December 30, 2008
The Greatest Wealth Transfer In Human History Begins Now!
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December 17, 2008
Fiat Currency- The Death Of The United States
Throughout history governments have used gold, silver, and fiat currency as money. In times of prosperity nations used gold and silver coins as legal tender for goods and services. When the government got involved in a long war or became a welfare state they no longer had enough money to sustain its war, so they had to debase their money. Most civilizations did this by mixing copper into their gold and silver coins, thereby increasing the money supply. By increasing the money supply the currency eventually became worthless and the empire disappeared into the history books.
The reason nations flourish when they use gold and silver as money is because it prevents the government from overspending and it makes them adhere to a strict monetary policy. They can only spend what they dig out of the ground. They can't spend what they do not have unlike fiat currency where at the push of a button you can create all the fraud you want. Yes, the dollar is a fraud, a crime against the American people for the governments unability to figure out how to deal with monetary problems or crisis when they occur. It gives them a headache whenever they have to solve problems, so to alleviate this problem they went off the gold standard. Now they can throw all the printed money at the problem all they want hoping in will "jump start the economy."
In the end, it causes gold and silver to do an accounting of all the currency that was printed and when this accounting takes place you stand to make a ton of money if you get in early. Fiat currency is designed to lose value. It's very purpose is to confiscate your wealth and transfer it to the government. Each time the government prints a new dollar and spends it, the government gets the full purchasing power of that dollar.
Ever since the U.S. went off the gold standard completely, 1971, there has been two housing bubbles, a double digit inflation rate, and a big tech stock bubble and burst. All of this was made possible by fiat currency. During the housing bubbles credit was made too available inviting people to buy homes they knew they couldn't afford causing homes to inflate in price to the point were the bubble burst. In a gold standard we would have not have had this problem because again their is a finite amount of gold and silver in the ground. You can only spend what you have dug up out of the ground. You can't print gold and silver out of thin air.
Today, there are more greenbacks in existence than the U.S. has gold in it's reserves. This means in a currency collapse the government does not have enough gold and silver to pay it's debts or yours. There are a lot of people who still think that for every dollar their is a gold coin or bar in a bank vault somewhere backing it up. There is not our currency is completely worthless and losing value everyday. All the dollar is is paper with green ink on it.
We have gone from a country that had no debt to a nation that is $11 trillion in debt. If you add unfunded liabilties such as social security and medicare the national debt is $52 trillion and growing everyday while the amount of goods and services that we produce each year is only $13 trillion. While using fiat currency we will always be in debt and everyday that passes the poorer we will become until the dollar collapses' completely.
Today, we are in another phase where gold and silver are doing an accounting of all the paper currency that was printed in the past 25 years. If you are smart and serious about protecting your families wealth you will take your trash and trade it in for gold and silver. No nation has ever survived using fiat currency and the U.S. will be no different. The question is not if the dollar fails but when will it fail? During my lifetime or my childrens?
Here is an interesting fact. Since 1914 the dollar has lost 95% of it's value that just so happens to be the year the Federal Reserve came into existence. That means our dollar has lost 1% of it's purchasing power every year! There is only 5% to go before it loses all it's value or roughly five years. No nation has ever survived when going off a gold standard!! Lose the dollar buy tangible assets!
The reason nations flourish when they use gold and silver as money is because it prevents the government from overspending and it makes them adhere to a strict monetary policy. They can only spend what they dig out of the ground. They can't spend what they do not have unlike fiat currency where at the push of a button you can create all the fraud you want. Yes, the dollar is a fraud, a crime against the American people for the governments unability to figure out how to deal with monetary problems or crisis when they occur. It gives them a headache whenever they have to solve problems, so to alleviate this problem they went off the gold standard. Now they can throw all the printed money at the problem all they want hoping in will "jump start the economy."
In the end, it causes gold and silver to do an accounting of all the currency that was printed and when this accounting takes place you stand to make a ton of money if you get in early. Fiat currency is designed to lose value. It's very purpose is to confiscate your wealth and transfer it to the government. Each time the government prints a new dollar and spends it, the government gets the full purchasing power of that dollar.
