Charlie's Bullet Point Presentation on Why You, the Single Dude, Should Buy Precious Metals

Precious MetalsHi there dudes, and welcome to another week in this crazy world we live in. While it may appear to the casual reader of our blog that all I like to do is smoke weed, party, and spend time with beautiful, exotic (and fit) foreign women, the successful execution of the Charlie lifestyle is contingent on some serious planning and a very pragmatic outlook of the world. I’ve put a lot of effort into making my life exactly the kind of life that I want to live and I want to maintain my standard of living and happiness even if external circumstances beyond my control change.

And changing they are. The more I pay attention to what is happening to the world, the more I am convinced that a major shift has already begun which will drastically change the world as we know it and many many lives will be ruined as a result. A financial tsunami is coming soon to the world that will wipe out fortunes, destroy governments, impoverish billions, and eventually lead to war as the global elites clutch at every available straw to try to maintain power and avoid the inevitable effects of their own evil, greedy, irresponsible, and retarded actions.

I’m no activist. My personal view is that nothing can be done about this by you or me, through politics or any other method. The dominoes are already falling and the people running the world have let things slip beyond their control. So now the question for the single dude is what can one do as an individual to protect oneself from what’s coming?

That’s not an easy question to answer as everyone’s individual circumstances vary. The best answer I can give is a basic one: Pay attention, be prepared, and stay flexible. Be ready to react before it’s too late. For some people, that means living in a survival cabin in Wyoming surrounded by guns and canned beans. Others are looking for foreign passports and safe corners of the world to retreat to. I’m not quite at that stage yet, but I keep an alert eye on world and national developments and am in the process of streamlining and simplifying my life so I’m as ready as possible to deal with different scenarios. As they say, he who panics first panics best.

The number one thing I have been doing is getting my financial house in order, and the number one thing involved in that has been pulling my money out of my IRAs, brokerage accounts, etc, selling unnecessary possessions, and buying gold and silver. This is the point of this article and while everyone is in a different personal situation, I think everyone reading this article should be buying precious metals now. This is a one-size-fits-all move that really will be a good move for everyone.

In my regular life I have been going around proselytizing on this issue to my friends, family, and colleagues, and I’ve developed a little multi-point presentation on it that has actually started to become somewhat successful, and I’d like to share it with you, our loyal readers. So without further ado, here is Charlie’s Bullet Point Presentation on Why You, the Single Dude, Should Buy Precious Metals.

1. Metals are a hedge against inflation. The topic of inflation really deserves its own article, so I’ll keep this as brief as I can. The major governments of the world are in debt up to their eyeballs. Check out this world debt clock from the Economist. Anyone who can actually do 4th grade math (which apparently does not include our political leaders or central bankers) can see that there is no chance that this debt can be paid off, ever, especially considering that governments are borrowing money at a faster and faster rate. The United States, for example, continues at add 1.3 trillion dollars to its outstanding debt every year. On a budget of 3.5 trillion, that’s a 37% yearly deficit. The equivalent for an individual would be if you made $50,000 every year and every year spent $68,500. How long would that work out for you?

There are only 2 possible ways out for these world governments. Default outright on these debts or print up a shitload of money out of thin air and pay the debts off that way. That’s what’s happening, now, and as the debt continues to rise, the money creation will as well. This results in inflation. I know the US government says that inflation is steady and low right now, but they’re lying. Check out John Williams’ excellent site Shadowstats.com for non-criminally-lying versions of the inflation numbers and you’ll see what I mean.

Here’s a chart of the central banks’ of the world’s balance sheet growth since this latest round of wordwide money creation:

This, dudes, is inflationary to say the least.

Inflation is disastrous to savers, people on fixed incomes, and poor people who are much more susceptible to changes in global food prices. And for you, the single dude, this inflation has the same effect as a thief who comes and steals money out of your bank account. As the value of the dollar goes down, the purchasing power of your nest egg goes with it. This is always what happens with currencies that are backed by nothing.

