American Silver Eagle

Investing in Precious Metals: A Primer

For thousands of years, gold and silver have been admired and considered valuable. More recently, other metals like platinum have been added to the list.

The value of these metals tends to increase over time, so it’s usually a good idea to include precious metals in your portfolio, but how? Which ones should you buy and how should you invest in them?

Read on to learn more about precious metals and your options for investing in them. There are several ways to invest in platinum, gold, and silver.

Gold

Gold is easily the precious metal with the most trading activity. The laws of actual supply and demand do not largely affect the price of gold. There’s a lot of gold above ground that’s simply being hoarded, for lack of a better term. When these investors and hoarders get the urge to sell, the price drops.

When they feel like buying, the relatively small new supply is used up and the prices are driven higher. The price is largely a function of emotion or sentiment.

Factors that increase the desire to own gold:

  • Global financial concerns. When the population largely considers banks to be unstable, gold is frequently used to store wealth.

  • Inflation. Gold has history of maintaining its value during inflationary times. When inflation is increasing, it can be a good time to invest in precious metals.

  • War and political issues. These issues have also increased the amount of gold hoarding. An entire life’s savings can be made into a very small and portable form.

Silver

Silver has much greater industrial use than gold, so its price is a function of both its current desirability as a means to store wealth and its use in industry. Because of this, the price of silver fluctuates more than the price of gold.

Silver is used in batteries, microcircuits, superconductors, and more. At one time, the photography industry used a lot of silver, but digital cameras have almost completely eliminated that demand.

Platinum

Platinum is much rarer than gold or silver, so it tends to cost more than either, but this isn’t always true. Like silver, platinum is used in industry. The main use is in automobile catalytic converters. Because of this, the auto industry largely determines the price of platinum through the level of auto sales and production.

Platinum is the most volatile of the precious metals.

Options for Investing

  1. ETFs. Exchange traded funds offer a very simple way to invest in precious metals without have to store the metals yourself. You can think of ETFs like mutual funds that own and invest in precious metals.

  2. Mutual Funds and stocks. There are plenty of options here, the most common being mining operations. The price of mining shares tends to move with the price of the corresponding precious metal.

  3. Futures and options. If you want to make big bets on precious metals, this is the ticket. These derivative products offer the opportunity for big profits and big losses.

  4. Bullion. This includes coins and bars. You’ll need a safe place to store it, but if you’re expecting the worst, this is the best option. However, coins and bars aren’t as liquid as the other options.

  5. Certificates. These provide all the benefits of bullion without having to store it. But don’t expect to trade your gold certificates for anything of value if there’s a global economic disaster.

Precious metals are worth consideration for every investor. They offer excellent protection against inflation. They also have a very low – and even negative – correlation to many other investments like stocks and bonds.

Even a small investment in precious metals can reduce the volatility and risk in your portfolio. Look into precious metal investing and see if it makes sense for you.


When you subtract out the sleeping time, commuting time, working time, and time for things you have to do each and every day of your life, almost all people don’t have more than one or two hours each day to do what they like to do. And if they had the time, would they have the money to do it?

We have discovered a way for you to learn how to “Own Your Life” by building a home-based business and we have a system for doing it that is so simple anyone can do it. It doesn’t require selling, and the best part is it won’t take much of your time either. This System will work for any and all companies.

We’ll give you a FREE REPORT that will layout the basics of how to build a profitable home based business without doing any selling.

— Joe Jepsen
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table with computer that says just start

Why it’s Important to Start before You are Ready

How long have you been waiting to begin pursuing your goal or dream? Most people are stuck in a perpetual mode of waiting. Everyone is waiting for the exact perfect moment to finally pull the trigger and get started. This is a huge mistake. The perfect time is right now.

Time is more important than timing. Avoid wasting time instead of focusing on the getting the timing just right.

Consider these ideas to begin acting on your plans today:

1. You’ll never be ready. We love to stall. It’s in our nature. If you wait until you’re ready, you’ll still be waiting on your deathbed.

◦ Do you know what the first step is? That’s all you need to know. Just do it and you’ll figure out the rest along the way. It’s like walking up the stairs. You only need to see one step at a time to make it to the top.

