1. You need to be able to learn, especially when the correction seems harsh, or unpleasant. This must be important. The Bible says this one twice in the same words.
Proverbs 13:18 All who refuse correction will be poor and disgraced; all who accept correction will be praised.
2 Chronicles 1:11 All who refuse correction will be poor and disgraced; all who accept correction will be praised.
Proverbs 13:8 The ransom of a man's life are his riches: but the poor heareth not rebuke.
2. Faith in truth, facts, logic, reason and planning.
I have seen and heard the plans and dreams of many poor people. It does not surprise me that they remain poor. Typically, they do not make a careful evaluation of their own plans, they do not determine the costs, nor evaluate the risks properly. They often have no idea what the costs of their own plans might be, nor do they have any idea of the relative value of the products they hope they might produce.
Luke 14:27 And whoever does not carry their cross and follow me cannot be my disciple.Luke 14:28 “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it? 29 For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you, 30 saying, ‘This person began to build and wasn’t able to finish.’
God made the world with certain principles. These reflect back on God's own character.
Romans 1:20 For since the creation of the world God’s invisible qualities-—his eternal power and divine nature-—have been clearly seen, being understood from what has been made, so that people are without excuse.
In reality, in the world, "Things that are made" are capable of being weighed and measured and thus counted with numbers, that can be used for making calculations and plans.
You must weigh and measure things accurately in order for your plans to succeed.
Deuteronomy 25:15 If you weigh and measure things honestly, the LORD your God will let you enjoy a long life in the land he is giving you.
Galatians 6:7 You cannot fool God, so don't make a fool of yourself! You will harvest what you plant.
I have read that in the third world, in very poor nations, people have faith in different things. They have faith in mysticism; faith in magic. Their own witch doctors and magicians will tell them that in order to become rich, they must engage in killing or a ritual sacrifice of man. Nothing could be further from the truth, and it's keeping their entire society away from success.
3. Discernment between good and evil.
Discernment is a skill that can be developed, through use, like a muscle.
Hebrews 5:14 But strong meat belongeth to them that are of full age, even those who by reason of use have their senses exercised to discern both good and evil.
One must develop the discernment to detect scams, frauds, and false arguments and false assumptions.
Why? Because many people will seek to steal, through fraud, from people with money.
4. Lack of envy for the rich.
No matter how much you have, others will have more! Envy will destroy you.
Proverbs 14:30 A heart at peace gives life to the body, but envy rots the bones.
Many people who are poor, envy the rich; but they don't know what they are envying.
For even if you have business success; others may have more free time. If you have wealth, others may have more peace. Wealth comes with problems and responsibilities and demands.
Ecclesiastes 5:12 If you have to work hard for a living, you can rest well at night, even if you don't have much to eat. But if you are rich, you can't even sleep.
If a poor man hates the rich, who will he hate if he becomes rich? Will he hate himself? Envy is evil.
James 3:16 For where you have envy and selfish ambition, there you find disorder and every evil practice.
"Do not covet, or envy" is the 10th of the Ten commandments.
Exodus 20:17 Do not want anything that belongs to someone else. Don't want anyone's house, wife or husband, slaves, oxen, donkeys or anything else.
5. A good understanding of, and faith, in free market principles, private property, and the potential benefits of trade.
Many people who lack this understanding have not yet bought silver or gold, because they don't know what they would "USE" the gold for.
Yes, you can't "eat" gold. Neither can you eat paper money, nor bonds, nor housing, nor stocks. In fact, you can't eat the vast majority of all things in which to invest.
Gold's usefulness is that you can and will be able to trade it, in the future, for more of the things you will want; whether to buy future businesses, or food that you can buy in the future. The entire point of buying silver or gold, is not to own the silver or gold itself, but to be capable of trading it for something more useful in the future.
Silver and gold are particularly useful for trade, because they have a narrow spread, or cost difference, to buy and sell them; the least spread of any kind of item in the world. They also have a very high value for their weight.
