about 4-6 weeks away from being able to buy and sell firearms—all the federal regulatory requirements have been met, we’re just waiting on one last state issue, and we’re good to go.  Added to that, we’re also going to start offering firearm classes, which Matt will discuss in more detail below.

Obviously, in the gold and silver investment world, the declining metals prices has been all the talk, and we were happy to have been able to get out some important updates to our newsletter readers when we didn’t have time to put our a full issue.  We’ll touch on that in this issue, as well as some other issues in our industry.  Keeping physical precious metals on our shelves is harder than it’s ever been before.  Seems like a good problem to have, for a retail business, but to be honest, it leaves a lot of the smaller purchases out of luck.  We’re working on a way around that, and think that we might have some good ideas.

Lastly, we wanted to take a moment to give our sincere thanks to our new and existing customers.  This year, we were voted “Best Specialty Store” by readers of the Placer Herald and Loomis News, and we couldn’t have done it without your votes. 

As always, thank you for your patronage, support, and friendship.

Best Regards,

Matthew and Ariana Vickers

Owners – Rocklin Coin Shop

What's With The Guns?

by
Matthew Vickers

Over the years, I’ve often made the rash assumption that our clients necessarily own firearms, because if they buy precious metals, there is a high statistical probability that they are libertarian or conservative, and thus most likely own a gun.  Well, that assumption, for the most part, is true.  But, I’ve recently learned that a fair number of customers who have just started buying silver and gold have also asked us about guns—why we carry them, where they can buy them, and who we trust.

Any of you who have been into our shop know that all of us wear our firearms in full view of our customers.  We do this for a few reasons.  But, the primary reason is safety—our safety, and the safety of our customers.

Make no mistake, many businesses that you frequent are probably littered with firearms, but those businesses keep their firearms legally concealed so as not to incite nervousness in their average clients, who have no interest in doing them harm.  If trouble comes calling, employees of those businesses can then depend upon those hidden weapons to keep themselves safe.

That’s great, but as any police officer or criminal attorney will tell you, you really don’t want to shoot someone unless your life is absolutely in danger.  Even if charges are not filed against you, firing your weapon at another person (let alone killing that person) will bring your life to a standstill until the mess is sorted out.  As such, while we are absolutely trained, capable, and prepared to use our firearms to defend ourselves, we prefer that we not to have to. 

Study after study shows very consistently that your average criminal will steer clear of people with guns…even if that criminal carries a gun.  Though it’s probably not as complex a notion in the front of the criminal’s mind—because let’s face it, most of them are dumb as a rock—it all comes down to risk mitigation.  It is less safe to attempt violent persuasion upon someone with a gun, then someone without a gun.  In the criminals mind, “F#$% that!  I ain’t wanna get shot!”

That being the case, we believe that wearing our firearms in full view significantly reduces the chance that some poor fool will come here looking for trouble.  And for those few who have come looking, upon discovery of our “state of arms,” they beat a hasty retreat.  Allow me to share my favorite of these instances.

It was perhaps two years ago.  The sun was going down on a cool, November evening, only minutes before we closed.  A large, beat up car comes pulling into our parking lot.  Quite suspiciously, it backs into a space just out of view of our exterior security camera.  The driver remains in his seat, while the engine runs.  The passenger side back door opens, and from the vehicle emerges a woman carrying a n oversized purse that was clearly empty.  She approached the door.  Apprehensively, we buzzed her in.

Once the doors released, she held them both open, and signaled to the car.  From the driver’s side back door, a very nefarious man exited the car.  His shirt was long and loose, going below his knees.  He could have been (and probably was) concealing a weapon.  Both parties came in.  On that day, there were three of us working, all with guns.  I, in fact, was seated at a desk.  My holstered firearm was under my shoulder, but in anticipation of potential trouble, I had already drawn my backup gun and had it in my hand under my desk.

The nefarious looking man immediately, and clearly looked at all three of our guns, never even making eye contact with us.  When we asked, “what can we do for you?” he hesitated for a moment, fished a small coin from his pocket, and asked what we would pay for the coin.

The coin was a 1996 penny.

We quickly answered, “one cent.”  He thanked us, and left with his girlfriend/accomplice.  As he walked past our window and back to the “getaway car,” he very clearly mouthed “f#$% that,” before he got into his car.

To this day, I have no doubt in my mind that those two came into Rocklin Coin Shop with the intent of robbing us.  He would have held us at gunpoint, and they would have piled what cash and coins they could into large, empty purse, and been on their way.  The only thing that stopped them is that they knew we were armed.

So, then, should all of you who own silver and gold.  Protect yourself.

In response to this belief, and to the request of our customers, Rocklin Coin Shop is going to begin selling firearms, and offering a variety of firearms classes.  I am currently a NRA Certified Instructor for F.I.R.S.T. Steps, and Basic Pistol Shooting.  These are both classes for beginners.  I’ll be consistently adding classes to the roster, and our goal is to eventually offer CCW Classes (Concealed Carry Weapon).