Ever since the U.S. went off the gold standard completely, 1971, there has been two housing bubbles, a double digit inflation rate, and a big tech stock bubble and burst. All of this was made possible by fiat currency. During the housing bubbles credit was made too available inviting people to buy homes they knew they couldn't afford causing homes to inflate in price to the point were the bubble burst. In a gold standard we would have not have had this problem because again their is a finite amount of gold and silver in the ground. You can only spend what you have dug up out of the ground. You can't print gold and silver out of thin air.
Today, there are more greenbacks in existence than the U.S. has gold in it's reserves. This means in a currency collapse the government does not have enough gold and silver to pay it's debts or yours. There are a lot of people who still think that for every dollar their is a gold coin or bar in a bank vault somewhere backing it up. There is not our currency is completely worthless and losing value everyday. All the dollar is is paper with green ink on it.
We have gone from a country that had no debt to a nation that is $11 trillion in debt. If you add unfunded liabilties such as social security and medicare the national debt is $52 trillion and growing everyday while the amount of goods and services that we produce each year is only $13 trillion. While using fiat currency we will always be in debt and everyday that passes the poorer we will become until the dollar collapses' completely.
Today, we are in another phase where gold and silver are doing an accounting of all the paper currency that was printed in the past 25 years. If you are smart and serious about protecting your families wealth you will take your trash and trade it in for gold and silver. No nation has ever survived using fiat currency and the U.S. will be no different. The question is not if the dollar fails but when will it fail? During my lifetime or my childrens?
Here is an interesting fact. Since 1914 the dollar has lost 95% of it's value that just so happens to be the year the Federal Reserve came into existence. That means our dollar has lost 1% of it's purchasing power every year! There is only 5% to go before it loses all it's value or roughly five years. No nation has ever survived when going off a gold standard!! Lose the dollar buy tangible assets!
December 16, 2008
Silver, But No Silver Lining
The end of our consumer society is on the horizon, which should be no surprise to anyone who took Economics 101. Do we really expect to spend our way out of this mess by buying and selling each other useless cheap stuff from China?
As the financial collapse gathers steam, gold and silver oracles like Butler, Friedman, Morgan and Turk who have been predicting for years the launch of the price of silver to the moon will see their prophecy fulfilled, but a celebration is not in order.
Being wealthy during the last 60 years of unprecedented prosperity at the expense of the Third World and the environment is one thing, but profiting from a bull market in silver when millions of hungry Americans are living in tent-cities next door is quite another.
A default at the Comex that will ignite the explosion in the price of silver and gold is in progress. Investors turned away from the bullion and coin dealers who refuse to sell silver at the $9 paper price opened commodity futures brokerage accounts. They hope to take delivery of the real thing--silver bars with serial numbers--at the manipulated price of $9 an ounce before the Comex has to shut down and admit they never had enough real silver.
Silver delivery at $9 per ounce is courtesy of The Shorts, the largest concentrated short position by four or less dealers in financial history.
Ted Butler, a brilliant researcher, has been writing about the concentrated short position in silver for years and initially thought the default at Comex would come when the dealers ran out of liquidity, but his research suggested otherwise: “Even when holding extremely large short positions and incurring massive unrealized paper losses, measuring in the many hundreds of millions of dollars, the dealers have never collectively turned tail and bought back their short positions to the upside.”
Shorts to Comex and the regulators: The dramatic price decline in August from $21 to $9 is our parting gift to you for looking the other way during our obvious manipulation of prices in the War on Precious Metals. We had to prevent gold and silver from gaining legitimacy as stores of value or consumerism would not have become hyper-consumerism. Mopping up our mess will be easier at $9 instead of $21.
The Comex maintains a guarantee fund and insurance policy to meet a clearing member default, but it has only about $250 million, which is insufficient to cover the losses, but imagine a default at $50 or more per ounce.
