It’s time to sit back, relax and enjoy a little joe …
Welcome to another rousing edition of Black Coffee, your off-beat weekly round-up of what’s been going on in the world of money and personal finance.
Let’s get right to it this week …
Credits and Debits
Credit: Last week, after trying to use a counterfeit $5 bill at a Tennessee grocery store, a woman reportedly explained to police that she was printing her own cash because President Obama told her it was okay to do so. I know … but I’m willing to keep an open mind here.
Credit: If you’ve been putting off buying a car because you’ve got lousy credit, you’ll be glad to know that it’s never been easier to get an auto loan. In fact, it’s so easy now, only 1 in 30 auto loan applications are rejected today.
Debit: Then again, being able to get a loan just because you can fog a mirror doesn’t mean you should. After all, those are the same kind of loose lending standards that led to the last housing bust and the follow-on financial crisis in 2008.
Debit: Speaking of cars, I’m still trying to figure out why gas prices in California jumped more than 70 cents over a three-day period last week. Last Friday, the pump price at my corner station was $3.41 — and by Sunday morning it was $4.29. No, really.
Debit: According to GasBuddy, on July 17th the average price for a gallon of regular unleaded in California was $3.90 per gallon; that’s $1.52 more than the average fuel price in South Carolina.
Debit: Gas prices in California are so ridiculously expensive right now that they’re currently 56 cents higher, on average, than the gasoline that’s sold in Hawaii. Yes, that Hawaii.
Debit: Meanwhile, over in the Sea of Red Ink, the folks in Greece who wisely voted last week against further EU bailouts (read: more debt that can’t be paid back) were promptly sold out by their gutless politicians. On Wednesday, Greece’s Parliament decided to side with the bankers and keep the euro Ponzi scheme going anyway. Unbelievable.
Debit: Even worse, anyone who is holding additional cash, gold and silver in any Greek banking system “safe” deposit box is now prohibited from accessing their valuables. Uh huh. There’s a lesson there for anyone who cares to pay attention.
Credit: Were you caught up in Amazon’s worldwide “Prime Day” marketing hoopla this week? The 24-hour sale was promised to be bigger than Black Friday and, for the most part, it was — assuming you believe Amazon’s press release.
Credit: Of course, every silver lining has a cloud. Detractors quickly took to Twitter with lots of #PrimeDayFail complaints, including Amazon’s decision to put a 55-gallon drum of sex lube on sale as part of their big celebration. On the plus side, you can’t say Amazon doesn’t know how to throw a party!
Credit: By the way, according to at least one report, at $1361.80, that 55-gallon drum of lube turned out to be the biggest deal on Amazon that day. Well, assuming you decided to buy it.
Credit: Yes, yes … I know what you’re thinking, but you’re wrong: You see, I may be a prepper — but I’m also a realist, folks. And I have no delusions about my limitations.
By the Numbers
Here’s a closer look at the final figures for Amazon’s first-ever Prime Day:
$99 The cost of an annual Amazon Prime membership.
47,000 Number of televisions Amazon sold on its US website during Prime Day.
1300% Amazon’s increase in television sales on Prime Day compared to the same day last year.
93% Amazon’s overall increase in total US sales on Prime Day compared to same time last year.
41,000 Number of Bose headsets Amazon sold on Prime Day.
8 Bose headsets that Amazon sold on the previous Wednesday.
0 The number of Amazon products that outsold “The Lord of the Rings: The Motion Picture Trilogy” DVD on Prime Day in the US.
0 Amazon products that outsold Croc sandals on Prime Day in Germany and Austria.
0 The number of Amazon products that outsold green smoothie mix on Prime Day in Japan.
Source: New York Times
The Question of the Week
[poll id="71"]
Last Week’s Poll Result
On average, how many personal checks do you write per month?
- Between 1 and 10 (74%)
- None (19%)
- More than 10 (7%)
More than 500 people answered this week’s survey question and it turns out that almost 1 in 5 Len Penzo dot Com readers handle their personal finances without checks. I’m not that good … at least not yet. For what it’s worth, on average my household writes about eight checks per month.