So far as the timeline for buying and selling guns, we’re waiting on one last state application to be processed, which we anticipate will take an additional 4-6 weeks.  Then we’re good to go.

Anyone who has any questions about this, or would like to sign up for one of the classes, feel free to shoot me an e-mail to matt@rocklincoinshop.net.  For the Basic Pistol Shooting Class, I plan to bring my beloved Desert Eagle 0.50 with me to the range time for class participants brave enough to shoot it.

It’s worth the price of admission just for that.

When is it Going to Happen?

by
Matthew Vickers

Those of who invest in silver and gold (and particularly those of us who make our living buying and selling silver and gold), are waiting, often impatiently, for the single factor that is finally going to make silver and gold prices explode. 

Some would argue that waiting for a single factor is foolish, and that it will take a culmination of several factors to see the significant gains in precious metals that we (the precious metals community) believe is an inevitability.  To this, I disagree.  I think that there are many potential factors that could cause the explosion, but I don’t think that all of them need happen simultaneously.  Rather, any of the single factors will likely be the necessary “lead domino,” which brings down the whole system.

According to precious metals investing guru, Jim Sinclair, that “lead domino,” may be the COMEX facing an inevitable modification to its settlement system.  On his website today, Sinclair wrote that:

“The cause of today’s spectacular rise in the gold price is the reality that with Friday continues large drops in the COMEX warehouse gold inventory.  No cogent argument can be formed against the reality that because of the continued fall in gold inventory that within 90 days or sooner the COMEX must change its delivery mechanism.”

Simply put…COMEX is rapidly running out of physical precious metals to handle the demand of consumers who wish to settle their paper contracts with actual metal.  When that happens (Sinclair seems to believe that this will be within 90 days), the COMEX will be forced to use alternatives sources—most likely cash—to settle it’s futures deliveries. 

I tend to trust Sinclair’s perceptions here about the cause of the price explosion (if not necessarily his timeline).  It is something that I have alluded to here in the shop to many customers—that there is no such thing as perpetual fraud, and what is the COMEX—nay, the entire derivatives market—if not technically fraudulent?  There are a slew of contracts granting people the right to buy and sell physical metals that don’t actually exist, and it goes unchallenged because, up to now, the vast majority of those contracts are traded for their intrinsic value rather than exercised for deliverables. 

It is only for this reason that I won’t blindly go along with Sinclair’s timeline.  As a people, we’ve gotten pretty efficient at delaying the inevitable—like children determined to live in the “now.”  When I was in seventh grade, my brother Chad and I both ended up with poor grades on our final report cards (this was obviously before we cleaned up our acts to become the fine gentlemen that you know today).  In the interest of both of us, I intercepted the report cards from the mail and kept them with me for a week.  Later, my father took us on a fishing trip.  All that time, I kept those report cards folded up in my backpack, which accompanies me to the lake.  When the opportunity presented itself, I tore up the report cards and threw them in the lake.

I met up with my brother minutes later, who finally remembered that I had our report cards in my backpack.  With a frightened look on his face, he told me “dad is looking through your backpack for a pocket knife.  Didn’t you stash our report cards in there?”

“No,” I replied, “they belong to the lake now.” 

To which Chad responded with an excited high five.

As the summer went on, my mother became somewhat concerned about where the report cards were, but honestly, with the pace of summer activities, there isn’t a lot of time to worry about such things.  Were our parents going to forget that they had not seen our year end report cards?  Of course not—we weren’t that dumb.  But, we knew that the summer would not be so nearly enjoyable with the punishment for bad grades hanging over our heads.

Pulling weeds.

Picking up dog droppings.

Cleaning.

We knew that a reckoning was coming.  We knew that we would pay for our deception.  We knew that there would be consequences.  But, as kids, we wanted to put off those consequences for as long as possible 

The COMEX is no different.

 

This Month's Prize!!!

Now, for those of you who may have been wondering, “hey, if they haven’t been putting out a newsletter for the last three months, have they not been doing the prize drawing?”  The answer is, “yes.”  We have done the prize drawing every month, and will continue to do so.

This month, the prize is a mix of numismatic sets.

1)   A 1963 United States Proof Set
2)   A 1986 Liberty Commemorative Set
3)   A 1992 Prestige United State “Prestige” Proof Set

All sets contain one or more 90% silver coins, and have a combined retail value of $105.00!

Good Luck! 

Rocklin Coin Shop Staff

WE WANT TO HEAR FROM YOU!

Have something to add to our conversation?  Want to get our opinions or insight on something specific.  Want to give us suggestions on products or supplies that you'd like to see stocked at the shop?  The success of any business comes from it's ability to listen to its customers.  We wouldn't be here if it weren't for you. E-mail us anytime at newsletter@rocklincoinshop.net.