Tag Archives: ira

Is Silver your Financial Safe Haven?

26 Dec

Is Silver your Financial Safe Haven?

 

Dollar Decline Chart

 

At first look, most of us would say that the price of gold increased from $20 to $1600/ounce. However this is not accurate. Gold actually still buys the same amount of goods and services that it did in 1933. Gold has basically stayed constant. The dollar’s value fell by a factor of 50- so that it takes 50 times more paper dollars to buy the same amount of goods and services than it did in 1933 (See the price of gas since 2002 alone). Looking forward, we must consider whether the dollar will buy more or less in 10, 20, or even 30 years. The gold you have today will allow you to buy the same amount of goods and services that your money will buy today, 10, 20, or 30 years from now. Viewed from this angle, gold and silver are a way of preserving your wealth. They are a type of wealth insurance.

Many Europeans have long-held 10-20% of their net worth in precious metals for this very purpose. They have a history rich in tragedy: hyperinflation, government changes, borders that have moved and two world wars. Gold’s durability has served them quite well through all sorts of political unrest. In fact, it is perhaps the only constant in a world subject to change.

 

As gold and precious metals are priced and traded in US dollars, they surge in value when the US dollar declines. As the fed prints trillions in new money, the dollar and basically all other currencies will fall precipitously relative to gold. In an environment where the dollar is already weak and many currencies are weaker, investors that wish to keep and grow their wealth (duh, who doesn’t?) must understand the impact of declining currencies on their portfolios.

 

The US and Canadian dollars have lost approximately 84 percent of their purchasing power since 1970!  Most other currencies across the globe have fared no better. Not coincidentally, 1971 was the year the link to the gold standard was cut via President Nixon et al. Only gold, and its two precious metals brethren -silver and platinum- are able to hold their respective values in periods of severe inflation and deflation.

Both Gold and silver benefit from negative economic policies, political tensions, and monetary conditions contribute to a rise of their prices. For this reason gold has always been referred to as the “crisis commodity” and why investors are buying all the gold they can afford.  And the same may be said for silver.

The below trends weaken stocks and other paper investments and cause the price of gold and silver to rise:

War

Inflation

High Oil Prices

Weakness in the U.S. dollar

Budget Deficits

Stock & Bond Market Turmoil

Bank Failures

Loan Defaults

This being said is it any wonder people are buying gold as fast as they can?  Every time it drops a 100 dollars people buy asap.  Are you following that trend?  If so you are smart.

However the trend in silver is the same and gains can be realized faster.

For the sake of discussion lets assume gold is 1600 dollars an ounce and silver is 30 dollars an ounce.  Gold is seen as the big boy in the group but silver affords the real opportunity to max out your portfolio.  For every 1 ounce of gold you can  buy53+ ounces of silver.  Now you might say the dollar value is the same but silver is slept on my friends.  It is used in almost every electronic in your house.  Also in my opinion silver is the sleeper buy.  it will rise faster when the ‘isht’ really hits the fan.  But lets talk turkey- I can’t afford to buy gold at these prices, who can?  However we can all afford to buy silver.  it is even sold in half ounces and quarter ounces.with these small denominations possible for purchase I would argue that we all have a chance to build wealth and create our own hedges against inflation.  after all do you work 35-40 hours a week to just hand it all over to the government, the corner store, cable and the rest of the creature comfort providers?  I’d bet not  So lets work the legal methodologies provided us by the system.

#thriveorsurvive.

“Gold is the wealth of kings……
Silver is the wealth of gentlemen……
Barter is the wealth of peasants……
Debt is the wealth slaves!!!!!”

-Norm Franz.

Thoughts? Concerns?
Questions? Think I’m wrong?
Let’s chat.
Need ideas?
Want to learn how to invite?
Let’s chat.
Want a mentor or maybe the guy who will bounce ideas back and forth with you?
Let’s chat-
Tony@Changeinadvance.com
@changeinadvance
http://www.changeinadvance.com
Or simply reply to this article.

 

 

 

 

 

 

 

 

SAVE NOTHING!!!!

21 Sep

SAVE NOTHING!!!!

