How about a Somewhat Crass Commercial Message (Which Will Help You Much More Than Me)?

Sunni's picture

If one has paid any attention recently to the cost of real money in US FRNs, one knows it’s been vacillating a lot after a fairly substantial drop. I think we’re close to a bottom now and would like to highlight a good way to start accumulating it—or even better, adding to one’s position.

I’m talking about gold and silver, of course. The world is awash in fiat currencies, and at varying speeds, many of them are starting to show that at long last, their inherent worth is being understood by people.

I feel obligated to state right now that I am far from expert in this realm. One of my clients offers information and recommendations to its membership on buying gold and silver, among other things, but I know that does not somehow transform me into an individual with a deep understanding of the market’s doings.

That said, one needn’t be an expert to see and understand a few crucial facts. The first is that the US dollar has lost a remarkable amount of purchasing power in recent years, beginning with the credit bubble and continuing with the various “stimulus” programs (QE I and QE II being two examples) that have flooded the world with FRNs. Second is that the European Union currency, the euro, is in no better shape, as the so–called PIIGS nations (Portugal, Ireland, Italy, Greece, and Spain) continue to drag on it; third is that Japan’s economy has continued in its decade–plus doldrums, making the yen a lackluster alternative. Another less–known contribution is that, with the blockade of Iranian oil the US government has pushed on many nations, some countries that need that energy source have stopped paying for their oil with US FRNs and are using gold as one medium of exchange (I’ve read reports that Iran is willing to barter other vitally important supplies for their oil as well).

In my view, the sum of these (and other) bits of information is that the US FRN is on its way down. Because of its long history as the world’s reserve currency, it will probably be the last fiat standing, but all those created-from-nothing dollars will eventually come home to roost—which means inflation. The central money planners (in the US as well as abroad) are trying their hardest to forestall this; but there is no stopping that avalanche at this point. What it means is that gold and silver are the best means at present of preserving one’s wealth, no matter how much or how little.

The three regular readers who have hung on here know that my life circumstances changed enormously earlier this year. For the first time since having my children, I am solely responsible for carrying my household. It’s a daunting responsibility—and since I’ve been the primary caregiver parent and household manager, I hadn’t been focusing on maintaining and expanding my income streams. It probably goes without saying, but just to be absolutely clear, right now every penny is very important in my budget. All three of us have needs that have gone unmet for a while, and we have future needs that must be considered too. How to address both of them simultaneously?

Well, I do have some discretionary FRNs every month after all the bills are paid and the snolfs’ tummies are full and happy. Even though it is rarely enough on its own to buy even a tenth–ounce gold coin, I learned of a way to put those small amounts aside toward being able to acquire physical metal: I have an account at SilverSaver.

How it works is very simple: after signing up, one selects a banking account from which one can draw funds in order to purchase silver or gold. There’s no minimum amount required. One may make one–time purchases or set up a schedule of recurring purchases of whichever metal one wishes to accumulate. One may hold the metal(s) in account with SilverSaver, or—once the minimum has been met for purchasing a physical coin—one may take delivery of the physical metal.

There are storage and processing fees to this, but they are very reasonable, especially in comparison to their competitors’ fees. And, if one recommends SilverSaver to others who sign up using the unique share code each user has, those fees drop, pretty quickly becoming competitive with the fees the big (wealthy) boys who hold lots of metals are offered.

For people who can’t spare even the $160 or so it currently takes to buy a tenth–ounce gold coin at present, this is an unbeatable way to fairly painlessly work up to that level. After decades of frittering my money away, I finally understand the fundamental principle of getting wealthy slowly: One must always pay oneself first. That means channeling the impulse to indulge into real savings of some sort. Obviously interest–bearing bank accounts don’t do that; rates are so low that they aren’t even keeping pace with inflation at its current pace.

I have found that when I immediately put some of my paycheck into SilverSaver gold and silver (there are reasons to have some of each, but explaining all that will have to wait for another day), I never miss that money. I am pretty conservative in how much I contribute—I have two growing children to feed and I will not have them going hungry—so I’ve never had to pull money back out in order to keep myself in the black. (I also make sure to have a small cash cushion for unexpected expenses, of course.) So I may be accruing metal more slowly than I could, but the important points are: 1) I am accruing metal; and 2) it is not a hardship at all. I feel very good about doing this.

I also feel really good about recommending SilverSaver. While I have not yet taken delivery of any metal, someone I know and trust has put the company through its paces and gives it an unqualified, glowing recommendation. Yes, there is a paper trail purchasing metals this way, but I consider it a small and completely worthwhile cost for the convenience of being able to save up to buy gold at a rate that doesn’t create a hardship for me. For those who already have some physical metal, SilverSaver offers diversity in storage and possibly, a sufficient feint for the IRS or other fedgov goons who might come sniffing into one’s financial affairs.

SilverSaver also offers the ability to purchase gold or silver bullion via live pricing (this does require having funds in one’s cash account with them, something I have not done nor investigated yet). What this means is that one now has the ability to accumulate metal on intraday lows, offering additional cost–averaging benefits for those able to watch the markets and take action.

That is one of the reasons why I’m recommending SilverSaver right now. Gold dropped quite a bit over the past several months and appears to be starting to make an upward move again. However, there is still a lot of volatility (look at the action over just the past five days or so), and there’s good reason to expect that to continue even as the overall trend moves higher. If one isn’t already in gold, now is the time to start buying it as well as silver, in order to maintain at the very least one’s savings. I really like SilverSaver as a means of helping me accomplish this despite my tight fiscal constraints, and I hope it helps at least a few of you as well. The ride looks pretty rocky for the next few years, and I want to do all I can to shield the snolfs and myself from as much of the economic pain as I can—and my dear friends as well.

At some point I will be adding a small SilverSaver ad in the sidebar, so if you’re interested but unable to start saving today, it will be there for your use. Yes, referrals do help me, but after two or three of them, the law of diminishing returns sets in pretty severely; so I see it more as a service to individuals I hope will survive the economic challenges ahead.

Hmmmm

Think I'll just keep on buying beans and PMs in various calibers... thanks anyway. :)

Cool, thanks

I will check them out. It is always useful to have another source. If I create an account I will be sure to use your referral link.

BTW, I could not agree more. FRNs and other fiat currency are doomed. It is just a matter of time before their value goes to zero.

UPDATE: Oh well, not for me. It is US and Canada only.

Sounds interesting. Could

Sounds interesting. Could not be worse than the fund choices in my 401k. I might try it.