Earn FREE Silver! – “Silver Snowball”

With stocks going up and down now, gold has outperformed the stock market in the last couple of years. Gold has been on a tear the last 6 months to reach all time highs and it makes you wonder whether it is now time to pull back some of your gold investments.

Gold is customarily considered a hedge against uncertainty and the world condition at present is most assuredly uncertain. Gold have never declined to zero and that is something that cannot be said for stocks, many of which have lost incredible valuations. For those owning gold, they must be thankful to have made an investment that has performed so well.

People with money to invest have to make choices that are increasingly tough in this very bad economic environment. It is difficult to find any investment that is truly safe and pays any sort of reasonable return. If you want to put your money in government guaranteed treasury bills or bank certificate of deposits, you are now getting next to nothing in interest. It is also debatable just how safe anything with the government is since it is technically bankrupt.

While gold is seen as safe, at the present high prices, you must be concerned about getting in at the top. For just like stocks, gold has taken huge drops throughout history and that could certainly occur again. And simply because thus far it has always recovered from such drops, that is not a guarantee that the pattern would continue.

Professional investors generally recommend that you divide your portfolio among gold, stocks and other investment options so that your overall risk is spread out. Doing so will protect you from being overloaded in one area and diversifies your investment portfolio, hedging against the decline of one sector in relation to the others. Gold certainly may be a portion of your portfolio; it just should not comprise the entire amount!

Are you trying to learn more about gold for dummies? If you are, please visit my website Cost Of Gold.

Earn FREE Silver! – “Silver Snowball”

Best Reasons To Own Gold

I would like to give readers some information on the best reasons to own gold. If you are like many smart investors then you already know that your money needs to be in hard assets right now.

Hard assets can be a range of things from commodities to land, but gold and silver are the ultimate hard asset during times of economic uncertainty.

Why is that? To put it in simple terms, it’s because gold and silver have been money for over 6,000 years.

When people realize that paper currency is just paper, they transfer that paper for real wealth (i.e. gold and silver). People have done this for centuries, but why is it so important to do that today? It’s because never before in history has the entire worlds money supply been fiat paper currency. A fiat currency, like our dollar, just means that there is nothing backing the paper.

Well, all of the worlds currencies are fiat currencies. The only currency that is not considered fiat is the Euro, and it only has a 7% gold backing. Back in 1971, president Nixon took the U.S. off of the gold standard thereby making it impossible for foreign creditors to exchange their dollars for gold. In 1930 the price of gold was set at $20/ounce, which meant that a $1 bill was worth 1/20th the price of gold.

You could have taken a $20 bill to the bank and exchanged it for a one ounce gold coin. That is in fact how the worlds monetary system worked for hundreds of years until the creation of central banking. Gold and silver rose as a currency out of necessity, and has remained as the worlds only recognizable money for 6,000 years.

When a chicken could not be traded for a hat because the hat maker did not desire having a chicken for payment, another system of trade had to come about. Gold and silver fit that bill because it is rare, easily traded, fungible, durable, and has inherent value. When people wanted their gold and silver to be safe from thieves or whatever else could take their wealth, they would store their gold with a goldsmith for a small storage fee.

The goldsmith would simply give the depositor a paper certificate that was proof of deposit and could be redeemed for gold at any time. Over time the goldsmith realized that he had large amounts of depositor’s gold and not everyone ever came to pull out all of their gold at the same time. So, the goldsmith lent out a small portion of the gold on reserve in exchange for interest.

Over time the goldsmith realized he could lend up to 90% of the gold in his vault and collect interest on the loans. After all, there were never huge amounts of people coming to withdraw their holdings at one time, so the goldsmith could get away with it.

Once people finally caught on to the goldsmiths act, people panicked and went to redeem their paper receipts for their gold. The only problem was that there were now many more receipts in circulation than there was gold.

This is how the first run on the bank took place and also the beginning of what is known today as fractional reserve banking. It’s called fractional reserve because banks today are only required to keep a “fraction” of the customer’s reserves’ on deposit.

Out of every $100 on deposit at most banks, $90 can be lent out to customers. Just like there were runs on the banks in the great depression and other times throughout history, there will be more runs on the banks in our near future.

The banking industry is a very secretive practice, and not many people really understand the practices of our banks. It is meant to be confusing and secretive because if people understood the banking industry, they would be so outraged and disgusted that the banks would not be around for very long.