$400 of gold weighs just under 2/10ths of a troy ounce. The spread is about 6-7%$400 of silver now weights just under 10 troy ounce, or .7 pounds. The spread is about 6-7%$400 of copper now weighs about 100 pounds!!! The spread is up to about 100%. That's the difference between the cost to buy and sell copper!
That's why copper is not money, and silver and gold are.
Many people needlessly worry about potential government interference with the free market. "WHAT IF THEY CONFISCATE GOLD? What if they make gold illegal?" Well, marijuana is illegal, but it seems it's as available as beer. Let me point out the obvious here. Marijuana costs more, becaue it is illegal, right? Same with gold. If they make it illegal, there will be an extra price to pay to get it, and thus, your gold will be worth MORE!
Here's the other major obvious point. If they make gold illegal, gold does not disintigrate! The physical properties of gold itself make a mockery of unjust laws created by gangs of criminals.
Gold will become ever more useful, and especially useful, precisely at the moment they make it illegal. In fact, if you hear they are planning to make gold illegal, that's the best possible moment to buy some, if it's not too late, and if you can even get some during the mad rush that will exist at that point! But be prepared to pay 50% to 100% premiums over the officially quoted "spot" price in time of severe market distress like those!
6. Self denial / self control
Self control is a fruit of the holy spirit that can be cultivated, encouraged, and practiced.
Galatians 5:22-24 But the fruit of the Spirit is love, joy, peace, forbearance, kindness, goodness, faithfulness, 23 gentleness and self-control. Against such things there is no law. 24 Those who belong to Christ Jesus have crucified the flesh with its passions and desires.
Self-Control describes the capacity to NOT SPEND your wealth on yourself to excess, but rather, to deny your immediate desires, to enable long term planning.
Anyone who spends more money than they make, will always be poor, regardless of how many millions of dollars they may be making.
Most lottery winners are worse off after they win it! Why? One reason must be that they have little self control, or no self denial. If they had self control, they would not have wasted their money on the bad gamble and bad investment of the lottery ticket in the first place!
Gold is the ultimate luxury item. But it does not satisfy the flesh, but rather, the spirit. Gold ownership is not evidence of self-indulgence, but rather, evidence of self-denial; it is the proof of the refusal to spend the gold on personal luxury items that can satisfy the flesh.
Gold ownership should give the owner a sense of peace, and should enable one to practice kindness and goodness through giving of one's excess to help others.
Proverbs 21:17 Whoever loves pleasure will become poor; whoever loves wine and olive oil will never be rich.
Proverbs 23:20-21 Do not join those who drink too much wine or gorge themselves on meat, for drunkards and gluttons become poor, and drowsiness clothes them in rags.
To become rich, you have to avoid wasteful spending.
Poor people like to own things that make them look richer than they are; nice cars and clothes, which are the worst possible investments that lead to poverty. Rich people like to pretend to be poor, so as to discourage others who would otherwise pretend to be their friends to gain unfair advantage.
Proverbs 13:7 One person pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth.
Desiring wealth to spend it on personal luxuries for yourself is a trap.
1 Timothy 6:9 People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction.
Proverbs 21:20 Be sensible and store up precious treasures -- don't waste them like a fool.
7. Recognition that trusting in wealth, rather than God, leads to destruction.
Proverbs 11:28 Those who trust in their riches will fall, but the righteous will thrive like a green leaf.
In sum, planning in advance, thinking of the future, especially your eternal future, is perhaps one of most important mental attitudes for people who desire to be rich.
8. Recognition that wealth comes from God. It's all God's, he created everything.
Haggai 2:8 All silver and gold belong to me, [says the Lord God]
Psalm 24:1 The earth is the LORD's, and the fullness thereof; the world, and they that dwell therein.
Deuteronomy 8:18 But thou shalt remember the LORD thy God: for it is he that giveth thee power to get wealth, that he may establish his covenant which he sware unto thy fathers, as it is this day.
Nebuchadnezzar, king of the wealthiest empire that ever was, ignored God, and boasted that he did it all himself, and it was all taken away from him.