2. The perfect time will never happen. Again, you’ll be waiting until your funeral. There will never be a good time to get started. There will always be a viable excuse. All of the variables will never be in perfect alignment. The most perfect time you’re going to get is right now.

3. The sooner you get started, the sooner you can be successful. The advantages of getting started now are numerous. Perhaps the most relevant is the fact that you can achieve your goals sooner. The sooner you begin any journey, the sooner you reach your destination.

4. Your natural tendency is to wait too long. We always wait too long. When is the last time you did something too soon? Everyone else is waiting. Be the person that doesn’t wait. Fortune favors the bold, so be bold.

5. Your natural tendency is to value information too much. We want to know everything there is to know before we take the first step. Unfortunately, we can’t know everything. Life sometimes unfolds in unpredictable ways. You know more than enough to get started. Just do it.

6. The most successful people make decisions quickly and stick with them. The least successful people are terrible at making up their minds. They’re eternally conflicted for a variety of reasons, primarily fear. Give yourself a time limit to make a decision and then run with it.

◦ A decent decision, made quickly, that you stick with, is better than a great decision, a year from now, that you can’t maintain.

◦ Practice making decisions quickly and moving forward with them. This is a great habit to develop.

7. The sooner you take action, the more you’ll learn. Action leads to results. You learn something each time you get a result. You’re not producing any results while you’re sitting around waiting for the perfect moment to act.

8. Action leads to inspiration. Most people falsely believe that they’ll take action when they feel inspired. But the opposite is true. Action leads to inspiration. Inspiration leads to even more action.

Why are you waiting? The most honest answer is fear. If you never get started, there’s still hope, since you can’t know for sure that your plans won’t work. If you never begin, you can’t fail.

However, the opposite is true, too. If you never get started, there’s no real hope of anything better. If you never begin, you’re guaranteed to fail.

Take a deep breath and get started today. You’ll never be 100% ready or comfortable, so you may as well begin right now. Now is the moment to change your life.


When you subtract out the sleeping time, commuting time, working time, and time for things you have to do each and every day of your life, almost all people don’t have more than one or two hours each day to do what they like to do. And if they had the time, would they have the money to do it?

We have discovered a way for you to learn how to “Own Your Life” by building a home-based business and we have a system for doing it that is so simple anyone can do it. It doesn’t require selling, and the best part is it won’t take much of your time either. This System will work for any and all companies.

We’ll give you a FREE REPORT that will layout the basics of how to build a profitable home based business without doing any selling.

— Joe Jepsen
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Federal Reserve Bank of Cleveland

Money From Thin Air – The Fractional Banking System

The Origins of Fractional Banking

The fundamental idea governing the fractional banking system dates back to medieval England. Between 1000 and 1100 A.D., money lenders, who were at that time referred to as goldsmiths, secured the people’s gold and silver in their vaults. With each deposit of gold or silver, the depositors were given a paper receipt designating the amount that they had entrusted to the goldsmiths.

These receipts began to acquire a value of their own and function as the currency of choice, as the people, quite naturally, preferred the convenience of carrying paper receipts rather than hauling around cumbersome sacks of gold and silver. Aware of this and the fact that the depositors rarely returned to the vaults to withdraw the full value of their deposits, the goldsmiths started to loan the receipts out to customers and charge interest on them.

As long as they had sufficient reserves in the vault to satisfy the withdrawal demands of their customers, they could profit on the interest earned from their loans. The issuance of these loans, however, was not backed by silver and gold that the goldsmiths actually had inside their vaults.

Given the improbability that all the depositors would at one time come to withdraw their savings, the goldsmiths essentially inaugurated the system of fractional banking, whereby they maintained only a fraction of the total amount of the money that they had actually loaned out. Simply put, because the paper receipts were seen as legitimate currency, they were able to loan out money that didn’t exist in the hope that there wouldn’t be a run on the bank.

Highlights in the Historical Development of Modern-Day Fractional Banking

Once this idea gained momentum and was accepted as a viable form of money circulation, a long power struggle ensued between bankers and government officials.

A man by the name of Amshall Moses Bower, perhaps better known by his businesses moniker, Rothschild, was responsible for bringing the benefits of fractional banking to bear upon governments and kings as opposed to simply restricting it to individual investors.

