SECRETS OF THE WEALTHY SERIES: Debt Slave vs Gold Save

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
Goldwars.blogspot.com
http://www.fundsingold.com/
Goldvestments Copyright © 2010

SECRETS OF THE WEALTHY SERIES: Why Buy Gold?

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.

Question
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 Memberhttp://www.fundsingold.com
Goldvestments Copyright (c) 2010

Sources:
anglofareast.com
"Millenium Money" DVD Australia Fair Publishing.
Judge, P. "Stories from the desk of a Bullion Banker
chrismartenson.com

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

Why Are There Premiums on Gold and Silver Coins?

This is a quick update with some buying tips in the area of premiums, for the first-time, small investor looking to purchase small denomination tradable coins or bars. I often get asked why smaller coins have a higher premium, etc. Or why gold/silver coins are not available at spot price of the metal. There is always premium on 999 fine gold and silver bullion.

Part of the premium, of course is a result of the refining, minting, administration and distribution fees for the actual manufacture of the coin. When you go to the gas station to fill up, you are not paying the spot price for a barrel of oil at the pump. There are many costs involved in the refining and distribution of fuel. We just expect that as a fact of life. It is the same for precious metal coins.
When the spot price of silver dropped considerably last year, the high premiums we were paying at the time reflected what was considered as a natural correction of what a more realistic price of silver should be based on supply and demand. The low price seems farcical as many people wanted to buy silver at that price, but there was low supply and long waiting times. Suppliers were charging 40% premiums. So if an economic event occurs that will spike the demand for an American Silver Eagle, and the mint has only regular reserves available, the high demand and low supply will push the premium higher.

SOME BEGINNERS TIPS:

Always research what premium you should expect to pay before buying. There's a few simple ways to do that:

1) Here's a website where you can see what to expect: 24hGold. Scroll down all the way to the bottom on the left hand side until you see "Let's Get Physical - BULLION - METAL VALUE AND PRICE" On the right hand side of the chart in green text, it lists the average percentage of premium to expect. Use this information to compare and shop around for similar products and rounds. There are other premium research tools at the top right of the site under the tab "BUY AND SELL GOLD ON EBAY"

2) Another good thing to do is a quick comparison directly on the Ebay site for a similar item. So for whatever you are looking for, type it into the Ebay search field. For example, type “100g bar silver”. It will come up with what they are being sold for that day/week.

3) If you have the time, take a saunter down to you local coin or precious metals exchange shop. Prices will change daily.
Your goal should be to accumulate the maximum oz's of gold and silver for your money as possible. Part with extra premium for a premium product that will offer added insurance. As an example you may consider paying extra margin for a smaller denomination or non-legal tender private mintage. Buy before the rush! When everybody is rushing into the bullion market at one time, premiums soar very quickly.

This will get you up and running to begin buying right away. Now for all of you seasoned gold and silver buyers reading this article, I welcome your comments and additional personal tips you can pass on to everyone.

Find out why I prefer privately minted bullion rounds and coins here.

Kirsty Hogg

First Grocery Store to Accept Silver

The National Inflation Association recently posted a video that really struck a chord with me. Take a look at this portrayal of an actual purchase of regular convenience store items with tangible silver.

Although my favourite form of tangible silver is of the privately minted bullion round or bar variety (due to the pristine 999 fine silver and the low premium), I will now be taking a second look at junk silver.

This video conveys two powerful points:
1) We are not too far off from this type of business to be as commonplace in every city.
2) These low-budget, educational videos are a really powerful tools to portray some pretty complex issues in very uncomplicated way. So let's get out there and make some videos.

You can view the video HERE.
I think I’m going to buy my first bag of junk silver!

The Eve of Destruction?

Well it’s been 2 years since the whole notion of the importance of acquiring inflation proof assets entered my world, and let me tell you, it couldn't have happened at a more opportune time. I sat wide-eyed as I watched the whole Fanny Mae and Freddy Mac saga unfold before my eyes. This was what the likes of Richard Martin, Peter Schiff and Marc Faber had been predicting for months, and I had just finished taking it all in when it hit the mainstream media. I was on the phone with a friend when the news feeds hit the net. We could not believe our ears. “Is this it?”, I thought, “is this the beginning of the end of life as we know it?”

Then the ensuing images of regular families who so ill-advisedly “bit off more than they could chew” ending up in homeless shelters, motels, parking lots, or “tent cities” were unbearable. And to watch the audacity of the media as they blamed the families for purchasing something they couldn't afford, all the while, begging for a bail out for Fanny and Freddie; the culprits who caused the crisis to begin with.