Why has the price of silver historically been suppressed, stuck for years in the $4 to $5 trading range?
The downward price manipulation of silver caused by the excessive and uneconomic short position on the Comex has been the subject of most of Butler’s research. His explanation for market fluctuations are often greed-and-profit but he just as often contradicts himself and writes: “It is my contention that this uniquely large and concentrated short position in silver explains why the price is still cheap.
Therefore, in spite of the open losses the shorts are experiencing and the great profits accruing to silver investors, the price manipulation is still in place.” James R. Cook, president of Investment Rarities, credits Ted Butler for the vast majority of investment silver purchased in the past seven years, but when Cook asks the obvious question, “Isn’t the manipulated downward price consistent with a strategy to encourage the purchase of silver?”, Ted is unable to provide a greed-and-profit motive and repeats what has become his mantra, “My main motive has been and still remains doing what I can to end this manipulative crime in progress.”
It is manipulative and it is a crime, but Ted Butler is unable to consistently support a profit motive because there isn’t one. The Puppet Masters manipulate the paper price of the precious metals downward to prevent gold and silver from gaining legitimacy as stores of value instead of the fiat currencies we call money.
Behind every consumer society is the reality of a credit-based monetary system and a fiat currency. There is not enough gold and silver in the world to back the trillions of dollars required for the industrial revolution and the global consumer economy. Behind every fiat currency is a Federal Reserve or a Central Bank controlled by the same men: Rothschild, Rockefeller, Kuhn, Loeb, and Ted Butler’s prime suspect in the “ongoing intentional not accidental” great crime of keeping the price of silver low so investors can “buy a lot more metal”: JP Morgan Chase. "The paper margin calls and technical selling in silver was intentionally planned and forced on us by those who held big short positions.”
One of the more absurd notions that found its way into the history books and the writings of economic experts is that somehow these men were made wealthier from the Monopoly money they printed, the same money that enabled consumers to buy houses, cars, furniture and electronics, i.e. the cheap “stuff” we use on a daily basis. Recall that in 1910 these men already controlled one-sixth of the entire world’s wealth, and it was real wealth: gold, silver and raw materials in a world before we had a “throw away" mentality and the planet’s ecological structures were still in balance.
The Federal Reserve puppet masters orchestrated the Industrial Revolution, the Great Depression, the stagflation of the 1970’s and the dot-com and the housing market bubbles, all of which resulted in unprecedented prosperity.
Consumers can thank the puppet masters for all that “stuff” they have because as Ron (sound money) Paul puts it, “Our current system gives us a free ride, our paper (fiat) buys cheap goods from overseas, and foreigners risk all by financing our extravagance.”
Thank them also for the unprecedented environmental damage and pollution caused by our hyper-consumer society.
We have consumed the resources of our planet; and it’s time for a change to a sustainable, non-consumer society. When people still had jobs and weren’t scared to go shopping, I recommended The Story of Stuff but, thanks to the financial meltdown, consumerism is on the way out, so now the video to watch is the sequel: The Power of Community – How Cuba Survived Peak Oil.
As the financial collapse gathers steam, gold and silver oracles like Butler, Friedman, Morgan and Turk who have been predicting for years the launch of the price of silver to the moon will see their prophecy fulfilled, but a celebration is not in order.
Being wealthy during the last 60 years of unprecedented prosperity at the expense of the Third World and the environment is one thing, but profiting from a bull market in silver when millions of hungry Americans are living in tent-cities next door is quite another.
A default at the Comex that will ignite the explosion in the price of silver and gold is in progress. Investors turned away from the bullion and coin dealers who refuse to sell silver at the $9 paper price opened commodity futures brokerage accounts. They hope to take delivery of the real thing--silver bars with serial numbers--at the manipulated price of $9 an ounce before the Comex has to shut down and admit they never had enough real silver.
Silver delivery at $9 per ounce is courtesy of The Shorts, the largest concentrated short position by four or less dealers in financial history.
