This is the 4^th installment in a series of 16 articles on acquiring gold and silver for your investment portfolio. Professional  precious metals advisor, Pat Gorman will  share some of his expertise with you to help you make better investment decisions. The less you have, the smarter you must invest to protect yourself against loss and diminishing returns on your assets.
 

(Note: Information is given as generalizations of typical portfolios. Some of this information was provided by Patrick C. Gorman, President & Owner, Resource Consultants Incorporated, 6139 S. Rural Road Ste.103 Phone: (800) 494-4149 or 480-820-5877  Fax: 480-820-5905. Resource Consultants deals in all gold, silver, and platinum coins, and bullion. Pat sells 90% silver in bags, gold and silver Eagle coins, silver dollars, and can recommend a strategy to fit individual need. His wife, Linda, has been in the business for 25+ years, and is experienced in every aspect of brokerage and precious metals management. Mr. Gorman has been in the hard asset business for more than 27 years. For the past 19 years, he has also hosted his own live talk show, “Hard Money Watch” and has been rated in the area’s top 5 radio shows for the last 6 years. Further, Pat Gorman and his company Resource Consultants is the most recommended precious metals brokers in the country. They are recommended by more than 20 financial newsletter writers and investment analysts.)

Read and study this information carefully! You are responsible for your own money! Invest it wisely, and it’ll serve you well.

Pat will Keep It Super Simple!

The 10 Most Asked Questions about Precious Metals

Many people have been conditioned to believe paper money is the ideal means of “storing” of their work’s value. They simply don’t understand the historic appeal and value of precious metals to those who are preparing for the uncertain financial future. Here are ten (10) of the most often asked questions about metals and coins we’ve encountered over the past 25 years.

Hopefully, the answers to these questions will provide both a working knowledge and some insight into the intrinsic value of precious metals, as well as why and how they provide long-term stability to their owner.

1. What Makes Precious Metals So Valuable?

2. What Determines the Value of Precious Metals?

3. How Much Gold and Silver Should Be in My Portfolio?

4. Do You Have A Suggested Portfolio of Precious Metals for Everyone?

5. I’ve Never Owned Precious Metals––What Items Do You Suggest?

6. What Forms of Precious Metals Should I Avoid?

7. Where Do I Store My Precious Metals and How Do I Protect Them?

8. What Are the “Rules of the Game” So I Don’t Violate the Law?

9. Just How Liquid Are Precious Metals in A Crisis Situation?

10. When Things Get Ugly, How Do I Use My Coins for the Things I Need?

The next blog post will start the explanations for the questions above.

It’s as simple as that!

Till next time…

Related Posts:

Should I Be Acquiring Gold and Silver?
Financial Preparedness: Why Gold?
What About Investing in Silver and Platinum?
Self Reliance: Make Sure You Have Some Junk
The Capstone of the Readiness Pyramid

This is the 3^rd installment in a series of 16 articles on acquiring gold and silver for your investment portfolio.  The less you have, the smarter you must invest to protect yourself against loss and diminishing returns on your assets.

Read and study this information carefully! You are responsible for your own money! Invest it wisely, and it’ll serve you well.

(Note: Information is given as generalizations of typical portfolios. Some of this information was provided by Patrick C. Gorman, President & Owner, Resource Consultants Incorporated, 6139 S. Rural Road Ste.103 (800) 494-4149 or 480-820-5877 6480-820-5905. Resource Consultants deals in all gold, silver, and platinum coins, and bullion. Pat sells 90% silver in bags, gold and silver Eagle coins, silver dollars, and can recommend a strategy to fit individual need. His wife, Linda, has been in the business for 25+ years, and is experienced in every aspect of brokerage and precious metals management.

Mr. Gorman has been in the hard asset business for more than 27 years. For the past 19 years, he has also hosted his own live talk show, “Hard Money Watch” and has been rated in the area’s top 5 radio shows for the last 6 years. Further, Pat Gorman and his company Resource Consultants is the most recommended precious metals brokers in the country. They are recommended by more than 20 financial newsletter writers and investment analysts.)

