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investment security today

Wiley T CoyoteThe dollar, the stock markets, bonds and mutual funds have been dancing on the edge of a major precipice since 1988. Many trained, knowledgeable analysts have described it. I have studied both sides of this for over 20 years.

The Federal Reserve and other central banks of the world have constantly and continually kept it on life support by printing more paper money and creating its electronic equivalent out of thin air. While this props the whole house of cards up, it will make the final fall that much faster, more violent and destructive.

And they always fall. The US dollar has the record for lasting longer than any unbacked paper currency in history. money as litter 13But that too is coming to an end for important and unavoidable reasons. We are about to live through what Brazil, Argentina, Zimbabwe and, probably one you know of, Germany’s Wiemar Republic went through. Except this time it is happening to every major government; every major currency of the world simultaneously.

The dollar, stocks, bonds and all other currencies will be litter.
Useless. Gone. Stolen. Wealthy will be destitute.

The Federal Reserve injection of unbacked, fiat currency directly into the hands of the 9 Federal Reserve banks is exactly what has made the stock market continue to grow and climb. That is a foundation of paper – a house of cards.

This is exactly what the Wiemar Republic did between the wars – with predictable, unavoidable results.

Some “analysts” can both claim they don’t know where inflation comes from and where it is going. marks inflation They are either ignorant or liars. The more dollars there are, the less each one is worth.

Most disastrously, the majority of the dollars are sitting idly in foreign banks. WHEN they come back to the USA, which they will do as soon as the holders of them get nervous, ALL dollars will plummet to zero value.

With them will go all dollar-denominated investments.
There will be plenty of “experts” who will claim that nobody could see it coming. In their circle of friends that will be widely agreed upon.

The entire body of knowledge that includes “the Austrian school of economics” has been describing this, teaching this, writing books on this and doing its best to educate the educatable. The other side is comfortable with its ignorance and encouraged by those who are taking massive profits from the deception.

Look at these paper money bills on the right. Imagine a world where these were passed out as everyday money.
zimbabwe_100_trillion_dollar_billWhat would that mean to the money you have?

Can you visualize a pile of money larger than the bag of groceries it will buy? What do stocks, bonds and T-bills mean in that world?

What has value then?

Human essentials for sure.

Food, shelter, clothing, heat, cooking oil, security …
and some means of exchange that cannot be forged zimbabwe-cash-inflation (by federal reserve bankers, among others)… Not paper.

And that brings us to why every prudent investor has some precious metals.

90-98% of all silver and gold exchanges on the market involve paper only – no metal changes hands. This has deliberately, completely distorted the market for years. That will come to an end soon.

When it does, prices of $500 to $1,000 per ounce of silver are regularly predicted … compared to $17-$20 per ounce today. Most silver mines are shut down waiting for the price to correct, yet industrial consumption continues. The pressure on real silver prices builds.

Many investors balance their portfolios with gold. That is good. If I had a LOT of investment capital, I would probably do some of that too. fiat-currency However choosing between the two, silver has industrial use while gold has little. Over 1,000 years, silver to gold ratio is 17:1 while during the paper-market exchange it is now 71:1. Those and other reasons make silver the much stronger bet of the two.

There are now paper versions of silver and gold traded on today’s market to “facilitate exchange”. They are no different from any other paper certificate: useful until they suddenly become useless.
Do not be deceived. This is not diversification.

The risk is minimal. You MIGHT miss some gains if the stock/bond/paper market goes up. Given inflation of paper runs 6%, market gains below that are actually LOSSES.

Silver could go down: negligible risk. Industrial consumption continues to far outstrip production. Supply is shrinking. Price must go up. Paper-price manipulation can only go so far before the lid comes off.

Most investors and analysts who understand the role precious metals play recommend 25% to 50% in a balanced portfolio. The more conservative and knowledgeable the investor, the higher the percentage they favor.

Compare your portfolio balance to a 25% minimum.

SilverCoinsSmall-300x199Anything short of that is outright gambling on the continued Ponzi scheme that is the fiat currency market. There is only one way that ends. The same way they all do.

Where you buy silver and how much you pay matters very little at today’s prices.

Whether you paid $20 or $25 per ounce means almost nothing at $500 or $1,000 per ounce.

Buy local, get the real thing in your hands, safe, vault or shoebox. Anything is better than paper. Note: I do not say “safety deposit box” for some very good reasons – that would take an entire essay of its own.

For better prices on volume purchases, I use Northwest Territorial Mint. You should stress with them that receiving shipment sooner is much more important to you than what form that silver is in.

I close with a chart produced by the Federal Reserve Bank itself. This is what they have done and are doing to the dollar since they got control of it in 1917. Remember, print more, each one out there is worth less. This trajectory is fatal. Always has been. Always will be.

St Louis Fed adj monetary base