gold bullion Archives

Risk Update: Belief That Gold Will Fall When the Dollar Climbs

by Jeff Clark – Hard Assets Alliance :

Gold and the US dollar typically exhibit an inverse relationship—when one climbs, the other tends to fall. But that relationship disappeared over three months ago.

Why the new romance between gold and the dollar? Primarily because what has been supportive for the dollar has also been good for gold.

This trend should continue. I’m not the only one to think so:

• “The resilience of gold in the face of a surging dollar and collapsing oil price supports our view that the precious metal will recover further this year and next.” (Capital Economics head of research Julian Jessop)

Do you believe there is greater or lesser risk in the financial markets? Will there be more or less fear in the world in 2015?

If you suspect that ever-optimistic government figures are masking far uglier truths… if you understand that the US economy depends on the global economy for far more than exports… if you believe the truly historic amount of money printing in the US and around the world must eventually result in inflation… or if for any reason you doubt that 2015 will be rosy, then the best investment strategy is one that includes a meaningful amount of gold bullion.

Remember: The issue is not inflation vs. deflation, the USD vs. euro, or even supply vs. demand. It’s fear and chaos vs. confidence and stability. Whichever of these you see as the stronger trend in the years ahead should drive your action plan.

In our view, the response we’ve seen thus far in gold has been a small foretaste of the major move we can expect when the wheels come off the global financial system, whatever form that may take.

My friends, buffer your investments and way of life against a growing level of financial risk. I urge you to continue adding low-cost bullion to your Hard Assets Alliance account.

Article originally posted in the February issue of Smart Metals Investor at HardAssetsAlliance.com.

Brighter Days Ahead for Gold

by Hard Assets Alliance:

“It’s a new dawn, it’s a new day.” —Nina Simone

Those lyrics from the timeless Nina Simone song Feeling Good certainly draw a parallel to the present state of gold.

After a rough couple of years, gold begins 2015 with a clean state. It will take time to shake off its hangover, but the yellow metal is looking good early into the new year.

Of course, gold still has its fair share of critics. Willem Buiter, chief economist at Citigroup, recently referred to gold as a “shiny bitcoin.” Refuting such a ludicrous statement isn’t worth the digital ink. Instead, we’ll keep it short and simply say: Such a statement ignores 6,000 years of human history.

Not all gold bears are as controversial. Most analysts pessimistic about gold’s near-term outlook cite the strong dollar, rising interest rates, and deflated energy prices as headwinds, though we would argue that each of these factors actually reinforces the need to hold gold… but that’s a discussion for another day.

Rather, let’s take a look at what some of the sharpest financial minds are saying about gold:

• In terms of gold price expectations, it appears that the repair of technical picture is now behind us and that a stable bottom has formed. The next 12-month price target is the USD 1,500 level. Longer term, a parabolic trend acceleration, with a long-term target of USD 2,300 by the end of the cycle.—Ron Stoferle, Incrementum Lichtenstein

• In the long term, however, I am more bullish on the gold price than I have ever been. All central bankers want inflation, and one day they will get it. Betting on inflation is the surest thing I have ever bet on in my life.—Pierre Lassonde, Chairman of Franco-Nevada (FNV)

• The lengthy bottoming process in gold seems to be nearing its close. The conditions that led to a decade-long rise in the gold price in 1999 are quite similar to today. Gold is not just ignored but hated by mainstream investors—it’s the Rodney Dangerfield of investment concepts.—John Hathway, Comanager of Tocqueville Gold Fund

Optimism about gold is also showing up where it matters most: the spot price. Gold has climbed nearly 12% since its November low and is off to its hottest start since 2008. Last week’s surprise announcement by the Swiss government to sever its peg to the euro provided the latest boost. It’s yet another reminder to own gold, the only asset that isn’t somebody else’s liability. We see this as a recurring theme in 2015.

Article originally posted in the January issue of Smart Metals Investor at HardAssetsAlliance.com.