Daniel 4:28 All this happened to King Nebuchadnezzar. 29 Twelve months later, as the king was walking on the roof of the royal palace of Babylon, 30 he said, “Is not this the great Babylon I have built as the royal residence, by my mighty power and for the glory of my majesty?” 31 Even as the words were on his lips, a voice came from heaven, “This is what is decreed for you, King Nebuchadnezzar: Your royal authority has been taken from you.
9. God has left us an inheritance, an inheritance for every nation! And we ought to leave an inheritance for our children's children, not steal from them by leaving them a legacy of debt.
Exodus 23:30 By little and little I will drive them out from before thee, until thou be increased, and inherit the land.
Deuteronomy 32:8 When the Most High divided to the nations their inheritance, when he separated the sons of Adam, he set the bounds of the people according to the number of the children of Israel.
Proverbs 13:22 A good man leaveth an inheritance to his children's children: and the wealth of the sinner is laid up for the just.
Psalm 37:9 For evildoers shall be cut off: but those that wait upon the LORD, they shall inherit the earth.
Psalm 37:11 But the meek shall inherit the earth; and shall delight themselves in the abundance of peace.
I inherited most of my wealth. And most of my best knowledge is the timeless wisdom from the Bible. But if I had not been humble to come home and help my father for 5 years, and if I had not diligently helped my father grow his investments, there might not have even been anything left to inherit, or if I was unworthy, my father may have left everything to an animal shelter.
10. Recognition that wealth has a purpose, to increase the Kingdom of God.
Back in the days before movable type, prior to the 1500's, it would take a skilled laborer, a scribe who went to school, over a year to handwrite a copy of the entire Bible. Imagine hiring a lawyer for an entire year. Just a Bible would cost upwards of the equavalent of $300,000 today.
1 Timothy 6:17-19 Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. Command them to do good, to be rich in good deeds, and to be generous and willing to share (communicate-KJV). In this way they will lay up treasure for themselves as a firm foundation for the coming age, so that they may take hold of the life that is truly life.
And this is the indictment for the gold owners of this age. They are not fulfilling 1 Timothy 6:17-19. They are not preaching the benefits of using honest weights and measures, such as gold, in commerce.
The amount of gold in the world today is estimated at about 5 billion ounces. The gold of the world, at $1880/oz., is worth about $9.4 Trillion dollars. Most gold owners pay, on average, about 1% per year on storage fees. This comes to $94 billion spent on vaults and security systems. Many gold owners pay this as an annual fee to brokerage houses, who don't even go out to buy the gold that the supposed gold owners think is theirs! What's worse, is that this 1% is spent by the bankers who go out and control the media, and hire journalists to go out and bash gold owners and gold ownership!
Imagine instead, if the gold owners actually took delivery of their gold. Imagine also, that there was $94 billion per year spent on advertising the benefits of owning gold. Clearly, not nearly as much is spent by gold holders, who are totally neglecting their responsibility (not only to take delivery) but also, to share their wisdom of owning gold with the rest of the world. If 1% of the value of the world's gold were spent this way, I assure you, the value of gold would be about 100% to 500% higher, within a year.
The gold owners of this age, are foolishly trusting gold itself. Instead, they should trust God's ways. Today, the evil pushers of paper money are more accurately following God's ways, as they are the ones advertising the benefits of paper money. If paper money printers are following and obeying God's ways more than gold owners, why should we be surprised if they are currently reaping God's blessings?
God blesses both good and evil.
Matthew 5:45 that you may be children of your Father in heaven. He causes his sun to rise on the evil and the good, and sends rain on the righteous and the unrighteous.
Daniel 11:33 And they that understand among the people shall instruct many---Daniel 12:4 ---many shall run to and fro, and knowledge shall be increased.
And so now you know why I don't mind preaching the Word of God, and watching people get offended. If they leave my email list, they were simply proving themselves unworthy of my help, and unworthy of actually growing wealthy by following God's advice!
Jason Hommel
Silver Stock Report
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Over the weekend I heard a radio program discussing what should be done to fix the economy. It proved that America cannot be fixed before it collapses.
The interviewer asked random individuals what they thought the government should do to fix the economy. Every single person was of the opinion that the government needed to stimulate the economy with more spending. More frustratingly, many people said that consumers in general needed to be more patriotic and spend a greater portion of their paycheck to help the economy recover.
