Cash Is Trash

May 7, 2012

There will come a day when your currency will either not be accepted as money, or it will be so worthless it’ll make you want to cry.

When I first started driving gas was $1.30 a gallon, I feel pretty stupid paying $3.70 a gallon right now; I couldn’t imagine having paid $.30 a gallon like our parents and grandparents did at one time! The sad fact is that this trend will continue. One day you might wake up in 10 years and pay $10.00 a gallon. REGARDLESS of who wins the 2012 election. Or you may wake up and realize the currency you once used is no longer being used!

I don’t mean to sound demeaning, but as I tell my class – “Boys and girls, we are about to experience a huge change, and this will be a great time for you to create an empire of wealth for your family, or to continue the path of middle-class or even worse have your wealth transferred and you may be moved to lower-middle-class. The choice is yours.”

Now is a great time to buy!

Advertisements

A few of my readers have remarked that they’ve been watching silver for the last two months and depending on when they got in, they could be down $5oz, which can add up quick if you have a lot “skin in the game.”

Well, I can’t argue with the facts that silver has gone up and down since January, but perspective is everything. The fair market price on silver right now I would estimate around $37. Regardless of what happens silver in reality is at $37 and will soon be there again before it takes off. With that said, I view these “pullbacks” as a gift!

I’m in the metals business for the long-term gain. I’m not looking to make a quick buck, I’m looking to set up a system for my family to have wealth for a long time in whatever cycle we’re in. There is always something going up in value, we just have to do our homework to figure out what it is and invest in only that. Right now the cycle is swaying to precious metals, they’re still cheap enough for everyone to buy, and in a few short months the momentum will swing and people will flood the market which will drive the price up. Get in now, before it’s too expensive to get in!

Inflation Explained

May 2, 2012

Inflation is not merely prices going up, but rather the value of the dollar going down. And even more than that your wealth depleting.

Imagine there was only $10,000 in America, and you owned $1,000 of them. You would own 10% of America’s money! Yay you! Now, let’s say America decides to print another $90,000, and doesn’t give you any of it. You still own $10,000 (yay you!) but now there is $100,000 out there and you now only own 1%. You just lost 9% of your wealth while not spending a penny.

Our current system has punished those who have saved and have now created a generation of debtors.

Get a financial education, get smart, protect your wealth and don’t be fooled into buying foolish things, or into saving your currency and allowing America’s inflation devalue your wealth to nothing.

While my primary argument will always be that gold and silver have been accepted as money for the last 6,000 years of human history, there are still extra things that can be said about why only gold and silver, and why not other metals that are valuable.

A recent trend has shown value in two things: platinum and rhodium.

If you remember your recent thief history, rhodium was being stolen from cars’ catalytic converters. Rhodium is a pretty and durable metal which is why people find it valuable. It is usually used to go as an outer covering on both silver and white gold. Silver to make it more durable and avoid tarnish, and on white gold to make it luster or BLING! Extremely reflective and well guarded against the elements.

Rhodium’s main problem is that it is only used by jewelers. Sure, it is valuable (to jewelers), but it doesn’t serve functional purpose like silver (cell phone, refrigerator, microwave), and it doesn’t have the history that gold has. It’s only purpose is to cover gold and silver, and it has already had its run to value, and the only place it can go is down.

Platinum, while extremely valuable is just TOO rare. If platinum became the backer of money, it would be valued at MILLIONS per ounce, and South Africa would be the richest country in the history of the world as it is only found in South Africa.

All of these other precious metals, metals are valuable and will remain valuable, but will not see the spike of gold/silver simply because of the history. While from a collector’s opinion, yes they’re pretty and they’re neat, they won’t have the investment run (bubble) that gold and silver will soon have!