How to Insulate Your Portfolio from the Fed’s Financial Destruction

submitted by jwithrow.

Journal of a Wayward Philosopher
How to Insulate Your Portfolio from the Fed’s Financial Destruction

January 16, 2015
Hot Springs, VA

The S&P opened at $1,992 today. Gold is up to $1,267 per ounce. Oil is back down under $47 per barrel. Bitcoin is checking in at $210 per BTC, and the 10-year Treasury rate opened at 1.72% today. Famed Swiss economist Marc Faber went on record at a global strategy session this week saying he expected gold to go up significantly in 2015 – possibly even 30%.

Yesterday we examined the Fed’s activity since 2007 and we noticed $3.61 trillion dollars sloshing around in the financial system that didn’t exist previously. Then we put two and two together and realized the answer was four… not five as the mainstream media claims. We came to the conclusion that the entire financial system is now dependent upon exponential credit creation out of thin air and that financial destruction cometh once the credit expansion stops.

Today let’s discuss some ideas for insulating our balance sheet from the ongoing financial crisis and the inevitable crack-up on the horizon.

The first and most important thing to understand is the difference between real money and fiat money. The Fed (and other central banks) issue fiat money at will – created from nothing. Dollars, euros, yen… none of them are real money; they are all fiat. These currencies do not represent real work, savings, or wealth and they certainly are not backed by anything of substance.

Most of these currencies exist as digital units out in cyberspace but if you read one of the paper notes in circulation it is completely honest with you:

”This note is legal tender for all debts, public and private.”

That means central bank notes are really good for paying debts but that’s about the extent of it.

All of these currencies depreciate over time in terms of purchasing power because they have no intrinsic value and their supply is unlimited. Even when a currency is “strong” as the U.S. dollar is currently, it is only strong measured against other currencies. Measure the dollar against your cost of living and you will see the real picture.

The point is we can’t trust central bank money.

Which leads us to the first way to insulate your portfolio from the Fed’s carnage: convert fiat money into real money – gold and silver. Gold and silver were demonetized in the late 60’s and early 70’s and the establishment has been downplaying their significance ever since. But there is a reason every central bank in the world still stockpiles gold. Gold and silver have been money for centuries and that is not going to change in a brief fifty year time span. Maybe one day cryptocurrencies will take the torch from gold and silver but that day is not today.

It is wise to maintain an asset allocation of 10-30% in physical gold and silver bullion. Precious metals will skyrocket in price measured against fiat currency as the Fed’s financial destruction plays out but in reality they are just a store of value. Precious metals will skyrocket in price only in terms of the fiat currency that is depreciating so dramatically.

Energy and commodity stocks, especially well managed resource companies, stand to boom as the monetary madness plays out as well. This is not a long-term strategy, however, so any gains captured during the commodity boom should be converted into hard assets or blue-chip equities after they have finished falling in price. There is enormous risk in the stock market so equities should make up a smaller portion of your asset allocation: 10-15% perhaps.

Despite everything said about fiat currency above, cash should still make up a large percentage of your portfolio; probably 20-30%. Cash loses purchasing power over time but it is still the primary medium of exchange so it is necessary to remain liquid. Ideally you should keep 6-12 months worth of reserve funds in cash and any cash above that threshold can be used to acquire assets as they go on sale. And plenty of assets will go on sale when the credit expansion stops.

The remainder of your asset allocation should be in real estate, provisions, other hard assets, and anything else that improves your quality of life. With all of the unjust systems and institutions to contend with it is easy to forget most of us are far richer than the wealthiest individuals living at the beginning of the 20th century. We have central heating and air in our homes, reliable auto travel over long distances, affordable air travel to anywhere in the world, way too much entertainment, cheap access to the internet which opens the door to all manner of information/commerce/entertainment, pocket-sized computers that double as telephones, and many other modern comforts that would be considered futuristic luxuries by the wealthiest of the wealthy one hundred years ago.

