If you find yourself anxiously searching for answers in a time of great complexity then today’s post is for you. I see two trends that lead me to believe many folks are reacting to an emotion that has consumed the soul of man for thousands of years. Yesterday’s news was no surprise, not to me at least. It seems gun sales are up nearly 20% this Black Friday over last. Why, because people are afraid? Maybe this is why gold and silver sales are up comparably, too. So, before you buy another ounce, or AK-47, please read the following closely.
“He who fears something gives it power over him.” Author: Moorish proverb
You are wise to investigate why silver and gold are so necessary in such an age like the one we live today. But your decision…or motivation must go beyond a fearful reaction to preserve and protect what you’ve worked hard for. I realize this is something easier said than done.
An opportunity to own silver and (or) gold must be part of an overall commitment to develop a life of independence. For me this decision is one I made over a decade ago as I realized something wasn’t right with the way we send currency (you may call it money) to Wall Street and then pray someone we don’t know takes proper care of it.
The thought of endless currency creation didn’t make sense either. How is it that I work so hard – for something like dollars – when others can create more on a whim…..accountable to no one and then give this newly created cash to only a chosen few?
Like you, I receive many PM newsletters but lately nearly everything written is based on a fearful projection of our future. Tales of currency collapse, social unrest, war, riots and other terrible forms of crisis. Maybe it’s time we break down our worst fears and then compile a “what if” plan not calculated from fear but God given common sense.
Do you realize all the terrible fears described above already take place as you read this post? The USD has lost 95% since it unhinged from gold; I would have to describe this as a “currency collapse”. Social unrest fills our inner city streets as millions live a gang related life few of us can imagine (over 7 million people are on probation, parole, jail or prison in the US). Spend an hour in the city of Compton and you will have no doubt “social unrest” is prevalent today. Wars are rampant, in fact our youth have yet to live a day when our country wasn’t at war. It seems each evening we hear of yet another riot as Europeans realize bigger government is not the answer.
Wealth stored in silver or gold is about creating opportunities, like the opportunity to establish your own monetary policy. The opportunity to serve others, worship, store supplies, afford a weapon of protection and most importantly, the opportunity to pick your family up and move them elsewhere. These opportunities I’m describing today have nothing to do with fear. Sure fear may spark the motivation necessary to re-direct but fear shouldn’t lead.
I recall an email we received here at TPS not long ago. This reader was very concerned that the banking system is close to collapse and ultimately destroy the wealth of millions. Folks, I have news for all who will listen. The banking system, as we know it, only stands because of the trillions of dollars “borrowed” from the Federal Reserve Bank. This fiat system based on fractional reserve currency creation is a short-term experiment soon to show it uselessness.
Eventually inflation will erode the wealth of those unprotected. Some of this wealth will disappear and some will transfer to the few who hold silver, gold, and other “real assets”. You may ask why our elected leaders fail to warn of such a destruction of wealth but the truth is Congressman Ron Paul has done so for years.
Our banking system will someday “correct” itself or risk becoming obsolete. This is why a savings in “real money” is so necessary. Please allow your common sense to override your perception of reality; fear has nothing to do with such prudence.
Most of you know I authored a book called “Why Silver & Gold Will Go Higher”. One of the reasons both metals will elevated is, unfortunately, because of fear as millions realize what you already know. Please don’t include yourself on the fear list. Seek out unbiased precious metal sources to educate and then let wisdom supersede fear.
QUESTION: If you had to choose just one would it be to buy silver or gold? Love the site, thanks.
TPS Reply: Thanks for the question, and reading TPS. Right now I would have to pick silver over gold, no doubt about it and here is why. So many folks around the globe are realizing the banking system is rigged and their wealth is in jeopardy. They are, or soon will be, desperately searching for a safe haven and many can’t afford gold. But they can afford physical silver and will buy boatloads of it while they still can. I completely expect to see silver inventories depleted as the masses attempt to protect wealth and then store it outside of the banking system.
Personally, I would buy $100 an ounce silver today, if necessary. I would rather risk paying too much for silver than watch my wealth disappear on Wall Street or disappear through inflation. Remember, most of the world is free to own a very limited supply of physical silver. Silver is unlike gold, once silver is used as a commodity it rarely returns to a physical form. I recommend taking a hard look at silver bullion, rounds or bars soon.
QUESTION: Thank you for providing useful PM info for those of use new to silver and gold investing. My question today pertains to our wealth in real estate, particularly our home we live in. You mentioned the danger of wealth disappearing in our homes as values decline but lately we have seen the opposite. Our community has experienced an increase in sales that resulted in an increase in home values. Do you feel this trend will continue? We are seriously considering selling our home and renting but hesitant to sale while values are trending upward. Thanks.
TPS Reply: Great question so thanks for asking. I agree with your assessment that values in residential property are increasing after losing around 40% from peak bubble. You are wise to question the return of equity so congrats. We must ask why housing has turned around to answer if this trend will continue. The fact is most of today’s buyers are investors looking to take advantage of perceived bargains and low interest rates. These historically low rates are compliments of a federal government willing to backstop a housing market (low rates also allow our government to borrow trillions at historically low rates).
Our government will do everything possible to support real estate values because every new mortgage is the creation of currency the Feds don’t have to print. Our economy depends on consumption and new mortgages are great for a debt-based economy. Now, it’s my turn to ask you a few questions. What do you think will happen when the only lender in the land (US Government) realizes it cannot backstop mortgages forever? Do you realize no other banking institution can or will take the risk that our government provides today? Do you realize taxpayers are on the hook for every foreclosed property the gov’t insures?
This is why I view today’s real estate market as the housing meltdown 2.0 considering this is not a real market built on unassisted economic forces. Having said that, no two markets are alike and your home could sustain or grow in value. It is possible this administration will beg, borrow and steal to support housing for the next four years, who knows.
For the record, I still own my home because it is part of an overall plan of self reliance and my cost of ownership is far less than my local rates to rent. Hope this helps because I realize you are facing a very tough decision.
DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources.