Bible Investments - Observations about todays financial world

"The heart is deceitful above all things and desperately wicked" Jeremiah 17:9

The Psychology of Sheep

One of the hardest things in the world for most people to do is to admit that they are wrong. Another very difficult thing, for most people, is to come to the conclusion that everything they have been taught about a topic is uncertain and may very well be incorrect.

Why is this? According to the secular way of thinking ,isn't man the "rational animal"? After all, the name of our species is "Homo sapiens" (wise human).

Yes, but unfortunately most people do not make decisions in a rational manner. They follow what "other people" think, what "leaders" tell them to think, or use some other similar means of avoiding responsibility for their own decisions.

Of course, it is actually impossible to avoid responsibility in this way, because even following someone else's lead requires one to decide exactly whom to follow, and there's no reason to believe that is an easier decision than thinking for oneself about the issues. But it is an extremely popular approach nonetheless.

You see, thinking for yourself is hard. It requires acquiring facts, organizing them into a rational pattern, and taking responsibility for the results. It's much easier just to follow along with what "everyone else" thinks... much like a herd of sheep following a shepherd.

However, this easy, unconscious following of the rest of the herd can be disrupted by "troublemakers" who try to get people to analyze a problem rationally. Once you start thinking for yourself, there's no telling where you will wind up. So the simplest and safest solution is just to avoid any independent thinking whatsoever.

Payday Someday

When will the laws of nature catch up with the lies and distortions caused by growing interventionist policies of America, a country that once stood for freedom and free markets? Only God truly knows and quite frankly, from a Christian theological perspective I believe God our Creator has already determined the date when America is set to face some very stark realties attached to our national violation of His laws, among which are those natural laws of economics that the Keynesian proponents of socialism are, for whatever motive, increasingly violating.

Jay Taylor - Monkey Magic

The divine wrath is slow indeed in vengeance, but it makes up for its tardiness by the severity of the punishment. Valerious Maximus
Be not deceived; God is not mocked: For whatsoever a man soweth, that shall he also reap. Galatians 6:7

The Majority - Blind Investors

Gold will carry on being a good investment, but in reality it's only use is that of a currency and the problem here is convincing all the blind to accept it as currency. To convince the blind that Gold is a currency is more than just a monumentous task; it is task that is almost impossible. Blind people do not get sight miraculously. They have to want to see and for the near foreseeable future they have no desire whatsoever to find the light. To make matters worse, they don't think they are in darkness.

Sol Palha - The Average Joes Perceptions of Gold and the Dow

"Luck favors the trained observer" - Rick Rule, Global Inv. Resources

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Gold Represents Truth!!!

Gold represents economic truth, and those who oppose gold oppose economic truth - which by definition turns them into economic liars.

Gold is bed-rock value. Gold is the ultimate form of payment for debts. Gold cannot be "created" or faked in any way. Gold must be slowly, often painfully, and always expensively, extracted from the ground where God put it. It must be processed, melted, poured or otherwise shaped into convenient forms, stored, and paid for with real labor. It is accepted by virtually anyone in payment for virtually anything. And now it can even be transferred online.

Those who oppose the functional truth of gold must by definition rely on deception to achieve their goals. They must create in you the false belief that gold has now been "overcome", that gold is a "barbarous relic," that it has no relevance in an advanced society ("advanced" in what direction, one should ask?).

To accomplish this with respect to you, an individual, these forces must create the illusion in you that other people no longer value gold - and they must repeat that same process with every other market participant in order for the illusion to be effective.

This process therefore requires an enormous amount of energy, planning, marshalling of precious resources, and it requires the application of sheer political and economic force. Can you imagine the amount of productive capacity that is laid to waste each and every year - just to keep up this illusion that paper dollars are "as good as gold"?

Why does that illusion need to be kept up? Because the paper dollar, functioning as the sole reserve currency of the world, conveys upon its producers (the US governing elites) an enormous, theretofore unknown power: the power to simply print an entire country's payment requirements for imports of real goods from abroad. Goods from other countries, who had to produce them by the sweat of their people's brows.

Alex Wallenwein - CHANGING COURSE

"Be sure your sin will find you out" - Numbers 32:23

Conclusion

You have some very simple choices to make, the dollar will probably stage some technical rally shortly however this is just short term, there is no long-term strength left in the dollar.

You can either start investing in other currencies or do the best and safest thing buy Gold and Silver bullion on every decent pull back as these are the only sure ways of safe guarding your self. Playing the currency game can be profitable, we provide a free newsletter service where we monitor the currency markets and the Gold markets carefully. However we are more bullish on Gold and Silver bullion than any other paper currency in the world.

Take heed its time to protect your self now. Waiting and doing nothing will simply result in your driving yourself deeper into the hole of financial poverty. As it is the dollar has already lost approximately 30% of its former value, 30% is not a joke.

If you want to know the true significance of what has happened, imagine how you would feel if your boss suddenly told you that he was going to cut your pay by 30%, you would not feel to happy right. Well wake up, your pay has already been cut, you are just not aware of it, welcome to the insidious world of inflation and the only measure of protection against this plague generated by the central bankers are Gold and Silver Bullion. Wake up and smell the coffee now or remain in the comatose state of self-denial.

Sol Palha
TACTICAL INVESTOR The Not So Almighty Dying Dollar

The wise are instructed by reason, average minds by experience, the stupid by necessity and the brute by instinct...Marcus Tullius Cicero, statesman, orator and writer (106-43 BCE)
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Its not what you don't know that will screw you up, it's what you know that is wrong. The spin you hear from the mainstream media is intended to mislead you. Open your eyes and face the future. If you leave your head in the sand and ignore it, you are only leaving your butt exposed for the world to kick. This all may sound like gloom and doom, but when you get a handle on what is going to happen, you will have a future filled with opportunity. Fortune favors the Informed.

Kenneth Parsons - The Nature of Money - I pledge allegiance
"Luck favors the trained observer" - Rick Rule, Global Inv. Resources

This was excerpted from a Morningstar interview with Warren Buffett in 1998:

"I had a question about the silver purchase last year. When you announced it, you said that the supply and demand fundamentals would be established at a higher price. What are the fundamentals?

Buffett: We have no inside information about great new uses for silver or anything of the sort. You can see from looking at the numbers that aggregate demand, primarily from investor and fundamental type uses, is close to 800 million-plus ounces a year, and there are 500 million or so ounces of silver being produced annually, although there will be more coming on in the next couple years. Most of that silver is produced as a by-product in the mining for copper, lead or zinc. Since it's a by-product, it's not very responsive to price changes.

There's been a gap in recent years of perhaps 150 million ounces, which has been filled by inventory bullion above ground, which may have been a billion or two or more ounces a few years back. There's no question that the bullion inventory has been depleted significantly. Which means that the present price for silver does not produce an equilibrium between supply, as measured by newly-mined silver plus reclaimed silver. And eventually, something will happen to change that. I figure it could be reduced usage, increased supply, or change in price. That imbalance is significant, even though there is some production coming on and some digital imaging that will use silver that is targeted. We think that the gap is wide enough so that it will continue to deplete bullion inventories to the point where a new price is able to establish equilibrium. We don't think that price change will necessarily be minor."

So here you have it. The worlds most successful investor bought 129 million ounces of silver because he sees the price change of silver will not be minor! Seeing that there is no reduced usage or increased supply in silver the last few years the only choice left is a change in price and the worlds smartest investor does not see that price change to be a minor one!

I urge you to study this silver situation as intently as you can, and if you haven't done so, then get a move on, as I sense things could get interesting in a hurry. When we all, hopefully, have the luxury to look back at what happened, there will be only two important questions; did you have silver? And did you have enough silver?

“Great opportunities are not seen with your eyes. They are seen with your mind. Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them.” - Robert T. Kiyosaki - Rich Dad/Poor Dad.

FREQUENTLY ASKED QUESTIONS ABOUT SILVER

Q: Why did you create this website?
A: I've been studying and discussing the silver market for years and wanted to share what I've learned with my friends and family. You should certainly approach the ideas presented here with an open mind and use what I write as a guide to discovery. Remember that there nearly no downside to owning physical silver (due to it's inability to go to a value of zero like the U.S. dollar) and a significant potential for gain in the coming years.

     Q: I read that Warren Buffet purchased large amounts of silver in 1997. Why did he buy and why?
     A: It's well known that Warren Buffet is a shrewd investor who seeks excellent long term investments. From July 1997 to January of 1998, Berkshire Hathaway took delivery of 129.7 million ounces of physical silver. During this period of accumulation the price moved from around $4.50 to $7.00 / oz. Shortly thereafter, the price of silver fell back to $5.00 / oz.
     If one investor in 1997 caused the price of silver to increase in value so dramatically, imagine the potential price gains a few large investors (or countless small investors) could cause. Rumors at the time were that Mr. Buffet was actually prevented from buying more silver when the U.S. government demanded that he halt further silver purchases. CLICK HERE to read the press release regarding the Berkshire Hathaway silver purchase.

     Q: Isn't gold more valuable? Why should I buy silver instead?
     A: The saying is, "Smart money is buying gold. But the REALLY smart money is buying silver." Gold is certainly a good investment and it's certainly better than holding worthless (fiat) currency. For example, it's much easier for $6.00 silver to double in value than a $400 gold. If you wish, buy gold, platinum or palladium. They are all still precious metals and their value will never go to zero. But I urge you to keep in mind that Warren Buffet bought silver, not gold.

Q: What is this 'fiat' currency your mention?
A: Fiat currency is an arbitrary (fiat) process where banks make legal tender using laws created by politicians, with whom they have colluded, to enforce it's use. It is said to have no intrinsic value because it takes little work to create it and because it is not linked to silver or gold reserves. There is no limit as to how much fiat currency can be created. As history has shown since the Roman Empire, it always inflates and becomes worthless over time.

     Q: Where should I store my physical precious metals?
     A: I once heard of a woman storing her gold coins in a jar of peanut butter in her fridge. That would make one expensive peanut butter sandwich! Multiple sturdy, immovable safes in various locations would probably be a good idea.

     Q: What's this I hear about the price ratio of silver to gold?
     A: Historically silver has traded at a price ratio of 10:1, reflective of the relative ratios of silver to gold found in the earth. Currently, at $8.00 / oz., silver is priced at a ratio of about 52:1. It once even traded at a ratio of 80:1. One could assume that silver may increase in value to align more with historical price ratios. To determine this ratio divide the spot price of gold by the spot price of silver. See the charts directly below.

Q: Someone told me that in 1980 a $1000 face bag of 90% silver coins could buy a house. Is this true?
A: Yes and no. A bag of junk silver coins (about 720 ounces) could be sold for $30,000-$32,000 when an ounce of silver was valued at $45 / oz. Keep in mind the U.S. dollar has lost much more of it's value compared to 1980s dollars. Anyway, in some areas of the country you actually could have purchased a modest house for that price. I suspect that in the future, the price of silver will increase and the value of homes will decline.

Q: I read online that the U.S. Mint needs to buy silver on the open market to mint their silver eagles. Was this website correct?
A: Many sources have reported that nearly all U.S. Government, above ground silver reserves have been depleted.

     Q: What type of silver should I buy?
     A: You should purchase bulk silver in 10 oz. or 100 oz. bars. Or you should buy a bag of pre-1965 quarters or dimes with a face value of $1000 per bag. Each coin is 90% silver and each bag contains 712-720 ounces of real silver, depending on the wear of the coins contained within.

     Q: How liquid is bulk silver and will a coin dealer buy it back from me?
     A: It's easily convertible to cash. Almost any coin dealer will be eager to give you fiat currency so he can resell it. When purchasing silver, be sure to deal with a reputable coin dealer who has been in business for a long time.

     Q: Does it matter in what form I purchase my bulk silver? Is one form or another worth more?
     A: Collectible coins will always be sold at a premium by a coin dealer. You generally want to receive as much silver as possible for your dollar. Therefore, you should ask for bulk silver in 10 oz., 100 oz., or $1000 face value 'bags' of pre-1965 coins. Just make sure you are buying from a reputable dealer who has been in business for a long time.

     Q: I've read that investment demand (like from Warren Buffet) will drive up the price of silver more rapidly. Is this true?
     A: Probably. Recently most sources have attributed the increase in silver prices to the decline of the value of the U.S. Dollar. Once investment demand increases drastically, expect a rapid jump in silver prices. Due to the current bull market after a 20 year bear market, demand recently is outpacing supply. It is getting more difficult for dealers to even find silver to sell. Buy now because once the price starts to move, it will be likely that you find it difficult to even buy silver at any price.

Q: I understand that Bill Gates owns a silver mine. Which one?
A: He owns 10% of Pan American Silver (symbol: PAAS)

     Q: Can't silver and gold be confiscated by our government?
     A: In 1933 Franklin D. Roosevelt issued an executive order to confiscate gold, thus making it illegal for U.S. citizens to own gold. He ordered private citizens holding gold to exchange it for worthless paper notes. A similar executive order could be issued again for gold in the future but it's not likely. Regardless, silver would most likely not be included because it may be needed for currency.

     Q: Is a bank safety deposit box is the safest place to store my silver?
     A: First, silver is probably too bulky to store in small safety deposit boxes. Second, it's safe as long as that bank does not go out of business. If they do, the contents of every safety deposit box is liable to confiscation. Gold coins are more easily stored in this manner due to their small size.

