Many people over the years have asked me “What do the really wealthy know that we don’t?”

I have written many times that truly wealthy families pass wealth from generation to generation with gold, real estate, and art. Personally, I would also add stocks of companies that produce real goods and other hard assets. This is not to insinuate that I am in their company yet.

Many of us who see people with a lot of “money” and consider them rich are making a common mistake. The mistake we are making is that those currency units still hold anywhere near the value that they once had.

We also make the mistake of assuming if someone has a lot of assets that they are rich. They may be, but if their liabilities (loans and mortgages) are high, it is only an illusion of wealth.

Here in the USA our US dollar has lost over 97% of its purchasing power in the last 100 years. In other words, someone with a million dollars then would need $33.3 MILLION today to have the same WEALTH that $1 Million dollars held then. In Zimbabwe everyone was a billionaire a few years ago. Unfortunately for them, it cost a trillion Zimbabwe dollars to buy 3 eggs.

Even myself, I remember walking through my small town that I grew up in during the 60s and 70s thinking if I could make $100.00 per week I could live like a king- and I could. Today, I would be homeless.

These are clear illustrations of how many currency units you have does not equal actual wealth in many circumstances.

What the truly wealthy families know is that hard assets have enduring VALUE. Prices fluctuate but rarely, if ever, go to ZERO as many paper assets do. They are aware that promises are made to be broken- much like our Federal Reserve’s mandate to preserve the US Dollar’s purchasing power and losing 97% of its VALUE since inception.

This is another reason, if wealthy families and banks make loans or buy bonds, they make sure that just in case the promises to repay are not kept- there is a hard asset (collateral) to ensure that they get repaid.

Banks lend for mortgages, cars, etc. If you fail to pay, they take the asset as payment. The IMF lends to countries and if they default- much like Greece- they take national assets. Notice I said they take ASSETS- not another promise to repay in most cases.

This is also another reason to question our US dollar and ALL FIAT (backed by nothing) currencies. There is NOTHING of enduring value to back up the promises.

It is also important to understand that the real estate that passes from generation to generation is done without any encumbrances. (No loans or mortgages). The wealthy know that you want your assets working for you- not you working to pay off loans. They understand that debt is an albatross to your future earnings that you pledge away today to get the loan.

Up until the last 50 years it was customary to buy things once you had the money to pay for it.

The wealthy do not chase short-term schemes but focus on enduring VALUE. If they own stocks, they do not buy because of a hot tip but do some due diligence to see what the company’s books and future prospects look like. By doing this research they can weed out the weaklings and buy quality. They may also recognize some companies that may be bankrupt but have not realized it yet. That opens up another avenue for opportunity for those with the fortitude to buy secured bonds. This means that if the company goes bankrupt almost everyone loses their entire investment- EXCEPT those who have bonds secured by the assets of the company. The result? After a period of reorganization, the company re-emerges with the secured bondholders getting shares of the new entity with NO DEBT. A company that produces necessary items could become a cash cow. While everyone else is licking their wounds the secured bondholders are likely set up for a great payday going forward.

Again, a shaky promise that was not kept but for those “in the know” and with a lot of guts, a great opportunity to build even more wealth.

As we look at debt around the world it is extremely obvious that most of the promises made cannot be kept by people, companies, municipalities, states, and sovereign nations with our currency units maintaining anywhere near their current VALUE.

The numbers give a clear picture that people are falling behind with bankruptcies and falling behind on their debt payments. As the central banks “print” money to give the illusion that all is well, costs for all goods and services are rising. At the same time wages are not keeping up with the increases in what everything is costing.

With the US debt downgrade by Moody’s, look out for higher interest costs- not just to the Federal government but also to state and municipal governments who are already drowning in interest costs and operating expenses.

I am not even going to into the unfunded liabilities and the gross underfunding of most pension plans in the USA.

Is it any wonder that those “in the know” like central banks, major banks and billionaires are shedding their exposure to all types of debt and buying GOLD and other hard assets?

I always say- WATCH WHAT THEY DO- NOT WHAT THEY SAY. Many times, things are said that are meant to keep you off the scent of those assets that those “in the know” are piling into. If you were to know what they were up to they would have to pay MORE for the assets they are acquiring.

Playbook:

· Make the US dollar look strong by comparing to inferior currencies.

· Keep the price of gold suppressed so analysts do not see the loss of purchasing power.

· Use paper contracts to gyrate the gold price to make it look “risky” as central banks list gold as a tier one (riskless) asset.

· Use paper contracts to keep prices low until those “in charge” get the amount of gold, silver and almost anything else they want to acquire.

It is pretty obvious that many changes are in the air.

BE PREPARED!

Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not purport to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct.

Commodities are generally considered speculative because of the significant potential for investment loss. Commodities are volatile investments and should only be a small part of a diversified portfolio. There may be sharp price fluctuations even during periods when prices are overall rising.

Precious Metals, including gold, are subject to special risks including but not limited to price may be subject to wide fluctuation, the market is relatively limited, the sources are concentrated in countries that have the potential for instability and the market is unregulated.

Diversification does not ensure gains nor protect against loss. Companies mentioned are being provided for information purposes only and is not a complete description, nor is it a recommendation. Investing involves risk regardless of strategy.

Many people over the years have asked me “What do the really wealthy know that we don’t?”

I have written many times that truly wealthy families pass wealth from generation to generation with gold, real estate, and art. Personally, I would also add stocks of companies that produce real goods and other hard assets. This is not to insinuate that I am in their company yet.

Many of us who see people with a lot of “money” and consider them rich are making a common mistake. The mistake we are making is that those currency units still hold anywhere near the value that they once had.

We also make the mistake of assuming if someone has a lot of assets that they are rich. They may be, but if their liabilities (loans and mortgages) are high, it is only an illusion of wealth.

Here in the USA our US dollar has lost over 97% of its purchasing power in the last 100 years. In other words, someone with a million dollars then would need $33.3 MILLION today to have the same WEALTH that $1 Million dollars held then. In Zimbabwe everyone was a billionaire a few years ago. Unfortunately for them, it cost a trillion Zimbabwe dollars to buy 3 eggs.

Even myself, I remember walking through my small town that I grew up in during the 60s and 70s thinking if I could make $100.00 per week I could live like a king- and I could. Today, I would be homeless.

These are clear illustrations of how many currency units you have does not equal actual wealth in many circumstances.

What the truly wealthy families know is that hard assets have enduring VALUE. Prices fluctuate but rarely, if ever, go to ZERO as many paper assets do. They are aware that promises are made to be broken- much like our Federal Reserve’s mandate to preserve the US Dollar’s purchasing power and losing 97% of its VALUE since inception.

This is another reason, if wealthy families and banks make loans or buy bonds, they make sure that just in case the promises to repay are not kept- there is a hard asset (collateral) to ensure that they get repaid.

Banks lend for mortgages, cars, etc. If you fail to pay, they take the asset as payment. The IMF lends to countries and if they default- much like Greece- they take national assets. Notice I said they take ASSETS- not another promise to repay in most cases.

This is also another reason to question our US dollar and ALL FIAT (backed by nothing) currencies. There is NOTHING of enduring value to back up the promises.

It is also important to understand that the real estate that passes from generation to generation is done without any encumbrances. (No loans or mortgages). The wealthy know that you want your assets working for you- not you working to pay off loans. They understand that debt is an albatross to your future earnings that you pledge away today to get the loan.

Up until the last 50 years it was customary to buy things once you had the money to pay for it.

The wealthy do not chase short-term schemes but focus on enduring VALUE. If they own stocks, they do not buy because of a hot tip but do some due diligence to see what the company’s books and future prospects look like. By doing this research they can weed out the weaklings and buy quality. They may also recognize some companies that may be bankrupt but have not realized it yet. That opens up another avenue for opportunity for those with the fortitude to buy secured bonds. This means that if the company goes bankrupt almost everyone loses their entire investment- EXCEPT those who have bonds secured by the assets of the company. The result? After a period of reorganization, the company re-emerges with the secured bondholders getting shares of the new entity with NO DEBT. A company that produces necessary items could become a cash cow. While everyone else is licking their wounds the secured bondholders are likely set up for a great payday going forward.

Again, a shaky promise that was not kept but for those “in the know” and with a lot of guts, a great opportunity to build even more wealth.

As we look at debt around the world it is extremely obvious that most of the promises made cannot be kept by people, companies, municipalities, states, and sovereign nations with our currency units maintaining anywhere near their current VALUE.

The numbers give a clear picture that people are falling behind with bankruptcies and falling behind on their debt payments. As the central banks “print” money to give the illusion that all is well, costs for all goods and services are rising. At the same time wages are not keeping up with the increases in what everything is costing.

With the US debt downgrade by Moody’s, look out for higher interest costs- not just to the Federal government but also to state and municipal governments who are already drowning in interest costs and operating expenses.

I am not even going to into the unfunded liabilities and the gross underfunding of most pension plans in the USA.

Is it any wonder that those “in the know” like central banks, major banks and billionaires are shedding their exposure to all types of debt and buying GOLD and other hard assets?

I always say- WATCH WHAT THEY DO- NOT WHAT THEY SAY. Many times, things are said that are meant to keep you off the scent of those assets that those “in the know” are piling into. If you were to know what they were up to they would have to pay MORE for the assets they are acquiring.

Playbook:

· Make the US dollar look strong by comparing to inferior currencies.

· Keep the price of gold suppressed so analysts do not see the loss of purchasing power.

· Use paper contracts to gyrate the gold price to make it look “risky” as central banks list gold as a tier one (riskless) asset.

· Use paper contracts to keep prices low until those “in charge” get the amount of gold, silver and almost anything else they want to acquire.

It is pretty obvious that many changes are in the air.

BE PREPARED!

Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not purport to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct.

Commodities are generally considered speculative because of the significant potential for investment loss. Commodities are volatile investments and should only be a small part of a diversified portfolio. There may be sharp price fluctuations even during periods when prices are overall rising.

Precious Metals, including gold, are subject to special risks including but not limited to price may be subject to wide fluctuation, the market is relatively limited, the sources are concentrated in countries that have the potential for instability and the market is unregulated.

Diversification does not ensure gains nor protect against loss. Companies mentioned are being provided for information purposes only and is not a complete description, nor is it a recommendation. Investing involves risk regardless of strategy.

Many people over the years have asked me “What do the really wealthy know that we don’t?”

I have written many times that truly wealthy families pass wealth from generation to generation with gold, real estate, and art. Personally, I would also add stocks of companies that produce real goods and other hard assets. This is not to insinuate that I am in their company yet.

Many of us who see people with a lot of “money” and consider them rich are making a common mistake. The mistake we are making is that those currency units still hold anywhere near the value that they once had.

We also make the mistake of assuming if someone has a lot of assets that they are rich. They may be, but if their liabilities (loans and mortgages) are high, it is only an illusion of wealth.

Here in the USA our US dollar has lost over 97% of its purchasing power in the last 100 years. In other words, someone with a million dollars then would need $33.3 MILLION today to have the same WEALTH that $1 Million dollars held then. In Zimbabwe everyone was a billionaire a few years ago. Unfortunately for them, it cost a trillion Zimbabwe dollars to buy 3 eggs.

Even myself, I remember walking through my small town that I grew up in during the 60s and 70s thinking if I could make $100.00 per week I could live like a king- and I could. Today, I would be homeless.

These are clear illustrations of how many currency units you have does not equal actual wealth in many circumstances.