Ted Butler, a brilliant researcher, has been writing about the concentrated short position in silver for years and initially thought the default at Comex would come when the dealers ran out of liquidity, but his research suggested otherwise: “Even when holding extremely large short positions and incurring massive unrealized paper losses, measuring in the many hundreds of millions of dollars, the dealers have never collectively turned tail and bought back their short positions to the upside.”
Shorts to Comex and the regulators: The dramatic price decline in August from $21 to $9 is our parting gift to you for looking the other way during our obvious manipulation of prices in the War on Precious Metals. We had to prevent gold and silver from gaining legitimacy as stores of value or consumerism would not have become hyper-consumerism. Mopping up our mess will be easier at $9 instead of $21.
The Comex maintains a guarantee fund and insurance policy to meet a clearing member default, but it has only about $250 million, which is insufficient to cover the losses, but imagine a default at $50 or more per ounce.
Why has the price of silver historically been suppressed, stuck for years in the $4 to $5 trading range?
The downward price manipulation of silver caused by the excessive and uneconomic short position on the Comex has been the subject of most of Butler’s research. His explanation for market fluctuations are often greed-and-profit but he just as often contradicts himself and writes: “It is my contention that this uniquely large and concentrated short position in silver explains why the price is still cheap.
Therefore, in spite of the open losses the shorts are experiencing and the great profits accruing to silver investors, the price manipulation is still in place.” James R. Cook, president of Investment Rarities, credits Ted Butler for the vast majority of investment silver purchased in the past seven years, but when Cook asks the obvious question, “Isn’t the manipulated downward price consistent with a strategy to encourage the purchase of silver?”, Ted is unable to provide a greed-and-profit motive and repeats what has become his mantra, “My main motive has been and still remains doing what I can to end this manipulative crime in progress.”
It is manipulative and it is a crime, but Ted Butler is unable to consistently support a profit motive because there isn’t one. The Puppet Masters manipulate the paper price of the precious metals downward to prevent gold and silver from gaining legitimacy as stores of value instead of the fiat currencies we call money.
Behind every consumer society is the reality of a credit-based monetary system and a fiat currency. There is not enough gold and silver in the world to back the trillions of dollars required for the industrial revolution and the global consumer economy. Behind every fiat currency is a Federal Reserve or a Central Bank controlled by the same men: Rothschild, Rockefeller, Kuhn, Loeb, and Ted Butler’s prime suspect in the “ongoing intentional not accidental” great crime of keeping the price of silver low so investors can “buy a lot more metal”: JP Morgan Chase. "The paper margin calls and technical selling in silver was intentionally planned and forced on us by those who held big short positions.”
One of the more absurd notions that found its way into the history books and the writings of economic experts is that somehow these men were made wealthier from the Monopoly money they printed, the same money that enabled consumers to buy houses, cars, furniture and electronics, i.e. the cheap “stuff” we use on a daily basis. Recall that in 1910 these men already controlled one-sixth of the entire world’s wealth, and it was real wealth: gold, silver and raw materials in a world before we had a “throw away" mentality and the planet’s ecological structures were still in balance.
The Federal Reserve puppet masters orchestrated the Industrial Revolution, the Great Depression, the stagflation of the 1970’s and the dot-com and the housing market bubbles, all of which resulted in unprecedented prosperity.
Consumers can thank the puppet masters for all that “stuff” they have because as Ron (sound money) Paul puts it, “Our current system gives us a free ride, our paper (fiat) buys cheap goods from overseas, and foreigners risk all by financing our extravagance.”
Thank them also for the unprecedented environmental damage and pollution caused by our hyper-consumer society.
We have consumed the resources of our planet; and it’s time for a change to a sustainable, non-consumer society. When people still had jobs and weren’t scared to go shopping, I recommended The Story of Stuff but, thanks to the financial meltdown, consumerism is on the way out, so now the video to watch is the sequel: The Power of Community – How Cuba Survived Peak Oil.
