Some people make things happen. Some people watch things happen. The rest wonder what the hell happened. Perhaps all of us are in this last group regarding one thing: Social Security is officially upside down. The so-called “trust fund” is gone six years earlier than expected, and now the Federal Government must use current social security income and borrowing to pay social security benefits.
It doesn’t take a genius to realize that this, our $14 Trillion Federal debt, the Freddie and Fannie $6.4 Trillion bail out ceiling and other entitlement spending now and into the future is unsustainable. And people are worried. They don’t know what to do, and thanks to this current Federal Government, they have no clear direction of where “things” are going. A natural reaction in such times is to sit on one’s hands and do nothing. “Wait and see.” “Watch things happen.”
Those of you who have known me for the twenty years since I started Customized Numismatic Portfolios in 1991 know well that I am rarely a “hard sell” when it comes to buying coins. I present the case as I see it, and try to provide what my customers want. And like you, I don’t know what is going to happen. Frankly, no one does. But there is a clear and present danger that the US dollar will fall precipitously. Right now most of us are not present to this because other currencies are so weakened that the dollar momentarily looks strong by comparison.
What I fear is that there may be an event, or a “tipping point” when it will become clear - not only to people who already understand the “hard money” approach - but to everyone -- that the US Dollar is undeniably weakened and ready to fall, or even starting to fall. At that point, the demand for hard assets will spike. And suddenly, demand for all hard assets will rise acutely. Considering the relatively small supply of all hard assets when compared to other asset classes, this will send coins, gold and silver soaring.
It could happen as fast as Merrill Lynch folded, which took all of a weekend.
I do not know when this will happen, but I put the chances that it will happen within the next 5-10 years at 80%.
Don’t be caught behind the wave.
Get your proverbial ducks in a row now, while we have at least a short period of relatively stability. So, if you want to sell your rarities to get into bullion – if that makes sense for you and your situation, do it now while you are not under pressure. Likewise, if you are a collector, now is a great time to buy key dates and other high end material which is available, but at fair prices.
I look at it as fixing your roof before the rains, instead of waiting for the deluge.
This means putting at least 10% of your investment assets into hard assets in general, diversified in ways that work for your particular situation. For the very elderly, 5% might be sufficient, and for the young, I would consider going as high as 20%. But the key is to get set up now, when sufficient physical assets are available. If you wait until the frenzy, it will be too late. Better 3 months early than 1 day late.
And the flip side of this is that if you get in early and there is a huge spike, you might well be able to liquidate a portion of your hard assets at a marvelous profit. This is because all actions eventually correct – it’s the typical motion of the market – and if you are prepared, you not only will protect your assets, but you could powerfully strengthen your overall wealth position.
It doesn’t take a genius to realize that this, our $14 Trillion Federal debt, the Freddie and Fannie $6.4 Trillion bail out ceiling and other entitlement spending now and into the future is unsustainable. And people are worried. They don’t know what to do, and thanks to this current Federal Government, they have no clear direction of where “things” are going. A natural reaction in such times is to sit on one’s hands and do nothing. “Wait and see.” “Watch things happen.”
Those of you who have known me for the twenty years since I started Customized Numismatic Portfolios in 1991 know well that I am rarely a “hard sell” when it comes to buying coins. I present the case as I see it, and try to provide what my customers want. And like you, I don’t know what is going to happen. Frankly, no one does. But there is a clear and present danger that the US dollar will fall precipitously. Right now most of us are not present to this because other currencies are so weakened that the dollar momentarily looks strong by comparison.
What I fear is that there may be an event, or a “tipping point” when it will become clear - not only to people who already understand the “hard money” approach - but to everyone -- that the US Dollar is undeniably weakened and ready to fall, or even starting to fall. At that point, the demand for hard assets will spike. And suddenly, demand for all hard assets will rise acutely. Considering the relatively small supply of all hard assets when compared to other asset classes, this will send coins, gold and silver soaring.
It could happen as fast as Merrill Lynch folded, which took all of a weekend.
I do not know when this will happen, but I put the chances that it will happen within the next 5-10 years at 80%.
Don’t be caught behind the wave.
Get your proverbial ducks in a row now, while we have at least a short period of relatively stability. So, if you want to sell your rarities to get into bullion – if that makes sense for you and your situation, do it now while you are not under pressure. Likewise, if you are a collector, now is a great time to buy key dates and other high end material which is available, but at fair prices.
I look at it as fixing your roof before the rains, instead of waiting for the deluge.
This means putting at least 10% of your investment assets into hard assets in general, diversified in ways that work for your particular situation. For the very elderly, 5% might be sufficient, and for the young, I would consider going as high as 20%. But the key is to get set up now, when sufficient physical assets are available. If you wait until the frenzy, it will be too late. Better 3 months early than 1 day late.
And the flip side of this is that if you get in early and there is a huge spike, you might well be able to liquidate a portion of your hard assets at a marvelous profit. This is because all actions eventually correct – it’s the typical motion of the market – and if you are prepared, you not only will protect your assets, but you could powerfully strengthen your overall wealth position.
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