I love searching for and putting my money in places where it can grow itself.

And, while a bank savings or money market account might seem what the conservative doctor ordered for a guy who doesn’t have a lot of of time to spend “watching my money,” the reality-lamp remembered to shine brightly in my face last week.

A time-tested truth came to the surface:

Wealth compounding, over time, has two mortal enemies – taxes and inflation. And, to get the personal wealth machine really humming, you’ve got to beat them both.

I’ll leave the former up to you and your CPA… yet, in this post, you’re about to get the raw skinny about how I’m kicking the ass of the latter by buying silver (you can too — read on)

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I’ve always been resistant (maybe better said, “not too excited”) about buying precious metals, and now that there’s a baby on the way, my initial thinking is that I don’t have a lot of spare cash to just invest in a physical asset.

But, with the continual shaking of my head whenever I see prices of “stuff” at record levels (think: gas and food) and values of important things falling (think: the dollar at historic lows), and the prompting of my friend Brad Weinman, I’ve changed my mind.

With the value of the US Dollar dropping over 40% just in the last 6 years alone, the Feds will do whatever it takes to keep the economy afloat to avoid a recession (even though we’re in one right now). They’re pumping out so much cash to fix the problem, the dollar could soon lose its reserve-currency status.

In just a two-year span the greenback has dropped 22.9% against the Canadian dollar. 25.3% against the Euro. And 25.6% against the Aussie buck.

And with the dollar tanking, every purchase chips away at your wallet. Milk and gasoline have soared to over $4.00 a gallon in some states. Bread is over $3.00 a loaf.

Here’s a quick primer / lesson on how SILVER protects wealth from inflation:

When the price of silver goes up, you get paid more. Take these two U.S quarters for example: One was minted in 1964 and is made of silver. The other, minted in 1965, looks like the 1964 quarter but it is made from copper and nickel (It has no silver).

To illustrate the difference between the buying power of these two coins: In 1964, a loaf of whole wheat bread cost 25 cents. The 1964 quarter today still buys a loaf of whole wheat bread. However, it takes 10 of the 1965 quarters to buy the same loaf. Why is this? The 1964 quarter is worth about $3.00 for its silver. The 1965 quarter is still worth 25 cents because its value is determined by government policy. The price of silver in the 1964 quarter reflects the free market value of silver and the lost purchasing power of the dollar.

Bread prices haven’t really gone up at all over the past 40 years. They just “seem” to have gone up because the value of our money has gone down. The dollar keeps shrinking, which increases the price of virtually everything we buy with it. Now you know why you do not find silver quarters in your loose change any more. They are all hoarded away, making them scarce. You also now know how the rich protect their wealth. They put their money in precious metals.

Fortunately, there’s…

…a simple and effective way to create a hedge against the devaluation of the US Dollar!

Brad, via a personal email to his close friends, put it this way:

Last month, I received my usual statements for some of our long-term mutual fund and other retirement accounts and man, it was pretty sad to see how much they’ve lost in value… which has prompted me to take a serious look at converting some of our savings account funds into hard assets. What do I mean by “hard assets?”

I’m talkin’ about PRECIOUS METALS, specifically gold… but more importantly, silver.

Silver is soaring right now. Like gold, it rises during times of uncertainty. It rises during times of inflation and when the dollar is weak, but unlike gold, silver is used in lots of commercial industries and the supply is much less worldwide than gold.

The year 2008 is a great time to buy silver. Many experts think silver is currently undervalued. Evaluating silver’s price versus the cost of gold, silver is at historic lows. The price itself (around $19 an ounce) has gone up quite a bit in recent years, but many predict it will continue to rise for some time.

The current gold-silver cost ratio suggests that silver may soon see a dramatic rise in price.

