Posts
I had an idea a while ago but let it pass. That is not uncommon for anyone to do, yet when it comes back stronger and wiser its time to listen and act on it.
My idea/plan came from thinking about the mid sixties, not my own experiences, but what was going on with the currency. I was trying to understand how after the silver standard was dropped, the disappearance of junk silver (90% pure, silver, U.S. coinage) in circulation was not instant, then followed by outrage and unrest. I still hear stories about my friends' grandparents silver coin hoards, but nothing more. I guess some people were paying attention at that time. That was an opportunity I am sure everyone else would love to go back to because it was so easy.
That led me to think of the gold standard getting dropped in the seventies. That was not as much a coinage issue as it was paper. I understand that more than a few people caught on this time around but it was not something that the general public had access to. Gold was not in everyones pocket to be sorted out this time. Only now are people catching on to what the government did in 1971.
My thoughts then drifted to the mint ditching the copper standard in 1982, which was not really a "standard" but it was one of the remaining metals of value still in circulation. I have to hand it to the powers that be, it was not until around early 2006 that a penny was truly worth a penny. That's 24 years after the switch to zinc and 42 years after the silver theft...er...switch. That's a lot of time for the masses to forget lessons learned from the past. These dates and facts I did not know until recently, when the thought came back to me to start hoarding copper pennies.
Anyone who had the awareness to trade cash for silver coins in the sixties was, at the time, making roughly an even trade. Hardly profitable, but wise, as it has been paying off for many years now. What about doing that with copper pennies? Anyone doing that from 1982 to about 2006 would have been making a negative trade, as in, they could get more copper for their dollar elsewhere.
It turns out that trading cash for pennies now, just like they did in the sixties with silver, yields an approximate 25% gain walking out the door of the bank. With some sweat equity you can realize 100% gains at current market price, by returning the zinc pennies. There is zero risk to hoarding copper pennies (other than inflation, which is rebutted, as copper can, and has been an inflation hedge, so back to zero risk) as it is still US currency. At current copper prices you get two pounds of copper for the price of one. That is how you get free copper, you just ask for it, at any bank.
I want to share with you how I do this. Keep in mind I have only been physically doing this for a couple of months and I know that I do not have all of the details worked out. If anyone would care to share any ideas or techniques they would be greatly appreciated.
This is still just a hobby for me, not an obsession, so when I go to the bank for my cash each week I just ask for $10-20 dollars worth in pennies. The tellers were very curious at first so I told them that I like to sort through them with my daughter. I take them home and that's it. $10 in pennies is only about the size and weight of a brick so it is not that inconvenient to carry or store. If I have the time I like to sort thru them looking for wheaties and odd balls.
When I do sort by hand I make five piles. So far in this young quest, my odd balls include a 1907 indian head, two dimes, ~50 wheaties, one british looking coin, a OH and a MD stamped penny, and a few new Lincolns. That's after about 8,000 pennies by hand. My piles are:
- 1959-1981 (95% copper)
- 1983-present & 1997-present Canada pennies (97.5% zinc)
- 1942-1996 Canada pennies (copper)
- odd balls
- 1982 (this is the year the mint switched to zinc so I will weigh them later to sort the copper ones out.
This is where I am at with this hobby. I fully intend to continue with it until copper pennies are as rare as a war nickel. I even have a machine coming in the mail that sorts them by weight to help speed up the process. I am looking forward to that and will update you on its usefulness. Its free copper. Tell me why we should not be doing this and I am sure we will have a fun conversation.
Here is a quick story before I wrap up, this really did just happen...
While discussing saving copper pennies with the guys here at work, one said his only question is what am I going to do with them all. Well I knew I bit of his history which included being handed down mason jars full of silver dollars. So I asked him why he has mason jars stashed away. He told me for a second (or third) time that he got them from his grandpa who put away a handful every week. I then reminded him that one day I too will be a grandpa.
Remember to continue educating yourself every opportunity that you have, thanks for your time --- C.H.
Thursday, November 5, 2009
Wednesday, November 4, 2009
Valuable Knowledge is Power
The more that I think about what I see coming, the more I start to get nervous and anxious. What is going to happen feels so imminent to me that I want to take action immediately. I know what I am going to do and I know what I have done to prepare my family so far. That alone does not always help. To really calm myself down I look to the past just a little bit, I look to my notes, my plans, then I look at and hold my metal. If that does not do it then I look back further and further still until I am reassured that I am on the right course. Someday, I know, it will be the next day coming. None will know the day but if we are truly prepared and the day does not come in our time, it will be our children or their childrens time. We cannot educate ourselves and plan without sharing that knowledge. Pass the information that you know and learn on to everyone so that your preparation becomes theirs too. Don't forget to live you're life while your at it.
