The 2 Secrets of Wealth Creation

This information is being written for a cause. It is information to make you more savvy about your pocket book. What do I mean by that? There are only 2 really valuable assets people can have and one of them is NOT a savings account at your bank. Savings accounts are useless because of the low interest rates. I know you likely understand this, too. It’s why I don’t have a savings account.

Let me explain the first valuable asset before moving on to the second one because the second most valuable asset will astound you! The first really valuable asset you can have is real estate. Look all over the internet and you will find millions of websites ready to teach you how to buy and sell real estate to make a fortune. That is one way to go and most people understand that. After all, “home” is a most basic survival need.

You don’t have to be an investor to use real estate as a hedge against inflation. Advice: Plan future security by simply finding a home you love and live in it for 5 or more years. The longer the better. Our grandparents often chose a home and lived there for life. By the time they retired, they had a secure nest egg since their homes were likely paid for and the value had increased over their lifetimes.

In recent years, home owners have sucked the life out of their homes’ equity with home equity loans. This is a bad idea. The equity in your home is not there for paying off bills, making large toy purchases or going on vacation. It is there to secure your future. When you get an equity loan, you have reduced your future to rubble.

There is another, better way to create wealth for retirement, college fund for children, and your personal disaster fund. It is through commodities. Now don’t stop reading… Hang in here with me because I’m going to explain something that took me decades to understand. Why did it take that long? Because I had absolutely no interest in learning the complexities of stocks, bonds, mutual funds. These are only a form of gambling. And I regarded commodities the same way because commodities are usually traded in the stock market. I bet you’re a lot like me. But then one day, my son explained something about gold and silver and I “got it”! Now, I want you to have the opportunity to “get it”, too.

First, let’s start by reviewing what you already probably know. Stocks and currencies are easy to buy and sell. Most people lose money investing/gambling in stocks and currencies because of how quickly the market changes. The old axiom was for peole like me, who are not “day traders”, to just put money in and don’t look at it again. Well, this doesn’t work, does it? A whole lot of people put money into IRAs that were tied to mutual funds that were tied to stocks and now those people have lost not only the money they thought was accumulating, but also many lost the original money they put into the IRA. It is plain this strategy doesn’t work. And for me, a person with no money in the stock market, this was a good lesson and I was glad I never got involved in the stock market.

Commodity trading is just as dangerous and not something I recommend. So, why did I just say commodities can help you create wealth for retirement, college fund for children and your personal disaster fund? It is because only a particular type of commodity is what I’m talking about.

Let me explain commodities so you will have the same epiphany I had. What is a commodity? It is the stuff that comes out of the ground - pure and simple. All kinds of stuff comes out of the ground. The ingredients that make food is a commodity: Wheat, corn, oats, soybeans, etc. Oil is a commodity. Gold, silver and platinum are commodities. Here is a little secret for you to mull over: The truly wealthy people of the world are more heavily invested in commodities than anything else.

Most people can’t store commodities like grain and oil. That is why the best commodities are precious metals especially gold and silver. Ta-dah! The kind of commodity I’m touting here is gold and silver. The average person can create wealth by acquiring lots of gold and silver over time since gold and silver comes in the form of coins and everyone can store these.

Why is gold and silver such a good asset? It is because gold and silver has something called “intrinsic value”. Intrinsic value is different than “monetary value” in that the intrinsic value never changes, but monetary value does. Monetary value is always based on a currency and currencies always change in value, but the intrinsic value never changes.

Let me show you how this is true. In 1963, 1 gold coin would have purchased a nice, good quality suit. The monetary, or dollar value of a suit in 1963 was less than $100. Today, the monetary value of the same, excellent quality suit is almost $1,000. One gold coin will still buy you a good quality suit.

Example 2. In 1963, 2 silver coins would fill your car with gas at $.29/gallon. Today, 2 silver coins worth roughly $20 each will still fill your car with gas at $2.50/gallon or about $40 per tank.

See what I mean? The cost of men’s suits and gas for cars has risen, but the value inherent in gold and silver coins has remained the same. Do you understand that this means if you start buying gold and silver today, you will never have to worry about rising prices? This is an astounding piece of information that is never taught in schools, colleges or anywhere else for that matter, except in TV ads!

It is true that you can’t use silver coins to pay for gas or gold coins to pay for a suit because merchants no longer accept metals. However, the values still remain the same. To buy your suit for 1 gold coin or your gas for 2 silver coins, all you would need to do is visit the coin dealer, sell your coins to him for dollar currency and go buy your suit or gas. Advice: Don’t spend your hard-earned gold or silver.

My philosophy is this: Own a home where you can do as you please (grow food in or on the ground such as vegetables and chickens) AND have a supply of gold and silver coins. If you do this, you will be set for the rest of your life.

Most people don’t know the 2 simple rules of wealth (own your home and have a supply of gold and silver coins). They think securing their future is difficult and costly because the “system” has taught them this. It is not true! It is possible to own a home and acquire gold and silver coins so that when you reach retirement age or have a catastrophic even in your life you will not have to worry.

This is what your savings plan should look like if you’re desperately poor: Set aside $5 per week. That is one McDonald’s meal. At the end of the month, you will have $20. Go buy a .999 fine silver coin with it. Today, January 26, 2010, silver price is $16.86. That means you will have a few dollars left over to add to next month’s silver purchase.

Those with more money than a desperately poor person can institute the purchase of silver more easily on a monthly basis buy buying 5, 10, even 20 silver coins each month. Then, keep adding silver coins every month until you’ve saved about 65 coins. Next step: Convert the silver coins to one gold coin and start the process all over again. The reason to convert to gold is to keep from using up space storing coins.

There is a perk to owning gold and silver. You get to see it and touch it. It is not just a number on a monthly statement. It has REAL value that you get to control simply by deciding how much you want to own!

This is my passion…Teaching people how to have the life they want in these 2 simple ways: Homesteading and owning money that truly IS money! That is why I am a Realtor. I can help people get halfway to their goal of having a secure existence. Thus, the reason for this article.

This entry was posted on 01/24/2010 at 16:29 and is filed under Advice For Buyers, Advice For Sellers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.