Author’s Note: So as we all know, my plan is not to horde gold and silver, but to allow the world’s wealth to transfer into that asset class, creating the largest bubble in history, and then sell my metals and put the gains into the next undervalued cashflow asset class. That could be rental properties, oil wells, or businesses, or all of the above… I won’t know what those assets are until the time comes.
The Objectives here is to share my views on sound money with the wider public while showing how to use the internet to provide a new way to buy and store gold and silver. The opportunity to preserve purchasing power and diversify wealth with precious metals had previously been inconvenient and expensive. The Online method shown here now offers the best way to buy gold and silver online and safely store these precious metals for you.
It is my vision that the benefits and dependability of gold and silver should be easily available to everyone, while providing my clients and readers with assurances of integrity so they know their money is safe.
It all started in the US in 2008 with the banks going bankrupt because the sub-prime loans defaulted and Lehman Brothers went bankrupt. Since then the US Government has been printing money by the trillions to bail out banks, insurance and automobile companies.
Of all the possible investment topics in the world right now, this one has been the most exciting to me since I began this journey in 2010, because the stakes, and the reward, has never been higher…
As I write this, the world sits upon the precipice of an unimaginable economic shift that will change the course of history in a way that has not been seen since the fall of the Roman Empire.
At this very moment, you and I are living through a process that will result in the largest wealth transfer mankind has ever known…
This transfer will fundamentally impact everything from our personal freedoms, to the balance of global power, to the next World War, to the emergence of an Asian Empire.
If you doubt this, that’s fine. So did the citizens of Germany.
The stakes are simple…
If you are among the 95% of people around the world who are uneducated and unaware of this event, you will lose everything. Your wealth will be transferred away from you.
If you are one of the few people who IS aware of this event, and if you position yourself correctly, the wealth from 95% of the planet will be transferred into your open arms.
This document will explain why this is happening, and how you can position yourself to be on the winning side.
Everything else… Real-Estate, stocks, bonds, your businesses… Everything… is secondary in importance to understanding this, because they will all be effected by it.
I mean… They bailed out the banks, the car companies, and the housing industry.
“I’ve lived through a few recessions in my time, and came out the other side just fine, so can we just get back to shopping yet!?”
That’s how most Americans view the “recession,” but what they don’t realize is that we’re not experiencing a recession… We’re experiencing the mother of all wealth cycles that will end (as a cycle of this type historically does) with…
1: Deflation that will put the Great Depression to shame.
2: Hyperinflation that will destroy the US Dollar.
Or BOTH, in the form of a “Hyperinflationary Depression”, like what Michael Maloney and Robert Kiyosaki predicted in their respective books “Rich Dad’s Advisors Guide to Investing in Gold & Silver” and “Rich Dad’s Prophecy”.
What’s important to understand, is that this Super Cycle has repeated itself hundreds of times, in hundreds of countries since the dawn of man’s first currency.
This time will not be different. It is inevitable, and there’s nothing you and I can do to stop it.
But with all great change comes great opportunity, and I intend to end up on the winning side.
The Mother Of All Wealth Cycles…
Capitalizing On The Greatest Wealth Transfer In History:
“So what the hell has been going on? I mean… They bailed out the banks, the car companies, and the housing industry. They gave me cash for my clunker, and a nice little tax credit for buying my first house.
First, it is important to understand what is wealth cycle.
So What Are Wealth Cycles?
Simply put, a wealth cycle shows how you can move your money from an over-valued asset class in a bubble, to an undervalued asset class. Then ride the new asset up until it becomes over-valued, sell, and repeat the process.
A great example of this is the Dot.com bubble of the late 1990’s. Many people don’t realize this, but the tech investing boom actually started in the early 1980s just as the last gold and silver boom was ending.
Much of the money moved out of gold and silver, which was over-valued by 1980, into emerging tech stocks and internet start-ups.
As gold was sucked dry, it’s priced dropped from $850 in 1980, to $255 by 2001.
Much of that wealth moved into tech and created the largest asset bubble in history at that time by the year 2000.
In 2001, the peak of the .com wealth cycle had been reached, and the money started flooding out of tech stocks, and into tangible assets and real-estate.
As the final phase of real-estate progressed, trillions of dollars flooded into housing, fueling the largest housing boom in history. The price of a median family home went from $169,000 in 2000, to $247,900 in 2007, but then it peaked, and the money is now pouring into the next sector… Precious metals.
If you understand the current cycle, you get rich by selling at the top of the current one, and buying at the bottom of the next.
Unfortunately, the uneducated public does the exact opposite.
They buy the assets that are hot and rising, and then sell in a panic at a loss, not realizing that the cycle has ended and that the smart money has already moved on.
This is why understanding Wealth Cycles is the single most important part of your investing foundation.
The Current Wealth Cycle:
But something interesting happened during this cycle…
Banks made an unprecedented number of loans to people who should not have been given a loan. Then they took those bad loans and packaged them into derivatives, which were then sold again.
This flood of money fueled a global level of growth unlike anything the world had ever seen. Entire cities sprung from the desert sands of Dubai in less than 10 years.
People were using their increasing home equity levels like a massive ATM machine to by luxury cars, vacations, and to invest into the market.
But there was one tiny problem…
While the housing bubble was the largest in history, it wasn’t inflated by existing money like the tech bubble was.
It was inflated by newly issued DEBT in the form of these home and equity loans. It was filled with poisonous IOU’s held by people who had no way to ever pay them back.
Then on August 6th, 2007, the “American Home Mortgage Company” filed for bankruptcy – quietly popping the real-estate bubble, and throwing a wrench into what had been a pattern of manageable wealth cycles fueled by existing money that moved from over-valued assets, to undervalued assets.