Their are many people out there who understand just what I am saying and how I feel. Unfortunately there are so many, many more who are absolutely blind to it.
That blindness is due to the lack of sharing valuable knowledge. In this day and age there is so much that we know that we don't need to, like an actors favorite color, which celebrity went out and got drunk last night, or even what your sisters boyfriends parents dog sitter just scored on a face book game. Worthless knowledge that we all eat up daily. Why does a modern teenager need to know anything about how to get milk from a cow when it's in the third aisle cooler? Why would a father of four need to know how to bring down and gut a deer when he can go to the meat market and buy as much as he wants? Why would a person need to know that Aloe is actually a plant you can grow on your window sill at home, not just an additive to a drug you buy at the pharmacy? Why would anyone need to store wealth at their house privately when you can keep dollars at your local banks computer? Go back just a hundred years or more and anyone on the planet would give you all the reasons why.
The ease of life as we know it will not last for ever. It may last through our life times and it may last through our childrens but when it ends it will be over. If this lack of valuable knowledge stretches out over a long enough time line, we as a people will be lead into surfdom and bondage by those with knowledge and power when it ends.
So what to do then? Always remember that knowledge is power. That you "know something" means nothing, how you act on, and with, that knowledge, is everything. We need to take full advantage of every opportunity available to us in this wonderful time. Right now I am at work (on lunch time) typing a letter that is being spell checked as I go, on a phone. When I am done with this letter it will be posted for anyone else in the world that has a computer to read it. I am periodically checking my stocks and world news. At any time I can call and talk to my wife or any other person that walks the globe with a cell phone. I read articles daily from people who are also willing to share valuable knowledge. What I am saying is that while we have it, use it to the best of our ability. It won't take much for it all to go away.
If you don't use your time now to learn and teach the valuable knowledge that is out there, it may be you or your children learning by experience how to grow their first garden wishing they had a weapon to protect what little comes from it, or to hunt with. Either you or your descendants will be fighting to find clean water having nothing of value to barter with. No, not tomorrow, but just lend yourself the time to play pretend. What if a piece of notebook paper is more valuable than a dollar bill. Think about it, it has room on it to write information and share knowledge while the dollar has become worthless.
Stock up on knowledge that is worth something. Buy books that may help in a time like that. You may not need to know all about hunting, fishing, gardening, bartering, sewing, medicinal herbs, or water purification right now as everything is available everywhere. Your children may never need to know that stuff either but would that not be more worth it than spending all of your time with social networking?
I gave up the 30 minute lunch time here at work that I used to play hearts with the guys, and read a book. Instead of passing up the business section in my daily paper, I read it. Rather than walking away from discussions about investments I sought them out. I did not have a clue what a hedge fund or ETF was. I never thought at the time I would hold a single ounce of gold or silver in my hand, let alone own them. I chose to learn as much as I could by myself. I did not take a mentor, I wanted to understand what I was learning, not be told. Those were the first steps that I took, they are easy and free.
Change your mind if you want to change your life. ---C.H.
Their are many people out there who understand just what I am saying and how I feel. Unfortunately there are so many, many more who are absolutely blind to it.
That blindness is due to the lack of sharing valuable knowledge. In this day and age there is so much that we know that we don't need to, like an actors favorite color, which celebrity went out and got drunk last night, or even what your sisters boyfriends parents dog sitter just scored on a face book game. Worthless knowledge that we all eat up daily. Why does a modern teenager need to know anything about how to get milk from a cow when it's in the third aisle cooler? Why would a father of four need to know how to bring down and gut a deer when he can go to the meat market and buy as much as he wants? Why would a person need to know that Aloe is actually a plant you can grow on your window sill at home, not just an additive to a drug you buy at the pharmacy? Why would anyone need to store wealth at their house privately when you can keep dollars at your local banks computer? Go back just a hundred years or more and anyone on the planet would give you all the reasons why.
The ease of life as we know it will not last for ever. It may last through our life times and it may last through our childrens but when it ends it will be over. If this lack of valuable knowledge stretches out over a long enough time line, we as a people will be lead into surfdom and bondage by those with knowledge and power when it ends.
