I made a very tough decision today...

I decided to "walk away" from my house. Yup, I decided that because I am upside down and in over my head on what was supposed to be an investment there is absolutely no good reason to submit my finances to the obvious drowning.

I will instead invest my mortgage payment into precious metals such as gold and silver. Initially I will invest in silver because it has higher ROI than gold when "TSHTF" and all signs point to yes. When silver reaches 175-180 I will sell and buy gold which has more sustainable value then silver. I will make sure I have the physical silver/gold in my possession. I will not trust any form of asset representation in what is the most corrupt and false economic scheme the world has ever seen. I need to physically have this stuff to believe my money wasn't taken from me to represent some "made up numbers on a chart somewhere"...

I had this thought today and it made me a little bit sick to think of how ignorant I was in the financial world of investments and smart money decisions.

In the last 10 years precious metals have increased a value of roughly 300%...If I would have invested my last 10 years of mortgage payments in those metals I would have had enough return on that investment to have completely payed off my house and then some.

In times of crisis and severe financial/economical uncertainty the prices of gold and silver sky rocket. They always have because they are the foundation of what "value" is. When the "paper" fails and a "new paper" is issued you can always use the gold and silver to maintain "value".

When the world gets economically comfortable and complacent and the economic system has high confidence gold and silver drop in price as they aren't as applicable during those times.

This was a real paradigm shift for me to understand and accept from the traditional business ethics I learned from my grandparents and parents. Its actually a much more difficult decision to follow through with and make than one would think and I had to think long and hard about it.

I'm not a financial adviser of any kind so don't take this thread as "advisement" to anyone. Take this thread as an example of what one person has decided to do in the face of what is most obviously playing out to be the largest economical disaster known...

I believe more and more people will start to realize what is going on and decide to make similar decisions as myself, which will only further hasten this collapse.

I wish everyone the best in the extremely uncertain future.

p.s. I don't like to fear monger and I don't want to instill fear into anyone but the world is in a position where a little fear is necessary to survive the uncertainty that is tomorrow. As per my signature I try to look fear in the face and dance with it, but when everything we have known and the lives we have grown accustomed to is so abruptly about to change, there is a significant sense of fear for the future.

~sly~

reply to post by Sly1one


Wow! that is a tough decision! I can honestly say i feel for you,not because i know what your going through but because my wife and i were first time home buyers since last febuary.The house we bought we paid 165k it's in a really nice 6 year new neighborhood.My neighbor just put his on the market cuz the bank won't work with him.He paid 365k 6 years ago! I feel terrible for them and everyone else i know that is totally upside down with the original payment still being owed. I recently had to sell some gold i had to get by till tax time and it was just jewlery and a class ring.I got 100 dollars just for the ring! My wife and i both were like God why weren't we buying gold all this time!? Goodluck Brother!

There may come a time when even gold won't buy us anything and or all possesions and assests will be nil.

I wouldn't really advise investing in gold as a safe guard against economic crash. You see companies all the time offering money for gold. If paper money is about to become worthless, why would those companies accept it as payment?

You should probably read this link before investing in anything like gold or silver

The Myth of Gold as Inflation Hedge

Originally posted by Griffo
I wouldn't really advise investing in gold as a safe guard against economic crash. You see companies all the time offering money for gold. If paper money is about to become worthless, why would those companies accept it as payment?

You should probably read this link before investing in anything like gold or silver

The Myth of Gold as Inflation Hedge

Already looked into the myths and found that they are very suspicious in terms of promoting a healthy and confident outlook of the stocks within the stock market. Which is irrelevant for what is happening currently with world economic affairs. The theory that investing in stocks can lead to sometimes better ROI than precious metals needs one circumstance to remain true, and that circumstance is showing signs of completely disappearing. The circumstance is the worlds investment in the US dollar as the worlds reserve currency, this is showing signs of going bye bye.

Russia and China are showing some severe disinterest in the US currency and are openly seeking to trade with each other outside of the dollar. While this may not be significant enough within itself to be the straw that broke the camels back it is one very influential step towards that straw...

China since 2009 has been disassociating itself with the dollar more so then ever before.

As the US continues to print more and more money against all common sense the world will have no choice but to abandon the dollar as the reserve and focus on something with real value.

Rarity is what gives gold and silver their value. Because it can't simply be printed out of thin air when things get rough. Its in limited quantity and because of that, it is historically proven to be a practical way of "maintaining" value while the the uncertain economy becomes certain again.

The only other things I would say right now that would be of more value in the future than any precious metal or paper currency is #1 "clean drinking water" #2 Food and #3 shelter (housing/land/property)

Those 3 things are the foundation of human functionality and will always be needed. If I could invest on something it would be a thousands of acres covering an enormous "aquifer" but alas I do not have the investing power to do that so I have to go for the next practical thing.

I really dont understand all the gold and silver buying.

