Silver Savings Account

A silver savings account? Well, what do you mean by that, Jason? Why can’t I just put all of my money into my checking or savings account at my bank and leave it there and forget about it until I need it or want to spend it?

Well first, how about the government is counting on you to do just that and they are also counting on you to help supply the (big) banks, (you know the ones that the taxpayers bailed out), with lots of deposit $$$ besides the trillions of dollars in fresh, newly printed money the Treasury and the Fed are still printing and handing out to these “too big to fails” to invest for high returns perpetually!

Ok, let me explain some things first and give you the logic behind saving in silver instead of paper money and why my Wall St for Main St Co-Founder, Mo Dawoud, and I also do it so you don’t think I am a total nutjob! Or is it too late already?

Here are the top reasons to avoid saving your wealth or savings entirely in paper money that you might not have been aware of:

1. Currency Risk- A dollar is not always worth $1. A dollar’s true value, since it is a paper, fiat currency used as money is always fluctuating against the value of other paper fiat currencies. This is happening everyday 24/7 on the Foreign Exchange (FOREX) market. Yes, this affects you even if you only live in the US and never leave the country to visit places abroad. Why? Because a lot of the goods you purchase here in the US have to be imported from outside the US and a devalued dollar means you have to pay more dollars for the same amount of goods and services because the value or purchasing power of you money is much less than it was before.
2. Interest Rate Risk- Savings accounts, money market funds and bonds (US gvmnt Tresauries or Corporate Bonds) all offer you different rates of interest to park your money there for different lengths of time. But, when really bad inflation comes, (and based on my research for the last 2 yrs it is coming in some form or another in a very bad way), and interest rates go up, your principle (the amount of money you invested) in these investments is losing value rapidly because higher interest rates are being offered by newly issued financial instruments to entice people to invest in those instead. Anyone parking lots of their money in bonds, treasuries, money market funds and savings accounts with a set interest rate (TIPS or Treasury Inflation Protected Securities are another entirely different story), is risking losing a substantial amount of their principle because they will be holding bonds or other interest bearing investments that no one else wants unless they are sold at a big discount (higher yield). This ties into our 3rd and most dangerous risk, inflation.
3. Inflation Risk- When monetary/price inflation does come (not everything will be inflated equally and this article is not the place to dicusss this), you will want something that keeps up or exceeds the inflation rate. There are not a lot of options out there for investors to choose from to get inflation protection. I already mentioned one, TIPS, but those are tied to a CPI (Consumer Price Index), which is phoney and “doctored” by the government statisticians to under report and hide the real inflation amount. This has been going on now for well over a decade. For further details about this checkout John Williams’ Shadowstats (Shadow Government Statistics aka SGS). Still don’t believe me about what I am saying about how inflation is already here? I have a 13 page report on my computer written by Peter Schiff‘s brokerage, Euro Pacific Capital, about  how the CPI is “cooked” or “engineered” in greater detail. I would be happy to email it to you if you drop me an email. But, besides TIPS, what else is there to protect one against inflation? There’s commodities which go up in value when a currency weakens like the dollar is going to. Well which commodities? Which ones are the best to invest in, Jason? I own a lot of shares of different commodity producers, but the commodity with the best supply/demand fundamentals and the only commodity that also happens to be a monetary metal AND it also happens to be very cheap to buy and accumulate in a relatively large quantity AND is relatively easy to store is SILVER! Silver was also voted by the National Inflation Association as the single best investment for the next decade! Gold should do well when inflation comes, but Silver WILL outperform gold in my humble opinion by a rather large margin! At Wall St for Main St, we like to say that we like gold, but LOVE silver! So, in conclusion, all commodities should do very well when bad inflation does come, but we think silver will perform the best of any commodity!
4. Insurance- You want some money outside of the financial system in case of a Bank Holiday. Even money market funds are considered “financial products” from Wall St and they are supposed to be entirely liquid and redeemable immediately. The new rules changes from the SEC regarding money market funds say otherwise. Even money market fund redemptions can be suspended now! Don’t we live in a great and wonderful world where things keep getting better? Ok, so what happens in the event of another 9/11 or Bank Holiday or credit crisis and the banks and Wall St are both closed and you can’t get access to your money? Do you keep money under your mattress? In a safe? What happens if they do have a Bank Holiday and surprise!, the currency is immediately revalued! This has already happened in North Korea and Venezuela within the last few months and has happened elsewhere in many other countries before. People wakeup and the government announces that people have to exchange all of their money for new money. That, for example, they have to exchange $3 of their old money for every one $1 of new money. That’s a 66% loss due to the government revaluing the currency. With silver, it is insurance because it is outside of the financial system. Once you buy it and take posession of it, you have ZERO counterparty risk. The fact that silver (and also gold) have no counterparty risk should allow you to sleep easier at night in case something bad happens again to Wall St and/or the banks. That to me is insurance. Your silver is not someone else’s liability (counterparty risk again) and it is outside of the financial system. Insurance is something that protects you from calamity when something really, really bad or catastrophic happens to you or around you. It’s piece of mind.
5. Store of Value & Purchasing Power Risk- Silver provides protection as both a store of value and wealth and it also preserves purchasing power during inflation and a currency crises, such as one that could happen with the dollar. The Federal Reserve is printing trillions more dollars than anyone realizes and handing it to the banks and to Wall St. There is a price we on Main St are going to have to pay for all of this besides higher taxes and the taxpayers bailing out “too big to fails.” That’s a loss of purchasing power with our paper dollars. Have you been to the grocery store, gas station, movie theatre, etc. al, and noticed that your dollar, in general, is buying you less? The government says inflation is not a problem, but out on Main St, the things we all need to buy everyday such as food, consumer staples, etc say otherwise. Who has noticed smaller portions in their favorite foods at the grocery store or restaurants? Silver will preserve your purchasing power A LOT better than paper money will. Right now almost all world governments are debasing/devaluing/inflating (all 3 of those words are synonyms for you newbies and are used interchangably) their paper currencies! Buying silver is one of the best ways to protect yourself from this.
6. Unlimited upside price potential- Silver has unlimited upside price potential. Paper money does not. Silver’s price is currently being manipulated. There is a monumental short interest in the paper price of silver on the COMEX (commodities exchange in NYC).This is part of a larger paper price manipulation scheme that Ted Butler and GATA have uncovered through many years of great research in gold and silver. This is done intentionally by our government, with help from the banks, to make the dollar look strong even when it’s not. This cannot continue indefinitely. When the manipulation does end, silver will trade at its true price that reflect its outstanding supply/demand fundamentals. Silver’s fundamentals are great now, but remarkably, they continue to improve because they are always finding more and more ways to use more silver for different industrial purposes. Silver is the #1 metal for new patent applications! The overwhelming majority of this silver is not recovered because it is used in such trace amounts. In the years to come, the silver price is going way, way higher in my humble opinion based on lots of research from many different sources. Silver has the potential to be the greatest short squeeze of all time! Here’s a video from Rich Dad Poor Dad Advisor and owner of GoldSilver.com , Michael Maloney, about silver’s upside price potential:

And here’s some very recent articles about silver:

• http://www.thestreet.com/story/10691881/1/silver-supply-crisis-looms-part-1.html
• http://www.thestreet.com/story/10693050/1/silver-supply-crisis-looms-part-2.html
• http://seekingalpha.com/article/192317-time-for-silver-to-shine?source=email
• http://sovereignsociety.com/2010/03/22/silver-stupidly-cheap-and-simple-to-leverage/
• http://www.uncommonwisdomdaily.com/is-silver-ready-to-surge-9174?FIELD9=1

In conclusion, I think I have made a very compelling argument for why it would be smart to own silver as a long term investment. Warren Buffett once said, ”[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.” Whether or not gold has utility is debatable, but it is NOT debatable about silver!

Gold might not have a utility for lots of industrial purposes like silver, but gold and also silver are the best stores of value mankind has found for thousands of years now! Silver is used in pretty much EVERYTHING electrical and for many other industrial purposes! Silver has the MOST utility of any metal in the periodic table of elements!

I believe that everyone should be buying physical silver and saving their hard earned money/wealth that way for the aforementioned reasons plus more I chose not to mention or this article would be unbelievably long (I can’t overwhelm you too much!).

If all you can afford to buy/invest in silver to start your silver savings account is one silver coin a month on your budget, then so be it. It’s a good start and you will be better off in the future for doing so now before the dollar and potentially other paper, fiat currencies such as the British Pound, Japanese Yen and/or the Euro collapses.

Buying one silver coin a month adds up quickly. If you can afford to buy more silver than that a month, I’d recommend doing so. That’s the silver savings account! It’s not too fancy, it’s just common sensical, smart and prudent! You are saving some of your wealth outside of paper money and the financial system, which could be irreparably broken!

Silver coins and bars are the best way to buy physical silver to start your own silver savings account. Take delivery and store them yourself at a safety deposit box or in a personal safe inside your house. Maybe store some in both just in case.

Numismatic silver coins are also great if you want your silver to have better designs on it and look more immaculate. Another option is you can buy Sterling Silver jewelry, but there are many fakes on the market, so be careful. Here’s an independent review from the National Inflation Association of most or all of the Gold & Silver bullion sellers.

After researching the gold and silver markets, miners, and the supply/demand fundamentals of the commodities along with the fundamentals of the companies who mine them for almost 2 yrs, I can tell you I plan on continuing to accumulate physical silver indefinitely.

I’m an honest man, I put my money where my mouth is and I practice what I preach. But, please remember to also do your own research into silver. That’s the disclaimer in my own words so you won’t just go out and put all of your money into silver after reading this article, without doing any of your own research on it, and if things don’t work out sue me for bad investment advice!

Again people, this Silver Savings Account is just an ‘Investing Idea’ of mine and you need to understand what you are getting yourself into and weigh the risks vs the rewards of owning silver like any other investment. I am in silver for the long haul based on my own research and not for a few quick bucks. I will not get rich trying to make a few quick bucks here and there and it could take another few yrs before the silver price does go higher. The stock market could also crash anytime in the next 6-12 months and the price of everything could collapse. We could see below $10/oz silver again. It’s possible, but not likely.

I am prepared if this happens. Mo and I will still be buying more physical silver and more mining shares if this does. We’re both fully convinced it is a great investment for the long term. This is about building a large fortune over time the right way for me, not trying to get rich quick and taking too much risk in order to try and do so. To do more research on Silver, checkout The Silver Institute and SilverSeek. David Morgan’s website is Silver-Investor.com. Him and Ted Butler are 1a and 1b as far as Silver Gurus go. You can signup for David Morgan’s free silver newsletter to learn more. I highly recommend doing so.

If you are interested in the silver mining companies, that’s another specialty of mine and of Wall St for Main St. Drop us an email.