So what to do then? Always remember that knowledge is power. That you "know something" means nothing, how you act on, and with, that knowledge, is everything. We need to take full advantage of every opportunity available to us in this wonderful time. Right now I am at work (on lunch time) typing a letter that is being spell checked as I go, on a phone. When I am done with this letter it will be posted for anyone else in the world that has a computer to read it. I am periodically checking my stocks and world news. At any time I can call and talk to my wife or any other person that walks the globe with a cell phone. I read articles daily from people who are also willing to share valuable knowledge. What I am saying is that while we have it, use it to the best of our ability. It won't take much for it all to go away.
If you don't use your time now to learn and teach the valuable knowledge that is out there, it may be you or your children learning by experience how to grow their first garden wishing they had a weapon to protect what little comes from it, or to hunt with. Either you or your descendants will be fighting to find clean water having nothing of value to barter with. No, not tomorrow, but just lend yourself the time to play pretend. What if a piece of notebook paper is more valuable than a dollar bill. Think about it, it has room on it to write information and share knowledge while the dollar has become worthless.
Stock up on knowledge that is worth something. Buy books that may help in a time like that. You may not need to know all about hunting, fishing, gardening, bartering, sewing, medicinal herbs, or water purification right now as everything is available everywhere. Your children may never need to know that stuff either but would that not be more worth it than spending all of your time with social networking?
I gave up the 30 minute lunch time here at work that I used to play hearts with the guys, and read a book. Instead of passing up the business section in my daily paper, I read it. Rather than walking away from discussions about investments I sought them out. I did not have a clue what a hedge fund or ETF was. I never thought at the time I would hold a single ounce of gold or silver in my hand, let alone own them. I chose to learn as much as I could by myself. I did not take a mentor, I wanted to understand what I was learning, not be told. Those were the first steps that I took, they are easy and free.
Change your mind if you want to change your life. ---C.H.
Tuesday, November 3, 2009
Defining Definition
While typing a list of definitions to words that are pertinent to investing with a contrarian point of view I had another mild epiphany.
It has taken me a long time to un-learn the things that I have been taught. That is the reason behind the exercise of defining words based solely on my own opinion. It reaffirms my belief in what the words mean to me. I was trying to explain the meaning in plain text. As an example I defined commodity simply as, "something you can put in your hand". That is not to websters standards, but is too simple to mess up.
More complex words came to mind that I felt needed defining like value and asset. While trying to simplify my definitions, a thought started boiling up in my head so thick that I could not stay on task. Why is it, that matters of opinion have already been defined for us?
As a junior contrarian at heart, the fact that I was taught and told what an "asset" is and what its "value" is, is now a slap in the face. I was never given an opportunity to determine what somethings value was on my own. I never determined/defined on my own what an asset was. I was told, and I listened.
As my mind raced about those two definitions alone, and what they meant to me, I realized that the very dictionaries I've owned since childhood are filled with the opinions derived by other people and societies of the past.
I am allowed to determine on my own what to eat, who to marry, where to live, where to work, and what I want to do for the evening. I am given the freedom to make those choices and enjoy the repercussion of their meanings good or bad.
As far as the words that we use in the language that we speak, well, we have been given a long list of words with a prescribed, clearly defined meaning. Some of the words have multiple meanings so that we can pick and chose what works best at the time with the given application. That gives us the choice to interuput a words meaning within a set of limits. It keeps us all in line. While a dog is a dog, there are many kinds of dogs, but they are all still dogs.
Sounds great until your interpretation of a word contradicts the meaning that another person has given it. It becomes worse still if your meaning of words opposes that of the main stream. You realize quickly that your individual thoughts and ideas have got to have some backbone. You will need to be able to defend why you would have the audacity to define something differently than that which has already been given to you.
This is the point: For you to understand anything, YOU must understand it for yourself. Put it in your own context. Let it make sense to you. If someone else tells you what something means let them prove it or prove it yourself. I am not talking about words like shoe and toast, I am talking about words related to investing, like asset, value, and even the word investment itself.
If I call gold an asset because it is in my hand, has international value, can not expire, and is no one elses liability then that is what an asset is... to me.
If you call your 401k stock portfolio an asset because it has increased in dollar terms this year, has the benefit of compounding interest, is not taxed(yet), and could be withdrawn if you need it then that is what an asset is... to you.
This revelation has now only solidified my presence in the contrarian camp. I use the words of Thomas Jefferson, "We are not afraid to follow truth wherever it may lead, nor to tolerate any error so long as reason is left free to combat it." to help guide me through the quest of defining important words using my own reason.
Use your own life experience and reason to develop the true meaning of words in your own context. Don't be afraid to question the knowledge that was given to you, only trust what you have done for yourself.
I can now continue to build my own dictionary as I, in length, have defined definition... to me. ---C.H.
