Thursday, April 8, 2010


Debt Slave Vs. Gold Save

Generally speaking, most people feel that saving or investing in 999.9 fine Swiss minted bullion is not something that they are in a position to do. What I have discovered is that it is totally possible for EVERYONE TO SAVE IN GOLD starting now.

If you’re reading this, I know you are already attracted to the shiny stuff and for good reason! It could be the recent spotlight on gold in the media that it is “about to soar” or the hedge against inflation and God forbid, protection against hyper-inflation .

People reject the notion that they can begin tangible gold ownership today for several reasons. They may feel they cannot afford it, or perhaps they are single mindedly bullish on silver. Some people are stretched and don’t have any money left over for savings or investing.

Let’s address the last point first. Simon Heapes, Director Treasurer of Anglo Far East said, “If you do not save, the seeds of success are simply not in you”. An ancient secret of the wealthy is that they ALWAYS put aside some of their income NO MATTER WHAT into a form of savings and forget about it. Western culture overtime has lost this knowledge. In a matter of a few generations, we have gone from a culture of savers to a culture of spenders and debt slaves.

What is a debt slave?

“The borrower becomes servant to the lender”. When we allow ourselves to go into debt for luxury items, we postpone the inevitable; paying for something we couldn’t afford in the first place. Many face that when in debt, we feel pressure to work more hours, or two jobs to make the payments. Some feel they are not in a position to ever pay it down. In this situation, your options are diminished and you become “servant” to the lender. You are simply trading hours of your life to work for money to pay the lender, you are debt slave. The daily stress of that in peoples' lives has very negative consequences on their health and happiness.

Our grandparents and great grandparents grew up in a society that if you had debt, people would literally look at you side-ways. This was not an acceptable way of life to them and people in debt were even looked upon as unsavoury company. Our great grandparents were people who worked hard and saved their money. If they wanted a better car, they would save for it. This goes for holidays, jewellery, renovations, real-estate, also. I’m using this example to point out that we now accept heavy debt as a fact of life, where as a mere three or four generations ago, it was taboo.

We need to get back to the fundamentals of saving as a culture. We can draw a lot of power and protection in our lives by doing this. From birth to adulthood, through a very sophisticated, multi-media, systematic bombardment of messages, we have been programmed to reject the obvious benefits of saving and go into debt for a variety of consumer items, that by and large, we simply DO NOT NEED.

Let’s get back to the topic of gold. Saving in gold has a multitude of benefits:

1. It is an inflation-proof asset-In the media, it has been named as the right asset at the right time.
2. It is a great hedge against inflation and protect against hyper-inflation (An insurance policy that you and your family can cash in on and benefit if we have a drastic currency event in our life-time.
3. Per many media sources, it is a great investment. Marc Faber continues to beg people to buy gold every month here.

4. When you save in gold, you are less likely to spend your savings. E.G. If you are in a crunch and need to cash in some of your gold, it takes a couple of extra steps to get it out of the safe or safety deposit box, march down to the local coin exchange shop to make the transaction. You won’t be able to impulsively spend it on that pair of shoes or electronic gadget you see at the mall.

Now that we understand the importance of saving and the benefits of saving in gold, now let’s look at why a savvy smaller investor should begin to buy gold once per month as well. I hear many people who are asserting that silver is a better investment for a variety of reasons. There is no question that silver is a sweet deal right now and that it is about to make a spectacular move. I do not contest this in any way and I too love to buy silver. If this strikes a chord in you, I ask you to consider the following.
Silver may be perched and bullish right now, but here is why you should begin a set and forget savings plan and buy small amounts of gold along the way as well.
Some people plan that when they get large sum of money, they'll buy a lot of gold. Others prefer to stick with silver because it is more affordable and they like where it’s heading. They plan to buy it later when they have more money or when they swap their silver at the right time. Well, by the time the average person saves enough money for a large gold transaction, or same person is ready to do a swap with their silver, what makes you think there will a supply of gold to buy from? Remember, everyone will be thinking the same thing, and by then, it may be too late. Of course, there will be gold available, but at HUGE premium. As Franklin Sanders said, "This is what happened in 1978 and 79. People were trying to find some way to protect themselves; they ran into gold and silver. What most people don’t realize is that it’s a real small door, and when everyone tries to run in there at once, the price has to skyrocket to clear the market."

