Sometimes just owning silver and gold is not enough, it wasn’t for me. The goal of precious metal ownership is to create an independent life no longer relying on agencies and assets that will continue to decline as our economy weakens. Most have not connected the level of societal unrest or personal wealth loss and still truly believe one more trillion dollars borrowed will fix decades of monetary mistakes. These same folks simply fail to recognize what their local community will become as budgets decline to the point unrecognizable. At such a time owning precious metal is not enough.
I want to be perfectly clear at this point, there is no perfect place of monetary utopia. Even the Manhattan billionaire is affected by potholes and unanswered 911 calls. This article is not describing escape since escaping is impossible but “better” is attainable.
Your definition of “better” is different than mine. For me, better was wide open spaces in a friendly flyover town where folks still look after each other.
My better is a place where city and state budgets look for ways to decrease spending not tax payers more when times get tight. These types of places are growing extinct but my bet is you’ve probably noticed this.
In Why Silver & Gold Will Go Higher, I discuss the benefits of hiding wealth in precious metals and provided more than enough facts why both metals will make holders very happy over the long term. What the book doesn’t discuss – as much – is the trade off for prosperity. All things sending your stacks of silver and gold higher also lead to a severe decline in quality of life that few metal holders want to think about.
A decision to buy precious metal is a big decision but nothing compared to saying goodbye to family and friends while over packing a U-Haul. I won’t pretend to know what is right for your family but will provide a few trends to look for that may help open denying eyes. I’m guessing many of my readers today are seriously considering “getting out of Dodge” so I thought maybe we should list a few trends that could help with such a big decision.
TREND #1: MAJOR DECLINE IN HOME VALUES: Declining home values are far worse for communities than most imagine. Most city and school budgets rely on property taxes to fund safety services and local programs. When values decline budgets shrink. When budgets shrink then services are cut. This eventually leads to a breakdown in infrastructure on nearly all levels. This means your city services can no longer support local citizens and this always ends with you paying more taxes or living with such a decline.
Most of you are familiar with the growing number of cities declaring bankruptcy but most fail to realize this also increases the number of individual bankruptcies too. This chain reaction – if you will – severely weakens a local quality of life not to mention the drag on personal wealth. My question for you is how much wealth do you have stored in your home’s equity? How fast is it declining?
TREND #2: UNEMPLOYMENT: The year 2012 introduced a new term called “Silent Depression”. By definition, a silent depression describes bad economic times hidden by massive government support. Picture soup lines of the 1930s replaced with EBT cards, food stamps, long-term unemployment benefits, ever increasing numbers on disability, etc. This support becomes normal when job opportunities decrease or pay less than the local standard of living. There is a difference between a temporary safety net and long-term dependency (only one is sustainable).
The problem arises when we consider the wealth of most countries cannot support the rising numbers using such services, this is why most countries have growing deficits. The facts show cities in a silent depression are experiencing an increase in robberies, rapes and murders. Can you imagine the extended level of such crime when services are reduced or benefits lag behind inflated food and housing costs? Can you imagine the level of hatred as those who truly feel entitled decide to blame those with remaining wealth?
TREND #3: DECLINING INCOME: Some of you cannot imagine saying goodbye to family and friends, I understand. But the fact remains you live where you live because of opportunity, even if you’ve already relocated. Opportunity to grow a business or advance a career keeps us in a place slowly deteriorating. For some, it really comes down to income and a lifestyle but the truth is today both are in serious jeopardy of decline. My advice is to watch both closely realizing something must “trigger” a God given instinct to protect family and remaining wealth. I personally left a tax heavy state (simultaneously killing business with more useless regulation) when my income no longer justified the hassles of such a lifestyle. I wish I had made the move a decade before to be honest.
Several decades ago Americans fell into a trap when someone convinced us “more” is the secret to happiness. This lead to “more” spending, more personal and public debt, more acid inhibitors, more family fights over money, and especially more compromise in order to live someplace in obvious decline. If one thing good comes out of today’s economic correction let it be a return to common decency and a simple family oriented way of life. This lifestyle I’m describing does not take a boatload of money but a savings in silver or gold will help.
Let my last note be this. Who knows what your wake up call will be or if you will hear one. I personally would rather own less metal and a better quality of life than the other way around. The choices are yours but you can rest assured we will continue to justify precious metal ownership as events unfold, regardless where you live.
QUESTIONS & COMMENTS:
QUESTION: In 2011 I bought 200 ounces of silver for the first time thinking silver was a wise move but now not so sure. I do not doubt my decision to buy silver but question my timing more than anything. How does a small silver investor know when is the best time to add more considering how silver continues to drop in price?
TPS Reply: Nothing casts doubt like PM prices dropping especially for those new to silver and gold. Thanks for the great question and let’s see if we can help ease a few concerns and then answer your question. First, yes silver has significantly dropped and this leads many new to PM to doubt such a wise decision. This doubt has a short shelf life since “real money” will soon surface as one of only a few true safe havens of wealth storage. The true question is what will silver do in the future, right?
You already know the same monetary mistakes still take place in fact, most currencies have only increased the mistake that will drive your silver skyward, debt. Nothing will stifle economic growth like the burden of debt. This is why the job market lags, this is why housing can’t rebound, and this is why cities across America, heck the world, are starving for revenue while college students riot in the streets. All these things cause remaining wealth to flee for safety. Nothing has the historical track record of silver and gold, nothing ever will.
To answer your question, my advice is buy each month with little attention on price realizing it will average over the long term. I too bought silver only to watch it fall. I also bought gold less than $400 an ounce. My point is we are soon to enter a time when price paid is far less important than ounces owned.
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