The KISS Principle
The following is an excerpt from a larger article written by Jeff Neilson entitled Precious Metals: The Only Alternative.

Regular readers know that I am a long-time disciple of the doctrine known by the acronym KISS ("Keep It Simple, Stupid"). It's a very basic (and time-tested) concept: we all stand a much better chance of being successful employing a good, simple plan rather than a good, complex plan. The logic here is irrefutable: complexity (by definition) implies the opportunity for more things to go wrong. Equally, it is much easier to both understand and implement a simple strategy rather than a complex one.

Gold and silver have perfectly preserved the wealth of their holders for thousands of years. The U.S. dollar has lost 98% of its value in less than one century (since the Federal Reserve was put in charge of "protecting it"). People can understand that.

The supply of gold and silver is increasing by only about 2% per year. Meanwhile, the supply of the bankers' paper currencies are effectively being increased by somewhere in excess of 10% per year - more than five times as much new supply. In times of economic crisis, scarce assets retain their value much better than those which are overly abundant. People understand that.

Historically, precious metals have comprised between 5% and 10% of all financial assets. Today, gold and silver (and the miners) represent little more than 1% of financial assets. If this ratio merely returns to the historical average, this implies a surge in the value of precious metals assets by multiples which would dwarf all previous gains over the past 10 years. People can understand that.

There are also a plethora of more complicated reasons for favoring gold and silver (and the precious metals miners) above all other asset classes at the present time. It's not necessary to discuss all of them here. Those people who also subscribe to the KISS principle know that you only need to be right for one or two (or three) reasons. Take your pick.

What expertise does one require to become an informed precious metals investor? You have to understand basic arithmetic. Moving one's wealth to the time-tested security provided by precious metals allows us to take control of our financial future, allows us to once again be (long term) investors rather than (short term) gamblers, and it provides us with a sound, financial strategy which we can all understand.

Ignore all of the fear-mongering and deceptions of the mainstream charlatans. For 10+ years they have an unblemished record: they have always been wrong. Cash is trash. Western bonds are nothing but financial feces. However being able to sleep well at night is "golden".

Jeff Nielson

www.bullionbullscanada.com