     Q: How would a bank go out of business?
     A: Banks engage in fractional reserve banking. They typically are reported to have cash reserves of a ratio of 10:1. What could happen when too many customers demand their savings in cash? Just look at the Great Depression as an example. Something similar could happen again. Cars, and homes can't be sold easily to put food in your mouth. Silver can. Even stocks may be worth little in chaotic financial times. How would you value a stock when the dollar collapses?

     Q: I once heard that there are no capital gains taxes on silver and gold. Is this true?
     A: I strongly recommend that you do your own research on the matter of taxation. Taxes, where required, should always be paid to the U.S. Government.
     Having written that, once you take your cash out of the system and purchase physical silver where is that purchase recorded? Let's say you buy a $1000 face value bag of old silver coins (pre-1965 dimes, quarters and half-dollars). When the silver 'melt' value of that $1000 face value bag increases, how can the added value be taxed? Keep in mind that if you sell your physical silver to a coin dealer you would probably be given fiat currency in exchange. Why then should you promptly deliver that paper currency to a bank and return your currency to the fractional-reserve banking system you initially shunned by obtaining physical silver?
     Of course, when the U.S. Dollar collapses, as every fiat currency in the history of the world has, silver coins will be probably be the currency of choice. So this question will be entirely moot.

     Q: I've asked my investment professional about silver and gold and he told me that it's not a good investment.
     A: In 1970 if I had told you that the price of gold would reach $850 / oz. in 1980, after trading at $35 / oz. since 1933, would you have believed me? Or that in 1970 when silver was below $2 an ounce that in 10 years it would be over $40? Probably not. Many believe that the price can only increase due to supply versus demand. Do your own research!

     Q: So investment demand will drive up the price of silver.
     A: Yes, most definately! Recently the increase in silver prices has been mostly attributed to the decline of the U.S. Dollar. Once investment demand increases, expect an rapid jump in silver prices.

     Q: I understand that a silver dollar used to pay a day's wages. Is this true?
     A: Correct. However, this was before the Federal Reserve was given a license to print fiat currency at will. Currently a worker receives fiat currency for a hard day's work. Wouldn't it be more beneficial for that man to receive something of real value for dollar, something of true wealth?

     Q: How much value has the dollar lost?
     A: Since 1913 (the year of the Federal Reserve creation), the U.S. dollar has lost about 98% of it's value. Blame this on constant, unchecked inflationary practices.

Q: How will I know when the silver bull market is over?
A: You'll want to start selling your physical silver and stocks when the average cocktail party conversation turns to a discussion about silver and gold and mining company stocks!

Personal observations lead one to ask: why is the smart money investing in safe assets like gold and silver?

Questions to Ponder

If Bill Gates, Warren Buffet and George and Paul Soros are invested in silver, shouldn't you ask why?

Why would four billionaires invest in silver if they thought there was no real value or chance for a substantial return on their investment?

Do billionaires like the above mentioned get to be where they are by making foolish investments?

If there was plenty of silver around, why would Warren Buffet buy 129 million ounces, which was over half of the known world supply at the time of purchase?

Why couldn’t they find enough silver to make a full delivery if there is not a worldwide shortage?

If CPM Group and Gold Field Mineral Service, two independent mining metals survey entities, state that we are using much more silver and gold than are mined and warn of real shortages very soon, how much longer will it be before the prices jump drastically?

If some retailers are having trouble obtaining silver in bars and coins, how much longer will it be before it affects the whole industry and the price moves drastically higher?

If history shows the stock market's decline will continue to much lower levels, where will the smart investment capital flow to protect declining assets?

If George Soros made hundreds of millions correctly calling the decline of the British Pound and is now calling the decline of the Dollar, what will that do to the price of gold, knowing that gold moves in inverse correlation to the Dollar?

If God’s ways are always right, and we know they are, how much longer will it be before He judges our unjust fiat money system which encourages millions of Americans to go into debt?

If gold and silver is God's money system and fiat dollars is mans cheap imitation, which one will collapse and which will remain and flourish?

Decision by Indecision

The failure to make a decision, constitutes a decision in and of itself.

After absorbing the wealth of information presented on this site, you must make a decision. You must choose whether to believe in the truth of gold and silver as God's only established form of money or to trust in a fiat paper money system of unjust weights and measures. Either way you choose, it will affect you financially.

Gold, Silver and other precious metals is the only way to true wealth.