Strong delusion intoxicates America. I have never heard so many people sound so dogmatically self-righteous in their opinion that more spending—government and private—would fix things.
The argument was that if everyone just started spending more money, then more jobs would be created and America’s economic problems would be solved.
Sounds deceptively logical.
Gary Burtless, a former Labor Department economist, articulates: “We want to spend money. We want to create demand for businesses so that they want to add to their payroll.”
Ah. But there are two types of demand. There is the good consumer demand, powered by savings—and the other kind, driven by deficit spending. One is sustainable. The other causes bubbles, and ultimately bankruptcy.
In case there is any question, America is expert at the latter. And a blowup is looming.
Yet most Americans remain clueless. Burtless says the government should take advantage of its borrowing ability to stimulate the economy. “The world is willing to buy government debt, and the government—if it’s willing to spend this money—can create additional demand to put people to work,” he says.
What Burtless conveniently doesn’t say is what happens after the government has spent all its borrowed money. Or what happens when already-debt-saturated consumers further indebt themselves.
What lasting benefit will America receive for indenturing its taxpayers? Will repaving America’s roads make America that much more efficient? Will shinier Chinese-made bridges increase our productivity? Will the latest iPhone make workers more proficient (or, actually, more distracted)?
In reality, once the money is spent, America will just be back to where it began—only with a lot more debt.
In other words, America will be worse off.
The problem is that today, America is already worse off. Deficit spending has been America’s modus operandi for decades.
Remember the savings and loan crisis? The solution: Borrow money to throw at it. Dot-com bust? Borrow and spend more money. Housing bubble pops and banking sector fails? Borrow and spend even more.
Why is it so hard to connect the dots? The supposed solution is the cause.
The truth is that there is no easy way out of America’s predicament. America has spent tomorrow’s money. It has spent next week’s and next year’s money. It has spent its grandchildren’s money too. It has spent money it does not have and never will have.
In addition to the money America has stolen from its own children, it has also spent a couple trillion worth of China’s money. It has squandered several hundred billion worth of Japan’s. Saudi Arabia’s billions are long gone, as is the money America borrowed from Mexico.
Yes, Mexico—America has been reduced to borrowing tens of billions from a country that many Americans consider its poor, underdeveloped neighbor. America borrows tens of billions from Thailand too. And Malaysia.
And it has done this all in a vain effort to prop up an economy that is founded on over-consumption and debt—the opposite of what a stable economy should be founded on.
America has forgotten that it is hard work and savings—not deficit spending—that makes an economy successful. It is savings that drives investment. Savings drives growth. Savings makes prosperity possible.
Just look where the decades of deficit spending have gotten us.
Prior to defaulting on the gold standard in 1971, America was a nation of savers and producers. America was literally the world’s market place, dominating global trade and manufacturing. Consequently, America was a net lender, lending other nations far more money than it borrowed. And America’s middle class? The largest and richest in history. Employers couldn’t get enough workers.
But look at America now.
The world’s richest nation now finds itself in the ignominious position of the world’s largest debtor. The jobs are gone. Debt payments are draining the life out of the economy. And the dollar, which used to be “good as gold,” is now a debased and increasingly discredited currency.
Meanwhile, the “patriotic” consumer ignorantly continues the impossible task of spending his way to prosperity.
America is about to be crushed. Not just by debt, but by its ignorance. There are both economic and moral laws that when upheld result in prosperity—and America is breaking them all.
After making a new all-time high above $1,900, gold has plunged by $170 or roughly 9% in the past few days. Many factors have been blamed including the CME margin hike of 27%, money moving back into stocks or simple profit taking by funds to rebalance their portfolios after such a strong move. Others point to the routine take down of precious metals just prior to futures/options expiration.
Whatever the cause, this dip is likely to be short-lived and I fully expect a quick rebound in the coming days. The fundamentals continue to improve, central banks continue buying huge amounts, China and India’s demand grows unabated and gold could find technical support around the $1,750 level. If it drops too far below this level, gold could easily test strong support at the 50-day moving average of $1,625.