After properly aligning your portfolio to weather the Fed’s financial storm, focus on aligning your life to maximize fulfillment, purpose, and peace of mind. After all, your most valuable asset is time and time cannot be measured in financial terms.

More to come,

Joe Withrow
Wayward Philosopher

For more of Joe’s thoughts on the “Great Reset” and the fiat monetary system please read “The Individual is Rising” which is available at http://www.theindividualisrising.com/. The book is also available on Amazon in both paperback and Kindle editions.

Should You Buy Gold Now?

by Jeff Clark – Hard Assets Alliance:

There’s a subset of investors who see the big picture for gold, believe in the fundamental case, and have the means to buy, but are holding off because they think gold is headed lower. By waiting, they believe they’ll get a better price.

With all due respect to those of you in that camp, I think that’s a mistake.

If one is convinced gold will be cheaper a week or month or quarter from now, it might seem prudent to wait to buy. But obviously no one knows if gold is headed lower or if it’s already bottomed. So don’t kid yourself: you may or may not get a better price.

And premiums don’t stay the same. The US Mint raised the price it charges authorized silver purchasers by a substantial 50¢ after last month’s big retreat. The price retail silver buyers paid was not as attractive as they thought it would be.

But these issues miss the bigger point. Here’s what I think is perhaps a better way to view the subject, along with how to handle the dilemma…

Gold Is Not an Investment—It’s Insurance

“A dollar is worth only 70¢ now,” my dad once told me as we worked in the back yard. “And they say it’ll only be worth 50¢ in a few years.”

It was the mid-1970s. I was helping my dad build a dirt road to our barn, and he wasn’t happy. Not about the hard work or humidity, but from what was happening to the dollar. Inflation was starting to kick into high gear, grabbing headlines that even a girl-chasing teenager could understand.

I remember being appalled by the thought of going to the store and having the clerk demand $1.30 for an item marked $1. Knowing what I know now, my thinking wasn’t that far off.

Our local paper ran a story of a blue-collar worker who had stuffed wads of dollars into the back of his gun cabinet early in his working life. The money was discovered by the family after his death. While saving money is good, the duck-hunter equivalent of “Family Mattress Bank & Trust” won’t keep your money from depreciating; the stash of $10s and $20s had lost over half its purchasing power since he’d hidden it some 30 years earlier.

About the same time the gun locker was being lined with legal tender, both of my grandfathers—unbeknownst to me at the time—bought some gold and silver coins for me and likewise stored them away. I inherited them a few years ago—and the purchasing power of the coins is still the same as it was 30 years ago, despite the price fluctuations along the way.

If gold were an investment, it might be prudent to see if you can get a better price. But it’s not. It’s lifestyle insurance. It’s an alternate currency that will withstand the inevitable fallout of government excess, the start of which grows closer by the day. It is purchasing-power protection—protection that you and I may use sooner than we’d like.

You might argue that you always try to get the best price when you buy auto insurance and life insurance. That’s true—but the difference is that you shop among different brokers for the best price; you don’t put off the decision because you read somewhere the insurance industry might lower its rates at some point in the future.

So, what to do?

Don’t “Buy” Gold—Accumulate It

Neither you nor I nor anyone else knows exactly when the very best price for gold will occur. But since it’s an increasingly critical form of insurance in today’s world, the thing to do is to take a portion of your dollars earmarked for gold and buy some now, but keep some powder dry for the next potential dip. That way you’ve got a good price in case the bottom is in, but still have some cash available if the price falls lower. Then buy another tranche next week or next month or next quarter—whatever suits your cash flow and financial plan—but make it a regular occurrence until you have the full allotment you want.

This is exactly how central banks buy.

Central banks aren’t trying to snag the bottom. They’re focused on how many ounces they own.

Further, almost no institutional investor or money manager buys in one lump sum. They accumulate.
Our focus should be the same. Our amounts are a lot less, of course, but the point is to buy in regular tranches, working toward our allocation goal.