Other Useless News
Here are the top — and bottom — five Canadian provinces and territories in terms of the average number of pages viewed per visit here at Len Penzo dot Com over the past 30 days:
1. Prince Edward Island (2.05 pages/visit)
2. Manitoba (1.99)
3. Alberta (1.92)
4. New Brunswick (1.88)
5. Newfoundland and Labrador (1.83)
9. Ontario (1.61)
10. Nunavut (1.50)
11. Quebec (1.47)
12. Northwest Territories (1.33)
13. Yukon Territory (1.25)
Whether you happen to enjoy what you’re reading (like those crazy Canucks on Prince Edward Island, eh) — or not (you hosers living on the frozen Yukon tundra) — please don’t forget to:
1. Click on that Like button in the sidebar to your right and become a fan of Len Penzo dot Com on Facebook!
2. Make sure you follow me on Twitter!
3. Subscribe via email too!
And last, but not least …
4. Consider becoming a Len Penzo dot Com Insider! Thank you.
Letters, I Get Letters
Every week I feature the most interesting question or comment — assuming I get one, that is. And folks who are lucky enough to have the only question in the mailbag get their letter highlighted here whether it’s interesting or not! You can reach me at: Len@LenPenzo.com
My article explaining why college isn’t for everyone sparked a nice discussion among my readers. It included this confession from Mindimoo:
I was in high school in the ’80s — and I’m not ashamed to admit it!
Me too, Mindimoo! Three cheers for big hair, skinny ties and popped collars!
I’m Len Penzo and I approved this message.
Photo Credit: brendan-c
I have found that you can get better deals on tv’s locally instead of amazon.
Last week I snagged a 60″ samsung plasma for $599.from a local store. Thats $200. under the best price I was able to find with online retailers.
The best part of the deal is that I really got it for less than free. I used points from my penfed card worth $500., then turned around and sold my 50″ panni plasma for $250.
While I was at the local store it just amazed me as to how many were buying 4k tv’s for ridiculous amounts of dough. The plasma picture (at home) is just as good if not better than the 4k. The kicker is that no one is as yet broadcasting in 4k. Actually a good amount of stuff is still 720. By this time nest year those sets will be 40 to 50 % lower than today and still not receive much in 4k.
I guess that some folks just have to have the latest and greatest (?) right away,even if it does not do anything :-).
I notice the same thing, Ray. Some people instinctively buying all the latest gadgets — even when they aren’t much different than the older stuff they replaced — and then showing them off like they are a badge of honor. I just don’t get it.
Len, sorry to hear you live in the Liberal bastian of California, have you guys gone bankrupt yet or I suppose Washington will bail California out at some future date. I was really excited about what the people of Greece did because I thought that might be the snowflake that got the economic avalanche going, but I see the can was kicked once again down the road by the banksters and more big government. Also it is beyond laughable that the US mint has ran out of Silver and (pardon the pun) the price has dropped like a rock when it should be gradually or if not substantially rising , awwwww gotta love that bankster manipulation! Lastly I’m very puzzled at China for not showing their true hand on how much gold they have. Perhaps they are still wanting to purchase gold on the cheap or have a more infinite plan to really tank the Dollar, something is definitely in the works with that paltry amount of gold they reported! I was like omg, they really think people will believe this is all they have. Until next time my friend, keep stacking and hopefully soon the banksters will fall!
I’m a California native who actually lived here when it was still somewhat rural — when I was a kid back in the 60s and 70s my SoCal hometown used to be filled with orange groves and grape vineyards. California was more libertarian/conservative back then too — and you may be interested to know that, aside from a small handful of Bay Area and other coastal counties between Los Angeles and San Francisco, the vast majority of California’s 58 counties still lean that way, politically.
Yes, China is clearly understating their gold reserves. They mine 400 metric tons per year and, by law, do not export any of it. Since they last announced 1000 metric tons six years ago, that alone is enough for 2400 additional metric tons — and that’s excluding the thousands of tons they have imported during the same time period!
As for the absurdly-low precious metals prices in a time of worldwide financial strife: consider them a gift. And it’s not just gold and silver markets (although that is the most blatant example) — the manipulation in all our markets now is utterly gobsmacking. The corrupt partnership between the government, Wall St. and and the bankers is complete — and it will now continue until the system is completely rotted from the inside out. What’s coming down the pike is going to rock everyone’s world. The days of easy-living are quickly coming to an end for all of us — especially us Americans who have enjoyed an artificially-high standard of living for almost three decades now.