Short term predictions are folly, but I tend to think gold will find support well before $1,625. After being in overbought territory since the start of August, the RSI has returned to the centerline. While technically there is still room to fall, the last time gold corrected this much following overbought readings, it found support at the centerline.
Growing demand has been creating dips that are both shorter and less severe. Many of the ‘weak hands’ have strengthened and the demand is coming increasingly from long-term investors versus short-term speculators. Many newbie gold bugs are learning what the old timers have known for some time – the dips are nothing more than buying opportunities in a long-term secular bull market that is far from over. When others panic and sell, smart money steps up and buys at discounted prices before the next upleg begins.
This has happened like clockwork for the past decade and the trend will continue for some time into the future. Participation in the gold market remains anemic and both metals are still far from their inflation-adjusted highs, which I view as a minimum price target before this bull is done running.
The debt crisis occurring worldwide is not happening by chance. The system has a built-in design whereby the debt burden grows increasingly painful to the point where the banks and money-printers are able to accumulate and concentrate much of the worlds wealth and resources in their hands. In short, the debt can never be repaid, so real tangible assets are pledged by desperate countries in exchange for worthless fiat paper or via threat of violent force.
It seems that the fiat money system is destined to end in either default or hyperinflation, while the middle class vanishes and the gap between the rich and poor mushrooms wider. While it is hard to predict exactly when the breakdown will occur, it feels more imminent each day. I would like to think that our leaders might suddenly realize that the great Keynesian experiment has gone horribly wrong and return to fiscal discipline and sound money, but I am certainly not holding my breath.
I am buying this dip with both hands, picking up physical metals and select oversold mining shares. If you would like to see which stocks I am holding, receive alerts whenever I buy or sell and get my monthly contrarian newsletter, sign up for the Gold Stock Bull Premium Membership.
Jason Hamlin
Gold Stock Bull
August 24th, 2011
With Monetary and incipient Economic Hyperinflation and Equities Markets Deflation looming in our Future, typical Equities Market Opportunities will be on the short side as we move into 2012.
But further Equities Markets Take-downs should provide Magnificent Buying Opportunities in Key Sectors.
Above all, superb Opportunities will continue to exist in Gold and Silver and we urge Gold and Silver Bullion and Mining Shares Purchases. However, unfortunately, maximizing Protection and Profit in the Precious Metals does not reliably lie in Straight-out Precious Metals Purchases or Mining Shares Purchases (i.e. without regard to Timing or Asset Form). Indeed maximizing Profit and Protection via Precious Metals purchases, or indeed in the general Equities Markets, requires a Strategy.
1. Invest in Gold and Silver (and key Strategic Commodities), BUT, according to a Strategy designed to minimize the Effects of periodic Cartel Price Suppressions of Gold and Silver (and key Equities Sectors and Commodities), and, indeed, to Profit. Deepcaster has designed such a Strategy described in the following articles: “Defeating the Cartel... With Profit, Part 2” (6/19/2009) and “Defeating the Cartel... With Profit, Part 1” (3/28/2008) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com. And Deepcaster recently recommended two Precious Metals investments, both of which are resistant to Cartel Price Takedowns.
2. Take Account of overt and covert Cartel* Interventions; that is, take account of The Interventionals as well as the Fundamentals and Technicals.
See Deepcaster's articles: “Profit, Protection Despite Cartel Intervention -- Update (12/22/10)” and “Saving Investments, Sovereignty, & Freedom from The Cartel ‘End-Game’ (1/13/11)” in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
IMPORTANT NOTE: As indicated in the referenced Articles, much of the post-March 9, 2009 Equities Rally has been Cartel-generated.