I cringe when I hear people say they’re waiting for a better price. What if the market takes off higher or simply stops falling—then what?

Start your accumulation plan today. Heck, you can even use the MetalStream service to buy automatically each month, and the amounts can be adjusted each time if you want. Just log into your Hard Assets Alliance account and once logged in, click the MetalStream signup button to get started.

In a short period, you’ll have a nice stash of hard assets purchased via dollar cost averaging (i.e., at the best cost basis you could hope to achieve).

Whatever you do, start now. Then keep going.

Article originally posted in the December issue of Smart Metals Investor at HardAssetsAlliance.com.

Investing in Gold and Silver Bullion

submitted by jwithrow.

Investing in gold and silver bullion is, believe it or not, much easier than investing in stocks, mutual funds, exchange-traded funds, or bonds.

If the concept of investing in gold and silver seems strange to you, it is only because the financial media has marginalized the precious metals in order to sell more paper equities and the mainstream media has associated the precious metals with paranoid dooms-dayers. And apparently you haven’t been reading our little blog here.

You see, gold is money. It has been for all of recorded history.

You can’t pay your taxes with gold because your government knows that no one would want government currency if you could. And then your government would be in big trouble.

We talk about the ‘why’ in more detail here and here so now let’s look at the ‘how’.

Gold and silver bullion is available in the form of coins and bars of varying weights and measures and purchases can be made either in person at a reputable coin dealer or online through an internet dealer.

The advantage of buying from a local coin dealer is that you can pay in cash anonymously and you can potentially develop a working relationship with the dealer. The downside is that you will have to pay your state sales tax on all bullion purchases made at a local dealer.

The advantage of buying online is that you don’t have to leave your home and you can avoid the state sales tax (for the time being, anyway). The downside is that you cannot purchase anonymously and there is a delay between purchase and delivery.

Gold and silver bullion can also be sold back to the same dealers – be sure to research their individual policy.

The IRS currently classifies precious metal bullion as a collectible and thus taxes the gain on sale at the collectible rate which is 28%. Keep this in mind if you choose to invest in gold and silver bullion, especially if you sacrifice anonymity and purchase online. Also, be sure to stay updated on the current tax laws regarding gold and silver bullion as they could change at any given time.

There are many strategies when it comes to investing in gold and silver but a general rule of thumb is to stay away from unique collectibles (numismatics) unless you are very knowledgeable in the field. The reason being is that numismatics carry a much higher premium than standard bullion from well-known mints but there is a much smaller market for these rare coins and thus they are much less liquid.

Our favorite strategy is to dollar-cost-average into both gold and silver periodically at the ratio of one American Gold Eagle to twenty American Silver Eagles.

Hidden Secrets of Money Primer Part 2

submitted by jwithrow.

Hidden Secrets of Money Primer

submitted by jwithrow.

Sound Money

submitted by jwithrow.

The most important facet of free market capitalism is sound money. If you don’t have sound money then you don’t have free market capitalism – you have something else.

Sound money is simply money that serves as a reliable store of value. Put another way, sound money is money that does not constantly lose its purchasing power. Sound money affords one a reasonable expectation that one unit of money today will buy the same amount of goods and services as one unit of money tomorrow. And next month. And ten years from now.

What a novel concept!

Anyone who has taken a finance course is familiar with the time value of money principle. In finance class, we learn to discount our money over time based on the inflation rate. We are taught, correctly, that present dollars are worth more than future dollars.

What we are not taught is that this is a deformation of free market capitalism!

The general market has chosen gold and silver to serve as money throughout most of history because the precious metals are particularly well suited for this purpose: they are limited in supply, they have functional utility outside of the monetary system, and, unlike our money today, they cannot be created from nothing.

Make no mistake about it, that’s where our money comes from today: nothing. It is created from nothing and then loaned into existence at interest. See the Hidden Secrets of Money video series for a more thorough examination of our money.