Here’s the reasoning:

The U.S. has well over 100 million workers, yet the world has about 250 million oz. of silver in known inventories! If 1/10th of an ounce of silver is a day’s wage of $100, then an ounce of silver would be $1000/oz. The other historic value was the gold to silver ratio. One ounce of gold was the same value as about 10 to 15 ounces of silver. Again, due to silver’s scarcity today, that ratio will certainly deserve to be exceeded, to at least 5 ounces of silver to one ounce of gold. Thus, silver will be valued at about 1/5th of $400, or $80, assuming that gold is fairly valued at $400. But, if gold should really be valued at about $5,000 per ounce, then silver will be about $1000/oz

The American Silver Eagle has become the most popular bullion coin in the world because of its beauty, quality and the assurance of content by the U.S. Government. They are 1 troy ounce each, 99.9% pure and are legal tender.

The American Eagle is the only coin whose weight, content, and purity is guaranteed by the United States Government. Requiring no assaying, American Eagles are easily converted to cash at any time.

There’s now two KEY places I’m buying these coins online:

#1) Lear Capital - They’re reliable and have some of the best prices you’ll find out there for gold, silver and platinum.

#2) Howard Duckworth - A Texas millionaire, scouted out by Brad, who has put together an American Silver Eagle Coin accumulation program that is centered around a well-run affiliate marketing system. This one I’m most excited about.

I’ll, again, let Brad do the talking:

I don’t know if you’re interested in investing in silver, but in my March Passive Profits newsletter update, I shared how silver is up over 30% this year and can be a great hedge against the declining US dollar right now.

In fact, a friend of mine who worked for a gold/silver broker, emailed me a couple days ago and told me that since last August, they were “out of silver” 2 to 3 times for weeks at a time…

Now, there are tons of places online that you can purchase 1oz silver eagle coins for about $20 each.

I’ve also been researching several business opportunities that sell silver coins as their main product.

The only problem with most of them is that they usually jack up the prices so much (up to 200%) that it’s not a great value for the end consumer, only for those that promote the business side.

And since my main focus is finding programs that have a passive component to them (no referring or recruiting required), most programs don’t meet my criteria.

But through one of my long-time friends & colleagues, I discovered a unique program where you can receive almost THREE TIMES the amount of silver eagle coins that you purchase, and even though they do pay for referrals, you can just be a customer and get a great deal on silver coins.

Howard Duckworth (the owner) started this Program 18 months ago.

I spoke with Howard on the phone recently. He’s a successful silver commodities trader (he’s a Texas millionaire and a very pleasant cowboy) and is able to make 15% - 25% per month ROI from his daily trading.

He also has a stockpile of silver eagles he purchased previously at a lower price.

I found out that during the last 18 months the program has been available, he has delivered ALL silver coins just as promised (my friend that’s been in his program since the beginning testified to this).

Here’s the scoop…

You can purchase silver coins in this Program for as little as $250 or as much as you want.

Here’s how it works:

$250 entry fee one time only = 12 American Eagle Coins Per Year ($17.70 current value) X 36 months (Program is 3 years) = $637.20 value in coins.

It’s not $250 per year, it’s one time only!

You’ll receive 3 coins every 90 days totaling 12 per year.

Or, if you invest at the $2000 level, here’s how the numbers work out, at current spot pricing:

$2000 = 96 coins X 36 months = 288 coins X $17.70 = $5097.60 in current value.

Howard reserves the right to re-evaluate program at the end of 3 years.

I signed up at the $1,000 level to receive 144 silver eagle coins.

What if silver goes up to $50 - $100 oz. as some predict?

Here’s the site to get the details.

Remember, the affiliate program is optional.

If you decide you want to upgrade, you can at any time for any amount.

I’m an affiliate so if you join thru my link and ID, I’ll receive a 10% commission (you’ll also have this as an option if you choose to refer others, but it’s certainly not required).

There’s a 100% money back guarantee if for any reason you’re not happy with the program.

REMEMBER, silver is more than an investment; it provides a safe haven to guard your money from the damage of inflation. As the dollar falls, your money stays safe in silver. In a time of rapid inflation and real worries about an extended economic recession, like me, you can preserve your savings by buying silver.

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More Research and Validation (if needed):

Jason Hommel’s Articles Archive

3 Ways To Own Silver Before It Hits $30 An Ounce

Rich Dad 2008 Predictions

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