December 15, 2008
6 Myths of Real Estate Investing
In every business and every industry there are people who just seem to drip with success. They seem to know all the right people, make all the right decisions, be in all the right places at exactly the right time. They seem destined for success whether they even try or not. Real estate investing is no different. In every city or town, there seem to be real estate tycoons that struck it rich through real estate.
In this article we will bust myths that will hold you back if you buy into them.
Myth #1: You have to have a large sum of money to invest in real estate.
They think it is like saving for their first home or that it's something they can only do once they have made their fortune elsewhere. Both of these thoughts couldn't be further from the truth. You don't need hundreds of thousands of dollars in the bank to invest in real estate and you certainly don't need millions. All you need is a good real estate deal that makes sense and one that has profit potential and is based on solid financials.
Myth #2: You Need to Start Small-Big Deals Are Too Risky.
There is nothing wrong with starting small, but why rule out a $2 million, fifty-unit building? Mortgages on smaller properties like single-family homes are almost always guaranteed through the buyer's own personal earning potential and wealth. You may be surprised to learn that larger investment property loans are secured by the asset itself. In other words, instead of the $2 million building riding on your own wealth, it is riding on its own valuation. This is less risk to you.
Myth #3: You can "Flip" Your Way to Success or Get Rich Quick with No Money
Down. Many people think that flipping property is the way to grow wealth. The people who believe strongly in this have been lucky enough to make money this way. In my opinion, this is like day trading in the stock market. It isn't easy, and it is very risky. No money down is another way of saying that the property is 100% financed. That means a much larger part, if not all, of your cash flow is going toward the monthly payment. In no-money-down deals, you'll be paying higher interest rates becuase there is greater risk to the lender, have higher loan costs, and have virtually no money to improve the property or even repair it should something break. With this model, you are banking on the property appreciating to make money rather than improving the operations of the property and making money through cash flow.
Myth #4: You Don't Have Time.
This really comes down to choices and priorities. There is always time to do the things we need to do like go to work every day, mow the lawn, feed the dog. Often there isn't time to do the things we really want to do. Learn to speak a second language, build a bookcase, or volunteer in the community. There is a difference between need and want. The investment real estate business is something you should want to do and may even need to do. It's work. To be truly successful, especially in the beginning, you will be involved in the day-to-day activities of finding and evaluating property, negotiating deals, or overseeing contract repair work.
Myth #5: You Have to Know Somebody to Get Going in This Business.
While knowing a few key people such as a real estate agent, an attorney, or a banker may save you some time, you don't need to know anyone even remotely connected with investment real estate to get started.
Myth #6: You Have to Know a Lot About Real Estate.
This myth holds people back every single day. They feel they have to already be experts in a field in order to be successful. Success is a journey, it's not a destination, and all successful people start at the same place. We gain expertise through experience. On your first deal you'll learn a ton and even more from your second and third.
In this article we will bust myths that will hold you back if you buy into them.
Myth #1: You have to have a large sum of money to invest in real estate.
They think it is like saving for their first home or that it's something they can only do once they have made their fortune elsewhere. Both of these thoughts couldn't be further from the truth. You don't need hundreds of thousands of dollars in the bank to invest in real estate and you certainly don't need millions. All you need is a good real estate deal that makes sense and one that has profit potential and is based on solid financials.
Myth #2: You Need to Start Small-Big Deals Are Too Risky.
There is nothing wrong with starting small, but why rule out a $2 million, fifty-unit building? Mortgages on smaller properties like single-family homes are almost always guaranteed through the buyer's own personal earning potential and wealth. You may be surprised to learn that larger investment property loans are secured by the asset itself. In other words, instead of the $2 million building riding on your own wealth, it is riding on its own valuation. This is less risk to you.