What is gold and silver going to do for you when this economy crashes? when fuel is $20 a gallon and costs so much that trucking companies refuse to deliver goods and services anywhere what is gold going to buy you? when everything you buy in your daily lives triples in price so basically our way of life here halts to a stop, what is it going to do? when food stores are empty because no ones delivering anything anymore, when martial law is in effect so its almost impossible to leave your home for the fear of being killed in the streets whats that pile of gold going to do?

What people need to be doing is stocking up on food, water, and propane/heating devices while your paper money is still worth something to prepare for however long this country will be in shambles.

Or, secondly, like myself, start making the preparations to move out of this country. My wife and I should be out of here by next summer. We have already moved our savings into an offshore bank, we are selling our house, finding out how to return our leased cars, and looking for jobs in the country we are moving to since we can both speak the language. luckily some of my wives family lives there and they said we can stay with them until we get back on our feet. Yes, we will lose some money on our house, and in the end, if it doesnt sell, well, we are just walking away from it. Don't get me wrong, the whole global economy will be hurt when america crashes, but nowhere else will it be as bad as here,

I also have a supply of 6+ months food/water and propane along with a handgun and ammo i bought last month in case we dont make it out of here in time. But i really don't see what a stack of gold coins is going to do for anyone when this country collapses. It will help once we recover and maybe have a new currency, but until then, it will do nothing.

I wish you all luck.

reply to post by Sly1one


I call BS on you. This whole post is a load of crap. You have posted lies before to get people's attention, I think your doing it again.

For one, who is making you walk away from your house????? At this time people can not pay their mortgage for MONTHS and stay there, so why are you walking away.

Once again, more fiction just to get attention.

reply to post by djtek


Don't get me wrong I completely agree and understand what you are trying to portray and yes "the chaos" that takes place will seem to trump the value of gold and silver.

I am in the process of making preparations to just initially survive the chaos. Stocking up on food, water, ammo, weapons, etc etc....however this survival mode will not be forever and eventually there will be order and there will be a new currency of which gold and silver will hold value in that currency.

Either that or its severe Armageddon, revelation 2012, blue beam, nazi, NWO, genocidal population reduction, end game, check mate, and nothing will really matter will it?

I mean hell honestly I don't know what is going to happen but I highly highly doubt that staying in my house and paying my mortgage and participating in this failing system is going to somehow prepare me for anything but disaster.

I don't trust stocks and I don't trust bankers or wall street to honor any investments I may have on paper...I need the physical material in my possession. I feel it would be bad logic to trust investments in economic system that failed because of corruption and failed intentionally.

Originally posted by amc621
reply to post by Sly1one

 

I call BS on you. This whole post is a load of crap. You have posted lies before to get people's attention, I think your doing it again.

For one, who is making you walk away from your house????? At this time people can not pay their mortgage for MONTHS and stay there, so why are you walking away.

Once again, more fiction just to get attention.

why hello, who are you? What posts have I posted before for attention? I am not physically walking out of my house, if you read my OP you will see I clearly said I will be living in it until they kick me out, I will just simply not pay my mortgage. "walking out" is a term used now to refer to the act of "walking away from the debt and loan" of your house.

No one is making me walk away from my house I am doing so willingly....My credit score will dive yada yada, we will be using my wife's credit score if needed which is very good.

I don't understand the hostility here? I feel it is misplaced, I am not seeking attention if that what you think this is...

Honestly I posted this as a "on the record" example of what might just simply become more common in the coming future. I could really care less of the attention you give or do not give me, take it or leave it it concerns me not one bit.

again though please point me to where I have posted "lies to gain attention" before? If you are referring to my post I made Truth as you see it I ended the thread with the point of what I was doing...???

This is not the same and I'm not making any point here and its not for attention...This is real, one could just as easily say any post anyone makes that isn't MSM sourced regurgitation is "attention seeking"...

I'm a little bit confused as to where you are going to keep your gold if you are homeless.
In a bindle?

Originally posted by davespanners
I'm a little bit confused as to where you are going to keep your gold if you are homeless.
In a bindle?

We will be renting a house using my wife's credit score after we are forced to leave the house. As far as where I would keep the gold/silver I haven't actually figured that out yet. I have some ideas but I am not completely settled on anything. I definitely wont be trusting banks with it.

80 years ago precious metals were made illegal to possess, so I would probably put it somewhere unsuspecting.

reply to post by Sly1one


ok, where is your house? what is your mortgage payment? how long have you been there?

There is hostility because I see so many post on here of people jupming in the bandwagon of "things are screwed up" or "we need change" however no one post what they would like that change to be.

How would you like things to be if your not happy the way they are now?

Originally posted by amc621
reply to post by Sly1one

 

ok, where is your house? what is your mortgage payment? how long have you been there?

I live in Colorado, my payment is $1000 a month, I have lived there 2.5 years

There is hostility because I see so many post on here of people jupming in the bandwagon of "things are screwed up" or "we need change" however no one post what they would like that change to be.

