Saturday, December 31, 2011

Creating Wealth In Spite Of Today's Dire Economic Crisis

In one form of another, everyone on this planet has been impacted by the Global financial crisis that began in 2008. I'm not an economist nor am I a financial adviser. I'm simply a "messenger," and I'm going to explain to you how we got here and how people are actually capitalizing during one of the most severe economic times since The Great Depression.

Every time you turn around, the price of one thing or another seems to have gone up. Whether it be groceries, fuel, household necessities, etc. Simply put, since the world went into economic chaos in 2008, The Federal Reserve has been printing paper money on command to stifle our country's debt. Federal government bailouts included big names such as American International Group or AIG.

The result is Inflation...and a weaker dollar.


Here's a quick history lesson on Gold and Silver:


In 1933 the US government made it illegal to own Gold. At this time, the US dollar was still backed by Gold and Silver.
Up until 1964, the US dollar was back by Silver and Gold and were actually called "Silver Certificates." They could be redeemed for actual Silver.
In 1971, President Nixon took the world and the US off the Gold standard. The paper dollars became "Federal Reserve Notes."...simply put a promissory note. At that time, the United States was the largest Creditor Nation...now the United States is the largest Debtor Nation
In 1974 President Ford repealed the Gold Reserve Act allowing people to own Gold again.
In 1986 President Reagan passed the Liberty Coin Act, and the United States began minting Gold and Silver coins again.
Fast Forward to the beginning of the Global financial crisis of 2008. The Federal Reserve goes on a money printing spree in an attempt to resuscitate the economy. The dollar weakens, inflation soars, the Stock Market struggles and retirement accounts begin to diminish. Hence, the purchasing power of the dollar weakens significantly. As the dollar weakens, precious metals such as Gold and Silver rise in value.

Many folks from all walks of life are now diversifying, and trading in their "paper dollars," which is simply just a promissory note, for Gold and Silver. In doing so, they are increasing their wealth and are regaining the purchasing power of their money. Savings accounts, retirement savings, certificates of deposit, IRA's, TSA's and 401k's have given folks at most 3-6% annual rate of return in the last several years, throw in an annual inflation rate of between 3-6%...and you are left with nothing.

The folks who purchased Gold and Silver in the last several years, have made an estimated 125% Annual rate of return.

Let me put it another way.

If "Bank A" is offering you 3% on your money, and "Bank B" is offering you 125% on your money...where would you put your money?

Diversifying with Gold and Silver just makes sense.

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