Myth #3: You can "Flip" Your Way to Success or Get Rich Quick with No Money
Down. Many people think that flipping property is the way to grow wealth. The people who believe strongly in this have been lucky enough to make money this way. In my opinion, this is like day trading in the stock market. It isn't easy, and it is very risky. No money down is another way of saying that the property is 100% financed. That means a much larger part, if not all, of your cash flow is going toward the monthly payment. In no-money-down deals, you'll be paying higher interest rates becuase there is greater risk to the lender, have higher loan costs, and have virtually no money to improve the property or even repair it should something break. With this model, you are banking on the property appreciating to make money rather than improving the operations of the property and making money through cash flow.
Myth #4: You Don't Have Time.
This really comes down to choices and priorities. There is always time to do the things we need to do like go to work every day, mow the lawn, feed the dog. Often there isn't time to do the things we really want to do. Learn to speak a second language, build a bookcase, or volunteer in the community. There is a difference between need and want. The investment real estate business is something you should want to do and may even need to do. It's work. To be truly successful, especially in the beginning, you will be involved in the day-to-day activities of finding and evaluating property, negotiating deals, or overseeing contract repair work.
Myth #5: You Have to Know Somebody to Get Going in This Business.
While knowing a few key people such as a real estate agent, an attorney, or a banker may save you some time, you don't need to know anyone even remotely connected with investment real estate to get started.
Myth #6: You Have to Know a Lot About Real Estate.
This myth holds people back every single day. They feel they have to already be experts in a field in order to be successful. Success is a journey, it's not a destination, and all successful people start at the same place. We gain expertise through experience. On your first deal you'll learn a ton and even more from your second and third.
December 14, 2008
Gold- The Perfect Christmas Gift
Instead of buying a blender, clothes, video games, or anything else give the gift that will give for years to come- gold. That’s right the bright, beautiful yellow, shiny gold. Sure it may be the most expensive gift you will ever buy someone, but rest assured within a few years the receiver of your gold will be worshipping you for all the money that they made from it. And no I’m not talking about gold jewelry. I’m talking about gold coins or bullion.
Now let’s talk about why one should own gold.
1) Wealth Protection. Even in the best of times financial advisors (at least the smart ones) would advise you to put 10% of your portfolio in gold just in case an unseen financial calamity occurred. In today’s current financial market financial advisors (the smart ones) would advise one to put at least 20% of your portfolio into gold.
2) Wealth Accumulation. Since the tech stock market collapse of 2000 gold’s price has been skyrocketing to the moon increasing from a low of $252/oz to its current value of $824/oz. That is an increase of 326%. The Dow Jones Industrial Average in the same time has gone up a whopping 30%. In the last commodities bull market gold went up from $35/oz to $850/oz an increase of over 2,400%. If the current bull market performs as well as the last one then we will see gold at $6,048/oz! It’s safe to say that this current gold bull is far from over.
3) The U.S. Government. With the government bailouts of Wall Street and soon-to-be Detroit our currency is getting more worthless every hour. Helicopter Ben Bernacke is going to make sure that we don’t fall into a depression. This means that he is going to hit the printing press full steam ahead inflating us into an eventual hyperinflation, which will wipe out every man, woman, and child’s savings.
This is especially dangerous for senior citizens because they cannot afford that kind of devastation. Gold is the anti-inflation money of the universe. From time to time gold does an accounting of all the excess currency that was created and when hyperinflation hits those who are holding gold will be awarded handsomely.
"Through the many economic debacles in human history runs one common thread: those who financially survive do so because they own gold."
Now let’s talk about why one should own gold.
1) Wealth Protection. Even in the best of times financial advisors (at least the smart ones) would advise you to put 10% of your portfolio in gold just in case an unseen financial calamity occurred. In today’s current financial market financial advisors (the smart ones) would advise one to put at least 20% of your portfolio into gold.
2) Wealth Accumulation. Since the tech stock market collapse of 2000 gold’s price has been skyrocketing to the moon increasing from a low of $252/oz to its current value of $824/oz. That is an increase of 326%. The Dow Jones Industrial Average in the same time has gone up a whopping 30%. In the last commodities bull market gold went up from $35/oz to $850/oz an increase of over 2,400%. If the current bull market performs as well as the last one then we will see gold at $6,048/oz! It’s safe to say that this current gold bull is far from over.