4. Implement an Investment and Personal Protection Strategy designed to cope with, surmount, and profit from The Cartel’s ‘End Game’. See Deepcaster's articles: “Profit, Protection Despite Cartel Intervention -- Update“ (12/22/10), “Surmounting The Armageddon Scenario & Cartel ‘End Game’” (2/26/2010), “Crunch Time for the Cartel“ (11/25/2009), “Surmounting the Cartels' 'End Game' Juggernaut“ (9/25/2009), and “Coping with Power Moves in the Cartel's 'End Game'” (4/24/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
5. Implement a Strategy Designed to Profitably Escape Paper ‘Wealth’ and to Profit. Deepcaster’s Strategies are described in “Macro-Trends – Keys to Macro Profits in 2011” (1/6/11) and “Opportunities to Profitably Escape Paper "Wealth" in 2010” (3/12/2010) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
6. Become involved in Political action designed to blunt the Cartel’s Superpower-Threat and derail the Cartel’s ‘End Game’. See Deepcaster's articles: “Surmounting Cartel Advantages” (5/08/2009) and “Coping with the Superpower-Cartel Threat!” (1/30/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com. Work to defeat The Cartel ‘End Game.’ Deepcaster has laid out the evidence regarding the Ominous Cartel “End Game” in “Coping with Power Moves in the Cartel's 'End Game'” (04/24/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com. Clearly (and the recent U.S. Dollar bounce) The Cartel is sacrificing the U.S. Dollar over the long-term to prop up Favored International Financial Institutions and to maintain its power. But this sacrifice cannot continue forever. See “Avoiding The Trip to Q.E. Hades” (10/21/10) and Deepcaster’s July 2008 Letter in the ‘Latest Letter’ Archives at www.deepcaster.com.
7. For Americans, become involved in Political Action to Audit the Fed and U.S. Gold Reserves (see below) and stop the Amnesty (a de facto Border Elimination) of 25 to 30 million Aliens now illegally in the U.S. A. When this Amnesty was proposed in 2007, Robert Rector of the Heritage Foundation calculated it would cost $100 billion annually (net of Taxes paid by the Illegals) for Health Care, Education, Infrastructure, and Support Services. A recent estimate (see www.cis.org) puts this cost closer to $300 billion. The cost now would be even higher due to increased Alien population growth and entitlements in the new Health Care Bill. Carrying Capacity Network (www.carryingcapacity.org) is a nonprofit organization which actively supports Auditing the Fed and opposes the Illegal Alien Amnesty. With 125,000 work visas being issued to Legal Immigrants each month American Taxpayers should not have to suffer the additional burden of supporting Illegals, and American workers should not have to suffer the consequent wage depression and job loss.
Hard Assets Partisans have the opportunity to become involved in Political Action to diminish the power of The Fed-Cartel. It is truly outrageous that the average unsuspecting citizen, and prospective retiree, can and does put his hard won assets in Tangible Assets and/or Retirement Accounts only to have those assets effectively de-valued by Cartel Takedowns, U.S. Dollar Devaluation and other Cartel actions. This is extremely injurious to many average citizens in many countries who are saving for the rainy day or retirement and have their retirement and/or reserves effectively taken from them.
8. Develop an Investment and Trading Strategy designed to address all of the above. See Deepcaster's articles: “2011 Profit & Protection Essentials; Bubbles to Pop & Bullish Sectors” (12/30/10), “Avoiding Wealth Confiscation... With Profit!” (2/05/2010), “Profiting in "the whipsaw year" 2010” (1/08/2010), “Middle Class Outrage, Solutions, & The Markets” (12/11/2009), and “Protect and Profit Before the Coming Storm” (11/13/2009) in the ‘Articles by Deepcaster’ cache at www.deepcaster.com.
9. Make Select High Yield Equities Investments whose probable Appreciation plus Yield Exceeds Current CPI, now at 11.21% per Shadowstats.com**. Deepcaster’s High-Yield Portfolio contains 6 Recommendations with Recent Yields of 18.5%, 10.6%, 26%, 8%, 6.7% and 15.6% when we recommended them.
10. Work for Local, National and International Solutions, NOT Global ones.
In sum, the Key to Profit and Protection is a Strategy: Successful Investors must become Long-Term Position Traders, with their trading choices informed by the Interventionals, as well as the Fundamentals and Technicals.
Moreover, engaging in the Actions suggested above can help prevent The Cartel’s obtaining Superpower status, and aid in Profitably Surmounting Plutocratic Perfidy.
Best regards,
Deepcaster