If you accumulate it slowly, you will be averaging out the price, capitalizing on buying on the dips as well. E.G. If you buy a 10th coin per month, you will have a one ounce of gold in 10 months! If you don't, you'll have ZERO ounces of gold in 10 months.

Gold is a good thing to constantly acquire as well due to its higher value and what that means in terms of storage. I have experienced first-hand that you need a lot more storage when it comes to silver. Let’s look at the sheer weight of $10K worth of silver x $20 per ounce compared to the same amount in gold coin, you could easily put $20K worth of gold in a safety deposit box and find room for 33 times that amount and not have to worry. Try that with silver and the bank storage fees would be ridiculous.

If you want to begin a set and forget savings plan in gold or silver, I can get you started on an affordable and flexible savings plan in a tangible form of wealth. Let me know if you are ready to take action and diversify!
By Kirsty Hogg
Goldvestments Copyright © 2010

Saturday, April 3, 2010


Why Buy Gold?

A hedge against Inflation - Hyperinflation Survival - To Protect My Family
One of things I learned from reading the incredible book, “Stories from the Desk of a Bullion Banker”, written by Phillip Judge, on what is going on in our lives today is that there is a global need to combat inflation; the silent economic cancer that plagues our lives on every continent of the planet.

What is inflation?

Our first thought is to think that inflation means prices increasing. In the context of general conversation, this sounds correct, but it isn't. Inflation in the economic sense means to inflate money. By this I mean to increase the availability of money, or plainly putting it, printing more money into existence. When we increase the circulation of money but the availability of goods and services remain the same, this causes an increase in prices. So, when you hear the word inflation, it isn’t prices mysteriously getting higher, it means that the prices are higher AS A RESULT of an increase in the money supply. Inflation is a silent tax that robs people of their savings, purchasing power and prosperity.

In order to combat inflation, we need to find something that will always hold its value. We need to find something that is not subject to the effects of an increased money supply. For many millennia, gold and silver have remained a stable currency; their purchasing power has never changed and they have proved to be inflation-proof assets.

To demonstrate, in 600 AD, 3 grams of silver (a silver Dirham) would buy a chicken. Guess what, in England today, 3 grams of silver will still buy a chicken. We can demonstrate this further by looking to ancient Roman times. Around 1 AD in the Roman world, for one ounce of gold; one could buy a fine toga, a wool coat, handcrafted leather sandals and belt. Today in 2009, for once of gold (1100 USD March 2010 AD) a man can buy a tailored suit, cotton shirt, tie, belt and a pair of leather shoes.

Silver and gold are a reliable, solid safe haven to store your wealth and protect it against inflation. By keeping your money in fiat currency – Dollars, Euro, Pounds, etc. you are subjecting your hard earned savings to both inflation and devaluation.

Where are you storing your hard earned money now? In a savings account? "High Interest" account? At all times, inflation is eating away at your savings, even while you sleep.

In the absence of gold, there is no way to protect savings from confiscation through inflation. There is no safe store of value.” Alan Greenspan

Let me know if you are ready to save your money in tangible gold and silver. I buy gold and silver in a variety of forms to protect my family.

By, Kirsty Hogg
YOUnique Gold Tribe Member
Goldvestments Copyright (c) 2010

"Millenium Money" DVD Australia Fair Publishing.
Judge, P. "Stories from the desk of a Bullion Banker

I leave you with this installment from Chris Martenson's Crash Course, Chapter 10 "Inflation".