The Bank of England was also very much a creation inspired by the same ambitions motivating the Rothschilds. Far more money was able to be made when the tax revenue of an entire country was used as collateral and the interest accrued from the issuance of huge loans greatly enhanced the bankers’ power to loan out prodigious sums of money.

Before the American Revolutionary War in 1776, the colonies had been printing their own money and using it in a way that reflected the true nature of the laws of supply and demand.

When King George III began worrying about paying back England’s mounting debt to the bankers as a result of the wars England had been engaged in, he was forced to exact a heavy taxation on the colonies and to prohibit the use of Colonial Script, the legal tender being used in the American colonies. Benjamin Franklin attributed the war’s primary cause to this event.

President Abraham Lincoln demonstrated his disapproval of the system when he started having ‘green backs’ printed to finance the Civil War. Most of the powerful financial institutions in Europe were threatened by the prospect of a united America and therefore wielded their power in influencing the way the war would be financed.

Lincoln was faced with prohibitive interest rates when he went to New York in an effort to secure loans for the war effort. It was after his rejection of the terms, that he went on to print the greenbacks with the approval of the Congress. Seeing the success of the American government’s own issuance of legal tender, the European bankers harshly chastised Lincoln’s system in the media, resulting in the eventual creation of the National Bank Act which forced the government to offer bonds to the banks so that they could in turn use them to secure bank notes.

The government bonds backed the bank notes. In other words, it was a way to impose the fractional banking system on America and give commanding power to the national banks. Lincoln had resolved to repeal the National Bank Act and return the economy back to one based on the government’s issuance of money but was assassinated shortly after his re-election.

How the Federal Reserve Controls Money

Following Lincoln’s death the struggle for who would control the flow of money, the government or the bankers, waged on. It wasn’t until 1913, when the Federal Reserve Act was created that the system we have today was firmly set in place.

Essentially, the act put the power of money creation into the hands of the Federal Reserve. Their primary function is to loan money out to private banks, whereby they can control the circulation of money and the rate of inflation. When they want to expand the economy, they set low interest rates in order that more loans can be secured.

The reverse happens when they wish to slow the economy down, namely, through the raising of interest rates. This whole process is built on the Fed’s purchasing or selling of U.S. securities on the open market. To pump more money into the economy, the Fed buys the interest earning securities from the public and in contrast, sells them when they wish to contract the market economy.

The more money in circulation translates into lower interest rates and vice versa. The Fed also sets the fractional reserve levels for the banks and uses this power to further control the supply of money. This system is played out on a global scale through the central banks’ control of monetary policy in a majority of other countries.

How Today’s Fractional Banking System Works

The basic premise of the current fractional banking system, namely the creation of phantom money, is relatively the same as the one used by the goldsmiths in medieval England.

To illustrate, a person deposits $100 into bank A. The reserve requirement for banks is 10%. This in turn means that the bank is required to keep on hand at least $10 of the $100 that the person deposited. The other $90 can be used by the bank to offer loans or to enter into other investments. If the bank decides to loan that money out, then the loan recipient will of course be charged interest.

Now, let’s say the loan recipient writes a check of $90 using the loan money, that money will then be deposited into another bank, bank B, by whoever received the check.

Bank B is entitled to loan out $81 or 10% of that $90 deposited. As this process continues, the original $100 will have ultimately created $1000 in money. Imagining this taking place on a much larger monetary scale and on a daily basis, one can see how the fractional banking system has served to create an entirely virtual reality of financial transactions.

Thomas Herold is a successful entrepreneur and the founder of Wealth Building Course [http://www.wealthbuildingcourse.com/]. A powerful financial education training that teaches the basic steps to become financial free and create lasting wealth. Get your free ebook ‘Building Wealth’ now.

Article Source: http://EzineArticles.com/4759505


When you subtract out the sleeping time, commuting time, working time, and time for things you have to do each and every day of your life, almost all people don’t have more than one or two hours each day to do what they like to do. And if they had the time, would they have the money to do it?

We have discovered a way for you to learn how to “Own Your Life” by building a home-based business and we have a system for doing it that is so simple anyone can do it. It doesn’t require selling, and the best part is it won’t take much of your time either. This System will work for any and all companies.

We’ll give you a FREE REPORT that will layout the basics of how to build a profitable home based business without doing any selling.

— Joe Jepsen
Continue Reading