The Majority

February 1, 2007

"The majority is usually wrong," Is a common phrase I use. Historically speaking, when I say the majority is usually wrong, I will admit that it is rather an opinion. Example: I feel the North was terribly wrong in starting the War of Northern Aggression, incorrectly called the "Civil War." Example: I feel the Jews were terribly wrong in crucifying Jesus, although by doing it they fulfilled over 900 Old Testament prophecies. They were the majority, at least in their religion, and I think they were wrong. Lot of examples can be made, and once again, they are my opinion.

The Super Bowl Game on Sunday will be watched by literally hundreds of millions around the world, and I may also, but I doubt it. I hate football, since it is the only game which has to be played in full body armor, with most participants usually suffering permanent injuries. It is the only game where weight counts more than skill, and the only game played in snow, rain, and mud. The majority of Americans are nuts for football, and I think they are wrong.

Yeah, I guess my opinion about the majority always being wrong, is very subjective, and especially about economics, which is what this web site is about, and I wouldn't change that. What do the majority do with their money? Mostly what I would never do, so I think they are wrong. Buy new cars? Not me! Drive them around the block and you've lost $10,000, because they are then 'used.' Eat at fast food restaurants? Not me. I value my health too much for that, even though that stuff is really delicious. Willpower is what it takes to be different than the mob. Live in a modern, normal type of house, like the huge majority does? No, I live in an 1887, 3350 sq. ft. Queen Anne brick, and love to sit on my porch in summers and watch people jam on their brakes, stop and take pictures.

So what's this about economics? Economics is what makes the world go 'round, and we can't live without economics. I try to live as luxuriously as possible, for as few dollars as is possible. My property taxes are $1140 per year. I own four old Mercedes, and their license plates are about $24 per year each. They are different, unusual, sophisticated, economical, dependable, and trouble free. I get the most for the least in home and cars, which makes me a grand minority. Most homeowners pay far more than $1140 per year in property taxes, and far more for tags than $24. I think the majority is wrong, but they might not agree, and believe their new shiny hootomobile with the $700 tags is worth it, or their modern ranch style home with far more taxes is also worth it. Naturally, taxes and fees are different in the various states, generally the highest are in the east, where the majority of the population lives. But then, the east has lots of humidity pollution and crooked politicos, and they don't in the American West. I think that the majority is wrong. Naturally, there are jobs and businesses and families which may lock one into their place, but there are millions who live where they do, because they always have lived there, and for no other reason, even though it may be costing them a lot of dollars to do so.

Should one change their habits, if they are wrong? Should one live in high tax areas if one doesn't have to, just out of habit? Should one stay in dollar investments, because one has always done so, and besides everyone else does it? What percentage of Americans have invested in physical gold and silver? Perhaps one tenth of one percent? Maybe less? I got a call on Wednesday, as I was writing this from a fellow whose mother died. She has gold and silver in her safe and he has ordered the safe to be cracked so he can get into it and sell the gold and silver. He wanted to know how to sell it? The first thing I told him was not to tell and lawyers about the contents of the safe, because his mother had bought the gold and silver with no one knowing about it but her…and now that she had passed…him. In other words I told him it was not taxable, and for him to take it home and do with it what he wanted, but surely not pay inheritance taxes on it.

I then asked him if he needed the money? After a long pause, he said, "No." I asked him why he wanted to sell it. He didn't know. I then told him that his mom was smart, and she knew that the dollar was going down, which is just another way of saying that prices were going up, and she wanted to protect herself by getting out of declining dollars and into a different denomination. She may have also known that she could pass her wealth on to her son without tax consequences. I further told him that she was so smart that she did what few others do, and that he should just keep the gold and silver, be glad he has it, and not to sell it, because it was a tangible worth. A tangible item, which has been money for thousands of years; is what I told him. I told him that whatever he could get for it today, in a year, it might well be worth twice the price in dollars, even though it was the same gold and silver, because it was denominated in ounces, not dollars. After my lecture was complete, I asked him if he really wanted to sell it, and he said, "No, your information has been very useful and logical, and I'll keep it. Thanks you very much." I have no idea who he was, his name, or where he lives. I passed up a 1% commission because I am honest and do not believe in doing or selling things I do not believe in, and that's the way all people should be. Stock brokers take note. I wouldn't make a good stock broker!

How many people have died today? How many of them have gold and silver in their possession for their descendents to find? I don't know, but I do know that when kids find gold and silver in the old man's dresser, they will usually go to the nearest coin shop and sell it, thinking that they surely were lucky. They were, but they acted stupidly. The majority is always wrong…in my opinion. The majority never thinks of anything but dollars and how much interest they can get on their investments. The idea of tangible, historic money in the form of gold and silver never occurs to them. Stock brokers and bankers wouldn't dream of informing them, nor would money managers of all sorts. Why should they? The bankers want the deposits and the stock brokers and money managers want to continually "churn" their clients so they can make lots of commissions.

One other way I think the majority is wrong. I take a lot of vitamins and minerals, try to eat sensibly, buy organic, won't drink fluoridated, chlorinated water, have a drink of whiskey every day usually, and have never smoked. I'll be 73 in a couple of weeks, have the health of a 40 year old, and this makes me KNOW I am right and the majority are wrong! Stop trying to emulate the majority. Think for yourself, be logical, change your life if it makes sense, stop being governed by "I've always done it this way, and lived here." Get out of dollars, the east, and big cities if you can, and get a life! But of course, that's just another way of saying "Protect yourself."

P.S. If you want a list of what I take every day, let me know and I'll e-mail it to you.gold@gwe.net I'm no doctor. It may be good genes, I don't know, but I can always pass for 20 years younger, and of course my voice sounds like I am 30, but that's not vitamin's fault. Go Colts? Who cares?

 

February 1, 2007

Don Stott has been a precious metals dealer since 1977, has written five books, hundreds of columns, and his web site is www.coloradogold.com

The volume of all the gold ever mined can occupy a cube 63 feet on each side.

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