Since goldsmiths did have actual gold in their vaults and therefore real value, people who got to the banks early could get their gold coins. What is disturbing is that today if you tried to take a $20 bill to the bank and exchange it for gold they would laugh at you because dollars are not exchangeable for gold at the bank anymore.

That means that your dollar has no backing of any sort. The only thing giving your paper money value is the faith that you place in it.

It is also important to note that gold can not be inflated like dollars. If a bank decided to open and they only kept gold and silver on deposit and did not loan money against your gold and silver on deposit, then our money would be a true and sound money.

The Lakota nation bank is the only bank in the world who has done this. Since our dollars are just paper with no backing, the Federal Reserve can print as much as they want.

Since the Federal Reserve has been printing dollars like crazy, you are going to see the value of your savings and everything else denominated in dollars go down. That is why gold and silver are so important right now. Gold and silver are true money and will rise in price as an indicator of a falling dollar.

I hope you are smart enough to take the advice I am giving and buy some gold and silver to protect your wealth and hedge against inflation. The best reasons to own gold now are truly good reasons.

It’s hugely important that you prepare now for a dollar collapse, and save yourself financially while you still can. You can now grab your FREE instant download copy of “Why You Should Buy Gold Now” – created especially for the gold investment newcomer – by clicking here.

Stock markets are made to have their ups and downs. After all, the United States bounced back in the’20s after a decade of Depression due to what is recorded as the first stock market crash in the world, and for a brief moment in the’80s, it was thought that the stock market in the States and in a number of countries wasn’t going to recover from another nosedive. Playing the numbers is a risk, even in a gentleman’s game like the stock market, and whether it’s Hong Kong or NASDAQ, analysts have a difficult time of predicting exactly what’s going to happen. One thing’s for sure, though: no one quite knew what was coming in 2008.

While those scientists of the stock market might have just been bewildered, regular people all over the world were more like stupefied. With so much faith in global economic systems, including the overall stock market, and the understanding that governments are supposed to have a series of checks and balances in place to avoid potential catastrophe, the grim dismal situation was first met with disbelief by regular people.

It’s no wonder that trouble in the United States could bring a global economy down, especially when the numbers are looked at. A significant chunk of the global economy depends on the economy and the markets of the United States. A number of smaller countries didn’t have the pleasure of getting bailed out by their federal governments, with countries such as Iceland going completely broke simply because a country that small could not possibly bail itself right out.

While in the past, the markets might not have been tied together as strongly, with globalization in all areas, especially business, things are a little different now. Markets depend on one another because nations depend on one another. Nations do a great deal of business, relying on one another for markets and raw materials, but more importantly, companies invest in each other’s markets.

It’s not just the economy, either. Many investment companies have recommended branching out from one’s home country and trying various markets around the world. When the American dollar is the base of so many financial interactions and it starts to slip, it takes a whole lot of value and wealth along with it.

Unfortunately, in the past ten years, that hasn’t happened fast enough. With the real estate market booming in the United States, a number of different companies represented on the floor of the New York Stock Exchange by hordes of high-strung brokers were dealing in mortgages that the borrowers could never have possibly paid back. When the banks and mortgages houses finally got wind of what was happening, everyone made such a fuss about backing away quickly that the economy went right with them.

The most recent mess was further helped along by people bailing out immediately, with no concern for local governments stressing the importance of the system keeping participants. Many banks in Europe and the United States tanked or were on the brink of tanking, requiring extensive government bailouts that are doing their own personal number of large nation’s economics, and thus, the global economy as well.

Playing the market has always been a little bit unpredictable, but the recent events are truly unprecedented. While regular people reading the newspaper might feel as though they have missed something significant in their inability to process recent current events in the financial sector, the fact of the matter is that it is baffling things were allowed to get this bad.

Damian Papworth enjoys stock market trading. It is a big part of his work from home income.

Buy Gold To Protect Your Assets

When you are trying to figure out how to buy gold to protect your assets, it is important to note several things. First, inflation is rearing its ugly head and governments won’t stop until the dollar is completely devalued. Second, we are in the midst of major bailouts, layoffs, Ponzi schemes, and sky high unemployment.

Let us look at why you should be invested in gold, and how to buy gold low. In 2001, the gold price was sitting at around $250/oz. Today the gold price is sitting at over $1,100/oz. So, for a one ounce gold coin it would cost you over four times the amount it did just 8 years ago. What other investments do you know have gained 400%, and not lost any value due to inflation like dollar related investments have?