Silver––Everyman’s Money

Silver has also been a monetary* means of exchange for several thousands of years. Silver is much more abundant than gold, and therefore less costly and valuable. Yet, silver is considered by many to be the form of reserve money that most of us can afford. Silver is more accessible to the average person. Until 1965, the US government produced most of its coins with at least 90% silver content, but this practice was abandoned that year. Perhaps one of the reasons the government changed this policy was to protect itself from being fiscally responsible to the public for reserves of silver to support the paper money. You probably don’t recall when the bills were silver certificates––and could be redeemed––by law––for silver.

From the current indicators in the marketplace, fall of 2009, there seem to be several factors that make this a most propitious time to accumulate silver bullion coins before silver becomes a scarce commodity: inventories are lower than any time since 1950. Demand for silver is exceeding supply at this time, unequalled since 1978.

Platinum––For the Serious Investor

Platinum is the most precious metal**, and is five (5) times scarcer than gold. Platinum is used primarily in automotive catalytic converters, and utilization has increased more than 50% over the last ten years. Now that the whole world is concerned about air pollution, its use in the auto industry will continue to grow. However, now the largest market for platinum is for jewelry––more than 35% of the total platinum utilized today. Increased purchases should occur as platinum bullion coins are being minted and circulated at a low premium.

* However, it is not now a “monetary” metal, and probably will never be again in our lifetime––except in India. Silver is strictly an industrial metal and most likely will fall dramatically with other commodities during the next depression. There is lots of silver and it’s very unlikely that it will ever be scarce, though it may rise in price for a short period––i.e., in a time of hyperinflation––but during the next depression, it may just as well drop to the price of $0.25/oz.

**The previous paragraph may also apply to platinum. It would probably appreciate faster than gold if inflation occurs in the economy as inflation occurs in the monetary system. However, if the economy has seen the largest proportion of inflation that’s expected and also experiences a deflation of the economy––while the Federal Bank hyper-inflates the monetary system (paper currencies) in an attempt to keep the worldwide economy from crashing––then platinum and silver would most likely drop in value while gold rises. When the next depression occurs, platinum would drop while gold would retain a relatively high relationship to all commodities.

Related Posts:

Financial Preparedness: Why Gold?
Should I Be Acquiring Gold and Silver?
Self Reliance: Make Sure You Have Some Junk
The Capstone of the Readiness Pyramid

This is the 2nd installment in a series of 16 articles on acquiring gold and silver for your investment portfolio. The less you have, the smarter you must invest to protect yourself against loss and diminishing returns on your assets.

Read and study this information carefully! You are responsible for your own money! Invest it wisely, and it’ll serve you well.

(Note: Information is given as generalizations of typical portfolios. Some of this information was provided by Patrick C. Gorman, President & Owner, Resource Consultants Incorporated, 6139 S. Rural Road Ste.103 (800) 494-4149 or 480-820-5877. Resource Consultants deals in all gold, silver, and platinum coins, and bullion. Pat sells 90% silver in bags, gold and silver Eagle coins, silver dollars, and can recommend a strategy to fit individual need. His wife, Linda, has been in the business for 25+ years, and is experienced in every aspect of brokerage and precious metals management.

Mr. Gorman has been in the hard asset business for more than 27 years. For the past 19 years, he has also hosted his own live talk show, “Hard Money Watch” and has been rated in the area’s top 5 radio shows for the last 6 years. Further, Pat Gorman and his company Resource Consultants is the most recommended precious metals brokers in the country. They are recommended by more than 20 financial newsletter writers and investment analysts.)

What is Gold?

“The value of gold is the only constant that can keep a government from inflating a currency substitute into oblivion. Gold is a yardstick of value that keeps governments in line; governments staffed by power-crazy and greedy men whom––as history has proven––cannot be kept in control by any other means.” Otto Scott, Otto Scott’s Compass

Do you recall the expression “Good as gold?” For thousands of years, civilizations have looked upon gold as the ultimate form of money. No other substance embodies the unsurpassed luster and beauty of gold. Gold has unique characteristics in ease of workability for jewelry, excellent conductivity for electronic manufacturing, and is virtually indestructible.

