It was St. Patrick’s Day of 2008 and I was out having a couple of Guinness and Talemore Dews. I celebrating my precious silver rally from $14 to $21 dollars in less than 3 months. Over the next week or so, Bear Stearns collapsed and silver dumped from $21 to $16 and I took a 25% hit in price. This volatility did not really rattle me or the silver community that much. Silver settled in the high teens for the next few months.
At that point, I will tell you, I was drinking Guinness and Talemore Dews again but for a much different reason. This period in my life was by far the hardest part I had to deal with. It had very little to do with the price of silver, although that did not help. I would like to tell you what got me through it to not only provide some insight into me but also provide you with a valuable lesson. Let me back up a bit.
In 2005, things were going really good in my life. You may or may not know that I came from a very successful car dealer family in New Jersey. The Republicans had just won the Congress and White House. Our business was booming. The housing market was rocking and my house had doubled in value. I was recently married and was expecting our first child. Things were a little too good for me actually.
I knew things were good but I also knew the sun would not shine forever. I started to ask some simple questions like where did money really come from? Once I started to challenge the most basic principles in my life, it led me down to a rabbit hole of truth that was very deep and wide. All of this knowledge I was discovering was so amazing and so important. I was shocked that it was not more commonly known. The most shocking thing to me was that I had been so successful without ever knowing how debt/money really worked. After a few months of becoming obsessed with learning all of this new truth, I took some dramatic action in my life.
My wife was 5 months pregnant and we were in the doctor’s office when I saw this Time Magazine cover in the waiting room. Like a lightning bolt, it hit me, I had to sell and sell NOW. Armed with all of this new knowledge, I knew in my soul that I had to sell our home and rent at the top of the housing bubble. This was the first major decision I made without anyone’s opinion. I did not ask anyone because no one knew what I did about how money really worked. I was aware that this credit expansion would not last forever and would end horribly. I wanted to be ahead of the curve and out of harm’s way.
After I sold the house, I continued with my research and read over 240+ books and became obsessed with online knowledge. I wanted to be in the right place at the right time again, so I tried to play this game out in my head. Where were we going and where should I be to take advantage of it? After much deliberation, I felt that the best place to be was gold, silver and oil. I went head first in the fall of 2005. After I secured my positions, I went to work trying to spread my new found knowledge to my family and business partners.
I tried everything to get my family and partners to see that the sun was not going to shine forever and that they were putting us all at risk. As Baby Boomers, they had been successful in using leverage to create a lot of wealth. Over the past 20 years it never failed them, so they saw no need to listen to some 30-year-old kid. I tried everything, and I mean everything to change their minds but they would not listen. Even worse, they went further into debt buying more land and even started a local community bank in 2007. What started as sending email links of enlightened commentary in 2005, turned into a bone of contention by 2008. I reached a decision point by the spring of 2008 right when my investments were going through the roof.
Even though I was a millionaire on paper, my family’s wealth depended constant growing economy. Among many other personal reasons, I decided to no longer tie my growing little family’s fortune to the seemingly suicidal financial decisions of my family and partners. I walked away from millions on paper so as to make a clean break from the debt associated with that wealth. This was another decision I made without consulting really anyone. I did this because I was Aware of what was going to happen.
After the paper work was complete in May of 2008, my wife and I prepared for the birth of our second child a month later. My wife and I looked at all of the typical run away spots like Florida, Texas, and Arizona but decided to move to good ole’ Cleveland. We moved there, not because of it’s balmy weather or awesome sports teams, but because my wife’s family is from here. I liked the idea that we had a ton of friends and family near by for our children to grow up with. I also liked the fact that it had a very low cost of living and that there were a lot of farms and water near by to rely upon in case of an economic collapse.
August of 2008 we packed up and moved to Cleveland. September we moved into our new home. October the world fell apart. What I had been predicting to my family and partners for three years, just happened. The stock market crashed. Silver dumped all the way down to $9. Car companies were disappearing. Credit was no longer available. Everyone held their breath.
Here I was with no job, no insurance, 2 car payments, a mortgage, a 3 year old and a 3 month old and I was getting crushed with my investments. And yet I knew what was happening and did not panic. I kept going over what I had learned and became even more confident that I was right. Thank God I was aware and prepared.
I also took comfort in the fact that I was no longer in the car business. I saw guys who have had dealerships in their families for generations, wiped out in a few months. Those that did survive may have had to amputate a few dealerships or dump everything including employees and inventory just to survive. Decades of wealth collapse into decades of debt, seemingly overnight. I just kept thinking to myself, if they would have only listened to me…
I eventually hooked up with a company that taught people how to invest in foreclosed properties on the internet. While the subject matter did not excite me, the way they communicated knowledge through membership sites, was very interesting to me. I started building the Sons of Liberty Academy back in March of 2009. I had no idea what it would become, but I felt if people knew what I knew, there would be a revolution in the morning. I ended up with the massive Sons of Liberty Academy that had 48 hours of video lessons and hundreds of supporting documents.
I released the Academy in June of 2010 to a very limited audience. It was well received, but it was growing too slowly for my taste. In January 2011 I started to blog on Dont-Tread-On.Me and I got even more people to join the Academy. It was still not growing fast enough, so a few weeks ago I took a Leap of Faith and gave away my life’s work for free. Even more risky was I also ended my 6-figure job to follow my passion.
Since the dark days of the Fall of 2008 silver rose 400% to become one of the best performing assets for the past 2 years. Since I left my job, I have had 100,000 visitors to the blog and the Academy is exploding with 500% growth in a few weeks. People are now offering their assistance in order to spread the message. I even had a young student in Spain offer to translate the entire Academy into Spanish!
I tell you this story so you can see that the most important thing in preparing for what is to come is Awareness. If I was not Aware I could have been trapped by millions of debt for the rest of my life and stuck in a world that I did not like. Awareness is far more important than food, water filters, guns, ammo, supplies, gold and silver. With the right knowledge and mindset you can improvise, adapt and overcome any challenge. This Awareness will steer you through the most difficult challenges in your life whether it is relationships, jobs, investments or WTSHTF. I can think of no better place to become Aware is the free Sons of Liberty Academy.
So here we are on this Ides of March watching silver dip 5% in less than an hour and I am having flash backs to St. Patrick’s Day of 2008. There is a battle going on between $34 and $36 in silver. Last Thursday we had a $2 swing in silver from $36 to $34. Today we see the same violent action. At some point somebody is going to say uncle and crack. I am fully aware of the fundamentals of silver but I also know that these banksters are not going to go down without a fight. There is so much at stake here and I would use every dip to buy more physical silver. Things that cannot go on forever won’t. Sooner or later they are not going to be able to deliver the real metal and then the Silver Door will be closed.
Oh and one more thing I did not tell you about the great silver dump of 2008, is that while the paper market was selling, the real physical market dried up. If silver was available, the premiums skyrocketed because the dealers would not sell at a loss. I think I remember $6 or $7 premiums on Silver Eagles when silver was $9, and that is if you could get them all. So on days like this, keep this in mind. I pray for one more, good silver short so that all of us can get some more JP Morgan subsidized physical silver into the hands of the Aware so we can close this Silver Door for good.