Interviewed Wednesday by King World News after the Federal Reserve chairman’s press conference, Euro-Pacific Capital’s Peter Schiff remarked, “Whenever Ben Bernanke opens his mouth you want to sell anything that is related to the United States.” Indeed, gold and silver investors watching the TV screen with one eye and the gold and silver futures screen with the other were probably shouting, “Wait! Keep talking, Benny!,” as Bernanke walked off the stage at 3:15 p.m. Eastern time. But as much as Bernanke and the financial establishment are building the fundamentals for the precious metals, they are also engineering the ruin of a great country. Click HERE to read excerpts from Schiff’s interview. And I highly recommend you read Peter Schiff’s book, Crash Proof.
So, is the dollar going to survive during this decade? Those unfamiliar with the fundamentals of macro-economics may be inclined to say “yes”. Reality is that the national debt is unsustainable and the dollar is on the verge of losing its world reserve status. Keynesian Economics practiced for the past decades is clear that is not working. The decline of the dollar is associated with potentially a major loss in the purchasing power and this is the time to take the bull by the horns and position yourself to not only survive but to thrive.
So, how do you do that? In times such as these converting your dollars into tangible assets may be one of the smartest things in your life. Silver, gold, and other commodities are very desirable. Forget about the optimists that say we’re on the path of an economic recovery and don’t buy into the idea that gold or silver are in a bubble phase. The value of these commodities is being suppressed due to the avalanche of paper gold and paper silver created by Wall Street.
Real estate is another hard asset that if bought today in the long run will make you a happy camper. There are many ways to invest in real estate, you can do it as an active or a passive investor. You can buy the real property or you can invest in a fund that invests in real estate. Whatever your level of comfort is go for it.
When making the decision assess the opportunity by the following factors and ask yourself…
- does it generate substantial revenues during good times and bad times?
- is it made out of real assets that don’t vanish?
- does it maintain its capital value?
- does it keep up with inflation?
- is it made out of assets that satisfy one or more human needs (housing, food, energy, means of exchange)?
- can it be passed on to heirs and generate passive income for them?