It has taken me a long time to un-learn the things that I have been taught. That is the reason behind the exercise of defining words based solely on my own opinion. It reaffirms my belief in what the words mean to me. I was trying to explain the meaning in plain text. As an example I defined commodity simply as, "something you can put in your hand". That is not to websters standards, but is too simple to mess up.
More complex words came to mind that I felt needed defining like value and asset. While trying to simplify my definitions, a thought started boiling up in my head so thick that I could not stay on task. Why is it, that matters of opinion have already been defined for us?
As a junior contrarian at heart, the fact that I was taught and told what an "asset" is and what its "value" is, is now a slap in the face. I was never given an opportunity to determine what somethings value was on my own. I never determined/defined on my own what an asset was. I was told, and I listened.
As my mind raced about those two definitions alone, and what they meant to me, I realized that the very dictionaries I've owned since childhood are filled with the opinions derived by other people and societies of the past.
I am allowed to determine on my own what to eat, who to marry, where to live, where to work, and what I want to do for the evening. I am given the freedom to make those choices and enjoy the repercussion of their meanings good or bad.
As far as the words that we use in the language that we speak, well, we have been given a long list of words with a prescribed, clearly defined meaning. Some of the words have multiple meanings so that we can pick and chose what works best at the time with the given application. That gives us the choice to interuput a words meaning within a set of limits. It keeps us all in line. While a dog is a dog, there are many kinds of dogs, but they are all still dogs.
Sounds great until your interpretation of a word contradicts the meaning that another person has given it. It becomes worse still if your meaning of words opposes that of the main stream. You realize quickly that your individual thoughts and ideas have got to have some backbone. You will need to be able to defend why you would have the audacity to define something differently than that which has already been given to you.
This is the point: For you to understand anything, YOU must understand it for yourself. Put it in your own context. Let it make sense to you. If someone else tells you what something means let them prove it or prove it yourself. I am not talking about words like shoe and toast, I am talking about words related to investing, like asset, value, and even the word investment itself.
If I call gold an asset because it is in my hand, has international value, can not expire, and is no one elses liability then that is what an asset is... to me.
If you call your 401k stock portfolio an asset because it has increased in dollar terms this year, has the benefit of compounding interest, is not taxed(yet), and could be withdrawn if you need it then that is what an asset is... to you.
This revelation has now only solidified my presence in the contrarian camp. I use the words of Thomas Jefferson, "We are not afraid to follow truth wherever it may lead, nor to tolerate any error so long as reason is left free to combat it." to help guide me through the quest of defining important words using my own reason.
Use your own life experience and reason to develop the true meaning of words in your own context. Don't be afraid to question the knowledge that was given to you, only trust what you have done for yourself.
I can now continue to build my own dictionary as I, in length, have defined definition... to me. ---C.H.
Monday, November 2, 2009
What Time?
We have all said to ourselves and to others, "I don't have enough time". This is just not true. If you are doing something that you want to do, and something else comes up to change that, you have a choice. You can attend to the new matter or continue what you were doing. We lazily use the excuse that we lack time, when in truth, time is not an issue.
Minute to minute, hour to hour, it's all the same for everyone. You have the same amount of time each day as I do, and the same amount of time each day that any achiever or slacker that you know has. What we chose to do with our time is how we determine how much time we have.
Many times I find myself overloaded with tasks, telling myself I do not have the time. I see other people accomplishing great things, I wonder how they find the extra time. My answer comes too easily when I realize how simple it is. They apply themselves to accomplish their goals. They don't find time, or have extra time, they divide the time they have appropriately to devote themselves to the task.
If you think about the last time you stayed up all night to finish something, it was probably fun. You made the choice to set a goal, forgo sleep, and do the thing that you wanted to do no matter how much time it took. Most all nighters involve something that we are passionate about like a hobby, finish a project, or read a book cover to cover. Whatever it was most likely turned out great because you devoted your undivided attention, your time, to it. That is when we do our best, the devoted and undivided attention part, not necessarily the all nighter part. We have made the choice to apply ourself and spend our time on it.
I believe that whatever you do to the best of your ability, will be graced by God. This is why when we do anything we need to keep in mind that we chose to do it. You are spending your time on it you may as well spend the effort too. The benefits pay off greatly.
This is a lesson that took me a long time to understand. I am not going to work till the day that I die. I will be financially secure at a young age. I will have the ability to choose how I want to spend my time without the restrictions of monetary worries. This is the point of this post on this web log. Understanding what time is and knowing that we have as much as all the other humans walking the face of earth no matter what they choose to do with theirs.