You see, money should not be a function of government nor should it be a function of a central bank behind closed doors. And it certainly shouldn’t be created from nothing. This is why the U.S. Constitution only authorizes gold and silver as legal tender; the Founders knew well the virtues of sound money and the dangers of fiat currency.

Did you know that the U.S. dollar was defined by the Coinage Act of 1792 to be 371.25 grains of fine silver? This act set the standard weight and measure of the dollar in terms of silver and individuals in the market were still free to accept or reject coins of differing weights and measures as they saw fit.

But we digress.

Here is why sound money is important to you:

Every dollar to your name is constantly losing value and there is no way for you to predict how much value your savings will lose over time.

This is a direct result of the monetary system that is in place whereby central banks create money from nothing and then lend that money to governments and to commercial banks at interest. That money then enters the economy when governments spend it and when commercial banks lend it out to customers. This is done constantly and it is why your money constantly loses value. Such a system has a profound impact on people from every walk of life.

How can we accurately plan for anything long-term if our money is constantly losing value? We can only guess.

What we do know from history is that sound money leads to a stable economy while fiat money leads to booms and busts.

The general market prefers the former while big government prefers the latter.

For more information on the sound money principle see the article links below. For a lot more information on sound money and monetary history see the book links below.

The Principle of Sound Money

The Simplicity of Sound Money

An Introduction to Sound Money

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The Case for Gold and Silver Bullion

submitted by jwithrow.

While gold and silver prices have declined in 2013, the fundamental case for owning gold and silver bullion is still growing.

The mainstream media has been quick to pronounce the death of the precious metals as an asset class with their evidence being the recent price depreciation of both gold and silver. Theirs is a very short term and self-serving view; the long term fundamentals have not changed.

The Federal Reserve did taper its money printing, but guess what? The creature from Jekyll Island is still creating $75 billion new dollars every single month to purchase U.S. Treasury bonds and mortgage backed securities. Meanwhile, Congress has quietly done away with the sequester spending ‘cuts’ and will continue to spend gargantuan amounts of money in 2014 – money they do not have.

What’s so humorous about this is the fact that the sequester did not cut any real spending in the first place – it simply curtailed proposed future spending increases. We suppose the thought of curtailed spending increases kept the Congress critters up too late at night.

And it’s not just the U.S.

Japan has promised to continue to keep their central bank money printer on turbo gear. Estimates suggest that the U.S. and Japan together will create nearly $2 trillion over the next 12 month period. Meanwhile, the Eurozone experiment is still on the verge of blowing up and not one single G-20 country operates with a balanced budget.

Simply put, the economies of the developed world have run up massive amounts of debt that cannot possibly be paid back in full. The massive debt has been serviced primarily by central bank funny money up to this point, but we are quite sure that the funny money policies cannot possibly last forever. And the longer the printing presses continue to run, the less valuable our paper currencies will be.

That’s why we adamantly believe that gold and silver bullion will be a vital part of a diversified portfolio in the coming years as the economic endgame of central bank funny money policy plays out.

Now, we don’t think it would be prudent to hold 100% of one’s assets in gold and silver. We look at the precious metals more as insurance against destructive monetary policies. Oh, and we should probably clarify that we mean physical gold and silver bullion in your possession, not an ETF.

So if you expect the value of your paper currency to increase then you may not be interested in holding gold or silver bullion. But if you expect the value of your paper currency to decrease then purchasing gold and silver bullion may be very wise. Given the long term fundamentals, we would suggest that the value of our paper currency is ultimately only going to go in one direction.

And that direction is back to paper currency’s inherent value…

Steps to Self-Sufficiency

submitted by jwithrow.

This list is certainly not comprehensive but it is our hope that it serves as food for thought.