Gold and silver are your protection against inflation. There is a finite amount of those metals in the world and asshole politicians can not just create them out of thin air. An ounce of gold will still buy you what it buys today (or more, as I’ll explain later) years from now, when the Euro has gone the way of the dodo and the US dollar will be more valuable as toilet paper than as money.

2. Metals have no counterparty risk. Investing in regular paper investments is also very dangerous today because of the enormous fraud present in the financial sector. In my opinion, pretty much everyone running the world’s big financial institutions are complete criminals who will do whatever they can get away with to steal as much from the rest of us in the world. And since the government is 100% bought and sold by these asshats the amount of fraud that these guys can get away with is pretty much unlimited. Trust me, if Goldman Sachs can steal your money, they will. When the financial tsunami comes, unleashing the destructive power of quadrillions of credit and currency derivatives that nobody actually has the cash to pay for, the bankers will grab all they can, looting the store as they are burning it to the ground. Then you and all the regular investors will be just more screwed creditors in line at bankruptcy hearings. Good luck getting your money back then.

Every paper investment has a counterparty, in other words, someone who has promised you some asset in exchange for this piece of paper. If they go belly up, you lose. But gold and silver have no counterparty. They are the asset, and you can hold it in your hand, and insist it not be taken from you without the use of force. Now, that also may be coming in our New America, but in a later stage. Having the physical gold (please, please, please do not invest in paper gold certificates that are just as fraudulent as the rest of the system) puts you a big step ahead when the shit is hitting the fan. Gold quite simply is the only investment vehicle that has never defaulted on its creditors.

3. Precious metals have value independent of political or geographical distinctions. Whether or not the USA or the Eurozone continues to exist, your gold and silver will always have value. Try that with paper money from Weimar Germany, or Zimbabwe. If the Eurozone fails (which it will, very soon) that currency will be worthless, but gold bought today with those Euros will still be just as valuable, in every country in the world.

4. The fraudulent paper market for gold and silver means that metals are much cheaper than they should be. Just like every other investment category, the asshole bankers have created a totally criminal ponzi market for metals as well. Just trust them, they have gold in some vault somewhere and if you give them money, they will give you a piece of paper saying you own a bar of that gold in their vault. Riiight. Then they go sell paper rights to that same bar of gold to 100 other people. This has two results. First of all, it creates a whole lot more “investable” supply than actually exists in the real world, which according to my Econ 101 textbook drives down prices. As a result, it creates the situation where actual physical metal is worth much more than the paper version.

Stupidly, the metals dealers still sell physical metal quite close to the paper price. They are just interested in the spread between what people buy from and sell to them, and therefore you can today buy physical metal for much less that they would cost if the supply of gold and silver investments was the same as the actual amount of the metal that actually exists above ground in the world. You can imagine what will happen in a financial panic, when people lose their faith in the system and start asking for physical delivery in place of their paper certificates. Single dudes like you and me with physical gold in our possession will be in an extremely strong position.

5. There are significant tax advantages in metals. This loophole will be closed eventually, but nowadays I can walk into a coin shop, buy $9,999 of gold with cash, and walk out with my gold, no ID, no paperwork. If the price were to change I could walk back in and sell $9,999 of gold back to them, no ID, no paperwork. Not that I’m selling my gold, but one day I might. Now, of course, I am not recommending tax evasion. You owe it as a good citizen to give the money you busted your ass to earn to the government so they can spend it on bailing out Wall Street criminals and waging war all over the world. Please pay your taxes, dudes, it’s the right thing to do.

6. Another loophole is the difference between face value vs real value of gold and silver. For example, a 1 ounce US Gold Eagle has a face value of $50 but the gold is worth much more. This discrepancy might come in handy at some point if you were crossing an international border and didn’t feel filling out a bunch of paperwork about the more than $10K of cash you were carrying. At $1600 an ounce, $9000 of Gold Eagles would be worth $288K. Just saying, that might be useful at some point too.

7. Unlike gold, silver has an industrial value in addition to its monetary value. It is used for hundreds of uses in very small, virtually irreclaimable uses from electronics to photography, and is essentially being used up. Trust me, over the next 20 years, there is going to be more demand for gadgets in China and India and they will need the silver to make it. I personally believe that gold is a great way to protect your assets but silver for this and other reasons is a potential home run investment.

