Paper Gold/Silver

Week 16. 2 Paper Gold/Silver

Back in 2006, I have done an extensive survey of what to do in Post Peak Oil environment. I later found out no plan will work out the way I wanted it to be. All plans may bound to fail somehow due to the massive seriousness of the problem.

First step is to buy physical precious metal and stored it somewhere where you comfortable with. All you need to do is to convert some of your saving 20% of them into precious metal. This will be your insurance policy for the rest of your life. Pay once and it will pay for itself for the rest of your life. Just drop by UOB KL and grab some maples or nuggets and store it in private safe facility. This is the easiest thing that you can and should do.

Why is it that you must have the physical yourself? Why can‘t you have it in paper form? If you hold the actual physical goods, there is no need for you to deal with banks, storage facility, ETF fund etc whatsoever in the future. These save you lot of trouble and time. It’s the ultimate freedom.  Just keep a low profile of yourself to avoid robbery.

When someone else is holding your physical goods, they can alway apply new ruling to squeeze more money out from you. They can alway

a)      Raise the storage fee

b)      Raise the premium for conversion to actual bullion

c)      Delay and long delivery time.

d)     All sort of rules, delay and premium

e)      Unreason ruling such as only those with 50,000oz is allowed to do physical withdrawal.

It’s just like asking someone to hold your wallet.
 

When something is big, it will become a target for greed predator and fraud. E.g. Pension fund, trust fund, ETF etc.  Predator will find ways to squeeze something out of it. You have seen for yourself many big trusted organization failed. Lehman Brothers etc. So trust nobody, get your Precious Metal and stored it away for good.

If 1000 people each with 2-3 oz of gold stored everywhere, then it is difficult for authority to rob all of them.