Gold is a rare substance––during all recorded history, approximately 125,000 tons have been mined! Based on that figure, all the gold ever produced in history could fit in a cube with approximately 60-ft. sides––about the size of two hay barns on a typical farm. Gold production fulfills approximately 60% of the free-world demand for it.

Gold loans, forward selling, gold scrap, and gold from former USSR countries meet the free-world gold supply shortfall. Africa produces approximately one-third of the world’s annual production of gold, the former Soviet Union countries about one-sixth, the US produces about 10%-11%, while Australia and Canada together produce another 15%. These supply-side facts certainly explain why increased demand for gold at the current price level creates a strong upward pressure on gold prices––there’s just not enough of it to go around!

Additionally, worldwide gold demand has increased steadily, due to increased utilization by the jewelry industry, central bank purchases (to assure their ability to make international payments), gold investors, electronics manufacturing, dentistry, minting of official coins, government treasuries, and miscellaneous industry applications. There is also another indicator created by the Chinese peasants who are now able to have savings accrue privately. These people have been buying gold through the Chinese government, even though they are charged a price that is twice that of the free world price!

In the last several years, the Federal Reserve Bank (the US Central Bank) and the Federal government have tended to decry gold––because using gold as the reserve backing for the issuance of paper currency requires these entities to be accountable for adequate amounts of gold bullion in reserve. As you could agree, it seems the Federal government has chosen not to be accountable for their financial actions in the past several decades!

In 1933, President Roosevelt confiscated gold from American citizens. In 1934, after trusting citizens had turned their gold in, he raised the price 69%, to $35. None of the citizens participated in that profit, yet they reelected him three times! Is it any wonder we’re in such a fiscal mess? It was not until 1974 that American citizens could own gold again. The scramble to get a piece of real money began in earnest, and continues today for those investors who seek long-term security. Indeed, when future monetary dislocation begins due to the loss of faith in and acceptance of the almighty dollar, gold coins may be the only form of money that will have enduring value.

Through continued government and banking market manipulation over the past years, most investors have ignored precious metals for the high-flying equity (stocks and bonds) markets. That market trend is now changing. More people are realizing the ultimate safety and monetary insurance that precious metals provide. In fact, since the market crash of 2008, demand for precious metals has increased three fold, by the regular investment public, searching safety for their diminishing dollar assets.

Based on industry reports, the precious metals vendors currently enjoy an inrush of new purchasers––it seems no one wants to sell their personal holdings. As available precious metals inventory is diminished, there will be increased selling pressure on institutions that hold precious metals in inventory. This will cause a volatile rise, creating wealth and protecting wealth that many people have built up over the years. Remember, Gold is the ultimate insurance policy for wealth.

Remember this: “…the only valuable money Government has to spend is that money taxed or borrowed out of the people’s earnings. When Government decides to spend more than it has thus received, that extra unearned money is created out of thin air, through the banks. When spent, this unearned money takes on value only by reducing the value of all money, savings, and insurance of the people.” From: The Ten Pillars of Economic Wisdom

Related Posts:

Should I Be Acquiring Gold and Silver?
Self Reliance: Make Sure You Have Some Junk
The Emergency Preparedness and Disaster Survival Readiness Pyramid
The Capstone of the Readiness Pyramid

Pat Gorman, President & Owner of Resource Consultants, will provide you an education on the subject of precious metals investing. There is such a concern about the economy, I felt this subject could use some light, instead of smoke and heat.

Read and study this information carefully! You are responsible for your own money! Invest it wisely, and it’ll serve you well.

