A Painful Post
‘Why Is It So Hard to Save Money?’ was a post I put out there sometime in 2015, It was in August, I believe.
It was hard to read.
It was even more difficult to write.
Posting it was painful, too. It seemed it was impossible to finish. It was like 1300 words long and I had only written what I thought was half of it.
It was uninspired, too long, and to be completely honest an attempt to persuade you to join my gold business without seeming like I was selling.
So, let’s get that out of the way.
Karatbars International is a company that sells gold in gram amounts making it affordable for those of us who cannot drop $23,776.00 on a 20 coin tube, more if you fancy the American Gold Eagle (or even the current 1 ounce price of $1,188.00.)
The gold content is LBMA certified giving you the best assurances available that you are getting what you are paying for.
LBMA stands for the London Bullion Market Association. Having the right to have your bullion products stamped with the LBMA assurance is not an insignificant achievement. Karatbars, International has to meet strict criteria to be able to continue to use LBMA in their product line.
A few complain this is an expensive way to own gold. Simply put, if you buy more you pay less per unit bought. Everyone understands this. Besides, at a current price of something like $63/gram from Karatbars versus Credit Suisse 1g BAR.which does not have the LBMA stamp we can see that Karatbars is competitively priced to compete.
Karatbars As A Business Opportunity
Joining is for free. Sign up here and start promoting your link. If you sell a Karatbar card or subscription you get paid.
Karatbars Is Not A Network Marketing Company
Why do I say Karatbars, International is not a network marketing company?
- It is free to join. There is no cost to be an affiliate.
- You get paid for selling whether you buy or not. There is no requirement to personally buy gold monthly to receive group commissions.
- In the Dual Team System you can not personally sponsor ‘unlimited’ people to your ‘front line.’
- You are building two teams and your commissions from your group production aren’t just 6 to 8 levels deep. They are Unlimited.
- You DO NOT LOSE any unused units each week. They stay there until you cycle them. (There is no ‘flushing.’ You will get paid on your work.)
Back to the Original Question: Why Gold and Silver?
People ask me why I prefer to keep a significant percentage of my ‘savings’ in precious metals. “It earns no interest,” is a common complaint. Warren Buffet is famous for saying this.
Will Rogers is often quoted as having said, “I am more interested in the return of my capital than I am in the interest promised on it.”
Well, now, there is some question as to whether he really said it. That is okay because I, me, Tim Singleton, am saying it. Money is hard to come by, money has to be worked for and earned. I want to know I can get to the money I earned when I need it.
Sometimes You Cannot Get To Your Money, If It Is Even Still Yours
As I understand it, the people of Cyprus went to bed on a Friday night and awoke Monday morning to find that a significant double digit percentage of their deposits had been confiscated to satisfy some of their EU creditors. Anything over €100,000 in your account was confiscated to the tune of 47.5%.
The EU confiscated 47.5% of Cyprus depositor’s money.
Now, I know there is a certain demographic who thinks this is just the bees knees …punish the wealthy! Yar! What they forget is that most small businesses have on hand deposits in excess of €100,000 that is earmarked to make payroll.
Not hard to imagine that a lot of payrolls did not get met that week.
A Golden Birdie In Hand
As we can see, money in the bank is not so secure anymore. Governments have decided they can just take it and most people will not have the power to fight it.
If you have your gold in hand, in your possession, the act of confiscation has to rise to a whole different level of animosity between the people and their beloved government. Same goes for your cash. Used to be everyone laughed at the old person with all their money in their mattress or buried in Mason jars out back.
Folks in Cyprus probably no longer laugh at those types, I am sure.
The value of your dollars can be inflated away. They print more money to pay bills or provide benefits and it diminishes the value of the cash you have in your hand because it will buy less than before.
Japan has done a new thing, a frightening thing. Their central bank has applied negative interest rates to savings. The Western economies are flirting with this.
So, it would appear that we can say your money may not be safe because:
- A bank crisis can close the banks creating uncertainty as to when you can get your money.
- Governmental, and now banking institutions, have a track record of confiscating large portions of depositors’ funds to cover their mistakes.
- Inflation is just as damaging as confiscation. It is just more insidious because you don’t see its effects immediately.
- Now you not only have to deal with inflation in prices, but in negative interest rates on your savings.
Safety, Security, Surety
Gold is safe. Gold is secure. Gold gives you surety as few things can.
For the last several thousand years, an ounce of gold has bought the same amount of goods and services unaffected by inflation.
If you have ten ounces of gold in hand, you have ten ounces of gold in hand. That may seem as if I just repeated myself but I did not.
- If you have ten ounces of gold in hand it cannot be seized from your bank account by decree. (Unless you keep it in a safety deposit box.)
- The Cyprus government nor any other government can grab 47.5% of your 10 ounces leaving you with only 5.35 ounces of gold.
- No central bank can just willy nilly ‘print’ more gold, making your 10 ounces worth less.
- No government can repudiate your 10 ounces making them worthless the way they can their currency.
Most investments are someone else’s debt. A stock share means you own some amount of a business. That share that you own is a debt owed by the company.
Same as a bond. That bond you own and count as an asset is a debt owed you by the company issuing it.
Gold has no counter party risk. It is your asset; it is not someone else’s debt. While the price of precious metals do fluctuate, there is no risk of it becoming worthless.
While the risk of whether cash, or fiat currencies, can become worthless is a matter for debate – I see little short term danger of the dollar becoming worthless mostly because it is in nearly all governments’ interests that the dollar remain stable, for instance – there is zero risk that an ounce of gold, silver, platinum, rhodium or heck, even copper, will become worthless.
Metals are real money with no ability to become worthless. Fiat currencies have an unbroken track record of eventually becoming worthless. In my opinion it would appear that converting some portion of your fiat currency to what I personally consider real money is a good idea.
Go here to check out how you can get started converting some of your own money to gold. You can also evaluate whether this is a business you want to be involved in at some level.