1. Become money-conscious

Before you can begin to create self-sufficiency and build wealth, you must become money-conscious. Wealth does not come to those who are careless or lazy and it does not come overnight with a stroke of luck. You must begin to recognize that nearly everything that you do has an impact on your self-sufficiency and accumulation of wealth. You must begin to recognize the rules of the universe as it relates to money. And you must begin to take action immediately. Begin to track your expenses tirelessly and eliminate unnecessary spending where possible. This does not require you to become “cheap” but it does require frugality. Once you become money-conscious you will identify ways to reduce your expenses and you will free up additional income to use towards the attainment of self-sufficiency.

2. Consider contributing to a 401(k) if your employer matches your contribution

After assessing your income and expenses and getting your financial house in order, consider contributing to a 401(k) up to the employer match percentage each month. It is important to review the vesting requirements (time of employment required before you can cash out the matching contributions) and determine whether or not you will be at this company for that length of time before deciding to contribute to the plan. The employer match will serve to multiply your deferred savings and your 401(k) contribution will reduce your taxable income. We would not recommend contributing any more than the employer match rate as 401(k) plans are very limited and the rest of your income would better serve you elsewhere. Be aware of the fact that you will have to pay a 10% penalty to the IRS if you cash out the 401(k) prior to retirement but the tax shelter provided will serve to offset some of this penalty. With that said, we would suggest that a 401(k) plan is not a very strong part of a retirement plan and that the funds accumulated would probably better serve you as capital to be deployed once you have developed a more specific investment plan. The 401(k) will allow you to automatically put aside a very small amount of income for use once you are farther along on your road to financial freedom. This vehicle may not be suitable for everyone, but it may be useful if you are still working on creating a sound investment or business plan.

3. Develop a plan to eliminate all consumer debt

You must eliminate all consumer debt before you can effectively begin to build wealth and your first target should be credit card debt. The interest rate on your credit card, in all likelihood, will far outweigh any return on investment that you could consistently generate with your money. So develop a plan to pay all credit card debt off as soon as possible. The most effective way to do this is to determine exactly what dollar amount you can afford to pay towards your credit card debt with each paycheck, and to pay that amount immediately as soon as your paycheck is received. Do not leave yourself short on other bills but make sure that you are paying a sizeable chunk of debt down each month at the same time. If you have multiple credit cards then you should pay the card with the highest interest rate off first. Once all credit card debt is eliminated, move on to the next highest interest rate obligation that you have. The one exception to paying down the highest interest rate debt first is if you have a smaller obligation that could be paid off very quickly in order to free up additional cash flow that could then be directed towards the higher interest debt. While eliminating consumer debt may seem like a long and slow process, be patient and persistent. Imagine a world in which you have no consumer debt to pay and imagine how much extra money you will have at your disposal once you are free of consumer debt.

4. Develop a plan to eliminate or reduce mortgage debt

This step could possibly be interchanged with the next steps depending on your situation but the idea is to either eliminate or reduce your monthly mortgage debt significantly now that you have additional free cash flow from eliminating consumer debt. While the many possibilities cannot be described in this article due to the variety and complexity of mortgage types, we do discuss mortgages in more detail here. Broadly speaking, assess your mortgage and determine if an action can be taken to enhance your financial situation (reducing the LTV, refinancing, etc).

5. Build a six month cash reserve

If you have not already built a cash reserve then now is the time to do so (if you have dependents then you may want to consider making this step two). A cash reserve should be extremely liquid so that you have access to the money in a timely manner in case of emergency. A standard checking account would serve this purpose. Interest bearing savings or money market accounts are acceptable choices although you can rest assured that the interest paid on these accounts will be negligible. Cash under the pillow is another option. Gold or silver bullion could be a wise choice but you will probably want to have direct and immediate access to some cash. While six months is a good benchmark, you could consider building a one year cash reserve as well. Just make sure that you are prepared to sustain yourself and meet obligations in case of an emergency.