(Note: Information is given as generalizations of typical portfolios. Some of this information was provided by Patrick C. Gorman, President & Owner, Resource Consultants Incorporated, 6139 S. Rural Road Ste.103 ‘(800) 494-4149 or 480-820-5877 6480-820-5905. Resource Consultants deals in all gold, silver, and platinum coins, and bullion. Pat sells 90% silver in bags, gold and silver Eagle coins, silver dollars, and can recommend a strategy to fit individual need. His wife, Linda, has been in the business for 25+ years, and is experienced in every aspect of brokerage and precious metals management.

Mr. Gorman has been in the hard asset business for more than 27 years. For the past 19 years, he has also hosted his own live talk show, “Hard Money Watch” and has been rated in the area’s top 5 radio shows for the last 6 years. Further, Pat Gorman and his company Resource Consultants is the most recommended precious metals brokers in the country. They are recommended by more than 20 financial newsletter writers and investment analysts.)

What Is Precious Metal?

While getting your pantry ready for the unexpected, there is more to consider than just food, shelter, and clothing. We strongly recommend that you invest in yourself and your family by providing a financial cushion that contains a years’ supply of reserves for housing and/or shelter for your family. In a financial emergency, when the entire fiat (paper money) system fails, there may be a need for a medium of exchange that is both effective and outside the fiat money utilized at the present time. This allows an effective and continuing medium of exchange with intrinsic value recognized by those with whom we deal.

Any tangible asset that another will accept for goods or services will suffice, but those reserves that are recognized worldwide have always been precious metals.

Webster’s dictionary defines the term precious metal very simply as a metal of the gold, silver, or platinum group. Some guidelines for understanding precious metals and their value in an investment portfolio are provided as they are utilized in context.

Our intent is to inspire all our readers to learn about the generalities of investing in precious metals. Specific advice is not offered by this book, its author, publisher, or distributors––nor is any course of action recommended for the individual reader. In fact, we urge you to always seek expert advice and consult with a professional investment counselor prior to making any investments.

Review the credentials of those investment consultants to assure they have the background and training to give competent advice about the acquisition and utilization of precious metals in your portfolio.

Precious metals are a real and enduring asset of true wealth and power. Gold’s richness is attested to by the fact that it was used to decorate the temples of the Egyptian gods more than 3,000 years ago. Today when one sees new gold coins in brokers’ showrooms, their luster and beauty capture the imagination with their richness and powerful warmth.

Knowledgeable investors have always valued the tangible and symbolic significance of precious metals. Both silver and gold were used as coins as early as the 6^th century. Rulers struck gold coins or stamped bars with their personal heraldic emblems to create “coin of the realm” or legal tender for trade within their area of influence.

Precious metals have been used as money in the past and can be kept in reserve as money for the future.

What is money?

Money is defined here as stored-up work. It can take the form of anything anyone will accept in payment for goods and services rendered.

Throughout history, people have accepted many things as money (e.g.: seashells, animal teeth, livestock, salt, sugar, furs, slaves, wives, gemstones, and precious metals), too many to mention individually. Some of these forms of money have proven to be much more enduring than others. In all of history, however, precious metals––usually in the form of gold and silver––have best served to determine the value of one’s stored-up work.

A note of caution, by their nature, precious metals markets can be very volatile, and can trap the unwary.

Related Posts:

Self Reliance: Make Sure You Have Some Junk
The Emergency Preparedness and Disaster Survival Readiness Pyramid
The Capstone of the Readiness Pyramid
Financial Preparedness: Why Gold?

Folks, sometimes we gotta do what we gotta do. In this economy, the unemployment rate is going up, the savings rate is going up, and your paycheck isn’t going up. The government is doing what it can to get people to spend (sorry if you missed out on “Cash for Clunkers”) by stimulating and restimulating. If you are a first time home buyer there is a tax credit of $8,000. You were even subsidized for watching the boob tube by the coupons that were doled out for digital. I don’t think the government is helping out this recession/depression, and the banks are crying foul over people actually holding some of their money back instead of spending it all and more. What is wrong with frugality and paying down some debt? It’s good for you, but bad for the creditor who wants to enslave you indefinitely. They don’t want you to see the light at the end of the tunnel, preferring that you continue being a debtor indefinitely and lining their rich pockets.

