SECRETS OF THE WEALTHY SERIES: Debt Slave Vs. Gold Save

I find most people feel that saving or investing in 999.9 fine Swiss minted bullion is not something that they are in a position to do. What I have discovered is that it is totally possible for EVERYONE TO SAVE IN GOLD starting now.

If you’re reading this, I know you are already attracted to the shiny stuff and for good reason! It could be the recent spotlight on gold in the media that it is “about to soar” or the reports from macro-economic pundits forecasting financial Armageddon.

People reject the notion that they can begin tangible gold ownership today for several reasons. They may feel they cannot afford it, or perhaps they are single mindedly bullish on silver. Some people are stretched and don’t have any money left over for savings or investing.

Let’s address the last point first. Simon Heapes, Director Treasurer of Anglo Far East said, “If you do not save, the seeds of success are simply not in you”. An ancient secret of the wealthy is that they ALWAYS put aside some of their income NO MATTER WHAT into a form of savings and forget about it. Western culture overtime has lost this knowledge and practice.  In a matter of a few generations, we have gone from a culture of savers to a culture of spenders and debt slaves

What is a debt slave?

“The borrower becomes servant to the lender”. When we allow ourselves to go into debt for luxury items, we postpone the inevitable; paying for something we couldn’t afford in the first place. When in debt, many feel pressurized to work more hours, or get an additional job in order to earn money to make the payments. Some feel they are not in a position to ever pay it down, and in this situation, their options are diminished and they become “servant” to the lender. They are simply trading hours of their life to work for money to pay the lender; they are a debt slave. The daily stress of that in peoples' lives has very negative consequences on their health and happiness.

Our grandparents and great grandparents grew up in a society that if you had debt, people would literally look at you side-ways. This was not an acceptable way of life to them and when they encountered people in debt, there looked upon as unsavoury company. Our great grandparents were people who worked hard and saved their money. If they wanted a better car, they would save for it. This goes for holidays, jewellery, renovations, real-estate, also. Without sounding sanctimonious, I’d like to point out that we now accept heavy debt as a fact of life, where as a mere two or three generations ago, it was taboo.  In fact, we are now told by financial organizations that we must go into debt to earn the status of having a credit rating.

We can draw a lot of power and protection in our lives by getting back to the fundamentals of saving as a culture. From birth to adulthood, via a very sophisticated, multi-media and systematic bombardment of messages, we have been programmed to reject the obvious benefits of saving and go into debt for a variety of consumer items, that by and large, we simply DO NOT NEED.

The Benefits and Value of Saving in Gold:

1. It is an inflation-proof asset.  It will not lose its purchasing power like paper money.  In the media, it has been named as the right asset at the right time.
2. It is a great hedge against inflation and protect against hyper-inflation (An insurance policy that you and your family can cash in on and benefit if we have a drastic currency event in our life-time.
3.  When you save in gold, you are less likely to spend your savings. E.G. If you are in a crunch and need to cash in some of your gold, it takes a couple of extra steps to get it out of the safe or safety deposit box, march down to the local coin exchange shop to make the transaction. You won’t be able to impulsively spend it on that pair of shoes or electronic gadget you see at the mall.
4.  It is a legacy that you will be able to pass onto your children and children’s children.

Now that we understand the importance of saving and the benefits of saving in gold, now let’s look at why a savvy smaller investor should begin to buy gold once per month.  I hear many people who are asserting that silver is a better investment for a variety of reasons. There is no question that silver is a sweet deal right now and that it has been remarked by many pundits it is about to make a spectacular move. I do not contest this in any way and I too love to buy silver. If this strikes a chord in you, I ask you to consider the following. Silver may be perched and bullish right now, but here is why you should begin a set and forget savings plan and buy small amounts of gold along the way as well.

I listen to contacts and friends that say when they get large sum of money; they'll take the plunge and buy lots of gold. Others say I’ll stick with silver because it is more affordable right now and I like where it’s heading. They plan to buy it later when they have more money or when they swap their silver at the right time. By the time the average person saves enough money for a large gold transaction, or same person is ready to do a swap with their silver, what makes you think there will a supply of gold to buy from? Remember, everyone will be thinking the same thing, and by then, it may be too late.  Of course, there will be gold available, but at HUGE premium. As Franklin Sanders said, "This is what happened in 1978 and 79. People were trying to find some way to protect themselves; they ran into gold and silver. What most people don’t realize is that it’s a real small door, and when everyone tries to run in there at once, the price has to skyrocket to clear the market."
If you accumulate it slowly, you will be averaging out the price, capitalizing on buying on the dips as well. E.G. If you buy a 10th coin per month, you will have a one ounce of gold in 10 months!  If you don't, you'll have ZERO ounces of gold in 10 months.

Gold is a good thing to constantly acquire as well due to its higher value and what that means in terms of logistics and storage.  You need a lot more storage space when it comes to silver. Let’s look at the sheer weight of $10K worth of silver x $30 per ounce compared to the same amount in gold, you could easily put $20K worth of gold in a small safety deposit box with room to spare for a lot more, try that with silver and the bank storage fees begin to get ridiculous.

Finally, if you are still uncertain about purchasing physical gold, try to look at it as saving money in something “inflation-proof” and buy small amounts along the way.
 

All my best,
Kirsty Hogg