Well it turns out that that the sky was not falling that day, but it was definitely a warning shot. With the Federal Reserve continuing to print money into existence, and the Federal debt growing exponentially, the foundation of this 100 year experiment called “non-gold backed, fiat currency” has been eroded and the economy is definitely on its slow decent into hyper-inflation.

Many seem to argue that things are turning around, the economy is getting better. We are told to cheerfully continue buying stocks and watch the stock market “rally”. But common sense simply dictates to take a look around you. What are we actually seeing in our lives today? Increased unemployment, record inflation, increased homelessness and the existence of “modern day shanty towns” N.America.

Can we rely on the government to rebalance the economy? As Chris Martenson so succinctly described it in the “Crash Course”, he states we are now in a situation with an outcome, and it is just a matter of how we are going to handle the “outcome”. What are some things we can do to lessen the blow of the outcome?

More and more it makes sense to store your wealth in something that is inflation proof. I for one will be buying gold and silver in a variety of forms.

Kirsty Hogg
http://www.goldvesting.com/
http://www.fundsingold.com/
http://www.goldvestments.com/

Government Issued Coins VS. Non-Government Issued Coins – You decide!

I get asked a lot about where to buy the best small denominational gold/silver bullion coinage. An argument that often arises is should one stick with government issued coins like a Maple Leaf or American Eagle, Krugerrands, etc. Let’s take a look back in recent history. In 1933, Franklin D. Roosevelt by Executive Order, confiscated all gold coins and bullion from US citizens. By law, private gold ownership was forbidden in the US from 1933-1974. In 1933, it had to be sold back to the Federal Reserve Bank. This is an important point to remember when we start discussing “non-confiscatable” gold.

Many people are unaware of this fact: Government issued coins are not yours, you are only the BEARER of the coin, NOT the owner, as it is actual currency owned by the government. Just like on a dollar note, it says you are “the bearer”. This applies to all government issued currency.

One of the forms of gold that was not subject to the executive order for confiscation was religious collectable gold. Such as religious relics, medallions, etc.

Read the order here.

Gold has been money on this earth for over 5,000 years. Throughout history 2 distinct types of coins have circulated; Monopoly Coins and Open Exchange Coins:

1. "Monopoly Coins" identified by:
Government and/or 3rd party monopoly ownership (e.g. by various coinage acts and decrees.)
- A monetary face value determined by statute (e.g.1 Denarius, $1, or 50 pence)
- Government inscription (e.g. Image of "Caesar" or state "ID".)
- Little or no integrity of precious metal content.
- Little or no intrinsic value.- Being merely tokens of inferred value.
- Government can buy back at anytime for face value only - $50 gold coin (you'll get $50).

2. "Open Exchange Coins" identified by:
- Private bearer ownership.- Intrinsic value in their own right.
- Integrity of precious metal content.- Absence of a monetary face value.
- Absence of government or third party encumbrances.
- Open market assessment as to their value and tradability.
- Bearer's liberty as to usage or hoarding.With the benefit of historical hindsight, the civilizations that have embraced a system of just weights and measures and an open exchange of gold and silver coinage, not only enjoyed longevity as a power, but their citizens and those who chose to trade with such currency of integrity, enjoyed the prosperity and security it ensures.

MAXIMUM BENEFIT TEST

In order for gold and silver coinage to enjoy maximum benefit in the market place it must pass the following 5-point test.

1. The coin must be your property (Government issued coins are not yours, you are only the BEARER of the coin, NOT the owner, as it is actual currency owned by the government).
2. It must be a stipulated weight (Grams or troy ounces are preferred)
3. It must be a determined purity (Preferably pure gold, pure silver or a mixture)
4. It must be in small denomination of weight (2-30 grams, or 1/10th -1 troy ounce)
5. It must be internationally recognized (Via a reputable hallmark or trademark)

Based on the points above, here are other things to look for when shopping for gold;
* Mint fresh and un-circulated, issued with their refiner's certificate of fine weight and purity which makes it 100% standardized.
* Stipulated weight and purity, insuring their determined international value.
* Small denominations of weight making them liquid and easily tradable.
* Bear an internationally recognized Hallmark, attesting to their internationally reputable purity and minting.
* Fit the description of 'free market commodity' (sometimes referred to as free-market money).
* Ownership rights: 100% private Gold, non government issued.

If you have doubts that gold confiscation will ever take place again, think again. There is approximately a half an ounce of gold above the ground today for every living person on the planet. When fiat currency deflates, a logical step for the government is to reclaim their gold as their currency could be rendered worthless. Also, confiscation is such a serious downside, that I would not want to take my chances.

Tune in next time when I discuss another form of wealth confiscation that many people are not aware of. This happens globally, everyday, even while we sleep.

Kirsty Hogg