So it may be hard for you to even want to consider gathering a full year’s food storage supply. Especially when money is tight, and you worry about job security. Chitty Chitty Bang Bang, hold your horses. Remember, this is one of the most secure assets you can have. What happened to your 401(k) in the downturn? You probably lost nearly 50%, and you’ll need to gain 100% to recover your losses. You buy food and store it, it is real and not paper, and you can eat it to stay alive. You needn’t worry about volatile food prices like the oncoming wave of inflation that will hit after this hiccup of disinflation that we’ve had. The prices of gold and silver are giving you an early indication of what will eventually happen to food prices. If seeing gold recently (in the last few days) exceed the $1,000 price per ounce doesn’t give you a swift kick in the pants to wake up, than you may be eternally sleeping.

I’m going to relate to you a simple and straightforward way of taking on some extra “work” so that you will be able to afford building up your food storage supply slowly (or quickly, you decide) over time. I am not just talking out my rear end here. I have participated in what I am about to outline for you in the following paragraphs. It’s fun, it will help you to reach your honorable objective of putting away food in your food storage, and about anyone can do it if they really want to.

I have been a Mystery Shopper now for nearly a year. I consider myself experienced because of the good reputation I have built with the companies I contract to work for. It’s a serious business that if you should decide to participate in, you should give it your all and do your best. You will be helping the economy by reporting on the goings-on of the various establishments you will evaluate, thus allowing for their improvement in their service and product delivery. This is an independent contractual relationship that I have entered into with the various mystery shopping companies I have signed up with. I am Silver certified with the (MSPA) Mystery Shopping Providers Association. It is quite simple to get started. You don’t have to be certified to begin as a Mystery Shopper. But by becoming certified, you add to your credibility and get more of the premium jobs. I have eaten out at various restaurants, stayed overnight in hotels, and gone to amusement parks. I was even involved in a forensics assignment that made me feel like I was a secret agent—and got paid $300 dollars for a few hours work! Once I got paid $150 to pose as a credible buyer of a Ferrari! I’m not exaggerating here, but I have put in time and dedication. It’s not all fun and games. I am providing a much needed service. In this down economy mystery shopping has actually picked up. And there is a real need to recruit more mystery shoppers. Businesses need to know from the mystery shopper what it is that needs to be modified in order that they may thrive and bring in new customers while retaining old ones.

When I started mystery shopping, I fell head over heels taking all of the jobs that flooded my email inbox, after I got obsessive compulsive and signed up with over 40 different companies. This helped me to establish myself, and show I was willing to do the work and do it well. I am now more selective in the shops I take, which is always at your discretion. You accept or decline any of the jobs. You are not obligated in any way until you sign up for a job. Then you must follow through.

Earning a bit of extra cash every month is a rush, especially if you can earmark it for something that you weren’t quite able to “afford” before, like food storage. Discipline yourself to save and spend this money only for food storage and nothing else. You will feel good about yourself by sticking to your objective, and you will feel more secure in your emergency preparedness efforts. Having a year’s supply of food storage is a real asset in uncertain times like these.

Only take on those mystery shopping jobs you have time for. Chip away at it, and you will find it is fun and worthwhile, because while you are helping the merchants learn what they need to from your reports, you are sometimes getting free stuff and being compensated for your time and quality work, furthering yourself to that goal of a year’s supply of food storage. You never know when you will need to draw upon food storage, and rotating it out as you go along will keep its freshness.

If you just did 5 mystery shops a month that paid an average of $10 per shop, and worked it into your normal, everyday routine by going to establishments that were on your route anyway, you would be $50 closer to a year’s supply of food storage! Once you get momentum on your side, and you feel this gig fits you, you can really get the ball rolling. Food storage, baby, here you come! Oh, and don’t forget to spice things up and reward yourself along the way by taking a few of the “reimbursement only” shops like some restaurants are. Let me say that I have never once had an issue of not being paid for my work or receiving reimbursement.