So there you have it, dudes, my bullet point presentation on metals. I hope I convinced at least one person to pull the trigger and cover their ass. It’s very easy to find good dealers and a cinch to order, you just make an order online, send them a check, wait a week or two, and then FedEx shows up with a box of shiny, real, inflation-proof, counterpary-free, portable, universal wealth. Or you could go to the local coin shop. Just check out the Better Business Bureau report on your dealer and make sure they are A+ rated (although the BBB ratings are becoming more and more meaningless daily… Goldline has one and you don’t want to buy from those assholes!).

If you’re convinced, don’t wait too long. The price of gold and silver have remained relatively stable of the last year, even as the ECB has added trillions to its balance sheet and the world financial situation has worsened significantly. There will be a day when there is no physical gold available at the paper price. Start covering your ass now.

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28 comments to Charlie’s Bullet Point Presentation on Why You, the Single Dude, Should Buy Precious Metals

  • Mike

    I have always believed in gold and silver as stores of value and made big investments in both (physical not etf or stocks) as soon as I had money to do so (2007-2009). But I have bought very little since then and I think someone needs to remind dudes that with gold you need the price to keep going up for it to be a good investment, which eventually, it will not. The fact that gold is mentioned on a single dude travel web site tells me we could be close to a top in gold.

    Now I am not selling any of my gold yet because I want to wait until taxi drivers and other dimwits start buying gold as a cant lose investment or out of desperation before I sell any gold because that is the type of activity that signals the top, but after you have a decent amount of gold stashed away for Armageddon you now need to look for cash flow and capital growth. Gold will not do this for you.

    Assets that produce cash flow are what you really want if you want to go from single travel dude to rich travel dude who doesn’t have to work to afford that central pad in Latvia or wherever. Gold does not pay interest, rent , dividends, or coupons. It is more like an insurance policy than an investment. Assets that produce reliable cash flow are the holy grail of investing and those investments do exist if you spend as much time looking for them as you do for pussy. Single dudes of this blog I feel like I am just a few years ahead of you, and you will learn the same lessons as I, but you are on the right track.

    • Gold has a long way to run and it will continue to run as long as no solutions to the systemic problems in the global financial system are made and rampant money printing of all the major currencies continue.

      How many people do you know that own even one ounce of gold? Do you know how much gold exists per person?

      More power to you if you know where exactly to put your money that will produce “reliable cash flow” over the next 10-20 years of chaos right now – I don’t. Please do share because your crystal ball is better than mine. Real estate certainly won’t be it the way many people claim in many parts of the world. For example: shelter (i.e. a home) is kind of a necessity but the way an average American thinks about a single family home is shelter for 20 or 30 people in other parts of the world. So if you think a luxury condo will yield “reliable cash flow” it might, but it’s far from a guarantee. Depends where it is and how things shake out over the next few years.

      If you are amassing wealth and insuring that you won’t lose it (as we are) you will be able to invest in those “holy grail” investments as soon as they become apparent. I generate income by working, I store it in gold until I see something I want to invest in. Virtually everything seems overpriced to me right now except precious metals and maybe some other commodities. In the next big collapse (soon!) it’s likely that everything will be on sale.

      You sound like you far underestimate the ramifications of black swan events as most people do.

      • We all should be very careful about making assumptions that there will be a time when everyone will be panicking and buying bullion. Vast amounts of bullion are being bought right now. You could call it stealth buying. Only a small 1% increase in bullion sales should be enough to ensure that NO-ONE will be able to buy Gold and Silver again.
        Also, people are so ignorant, that many, even when told about bullion, will not purchase it annyway. Things have changed so much.

  • ManWithGoldenGun

    I sell gold and silver to clients for a living, and my take on safe deposit boxes or foreign storage accounts is to tread lightly. With a safe deposit box, you are essentially trusting your investments with a large financial entity – BOA, Chase, HSBC etc. In the event of some global financial catastrophe followed by banking holidays, your assets could be at significant risk.