3) The U.S. Government. With the government bailouts of Wall Street and soon-to-be Detroit our currency is getting more worthless every hour. Helicopter Ben Bernacke is going to make sure that we don’t fall into a depression. This means that he is going to hit the printing press full steam ahead inflating us into an eventual hyperinflation, which will wipe out every man, woman, and child’s savings.
This is especially dangerous for senior citizens because they cannot afford that kind of devastation. Gold is the anti-inflation money of the universe. From time to time gold does an accounting of all the excess currency that was created and when hyperinflation hits those who are holding gold will be awarded handsomely.
"Through the many economic debacles in human history runs one common thread: those who financially survive do so because they own gold."
Silver- The Perfect Christmas Gift
When you read the title you probably are thinking that he is suggesting I buy silver jewelry for my wife's Christmas present. No, that is not what I'm suggesting. With the current state of the economy and with the value of the dollar plummeting as we speak you stand to make a significant amount of money and also protect your wealth.
Below are the reasons why you should own silver coins or bullion this Christmas:
1) Wealth Protector. Since 2003, when the silver bull market officially began, silver has appreciated more than 200%. At the same time the Dow Jones Industrial Average is up a whopping 30%.
2) The Dollar Is Worthless. I have yet to understand why we use a currency that is based strictly off of confidence and not on a tangible asset such as gold and silver. Since 2000 the dollar has lost 33% of it's value compared to the Euro. Have you noticed that your gas, electric, and food bill in the last several years has increased significantly while nominal wages have decreased.
3) Limited Supply. As with all tangible assets there is a finite supply of silver on this earth. The United States used to have the largest silver stockpile in the history of the world. In 1970 the U.S. had 350 million ounces of silver. As of 2007 they have about 50 million ounces in inventory. Where did it go? The U.S. government sold it to the industrial industry to keep up with demand for their products such as computers. With very little silver available for investment you stand to profit big time.
4) Printing Press. As the government bailes out everybody under the sun one morning we are all going to wake up with the cost of a loaf of bread $1,000. The money that the government is giving to Wall Street and soon to be Detroit is newly printed money. Money that we do not have. Guess what happens when the government prints more money... you guessed right, Inflation! An invisible tax that we get to pay while the Wall Street CEO's get millions of dollars in bonuses. Once all of this new money makes it out into the market watch out your dollar ain't going to buy you squat. You better own silver by this point or you will be living in a "tent city."
Below are the reasons why you should own silver coins or bullion this Christmas:
1) Wealth Protector. Since 2003, when the silver bull market officially began, silver has appreciated more than 200%. At the same time the Dow Jones Industrial Average is up a whopping 30%.
2) The Dollar Is Worthless. I have yet to understand why we use a currency that is based strictly off of confidence and not on a tangible asset such as gold and silver. Since 2000 the dollar has lost 33% of it's value compared to the Euro. Have you noticed that your gas, electric, and food bill in the last several years has increased significantly while nominal wages have decreased.
3) Limited Supply. As with all tangible assets there is a finite supply of silver on this earth. The United States used to have the largest silver stockpile in the history of the world. In 1970 the U.S. had 350 million ounces of silver. As of 2007 they have about 50 million ounces in inventory. Where did it go? The U.S. government sold it to the industrial industry to keep up with demand for their products such as computers. With very little silver available for investment you stand to profit big time.
4) Printing Press. As the government bailes out everybody under the sun one morning we are all going to wake up with the cost of a loaf of bread $1,000. The money that the government is giving to Wall Street and soon to be Detroit is newly printed money. Money that we do not have. Guess what happens when the government prints more money... you guessed right, Inflation! An invisible tax that we get to pay while the Wall Street CEO's get millions of dollars in bonuses. Once all of this new money makes it out into the market watch out your dollar ain't going to buy you squat. You better own silver by this point or you will be living in a "tent city."