I feel your pain, until recently ( since about 2005) Virginia (where I live) was a wonderfully conservative state with great economy for businesses. However the liberal hoards are slowly creeping south out of the northeast and are taking over northern and tidewater Virginia. I hate what is happening to my once Constitutionally sound Old Dominion of Virginia.
Hi Len,
I’ve been reading your website for a while now and love all the truly helpful information you provide! I’ve wanted to help give back for everything I’ve learned here for some time. I found this guy’s website recently codyhofstetter.com that has a lot of useful information on it (he says it’s finance, fitness, and computer stuff). I’ve learned some really useful information such as how to get free antivirus software, a professional replacement for Adobe Photoshop (again free) and interestingly enough how to save buttloads of $$$ on my razors haha. It looks like his website is new, but he posts content every few days and it’s got me hooked. I know you do guest posts, maybe check him out and see if he’ll write one.
Hope everybody gets as much useful info as I have and thanks again Len!!!
Sounds spamalicious!
That it does, Ed.
The whole Greek bailout story is fascinating. First the people vote one way and then their elected politicians cave and vote the opposite way of how they said they would. Now, as you pointed out, people can’t even access their own money. It just goes to show you, we might have FDIC insurance here, but someone else still holds the keys to the banks front door.
The FDIC insurance is an illusion, Sam. I believe the fund has $25 billion — the trouble is there are about $9 trillion in insurable deposits.
So, maybe the FDIC should have stocked up on that Amazon sex lube deal?
David, the people who should have taken Amazon’s lube deal are those with large FDIC “insured” bank deposits. They’re going to need it after the fit hits the shan.
Len,
since my question last week garnered quite a bit of back and forth with readers, I think it’s safe to say we still need education on purchasing precious metals.
I’ve read the following and would like you to comment:
1. if you buy Canadian Maple Leafs, or Australian Kangaroos, the seller is required to inform the IRS. They are not required to inform the IRS if you purchase American Eagles.
2. since it’s easy to tamper with bouillon it has to be tested when re-sold, thereby reducing your profits. Buy coins to avoid this.
THANK YOU for ALL the education you provide. Sincerely, Kalena
My pleasure, KALENA.
In the United States, here is a brief overview of reporting requirements:
1A. When you are BUYING precious metals there are NO REPORTING REQUIREMENTS of any kind as long as you are paying with a check, credit card, or bank wire. Zero. Zilch. Nada.
1B. The ONLY time there are MANDATORY BUYING reporting requirements is when you’re buying bullion with cash in excess of $10,000. (Less than that, and there are no reporting requirements.)
1C. If you are SELLING bullion, there are NO REPORTING REQUIREMENTS if you are selling US bullion coins (e.g., Gold and Silver Eagles, Gold Buffalos, etc.)
1D. If you are SELLING gold or silver bullion, the only REPORTABLE SALES to the IRS are individual transactions of: 1) gold bars of 1 kilo (~32 troy ounces) or more; 2) silver bars of 1000 troy ounces or more: 3) Pre-1965 silver US coins (but only if face value is more than $1000); 4) and 1-troy ounce gold Maple Leafs, Libertads, and Krugerands (but only if you sell 25 or more coins at a time).
For more info, go here.
2. Yes, the advantage of bullion coins — as opposed to bars — is that they are easier to verify. (I have a special tester similar to a “Fisch Instrument” to reliably verify the veracity of bullion coins without the need for chemicals. The one I have cost me $20; the Fisch tester is about $160. I can verify that my less expensive model works great (I tried it with a fake gold coin and the real thing and it correctly identified both.) Depending on who the buyer is, they may request bars and other bullion be assayed, although this is not always true; as I understand it, an assay runs about $35. There are other tests you can do that don’t cost a penny — although they are not 100% fool-proof, but close — such as a simple “ping” test and a “drop” test; the sound that two pure silver or gold coins make when one is tapped on another that is carefully balanced on your finger, create and sustain a distinct pinging tone for several seconds. Likewise, the sound that a bullion coin makes when it is dropped on a table is much different than other coins.
Thank you!