In a sense yes the "things are screwed up" is indeed a bandwagon and "we need change" as well and my guess is because people are either A) simply fed up of getting no where but further in debt just to simply live or B) realizing the obvious imbalances of power within the country/world/society they participate in.

No a lot of people haven't discussed what they would like that change to be. Yes that is frustrating to hear constant complaining without solutions, I understand this point.

How would you like things to be if your not happy the way they are now?

Well, I would imagine something less prone to abuse and corruption. Something that is held accountable by everyone. People shouldn't have to go into debt or servitude to have the basic necessities of life: food, water, shelter, air to breathe.

The fact you have to "in debt" yourself from the get go in this world to simply have a place to live is not fair nor equal. Whoever is handing that debt out will forever be more influential and powerful then those indebted to him. The society we live in now is a conflict of interest in so many various ways its becoming difficult to make any type of meaningful progress that makes people happier, more free, independent, and self sustaining.

I made a thread regarding possibly ideas of how to avoid these problems, you can search it out if you like I won't advertise it here.

Any REAL CHANGE will appear to be so radical and extreme it will be laughed and ridiculed into oblivion. Anything that doesn't appear radical and extreme will be the same system with a different name, but will ultimately be more favorable because it won't take a lot of adjusting and people won't have to revamp the way they thought of the world and how it worked.

Originally posted by Sly1one


I live in Colorado, my payment is $1000 a month, I have lived there 2.5 years

I live in Colorado...and i want to know where you are at...any mortgage in colorado is usually alot more then 1k. My parents have lived in the same house for 10 years and their payment is almost 2k

1k is barely enough per month to pay rent in some places. and also if you are just going to leave your mortgage and move to someplace you would pay rent doesnt that kinda defeat the purpose?

reply to post by Sly1one


Are you looking for a socialistic society then? From reading what you would like that seems to be socialistic.

reply to post by Sly1one

I decided to "walk away" from my house. Yup, I decided that because I am upside down and in over my head on what was supposed to be an investment there is absolutely no good reason to submit my finances to the obvious drowning.

Awesome. Another dead beat.

reply to post by Sly1one


Friend! Welcome, we've been expecting you. There is no finer vacation resort in uncertain economic times than the resilience of Galt's Gulch. Welcome!

reply to post by LadySkadi


He is upside down and in over his head with a 1000 a month mortgage. But has money to buy silver.

I don't believe this post for a second.

Originally posted by AbandonFaieth

Originally posted by Sly1one


I live in Colorado, my payment is $1000 a month, I have lived there 2.5 years

I live in Colorado...and i want to know where you are at...any mortgage in colorado is usually alot more then 1k. My parents have lived in the same house for 10 years and their payment is almost 2k

1k is barely enough per month to pay rent in some places. and also if you are just going to leave your mortgage and move to someplace you would pay rent doesnt that kinda defeat the purpose?

It would appear to defeat the purpose but it will take them a while at least 9 months to evict us. That's 9000 dollars to invest. Yes when are forced to leave and rent we will spend that 1000 on rent. 9000 worth of $30 silver oz....

right now silver is 1/50,60 gold. Historically when currencies fail it shoots up to 1/16 the price of gold. If this remains the case and what looks like is going to happen happens, silver will shoot up to almost $180 oz....that just turned my 9000 into 54,000

If nothing happens and the world stays the way it is, I can always sell the silver and get my money back for the most part. It is a gamble yes but regardless I am currently drowning in upside-down debt on my house/mortgage with absolutely no relief in sight. I can't even refinance because the loss in value has ate up any equity I might have had.

The house across from me is very similar to mine and has been on the market with a "for sale" sign in the front yard since I moved into my house 2.5 years ago. The chances of me selling are slim to none, the chances of me selling for anywhere near what I payed are slim to none. My house has officially become a depreciating asset much like a vehicle except much more expensive.

I live in Pueblo its south of Colorado Springs, the cost of living here is probably one of the best in the country.

reply to post by Sly1one


And what will you do when the SHTF doesn't ever hit the fan?

You'll be on the streets with a pile of silver? I don't get it.. precious metals are intended as a hedge, not a total investment because it's not liquid. The average home will double in price every 10years .. average gold/silver is 100-200% increases.. but real estate is like metals, it's tangible and if you wait long enough a good hedge for inflation. Also the sale of metals is something you report to the IRS for profit, a home is not.

But what ever.. do what you gotta do.. while us responsible people pay our mortgages to not be a burden on society..

Also I think you miss the point of metals. Metals do not increase your wealth, they maintain it.. this is why you don't invest in it entirely, only a portion around 20-25% ish should be in metals at any one time.

If you buy Silver at $30/oz and you sell it for $180 .. that $180 has the same buying power as $30 ...

Think of it this way.. in the 1980's if you bought a snickers bar for $0.35 and waited till 2010 and sold it for $1,25 you'd think, holy cow what a profit.. but what could you buy for $1.25? Another snickers bar.

I think you need, desperately, to see a financial adviser.