What the truly wealthy families know is that hard assets have enduring VALUE. Prices fluctuate but rarely, if ever, go to ZERO as many paper assets do. They are aware that promises are made to be broken- much like our Federal Reserve’s mandate to preserve the US Dollar’s purchasing power and losing 97% of its VALUE since inception.

This is another reason, if wealthy families and banks make loans or buy bonds, they make sure that just in case the promises to repay are not kept- there is a hard asset (collateral) to ensure that they get repaid.

Banks lend for mortgages, cars, etc. If you fail to pay, they take the asset as payment. The IMF lends to countries and if they default- much like Greece- they take national assets. Notice I said they take ASSETS- not another promise to repay in most cases.

This is also another reason to question our US dollar and ALL FIAT (backed by nothing) currencies. There is NOTHING of enduring value to back up the promises.

It is also important to understand that the real estate that passes from generation to generation is done without any encumbrances. (No loans or mortgages). The wealthy know that you want your assets working for you- not you working to pay off loans. They understand that debt is an albatross to your future earnings that you pledge away today to get the loan.

Up until the last 50 years it was customary to buy things once you had the money to pay for it.

The wealthy do not chase short-term schemes but focus on enduring VALUE. If they own stocks, they do not buy because of a hot tip but do some due diligence to see what the company’s books and future prospects look like. By doing this research they can weed out the weaklings and buy quality. They may also recognize some companies that may be bankrupt but have not realized it yet. That opens up another avenue for opportunity for those with the fortitude to buy secured bonds. This means that if the company goes bankrupt almost everyone loses their entire investment- EXCEPT those who have bonds secured by the assets of the company. The result? After a period of reorganization, the company re-emerges with the secured bondholders getting shares of the new entity with NO DEBT. A company that produces necessary items could become a cash cow. While everyone else is licking their wounds the secured bondholders are likely set up for a great payday going forward.

Again, a shaky promise that was not kept but for those “in the know” and with a lot of guts, a great opportunity to build even more wealth.

As we look at debt around the world it is extremely obvious that most of the promises made cannot be kept by people, companies, municipalities, states, and sovereign nations with our currency units maintaining anywhere near their current VALUE.

The numbers give a clear picture that people are falling behind with bankruptcies and falling behind on their debt payments. As the central banks “print” money to give the illusion that all is well, costs for all goods and services are rising. At the same time wages are not keeping up with the increases in what everything is costing.

With the US debt downgrade by Moody’s, look out for higher interest costs- not just to the Federal government but also to state and municipal governments who are already drowning in interest costs and operating expenses.

I am not even going to into the unfunded liabilities and the gross underfunding of most pension plans in the USA.

Is it any wonder that those “in the know” like central banks, major banks and billionaires are shedding their exposure to all types of debt and buying GOLD and other hard assets?

I always say- WATCH WHAT THEY DO- NOT WHAT THEY SAY. Many times, things are said that are meant to keep you off the scent of those assets that those “in the know” are piling into. If you were to know what they were up to they would have to pay MORE for the assets they are acquiring.

Playbook:

· Make the US dollar look strong by comparing to inferior currencies.

· Keep the price of gold suppressed so analysts do not see the loss of purchasing power.

· Use paper contracts to gyrate the gold price to make it look “risky” as central banks list gold as a tier one (riskless) asset.

· Use paper contracts to keep prices low until those “in charge” get the amount of gold, silver and almost anything else they want to acquire.

It is pretty obvious that many changes are in the air.

BE PREPARED!

Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not purport to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct.

Commodities are generally considered speculative because of the significant potential for investment loss. Commodities are volatile investments and should only be a small part of a diversified portfolio. There may be sharp price fluctuations even during periods when prices are overall rising.

Precious Metals, including gold, are subject to special risks including but not limited to price may be subject to wide fluctuation, the market is relatively limited, the sources are concentrated in countries that have the potential for instability and the market is unregulated.

Diversification does not ensure gains nor protect against loss. Companies mentioned are being provided for information purposes only and is not a complete description, nor is it a recommendation. Investing involves risk regardless of strategy.