The caution is this: don’t sign up for a mystery shopping outfit that charges you money! You are the one that is supposed to be making the money, not them sucking it out of you, leaving you with only promises. Any reputable mystery shopping company will not charge you for being a mystery shopper. You are an independent contractor, not someone investing in some hyped sham. An easy way to avoid any problems is to check and make sure they are part of the MSPA. I will say that some of them require you make a purchase and reimburse you later. I have a separate credit card for my work as a mystery shopper. Again, I have never had any problems receiving payment from the companies aligned with the MSPA.

It is very easy to get a start in the mystery shopping world. Businesses that you pass by every day are using the services of mystery shoppers and you didn’t even know it. You’ll be excited once you become a mystery shopper and discover some of the exciting projects in your locale.

Ultimately, make a year’s supply of food storage your goal. As you mystery shop your heart out (and there are tons of available shops if you live near an urban area, believe me), watch as you apply your earnings to an ample food storage how it grows and grows like Jack’s been stalk. How can you lose in a worthy venture like this?

According to the comments I receive on this post, I will gauge what additional elements I will fill readers in on about the mystery shopping experience. Ask questions if you have them, any suggestions about specific mystery shopping topics will be entertained for application in future posts. What do you want to know? Would you like to know the best companies to work for? Generally which types of shops are reimbursement only, and which are cash payment? Ask away!

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It may be as simple as bringing it to someone’s attention.  You may decide to relate an experience when being prepared with a beefed-up emergency food storage supply worked to your advantage.  It may also be as easy as pointing out how having a good stock of foodstuffs comes in handy.  If a neighbor ever finds himself or herself in a situation where a certain ingredient is needed for a recipe, and they come to borrow it from you, you happen to have it stockpiled.  They become a ready listener to an idea that may be news to them.

Birthdays, Christmas, and other celebratory occasions lend themselves well to the offering of good gifts. At times it may be more practical to give more functional gifts rather than those of pleasure whose appeal decays quickly.  An example of such a gift-giving event is a wedding.  As a couple first starts out, don’t be embarrassed to ground their blissful romance by an offering of emergency food storage supplies, a first-aid kit, a 72 hour emergency kit, or even a generator if you are feeling “gener”ous.  The couple for a time may be able to generate their own electricity with zero outside influence, but following their first argument they may need a plug-in.  Homemade gifts from the heart mean more, and bottling some peaches for the couple to be put in their newly originated food storage will help them to be motivated to continue on in that direction on their own.  It also may serve as symbolic hopes and well wishes from you that their union progress forward in the face of any adversity with a mostly “peachy” attitude.

For those whose finances are extremely tight, but whose desires for preparedness are in the right place, it is such a lift for them to receive the gift of life-giving emergency food storage supplies when Christmas rolls around.  I’m speaking of the individuals and families who would like to store food on their own accord, but find it difficult to make ends meet, and have only the bare essentials for daily requirements.  What a boost it is for them to receive as a gift food on hand in case of emergency or severe financial straits.

Office parties may often have drawings, prizes, and other giveaways.  Most times these are lighthearted and superficial, though a great gesture in maintaining morale and a strong work ethic.  As a thoughtful alternative, imagine generous rewards for accomplishment or appreciation that are distributed in the form of a 3 month, 6 month, or even 1 year supply of dehydrated or freeze-dried food entrees.  The Employee of the Year may receive the year supply.

Other emergency preparedness items can be given away—everyone to receive at least small favors, even glow sticks or inexpensive flashlights.  Fire extinguishers, smoke alarms, water filters, sleeping bags… all of these items would likely be welcomed and thought of as concern from the administration/H.R./CEO/manager (or whoever was ultimately credited with the idea) for their employees.

These are only a few ideas of events and occasions that merit gift giving of life-sustaining goods.  Family reunions may be another excellent venue.  Jog your creative juices, and show your concern and enthusiasm for the well being of those you care for.  A child going away to college could no doubt benefit from a car emergency kit at the very least.