    While foreign storage accounts are great for keeping your assets outside the reach of the U.S. government, any account valued over $10,000 dollars you would be required to report under FBAR come tax time – this only applies to U.S. citizens.

    Storing your assets on your personal property in a safe, with a few firearms in the house to back it up is more than sufficient in my opinion. If you have a private overseas residence, you should really ship your bullion to that address and buy a safe there. This way, you have metals outside of the country and as they are not being stored in an “account” you would not be required to report these assets to the IRS.

    If I had a residence in HK or Singapore, this is what I would do.

    • I’m not sure a foreign safety deposit box counts as an “account” and since the scumbag schmucks in the Fed and the government often go to great lengths to claim “gold is not money” I’m not sure if it qualifies. Anyway – who’s going to know?

      If you’re well armed and have a safe on your property great. But I’m not sure about putting lots of valuables in a safe in an empty second home abroad. How will you know if it’s robbed?

      • ManWithGoldenGun

        Under FBAR, a foreign safety deposit box may not be considered an “account”, however if you have assets stored overseas in excess of $10,000 dollars it puts you in something of a grey area with the IRS. I would absolutely prefer to remain on the up and up with them, considering they can take away everything I have and ruin me financially in a heart beat.

        We work with a Swiss company that provides storage for clients in Swiss vaults, this firm has no U.S. presence and only works through our company. While the storage firm does not report clients holdings, to any government body in the States or Switzerland the onus is on the client – typically U.S. citizens – to report these assets.

        Not to say that there is no risk by storing your in a foreign residence, there is an equitable amount of risk regardless of if you store your bullion in your house here in the States or in Hong Kong. Just a means to diversify your risk and to keep your assets and keep them someplace more hospitable to free trade and restricted govt action.

  • Lord Koos

    The nice thing about keeping gold in your mattress is that when there is a run on the banks and they close them down for a week, you can still get your money.

    As far as moving gold around, there’s no problem. Even small gold coins hold a lot of value, so I travel with a few British sovereigns, just mix them in with some other coins in a zippered pocket of some clothing that is in your bag, run the bag thru security, no problem. The x ray machine can’t tell the difference between a gold coin or a copper penny. I figure about $1200-2000 worth of gold could get me out of most situations if things go south. Carrying around more than a couple of ounces isn’t really practical though.

  • Richard

    Very true, I only wish I had some “dollar” to invest. Poor student D:

    • You can buy silver in any amount and it will be a good idea. $50 a month invested in silver is much better than nothing.

      • ManWithGoldenGun

        I second this. When I first started buying silver I was a pizza delivery boy in my second year of college. Even if you only get an ounce or two at a time, having some silver is better than having no silver.

  • AnythingBut Ask

    Hey! HONGKONGDUDE! You`re my Bro! Its nice and refreshing to meet someone here who is totally clued-up! That polygamy thing. “Rock on Harry”! Three to Four birds for every man universally around the world, so help yourself.

    Problem. It is always assumed that Gold and Silver will be sold back at a later date. This may never be true because the financial system will be broken for years, and you have forgotten about the ravages of world war 3 and what it will do. Therefore, when it comes to bartering, Precious metals are the bling – if you want to sing!

    Also, it is assumed that there are likely shortages of Silver 20 years from now. The problem is, WW3 and the present financial crisis is going to bring an end to all precious metal supplies within the next two years. If you ain’t in now, you won’t be. See, the real problem is, ALL BANKS ARE BROKE!!! It does not matter how much money one throws at any bank, even multiples of Trillions, the banks will never be solvent again.

    Also, you have heard of peak oil, well, most of the major Gold and Silver mines have surpassed their peak production. That includes the largest mines in South Africa, Poland and Mexico, methinks. (I may have made a mistake here with Mexico, which should have been Australia).

    Also, Deposit banks are not safe places for bullion. If you check the small print in deposit banks from Switzerland, UK and I am not sure which others, you will find that,

    (small print summary)
    “In event of some emergency of whoever’s making, ___________, you have no rights to your personal property, which just wonderfully automatically defaults to us – anyway”!

