|
There was a little suggestion in a "Daily
Reckoning," last week, that all may not be as well as one thought, if
certain things happen. Papers can get mixed up, computers fail, and all
sorts of ugly things can happen.
Take the all too common "identity theft" plague,
which some of us have experienced. Innocent people, victimized by
thieves who steal identity, credit card numbers, and all sorts of
personal information, which is then used to purchase goods under the
victim's name and identity. Usually the problem can be solved, but more
often than not, one's credit rating has taken a beating because of the
troubles.
Cell phone theft is also common. A friend of mine
had his Dodge pickup stolen, and his cell phone was in it. The cell
phone was used hundreds of miles away, and this might have given a clue
as to where the truck could be found and repossessed, but he wasn't so
lucky. Neither the phone nor the truck, were ever seen again. If your
cell phone is stolen, it can be disabled by your server, if you call
them promptly, but you need a new phone, probably a new number as well,
and the trouble caused by cell phone theft, is a nuisance and expensive.
Those of you who read my three times a week
column on my web site (Don's Column) know about my close to $14,000
loss to FEDEX. A detective is working on it now, but it was so easy for
$13,900 to disappear in the flash of one's eye.
We've all lost money, wallets, purses, and other
valuables, which one may never see again, and the trouble of stopping
credit cards must be hideous. In other words, your wealth can be stolen
by various means, both physically and electronically, and it may never
be recovered.
Now think about satellites, computers, and all
sorts of electronic gee gaws which are universally used in today's
modern technological age, and think what could happen. I am not saying
it will happen, but certainly could happen. As far as the internet is
concerned, I suggest that everyone write down pertinent phone numbers
and addresses, in case the internet fails. My web site may not be
gotten up one day because of technical snafus, disabled satellites, or
even my local server. Know phone numbers, and have them readily
available, because things can fail.
You investors in gold and silver ETF's, think
about what could happen. First of all, the gold and silver is
supposedly stored overseas in vaults. Is it really there? Suppose
someone robbed the vaults, assuming it is there, what recourse would
you have? I guess it is easy to make a call, write a check, and think
that you have invested in gold and silver. No physical to bother with,
and you have invested, trouble free. What if the ETF's had their gold
and silver snatched by governments? Suppose gold and silver were made
illegal in the lands where the gold and silver is supposedly stored?
Suppose there is no gold and silver there in the first place? Ever see
photos of it? It's not as if frauds have never been concocted before.
Again with ETF's? Maybe? I don't know. Suppose the government in that
nation seized the gold and silver in the ETF's? What recourse would you
have? I dunno, but I don't buy ETF's.
If you die and have your wealth in gold and
silver…in ETF's… the whole thing will be inheritance taxed. If you had
physical, no one would know, and your kids would have free access to it
with no taxes. Have a lot of stocks? When or if you die, the kids will
have to pay taxes on them or sell them and pay taxes on the proceeds.
Be sure to tell the kids where the gold and silver is, so that they can
have inheritance tax free access to it. If you have a safe deposit box,
be sure their names are on it as well as yours, so the contents will
not be taxed.
Suppose you have a lot of dollars or euros, or
something else stored in a Swiss bank? All you have is an electronic
message or certificate. Suppose someone crashed the computer where
records were kept? Remember, a few years ago, a young trader took down
one of the world's oldest banks! Literally took it down, by his
trading. What became of the depositors' funds? There was no FDIC in the
UK when the bank went down. I don't know that either, but I think they
probably lost it all. ( Seems as though I "don't know" and "suppose" a
lot, doesn't it?)
I've dealt with three suppliers of gold and
silver which went down, and took their depositors' gold and silver with
them. NEVER LET ANY ONE OR ANY FIRM STORE YOUR PHYSICAL GOLD AND
SILVER. YOU PAID FOR IT AND IT'S YOURS. YOU TAKE POSESSION IF IT!
What's the difference between a U.S. supplier going broke and taking
people's stuff with their bankruptcy, and an ETF doing the same?
Inventories of ETF holdings are merely a piece of paper, which can
easily be lied about. Euros are supposed to be "backed 15% by gold,"
but no one's ever shown pictures of the gold, or told where it is, and
can be inspected. The U.S. Government lies about just about everything.
Can't a bank, storage facility, or ETF do the same? There's an
unbelievable amount of white collar crime in the world today.
You own stocks, and you have little electronic
blips which show how much you own. In the old days, you got physical
possession of the stocks you owned, but no more. Suppose the
electronics were destroyed, fiddled with or sabotaged? Remember the
film "Ferris Buehler's Day Off?" He changed his grades by messing with
the school's computer. Why can't it be done with your stocks, savings,
or investments? I know, everything is 'backed up' every day, but you
just cannot know what can happen in this troubled world. Remember 9/11?
Not to get into who did it, (not a few Arabs), but as everyone went to
work on that fateful morning, who could have imagined the events which
would follow? No one! Suddenly, within a couple of hours, thousands
were dead, and three buildings were gone. What records were lost? Were
they 'backed up?'
It isn't just that most people's wealth and
surplus assets are listed on pieces of paper with ink on them, but more
often than not, there aren't any pieces of paper, but electronic blips,
computer entries, and which are transferred by satellite probably. The
Chinese, a couple of months ago, shot down their own satellite. Could
they shoot down one of ours with all the financial records on it? A
brilliant client of mine with a Doctorate from Harvard, and who helped
to invent the GPS system, also invented a Thermolized Laser Glass,
which the Ruskies promptly stole. At any rate, with this glass, anyone
can burn the insulation off of a satellite, and it will cook in a half
hour, and be worthless. Want your information stored or transferred by
satellite?
As far as satellites are concerned, just
about everything from telephones, TV and radio broadcasts, bank
information, cash transfers, stock purchases, and every conceivable
communication modus is dependent on satellites, which to me is really
scary. Weather forecasts? Stock information? Google? Internet? It is
all transmitted and received by those little electronic balls floating
around, 220 miles above the earth. They're obviously easily shot down,
disabled, or baked, making them useless or non- existent. Could
civilization, and economics survive without those little electronic
balls? I don't know, but I urge you to consider it. If you have a
supply of food, in case of emergencies, or a generator, fire wood, and
guns, that makes sense. Your gold and silver are also in case of
emergencies. Why would you want them stored overseas, or in paper or
electronic form? They are just as important to you in case of
emergency, as are food, firewood, electricity or guns. Keep them close!
And of course…,protect yourself.
|