Give the gift that means “I care” by a generous offering of emergency food storage and other emergency preparedness supplies.

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It’s almost Christmas: What Are You Giving?
Emergency Preparedness for the Safety and Protection of Our Elders
The Safekeeping of Our Children Part of Emergency Preparedness
Beyond Food Storage: How to Maintain Cherished Conveniences Even in Survival Mode

If you have followed the Emergency Preparedness and Disaster Survival Readiness Pyramid starting from the bottom with water storage and 72 hour emergency kits, and you have progressed through each level making sure your preparation is as tight as a pyramid at Giza (with no space to slip even a thin postcard through the cracks), you have made it all the way to storing a sufficient supply of personal hygiene items. You are now ready to extend your efforts into the financial area of preparedness. This category includes accumulating a three to six month supply of cash flow for living expenses, and should lean more toward the six than the three. But, you are all about setting goals and moving up levels, and three months is nothing to shake a stick at. Most Americans are one paycheck from disaster (economist Howard Ruff points out that as many as 24 out of 25 households in your neighborhood are living in quiet desperation)! Once you have momentum on your side, you have won half the battle, and the three months becomes six in short order. Especially if it is done automatically by direct deposit from your paycheck into a savings account.

Having accumulated all of your cash reserves, the rest of the capstone on the readiness pyramid is gold and silver bullion. Most if not all of this should be either stored yourself or stored safely for you by a company with a good reputation that has been in business for half a century or more. You should have all the serial numbers of the bars in your possession, and have access to the bullion to audit it whenever you please.

Economist Marc Faber has made the bold statement: “I am 100 percent sure that the U.S. will go into hyperinflation.” Others have not been as vocal in their warnings, but point out the exponential growth in the money supply, and that inflation is the inevitable result of quantitative easing. They further reason that no civilization’s fiat currency has ever stood the test of time. The former Comptroller General (the nation’s chief accountant) has made comparisons between the fall of Rome and the current path America is on– namely the breakup of the family, the basic unit of society, the overextension and spreading too thinly the military, and the debasement of the currency.

Numerous economists are emphasizing the ballooning deficits and anywhere between $50 to $70 plus trillion in unfunded liabilities (Social Security, Medicare, etc.). Additionally there is more than $600 trillion in financial derivatives worldwide, the likes of which arguably the greatest investor of all time, Warren Buffet, has referred to as WFD’s (Weapons of Financial Destruction). More telling is the response of Chinese university students recently to a question posed to Timothy Geithner about Chinese assets to which he made the remark, “Chinese assets are very safe.” He went on to explain how the U.S. supports a strong dollar. He was laughed at loudly by the students in attendance of the event.

All of this may paint a pretty grim picture of the future, but it doesn’t have to be grim for the preparedness-minded individual. Your insurance against a financial meltdown, greater than anything that has happened thus far is bullion. It follows that the tiniest market in bullion with only approximately 330 million oz. for trading will be the best protection/most lucrative as well. This metal is both industrial and monetary in nature. When inflation causes gold bullion to accelerate and appreciate, silver outperforms by a wide margin (percentage wise) in the long run. Besides, it is the most affordable of the precious metals, making it more suitable for the common person. But, gold bullion may be the choice of some, as you get less of it for your money, thus creating less of a need for large storage space should you choose to store it on your own. Still others may want some combination of gold and silver bullion. This is understandable, as gold has ingrained itself in the psyche of the public, and silver is seen as a close second. Few realize that above ground there is less verifiable silver than gold. Yes, silver is rarer than gold (above earth)! Whichever tickles your fancy, get started! Remember the new GM has nothing to do with general or motors, rather Gold Money. Congratulations for having come this far in your emergency preparedness efforts!

Related Posts:

The Emergency Preparedness and Disaster Survival Readiness Pyramid
Self Reliance: Make Sure You Have Some Junk
Should I Be Acquiring Gold and Silver?
Financial Preparedness: Why Gold?
What About Investing in Silver and Platinum?