Host, For the People
Oct 14, 2003
National Newspaper News Network
(White Springs, FL) -- It was not too long ago that you could buy one EURO dollar for about 83 cents US. That means if you shopped or bought merchandise in Europe you would get a 17% discount compared to US dollars. No more. At this writing the EURO dollar would cost you or me 1.19 cents. Whoa, that means during the last year the EURO went from 83 cents US to 1.19 US or an increase of 36.5 cents compared to the "good ol' Yankee dollar." Yet our leaders in Washington say there is no such thing as inflation. In my view our situation is much worse. We are caught in a grip of DEFLATION when it comes to Real Estate and INFLATION when we compare purchasing power. Not good.
About a year ago I decided to put our personal spare cash into gold. So, I bought US Gold Eagle coins that are sold at just above melt value. Now they are my favorite coin for newcomers as you can't get hurt. Numismatic coins are fine - if you know what you're doing. A rare one-ounce gold coin sells for a multiple of the value of the gold content based on rarity. U.S. Gold Eagle's sell for just a fraction over the current melt price of gold and may also slowly gain collectible value over the years. No risk there!
So, I bought a bunch of "Eagles" a little over a year ago at $316.00 each for the one ounce gold coin. Today they are worth between $370 and $394 dollars depending on the coin. Do the math and you can see that I won big! Did I tell my listeners to do that? YES! Did they? Probably not. Instead those with savings accounts saw maybe a ONE PERCENT profit while I did much better. Maybe it's things like this that make our reports and membership so valuable.
IS IT TOO LATE TO BUY GOLD?
No, I don't think so. With the current situation of inflation and a lousy economy we could see gold rise much higher. Just recently I bought some stocks and when they went up (as I expected), I sold and took my profit. As far as gold, I have no plan to sell any of it in the near future. [NOTE: I recommend reading Swiss America's excellent educational resources before you make any decision about which form of gold makes the most sense to you.]
Your next question might be, WHY? The answer is simple. First, I see oil and gas prices rising further over the long haul.
There is a little quiet secret that JUST MAYBE the Middle East does not have as much RECOVERABLE OIL as they expected. Some experts feel that the output is maxed at this time and will soon drop. While other potential oil lies in the USA - our foolish Congress will never allow it to be tapped due to the screaming bunch of enviro-nuts who have not really studied the issue. To them I say this, "Go and camp out in the little patch of horrible land that the USA wants to recover oil in and from at the ANWAR site area. You'll see why the local animals shun the area. It's a nasty swamp that's infested with biting flies and mosquitoes in the Summer and simply uninhabitable in the Winter." Don't confuse ANWAR with the lovely mountain ranges you see way off in the distance. ANWAR is a horrid "No Man's Land." My comment is: "Go get the oil!"
The only bright spot in the future is that the Earth has twice as much recoverable GAS HYDRIDE as folks ever thought. This is a type of methane gas that is frozen into a powder form under the Earth. Dump a chunk of it in water and it bubbles. The bubbles are methane gas and the chunk also will burn. The only problem is that we have not yet learned exactly how to recover it. Yet, it's there. Thus I suggest that you consider having as many gas appliances as possible and power them on natural gas or propane today and methane tomorrow.
TIME TO DOWNSIZE
It is my opinion that smart people will start to downsize. Consider moving out to the country on a patch of cheap land. Learn to live "off the grid" and yet enjoy life as you do now. I have written books and made video tapes showing how to do exactly that and indeed my wife and I have done so. Have we made money by following this policy? Yes.
Both my wife and I drive older vehicles that are fully paid for and we keep them maintained well. The few bucks on maintenance is a heck of a lot cheaper than car payments. As long as the vehicle looks OK from the outside, is comfortable inside and drives nice - then who cares how old it is. Recently I had my 1986 GM van repainted white with several clear coats. To many people it looks new. The inside is clean and sharp with TV and Hi-Fi and fitted out with a hydraulic wheelchair lift and special seats. So, what more do I need? My 35 foot RV is a used 1998 unit and I paid less than one-half of current retail for the same unit. Folks who come into it think it's new. So you tell me; "Why pay new prices when you don't have to?"
Example: My wife and I just bought two REPO "High-End" mobile homes as an investment. These units were made by either Liberty or Homes of Merit and boast 2x6 exterior walls and heavy floor joists, etc. They are built better than most homes and once they are dropped on location they don't look like a typical mobile home. Our cost per-square-foot was about $25 including all the necessary set-up and delivery on our land. In most areas building prices are 80 to 100 dollars a square foot. So, you tell me - who got a deal?
Yes, the inside and outside are modern and fully heated and cooled with central air conditioning. The units are 2 or 3 years old and will look NEW when we're finished. That's how we do business and the reason that we have a few dollars in the bank. No car payments and no house payments.
Most American families don't live like that. They think that they must have newer and bigger cars, trucks, RV's and homes. Sad to say, most people are one or two payments away from being homeless. If that's you, then start to change your situation now. If you live in a home that is in a region where selling prices are still high then SELL IT. Go buy a nice used 35 foot 5th wheel RV and move into a local RV park until you decide where to go. You might put some bucks in your pocket and cut your monthly living costs to the bone. Most RV parks offer electricity, water, sewer, trash service and cable TV in the monthly fee. All you have to pay is the small cost of propane. In moderate climates this is not a big item. Then when you want to move you just do it.
Many people find that if they lived like this they could sell off their personal items they really don't need and put the cash in the bank. Living in an RV park is often about the same price as what many people pay for their real estate taxes. Sometimes less. Yes, it's downsizing but you'll be very comfortable and have nice color TV and Hi-FI and your computer. So, what more do you need? Many RV parks also have pools and clubhouses which make for plenty of fun and no hassles.
FREE RADIO OFFER
Chuck Harder Article Archives
GOLD: FOR THE PEOPLE - Chuck Harder Interviews Craig Smith
Listen to For the People with Chuck Harder M-F 1-3pm ET on Talk America