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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 say I’ll stick
with silver because it is more affordable right now and I 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, I can get you started
on an affordable and flexible savings plan in tangible gold. Let me know if
you are ready to take action and diversify!
Kirsty Hogg
Gold Wars
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