Make the choice to spend time educating yourself in matters of money. Set your goals. Set a course to meet them. Find the path if you stray, and stay focused. Remove the things that are in the way. Do everything that you do the best that you can, every time. ---C.H.
Minute to minute, hour to hour, it's all the same for everyone. You have the same amount of time each day as I do, and the same amount of time each day that any achiever or slacker that you know has. What we chose to do with our time is how we determine how much time we have.
Many times I find myself overloaded with tasks, telling myself I do not have the time. I see other people accomplishing great things, I wonder how they find the extra time. My answer comes too easily when I realize how simple it is. They apply themselves to accomplish their goals. They don't find time, or have extra time, they divide the time they have appropriately to devote themselves to the task.
If you think about the last time you stayed up all night to finish something, it was probably fun. You made the choice to set a goal, forgo sleep, and do the thing that you wanted to do no matter how much time it took. Most all nighters involve something that we are passionate about like a hobby, finish a project, or read a book cover to cover. Whatever it was most likely turned out great because you devoted your undivided attention, your time, to it. That is when we do our best, the devoted and undivided attention part, not necessarily the all nighter part. We have made the choice to apply ourself and spend our time on it.
I believe that whatever you do to the best of your ability, will be graced by God. This is why when we do anything we need to keep in mind that we chose to do it. You are spending your time on it you may as well spend the effort too. The benefits pay off greatly.
This is a lesson that took me a long time to understand. I am not going to work till the day that I die. I will be financially secure at a young age. I will have the ability to choose how I want to spend my time without the restrictions of monetary worries. This is the point of this post on this web log. Understanding what time is and knowing that we have as much as all the other humans walking the face of earth no matter what they choose to do with theirs.
Make the choice to spend time educating yourself in matters of money. Set your goals. Set a course to meet them. Find the path if you stray, and stay focused. Remove the things that are in the way. Do everything that you do the best that you can, every time. ---C.H.
Sunday, November 1, 2009
Clean Slate
The first thing I need to do is clear my thoughts. I have read a lot of articles, books, news stories, and watched and listened to my share of the media. My head is full. The thoughts have spilled out on notes and into memo files on my computer without much organization. I have written some rants just to clear my mind. I have written some strategies down to see how it looks and feels to read my thoughts. I have been keeping crude notes of stocks and sectors to watch, follow, and invest in. I have a to do list with books to read and strategies to start following. It has all started blurring together.
With the effort I have been applying, original thought has started to develop in me. I have made the decision to share my thoughts and ideas with others. Recently I have been writing letters/e-mails to the people who's own writing has inspired me, sharing my ideas with them. I can not blame them for not responding as I know they are busy managing so many other things.
Naturally, my wife and some close friends get a carbon copy of the things that I write to the other writers. I knew that I would get some type of response from them and I think that what I have to say may help them too. Doing that has forced me to be very sure of the things that I say. It is this group of peers that I respect the most, and this group that I want to help the most. Coincidentally, it is this group who has encouraged me to share what I know.
My journey began long ago without my knowledge. It has lead me to this point of putting what I have out to the world. It would be too easy for me to just copy those previous letters and notes into this web log. The problem I see is that they would be all out of context and they are written to a different level of investor. I want to keep this simple and make it all easy to understand. Rewriting the ideas and thoughts will keep them focused and individual. I do have a few that are nearly ready but will need some sprucing up and reformatting.
Again, I am looking forward to this challenge. I always thank others for sharing what they know and now it is time for me to do the same. ---C.H.
With the effort I have been applying, original thought has started to develop in me. I have made the decision to share my thoughts and ideas with others. Recently I have been writing letters/e-mails to the people who's own writing has inspired me, sharing my ideas with them. I can not blame them for not responding as I know they are busy managing so many other things.
Naturally, my wife and some close friends get a carbon copy of the things that I write to the other writers. I knew that I would get some type of response from them and I think that what I have to say may help them too. Doing that has forced me to be very sure of the things that I say. It is this group of peers that I respect the most, and this group that I want to help the most. Coincidentally, it is this group who has encouraged me to share what I know.
My journey began long ago without my knowledge. It has lead me to this point of putting what I have out to the world. It would be too easy for me to just copy those previous letters and notes into this web log. The problem I see is that they would be all out of context and they are written to a different level of investor. I want to keep this simple and make it all easy to understand. Rewriting the ideas and thoughts will keep them focused and individual. I do have a few that are nearly ready but will need some sprucing up and reformatting.
Again, I am looking forward to this challenge. I always thank others for sharing what they know and now it is time for me to do the same. ---C.H.
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