December 13, 2008
Why Should I Invest In Silver?
There is a ton of investors out there who have traditionally invested their hard earned money into the stock market and mutual funds who ask this question. The news media for years now have bad mouthed commodities into the ground calling gold a "barbeous relic" that has only lost value since Januaray 1980 when the last precious metals bull market peaked. And of course, there were those ordinary investors who lost their shirts in the last bull market when they bought high and sold low, which is the exact opposite of what you want to do in any type of investment, so it's no wonder why most investors bad mouth gold and silver.
From the year 1980 to 2000 you had massive gains in the stock market particulary tech stocks that made a lot of money for a bunch of investors. During this same period gold and silver experienced a sever bear market caused by the central banks around the world selling their huge stockpiles onto the market especially silver. During this time gold went from $850/oz to $250/oz and silver went from $50/oz to $3/oz. The stock market bubble officially popped in 2000 causing the dumb money investors to once again lose money while the smart money sold their stocks a couple of years earlier and moved into the commodities sector such as oil, gold, and silver.
So you ask why should I invest my currency in silver? Let me give you a few reasons. First, since 2000 if you would have invested your currency into gold you would have seen a 190% return on your money. If you would have invested your money into silver you would have seen a 240% return on your money compared to just a 35% gain on the Dow Jones Industrial Average.
Secondly, we are in another precious metal bull market, which some experts say will last for a couple of decades just like the last stock market bull run.
Thirdly, with the U.S. government bailing out every business that they deem too big too fail. Giving these Wall Street companies billions of tax payers dollars that has to be printed out of thin air becuase we are bankrupt, leads to inflation and a lot of it. Gold and Silver are a hedge against inflation, which is why they have been rising since the turn of the century and they will continue to rise for the forseeable future.
Lastly, the United States is 10 Trillion Dollars in debt and with unfunded liabilities such as Social Security and Medicare the total U.S. debt is actually 52 Trillion dollars. The entire U.S. GDP is 13 Trillion annually, so how can the we ever expect to pay our bills to our creditors? Like all empires throughout history that used fiat currency the dollar will collapse and become worthless while gold and silver skyrocket to the moon. Those left holding dollars will cry and weep saying, "Why Did I Not Invest In Silver?"
From the year 1980 to 2000 you had massive gains in the stock market particulary tech stocks that made a lot of money for a bunch of investors. During this same period gold and silver experienced a sever bear market caused by the central banks around the world selling their huge stockpiles onto the market especially silver. During this time gold went from $850/oz to $250/oz and silver went from $50/oz to $3/oz. The stock market bubble officially popped in 2000 causing the dumb money investors to once again lose money while the smart money sold their stocks a couple of years earlier and moved into the commodities sector such as oil, gold, and silver.
So you ask why should I invest my currency in silver? Let me give you a few reasons. First, since 2000 if you would have invested your currency into gold you would have seen a 190% return on your money. If you would have invested your money into silver you would have seen a 240% return on your money compared to just a 35% gain on the Dow Jones Industrial Average.
Secondly, we are in another precious metal bull market, which some experts say will last for a couple of decades just like the last stock market bull run.
Thirdly, with the U.S. government bailing out every business that they deem too big too fail. Giving these Wall Street companies billions of tax payers dollars that has to be printed out of thin air becuase we are bankrupt, leads to inflation and a lot of it. Gold and Silver are a hedge against inflation, which is why they have been rising since the turn of the century and they will continue to rise for the forseeable future.
Lastly, the United States is 10 Trillion Dollars in debt and with unfunded liabilities such as Social Security and Medicare the total U.S. debt is actually 52 Trillion dollars. The entire U.S. GDP is 13 Trillion annually, so how can the we ever expect to pay our bills to our creditors? Like all empires throughout history that used fiat currency the dollar will collapse and become worthless while gold and silver skyrocket to the moon. Those left holding dollars will cry and weep saying, "Why Did I Not Invest In Silver?"
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