The mortgage company’s closure was the sign that the global system could not absorb any more of the debt that had fueled the incredible growth seen in the US, in Dubai, in Singapore, in Malaysia, China, and many other countries who had experienced massive booms in real-estate and development.
That day, the debt bubble burst, and because all of this debt had been collateralized and resold time and time again through derivatives, it was an event that was felt around the world.
Now the popping of any credit bubble is a deflationary event, and in the case of the great depression, it was extremely deflationary.
When a home goes into foreclosure, a loan gets defaulted on, or when someone files bankruptcy, that currency simply disappears back into currency heaven where it came from. So as credit goes bad, the currency supply contracts and deflation sets in.
This is what happened in 1930-1933.
As a wave of foreclosures and bankruptcies swept the nation, one-third of the currency supply of the United States evaporated into thin air. Over the next 3 years, wages and prices fell by one third.
Companies could not afford to pay their people, and those people could not afford to pay their bills.
And as we all know, whether it’s from stories of our grandparents, or pictures from the history books, it was disastrous period in our country’s history.
This process began once again, in 2008 with the popping of the housing credit bubble.
Over the past 24 months of 2008, deflation has sucked an estimated 60 TRILLION worth of credit out of the global economy.
That’s 60 Trillion dollars worth of fuel, which was flaming the fires growth around the world, and it virtually disappeared over night.
What appeared to be wealth was only a mirage, and the massive global economy has been slowly grinding to a halt as the debt unwinds and works it’s way through the system via deflation.
Normally, this would be an extremely painful, but natural and healthy remedy for the problem.
Companies and individuals who made poor decisions, and who were reckless with their debt levels (like GM, Lehman Brothers, Fannie Mae, Freddie Mac, etc) would fail as they deserved to.
The fit would survive to rebuild, and the system would be purged of the stupid and the weak.
But two particular groups of people have been doing everything possible to prevent that cleansing…
The bankers of the Federal Reserve, and our elected politicians.
Their actions and policies have already determined which asset class the wealth of the world will be transferred to next…
Unfortunately, the transfer is so large this time, that if history is any indication of the future, it will take down the entire fiat currency system in the process.
BUT… If you simply position yourself on the receiving side of that transfer, you stand to become VERY, VERY wealthy.
“Now what has all this to do with Gold & Silver?”, you may ask.
Well, the greatest wealth transfer in the history of the world will happen soon and those caught unaware will lose a great portion of their wealth.
Since aware of all these events recently, I have been taking steps to protect my wealth from unscrupulous acts of the governments of the world. We have to come out from Commercial Babylon and the coming predicted one world government system.
In conclusion, the fight over gold and silver as media of exchange is about more than mere money, let alone making money. For it is a fight with only two possible outcomes: either control of their own lives by the people themselves, or control of the people and their lives by political and economic elitists. – Dr. Edwin Vieira
But during times of economic uncertainty, when no one is confident that ANY of the cups are a safe place to store their wealth, people start selling off assets and pouring that wealth into the cup labeled “Gold.”
This happened once in recent history, back in the late 1970s and into the early 1980s. Gold became so popular that everyone wanted it. Lines at coin shops snaked around corners for blocks and blocks.
Every janitor, schoolteacher and garbage collector wanted gold. People who knew nothing about gold were trying to buy as much as they could afford.
We aren’t anywhere near that level of gold and silver “awareness” yet. In fact, despite all the publicity gold and silver have received, the majority of people still do not own gold and silver, and have no plans to.
But they will. Just like in 1981. It will happen sometime in the near future … when every other asset is considered “untouchable.”
That day is still off in the future. But it’s coming.
There are still sound reasons why the price of gold and silver will shoot up … and why it should continue to rise for the foreseeable future.
It’s not any ONE thing. It’s a collection of economic conditions and government reactions like:
• Soaring sovereign debt in Europe, the U.S. and throughout the world.
• Rampant deficit spending that continues to push the national debt higher rather than lower
• Unsustainable growth projections Wall Street has imagined
• Mounting student debt and consumer debt,
• Stagnant home prices,
• High unemployment,
• High (but sneaky) inflation,
• Negative yields on treasuries,
• Excessive money printing
This is NOT stability. Frankly, our economy is on the brink of chaos (and remember, gold is an AWESOME chaos hedge).
Eventually one of the above problems will hit critical mass and start a domino effect of financial crisis.
Like 2008. Only worse.
Then true chaos will hit. People will panic, and they’ll start to empty all their cups – stocks, bonds, whatever.
And not finding any other safe place, they’ll likely dump it much of it into the one remaining safe haven – the “Gold and Silver” cup.
That’s when gold and silver will be king.
Eventually, the “Gold and Silver” cup, too, will reach the top and start spilling over. When that happens, it will be time to sell your gold and silver. The great wealth transfer will have commenced.
In the meantime, understand that we aren’t even close to that point yet. Gold and Silver have a long way to go.
Creating Your Own Chaos Hedge Now
As we’ve mentioned before, we don’t try to “time” our gold and silver purchases perfectly. If you are able, buying a set amount of gold and silver each month is a great way to create your chaos hedge without getting emotional about the price. But if you haven’t started yet, now is likely a great time to get in before gold and silver prices rocket higher. But before you make the plunge into gold and silver, get educated. There are good types of gold to buy and bad types. (And you don’t want to get caught with the “fools” gold when chaos hits. It won’t help).
Note: At the point of writing this article (December 2015), price of both gold and silver are at a 5 year low. It was a great time to start accumulating both precious metal.
Continue studying the trend and make your decision wisely.