NO MORE SAVINGS ACCOUNTS!!!
Savings accounts are killing your dreams. Your fancy IRA and 414k are slaving you out! Stop saving your money.
Okay. Wait up folks. Let me get into all this.
There’s a lot you need to know and I only got a few of the pieces. Let’s get it in my friends.

Ok, go ahead and save.
Save something but you shouldn’t be betting it will save you. A lot of people work like dogs and sock away that glorious 20%. Great plan. I applaud you. However I don’t agree. At this stage of my life I’ve committed to paying down my debts. I need financial freedom now. And before the economy tanked this was my thought. I knew I’d make up for lost time with the extra dollars, but couldn’t do both. So saving money is a last goal not a first. I say save something. Get up to a grand and stop. Suze Orman says save 6 months- for me that’s 18,200 bucks. Sorry Suz, but before the economy took a crap in my wallet you had a different plan for me. Ill skip you and a few others.

Your job won’t save you.
This part corresponds to the last one. Your job won’t provide the income you need. If you aren’t a top level CEO with that golden parachute forget it. Move on. Now you don’t have to quit but reassign your drive.

Make money. Create cash flow.
This is the only way I think we can thrive and not just survive. A friend and I have committed to buying a small amounts of .999 pure silver to hold wealth and barter if necessary. Now yes, I know this is savings. However its not fiat currency in the bank. Its not devalued dollars and I can trade it in this economy and in the event of an economic collapse- global or local.
Now this may not fit with the part of the article I started but wait- as my silver appreciates I make money. As I buy volumes cheap now I will beat the rise I see coming. And as I cash in ounces over time I will have a consistent cash flow. See how that works? Disagree with my concept fine but I have a way that is fluid and set to the constraints I designed. I have a plan. I’m in control. And a savings account wouldn’t do this for me. Look at the interest rates from ’06 to ’12 and tell me what you think.

Let residual income save you.
This is the way most people hate. Or even outright malign and avoid. Residual income simply means money coming in the future from past efforts. That’s it. You don’t need an mlm but why not try one? Tax breaks, fiscal education, what do you lose? Its a good way to learn at the very least. If not what do you think dividends in mega-conglomerates are? Get it. Continuous income is a key strategy. Why do banks charge interest? Car loans, mortgages, school loans. These are residuals for a bank. Create your own my friends.

You can’t reach your full potential wit a safety net.
This might be the key to my article. The heart of existence too.
When we aim for safety first we lose first. Life is a quick trip some say. I’m in my thirties and I let fear get me a lot when I was young, heights, rock climbing- no more. Last time I hit a theme park I got on every ride and got the cam picks to prove it. I screamed like a little kid but loved it in the end. And in life there is a saying: go for broke. If you do nothing but play it safe nothing will change. There is no growth. There is no dream. There is no hope.
Now I refuse to be safe. I use the club in my car and have alarms in my apartment and a go bag. But I don’t wait for safety in finance. I don’t wait for safety in my blog or my ventures. I reach for the stars. I commit funds and worry later. I’m not foolish but prudent. And here’s why: I’m used to making safe and or smart decisions and so when I take risks they are calculated. And that is smart. I share my world in this blog. I share my mind and heart with anyone willing. And I follow the financial strategies most shun.
And for me that works. I take a lot of fiscal risks. And yes I’ve lost money. I bought fools stocks too. The learning I gained was priceless. The courage I found- more so. This is my life and I won’t follow talking heads. I’m moving forward with no qualms.
I will be rich. By my hand, my choices, and with no safety net. Sorry to my fiscally prudent fellows- I won’t save to fight fear when success trumps all.

#thriveorsurvive.

Playing it safe is the cousin of fear when its true rationale eludes us. -CEO, Change In Advance.

Thoughts? Concerns?
Questions? Think I’m wrong?
Let’s chat.
Need ideas?
Want to learn how to invite?
Let’s chat.
Want a mentor or maybe the guy who will bounce ideas back and forth with you?
Let’s chat-
Tony@Changeinadvance.com
@changeinadvance
http://www.changeinadvance.com
Or simply reply to this article.

Link 20 Jul

Are Self-Directed IRAs Too Good to Be True?

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