6. Set up an IBC whole life insurance policy

If you are unfamiliar with the IBC (Infinite Banking Concept) strategy then this step will require some research before you are comfortable with the idea. Now, do not be put off by seeing this recommendation for ‘life insurance’ – learning about an IBC policy will completely shatter your preconceived notions about what life insurance can do. The reason you have not heard about this type of policy before is because Wall Street would go out of business very quickly if the masses learned and implemented this financial strategy. An IBC policy is about building an ever-growing pool of capital in a way that is advantageous in both the tax and liability realms. The IBC strategy is not about death benefits and it is not about rates of return – these are just bonuses.

When structured properly, IBC policies allow you to funnel income into the policy rather than a bank account. Unlike your bank account, your life insurance cash value is secure from creditors, bail-ins, and bank runs. The cash value also generates a small rate of return without sacrificing liquidity – you can access your cash value tax free at any time for any reason. The implementation of this strategy does require a long-term commitment because it will take on average 8-10 years before an IBC policy ‘breaks even’ internally (cash value equals premium outlay).

Please feel free to email us if you would like more information on this concept.

7. Build diversified income streams in fields that interest you

At this point you have done your due diligence and are in a financial position that will allow you to work on pursuing income in ways that are enjoyable to you. If you are already engaged in work that is satisfying and meaningful to you then this step may not be relevant to you. But if you are like most of us who simply tolerate or maybe despise our job then now is the time to make changes. And even if you are content in your current profession it may be wise to build side businesses as economic conditions are tentative at best at this juncture in time.

Start by deciding what it is that you would like to do with your time and then develop a plan to generate income from your chosen field. While this is an embarrassingly simplistic statement, it is entirely possible to generate income from any good or service for which there is a market. Build a big business. Build several small businesses. Buy rental properties. Become a freelancer in your areas of expertise. Whatever your plan is, the important thing is to engage in work that is enjoyable and meaningful to you – income is useless if it comes with the sacrifice of happiness.

8. Convert income into real assets

Once you have developed a source or sources of stable income then it is time to convert this income into real assets. The most widely accepted choices would be gold and silver bullion, real estate, and/or farm land but you are not limited to these. Real assets could also be things that increase your household’s self sustainability such as alternative energy sources or a family garden. You could also choose more speculative items such as art work or a wine collection but these assets would be much less liquid and thus much more risky (well, the wine would be liquid but in a different kind of way). If you venture into the realm of these speculative investments then make sure that you have a portfolio consisting of the more widely accepted assets as well.

Conclusion:

Note that we wittingly omitted any mention of investing in paper equities (stocks, mutual funds, exchange-traded funds, bonds). The first reason for this is that the financial services industry has sold this type of investment as the only one suitable for retirement which is a lie. There may be a place for this type of investment within your portfolio but it will require much diligence and should serve only as one asset class amongst several within your portfolio. Holding a mixture of stocks across different industries is said by the experts to be the key to diversifying your portfolio. We would suggest that holding a mixture of stocks, real estate, gold and silver bullion, etc. would be the key to a diversified portfolio and that holding only paper equities would be terribly risky. So if you do choose to include equity investments in your portfolio please make sure that you do your research and that you also diversify amongst other, more tangible asset classes as well.

Think of real assets as a ‘backing’ to the cash value of your IBC whole life insurance policy that we discussed in step 6. By building a significant pool of capital (IBC policy) and solidifying it with real assets you are doing exactly what the elite central banks do – except without resorting to fraud. The central banks, Wall Street, and the power elite in general have done a wonderful job of convincing the masses that the key to success is to accumulate exclusively stocks and bonds. And this is true. But what they did not disclose to the masses is that such a strategy is key to the success of the central banks, Wall Street, and the power elite, not the masses themselves.

We hope that this brief article serves as a guide towards maximizing your personal liberty, resiliency, and self-sufficiency.

Always remember that happiness, fulfillment, and calmness of mind and spirit are the most precious of commodities and be mindful not to lose sight of these ideals on the road to building wealth and obtaining self-sufficiency. Also, never be afraid to follow your heart and stand on your principles; this life is but a journey in search of experience and wisdom, and that journey is best undertaken to the beat of one’s own drum.