A reader asked me why I’m so “enamored” with investor ownership of physical precious metals. I asked how long he’d been reading the blog. He said, “More than a year and in that time gold, for example, has gone down more than 13% and in 2016 it had closed out down more than 15%, from July a year ago. Meanwhile, my stock portfolio is up more than 15%. So why do you insist that precious metals are an absolutely necessary investment?” I said that I had asked how long he had been reading the blog, because throughout that period of time, I had regularly and emphatically stressed the fact that even though one can invest in physical precious metals, they are in fact not like any other “investment.” They are the only true, global currency and have been for many thousands of years. By definition, precious metals are scarce and valuable. Investors need to have at least enough precious metals proportionately, to cover potential losses to their other “investments.”
My articles speak for themselves, but here’s a quick analogy. I see myself as a fireman running into a burning building and as I come upon people, I tell them that the building is on fire and they need to follow me out, NOW! Without seeing or smelling smoke, many are leery of my urgency. I quickly give them the facts and a general timeline. Some will follow, some will ignore, and some will run and hug their grandfather clock and say they’re not leaving without it. The simple fact of the matter is that; 1) I can’t save everyone (if ALL the gold ever pulled from the Earth was distributed equally to everybody on the planet – your portion would be measured in single digit grams), 2) The fire is too far advanced to be stopped before destroying this room (whether the dollar collapses, the stock market crashes, or the banking system goes into meltdown, the historic trigger for the coming global economic fire is irrelevant and unstoppable). And 3) Regardless of its arrival time, the time for protective action is NOW!
I’ve enumerated the global problems initiating this fire ad nausem, but for the purpose of this article, I’ll bring a few of them to your attention again: The U.S. Administration can’t find its own feet. The U.S. Fed is way too far behind in useful economic activities, to have a prayer of ever catching up. At a time when countries need to be coming together, we’re allowing terrorists to rip us apart, we’re creating trade barriers, and we’re retracting to protectionist states. The global banking system has been given carte blanche and is taking your money out for a spin, while uninsured, drunk with freedom, and at an exponentially high rate of speed. This is a very short list, but any of these problems could be the cause for an economic collapse. Add this to an over-heated bull market, ever-growing national debt, and upcoming debt ceiling increase vote, and you’ve got stick matches on the floor of a fireworks factory. Step cautiously!
Finally, realize that today’s nanotechnology creates a scenario that couldn’t have been dreamt of in 1929. The 2008 debacle was a hurricane party that almost everyone managed to survive, but the panic and response of the coming collapse will be immediate, dramatic and devastating. If you’re waiting to see or smell smoke this time, then you might as well go hug your grandfather clock, because by the time you “see” it, the opportunity to respond will be long since passed. Take advantage of precious metals at today’s lower prices and far more importantly, today’s AVAILABILITY!!!