Legacy signals
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People have a tendency to put their trust in other people. When you're in the market for a new car, for instance, you might go to a dealer that your neighbor or close friend raved about after they made their last new-car purchase. When you get there, you may still be indecisive, but a warm, friendly salesperson wins your trust and offers you 'the deal of a lifetime.' Before you know it, you're driving away in a brand new car.
And maybe you did get a great deal. Maybe not. Maybe you ended up paying a few hundred (or thousand) more than you should have because you didn't do your homework. In the grand scheme of things, what's a few thousand bucks out of your pocket? nnWhen it comes to your investments, however, that's another story.
We're talking about a lot more than a few grand here...in most cases, we're talking about your life savings.
Put your trust in one person (or company) and you could end up losing everything.
I wonder how many people lost everything but the shirts off their backs when the Lehman Brothers investment firm collapsed a few months ago.
A long-standing, reputable firm one day...bankrupt and facing lawsuits the next, leaving millions of innocent victims in its wake. Do I really need to run down the list of failures like Enron in the recent years? I prefer to be optimistic and point you into a positive direction.
The lesson here is that any time you put your money in people, you face a huge trail of 'what if's.' nn- What if the company doesn't have the right CEO, the right board and the right products and services for me and my money?
- What if the company isn't legitimate or isn't being completely honest with me?
- What if the company doesn't have my best interests in mind?
- What if my investment advisor broker/dealer doesn't have my best interests in mind?
Placing your money in people creates a chain of events that are littered with potential variables. All it takes is for one variable to be off (i.e. from a crooked CEO or fund manager to an investment advisor looking to sell you a product to earn the biggest commission) and your entire investment can go down the drain in the blink of an eye...taking your hard-ea
ed money with it. Just ask Be
ie Maddoff with his $50 billion dollar ponzi scheme.
Ginger Szala, Editor of Futures Magazine, comments in February's issue of Futures, '...makes me think all of Wall Street is built on a Ponzi scheme.' Meaning that all due diligence aside, you are still putting your trust into people. And people are not perfect and can deceive. Especially when it comes to money and greed.
Psalms 118:8-9
It is better to trust in the LORD than to put confidence in man.
9 It is better to trust in the LORD than to put confidence in princes. nnWhat does that leave, in terms of investments?
Quite simply, it leaves you with gold and other precious metals, which are going to retain their value much better than man-made products. It's going to take a lot more than a company bankruptcy or two to take down gold.
But don't just take my word for it...take a look at the Bible for proof of gold's worth. Exodus alone mentions the use of gold more than 85 times. If Jesus were walking the earth today, I'd be willing to bet that His views on the value of gold vs. man-made currency would be the same. Which do you think He would choose?
If you're not sure, take another look at your Bible. See how many times gold and other physical commodities are mentioned, and you'll have your answer. You'll also find out who owns it ...no man but God. 'The silver is Mine, and the gold is Mine,' says the Lord of hosts.' (Haggai 2:8)n nPutting your wealth in physical commodities is powerful, simple, and much safer than man-made investment options.
The population of people inhabiting Earth is constantly growing, and we will always need more natural resources, no matter how much we conserve and recycle. But the fact of the matter is that there is still gold and other commodities to be mined, more than enough to go around. Plus the liquidity of gold allows it to be turned into cash immediately, which is very powerful in today's market when cash is king. These days, banks are easily frozen, often closing their doors, and you couldn't get to your money if you had to.
With physical commodities, there is less room for error, less chance of corruption or devaluation (since people can't create commodities out of thin air) and a smaller risk overall when it comes to keeping your hard-ea
ed money safe.
In Zimbabwe, the money system has collapsed and people are suffering. Local merchants don't accept paper money any longer, so villagers spend all day, every day panning for gold just so they can buy food and basic necessities. People that are too old or sick to pan for gold go hungry and eventually die. nnhttp://www.guardian.co.uk/worldv/video/2009/feb/11/zimbabwe-gold-panning-starvation-foodnnWhile the American dollar hasn't collapsed (yet), we may be heading down that road. Wouldn't you like to safeguard your wealth in physical commodities that have stood the test of time?