  • Hongkongsilverboy

    So let me get this straight…you are buying silver and gold because you don’t trust the government and the banks, and then you turn around and store your metals IN the banks. “smooth move Ferguson”. Research what happened to the gold inside safety deposit banks in the USA during in the 30’s confiscation. Research how already safety deposit boxes have been raided in the UK and any cash, jewelry, or metals were considered potential “drug money” and confiscated. “if you don’t hold it, you don’t own it” is the best policy. Besides, when the bank holidays do come, good luck getting to your metals even if they aren’t confiscated.You’re better off storing the metals in random storage units in other countries, but NOT in the banking system!!!

  • Shameful

    You guys look into stashing part of in a safety deposit box, in say Austria? Still trapped in US pulling out what I see as easy money but I’d like a fall back net egg.

  • Daniel

    I had already been thinking about picking up some more physical PM for the last couple weeks. After seeing this post this morning it was just the incentive I needed to go and pick up a few more bars for my stash.

    Really loved the tip about being able to move the $50 gold coins across borders, you guys are awesome!

    • > Really loved the tip about
      > being able to move the $50
      > gold coins across borders,
      > you guys are awesome!

      I myself am paranoid that’ll change, but you’re dingdanged right that’s important.

      As I understand it, when it comes to carrying out gold, there are actually TWO forms you’re supposed to fill out, from two wings of the government. The trick, though, is that most airports don’t do the one about VALUE, rather than the more common FACE value one, which of course is the one we want.

      So if you’re making off with serious bucks, ask around about that and fly out of Dayton Ohio instead of Chicago.

  • The man here is right. Every once in a while shit go’ crazy, the definition of “smart” changes (aka “paradigm shift”), and that once in a while is to-fucking-DAY.

    I do admit that I’m scared of precious metals, though, because the authorities can loot them off me at the airport. Don’t think they won’t. It will soon get to the point that fellows will have to sneak OUT through Mexico. WATCH.

    So in the meantime, I’m splitting between metals and a foreign bank account. ALSO, I’m super-small-time, so that surely helps, oddly enough.

    And just to stay honest, I lastly need to point out that the only ACTUAL security in this world that any of us can attain — our eternity saved by the bloody work of Jesus Christ, the only man who’s ever come back from the dead — doesn’t cost anything. Without THAT, it’s been impossible for me to take action because without a real future, none of this really fucking matters anyway.

  • Amurikan

    Hey again Charlie,

    It’s tragic but the fact there is only one comment speaks volumes.

    The sheeple…..errrr….American population can return to their DTWS, fast food, soda, and iphones. Nothing to see here, move along. This isn’t the wealth protection device you’re looking for….

    I’m happy to steer clear of she sheeple while living in the beauty of the mountains.

    Good luck everybody!

  • Hongkongsilverboy

    Get out of USA like Saverin while you still can. Hongkongsilverboy bitches!

    By the way, you have never written about STD’s, which is 100% inevitable if you are sleeping around with chics at the time, condoms don’t prevent most std’s like hpv, chlamydia, herpes etc and that stuff if everywhere. There are zero treatments that mainstream medicine offers for viruses. Well the corruption and conspiracy doesn’t end with banks and government…Big Pharma doesn’t allow real cures to be FDA approved, especially if they can’t be patented to make billions. The single dude NEEDS to be aware of ionic silver, mms 1 and 2, intravenous ozone therapy, hyperbaric chamber oxygen therapy, good rife frequency machines, and immune boosting herbs. Talking from experience here…tested positive for hpv16, the cancer causing form of the virus, did my alternative therapies, tested negative 2 weeks later. I am now switching for random dating to a polygamous marriages. It’s biblical, more fulfilling emotionally, and SAFE! Got a Russian, a Chinese, and soon a south American will be added. My kids will be all mixed and speak different languages, and I don’t have to lie to my women :) now THAT dudes is living the dream!

  • SubstanceD

    Multiple passports, bitchez.

    Good site. The chaff will soon be separated.

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