If you are going to argue that your paper investments (i.e. stocks, bonds, derivatives) made 400% returns, then you obviously aren’t factoring in the falling dollar. Even though the Dow Jones is showing noticeable increases, it is quietly crashing under our noses and most people aren’t even aware of it.

As the dow peaks over 10,000 we are seeing a queit crash. How can this be? Many experts claim that we may see the dow reach 20,000 and even 40,000. The problem is that even if the dow goes to those levels, the dollar is losing value at an even faster pace.

The U.S. dollar index, which measures the value of the dollar against a basket of currencies, has fallen below 76. This is very bad business for those invested in dollars. Many expert economists believe that by next year the USDX will fall to 65, and the next year it will fall to 55. Many even believe it will go as low as 40.

In a real life situation like this, there is only one safe haven. Gold and silver are that safe haven. It is not a question of if the dollar will be knocked off the thrown as the reserve currency, but rather when.

We are smack dab in the middle of the greatest bull market in history. Never before have there been so many fiat paper currencies in the world, while at the same time governments inflating all of them in the middle of an economic storm like we are seeing.

Gold’s inflation adjusted price is over $7,000/oz, and it will get there according to many prominent economists. This bull market is really only just getting started. The gold price has a long way to go to make up for all of the paper money in existence.

Inform yourself about gold bullion and silver bullion before the real rush comes into gold. If you cannot afford silver bars or gold bars, then look for American silver eagle coins or American gold eagle coins.

It’s hugely important that you prepare now for a dollar collapse, and save yourself financially while you still can. You can now grab your FREE instant download copy of “Why You Should Buy Gold Now” – created especially for the gold investment newcomer – by clicking here.

Mining stock investing could be your ticket to financial freedom and could bring you profits you never thought possible, if you follow some very close guidelines. In this post I talk about gold mining, silver mining, gold stocks, silver stocks, mining companies, gold price, silver price, and more. 

Gold and Silver have been in a bull market since 1999 when gold was around $250 per ounce. Looking at the gold price today it is at $1,002 per ounce and according to many economists it is just getting started.

For those who bought and held early on, they saw a hefty 400% increase on their investment. “Why isn’t this headline news on every major news station?” you may be asking. I will tell you.

Since we have a government who decides that anytime they want more money they can just print it at will, the value of our dollar goes down daily. Basically, we can buy less with our dollars.

Our government knows what they are doing and they know that if people get out of dollars and into gold and silver, then the dollar will fall further in value. The dollar is destined to fail, but our government is trying to prop it up for as long as possible. 

Physical Gold & Silver vs. Penny Mining Stocks

Physical gold and silver are good and I would highly recommend them to anyone wanting to diversify out of dollars, but the real gains are going to come in the penny mining stocks. Why, you might be asking? It’s because gold and silver stocks provides much greater leverage due to the operating leverage of the company than does buying physical coins or bullion.

Gold and silver related assets have by far outperformed any other asset class out there for the past 10 years. How about your 401K or IRA? Did you take a huge hit like most people? If not, then you are very lucky or you are already invested in gold and silver stocks.

 For an example of where the mining stock prices could go we will look at the last bull market from 1972-1980. In 1975, most gold and silver stocks were trading under $2/share and most were trading under $.50/share. “Lion Mines” was trading at $.07/share in 1975 and by 1980 it was at $380/share. YES! That is not a misprint.

 So, if you had invested $500 in 1975 you would have gotten a return of roughly $2,700,000 in 1980. This is just one of the many success stories. In January of 1980, most gold and silver mining shares were trading above $50 and lots were at $100-$200.

 How Do I Invest In Penny Stocks?

Penny stocks are not traded on the big stock exchanges. Instead, they are traded on the OTC bulletin board market and the pink sheets. Don’t let this confuse you. That just means that since the stock prices of these companies trade at such low levels (i.e. $.10/share), they can’t be traded on the large stock markets. 

Fortunes can be made from penny stocks, and you are not limited to just mining stocks. There are many companies out there who have stock prices trading at just pennies per share, and they could be potential buys if you research the companies well.

It’s hugely important that you prepare now for a dollar collapse, and save yourself financially while you still can. You can now grab your FREE instant download copy of “Why You Should Buy Gold Now” – created especially for the gold investment newcomer – by clicking here.