Five months after my once-in-a-lifetime trip to China, I’ll let you in on the real reason I went. After a long, arduous, seven year process, my wife and I adopted a beautiful, 18-month old girl from Guangdong Province. After such a pronounced wait, it’s hard to believe it actually happened – as given the ongoing relaxation of China’s “one-child policy” – instituted in 1979 – it appeared the cosmic forces were aligned against us. However, as it turns out, they were not; and consequently, Diana and I have been blessed in a way we couldn’t have imagined.
Frankly, I was never a “child person”; but then again, I wasn’t a “dog person” until Diana brought home our beautiful Giselle six years ago. Giselle is as much a part of my family as anyone I have known; and speaking of cosmic forces, I’m not sure the karma that brought her to us could have been stronger – as she was not the dog we chose, but came into our lives because she was put on the wrong truck. And FYI, given that Diana was once a ballet dancer – and now, a ballet teacher – we not only named our dog after one of the most famous ballets, but our daughter – Sylvie – after one of her favorite ballet dancers, Sylvie Guillem.
Five months into fatherhood, I couldn’t be happier. Sylvie is a happy, energetic child with amazing social skills – particularly in light of the fact she spent 18 months in an orphanage. My hope is she will grow up to break fellow Coloradan Missy Franklin’s Olympic swimming records; but more importantly, that she’ll live a happy, productive life. It’s very vital to me to make a mark on the world; and hopefully, she’ll feel the same. After all, we only live once.
Fortunately, one thing I inherited from my mother – in spades – is a financial conservatism creating a healthy, but at times all-encompassing, fear of failure. In my youth, my investments were far more speculative; but as I have aged, they have become decidedly. Exiting the stock market in April 2000 – when the internet bubble first showed signs of weakness – was my first major “conservative decision.” The second was refusing to buy a house in New York in the mid-2000s; instead, issuing an “ultimatum” to Diana, that if she wanted to own a home, we would need to move away from the overpriced New York market. And finally, my 2008 decision to start selling mining stocks in lieu of PHYSICAL gold and silver; culminating in the sale of my last stock in April 2011 – likely, the last of my lifetime.
Regarding the latter, it saddened me greatly to do; as not only were stocks my passion, but my vocation for the prior 22 years. However, once I realized that not only are all financial markets rigged, but the entire global monetary system in jeopardy, such a decision was the biggest “no-brainer” of my career. Frankly, I don’t have the slightest idea whether stocks will crash or hyper-inflate in the coming years – in both cases, yielding substantial real losses. However, even under the “worst-case scenario” for the global political, economic, and social landscapes, I am 100% confident the purchasing power of my physical gold and silver will be maintained. Perhaps it will take longer – or shorter – than anticipated; but in the end, reality always wins.
Anyhow, the catalyst for this article was this article regarding how just 33% of Americans believe their children will have better lives than they did; which, by the way, is the lowest reading in the survey’s history. And why wouldn’t it be, given that real income – utilizing heavily understated inflation figures, to boot – have declined 19% since 1970? By the way, the numbers are far worse in Europe; as just 28% of Germans believe their children will be better off, 17% of the British, 14% of Italians, and 9% of the French. FYI, for those trying to guess which way the world is headed; this figure is an astonishing 82% in China. As they say, follow the gold!
However, what started out to be a general commentary on the virtues of preserving wealth for future generations – and thus, giving them the best possible opportunity for a good life – became far more personal as I started writing. The aforementioned fear of failure is obviously more exaggerated by the fact that Sylvie, too, requires my support. Not to mention Diana and Giselle, who I also provide for. At this point, I don’t know how I’d answer the question of whether I believe Sylvie will have better opportunities than I; however, sadly, my instincts say no. That is, until I consider the “stacking” I have been doing for the past five years – to the point the physical gold and silver are by far the largest component of my net worth.
Honestly, I can’t say if my own life will be better in its “second half” – assuming I stay healthy – than the first. The ramifications of the global power base shifting East are already evident in every day Western life; and sadly, will be vastly more so in the coming years. Frankly, my “best case scenario” simply involves the avoidance of hyperinflation, war, and draconian government decrees; but even if this occurs, said trends in real income will continue to worsen – until eventually, Western life reverts to the “Eastern mean” of recent centuries.
Amidst this inevitability, governments will do everything in their power to maintain the status quo; including, first and foremost, printing money until it can be printed no more. This is why I convert as much of my dying scrip to real money as possible; and why ultimately, “for your children’s sake,” you should consider doing the same.
Andy,
You have hit a home run with this article.
Congratulations to the Hoffman family! Love reading your work and hearing your take on things.
Much appreciated!
a
Hello to you Andy,
Happy christmas and new year to you,your family and all at Miles Franklin
And P.S. The ladies here want to know when do they get to see the baby?
Andrew,
I’ve been following you for a while and just today pulled my last money out of the market after being smashed by the cartels over the past year and a half. It was a hard lesson and my wife is not happy. I had bought some silver in that period and am glad I did and wished I had just done that in the first place. I guess I can at least be happy that I can now get it at fire sale prices.
Paul,
I’m happy to hear you are acting to protect yourself from what’s coming. It has been a frustrating year, that’s for sure. However, in the end, reality always wins.
And then, of course, we’ll have a whole new set of problems – but NOT low PM prices.
a
Andy, What a great article. I enjoy your writing when you tell a story and are not so technical. Your baby will be a life time of joy to you and your bride. A friend who is much younger than me went to China a few years ago and also came home with a little Chinese baby girl. At the time I first I saw her she was a little bundle of joy. The last time I saw her which was last year she had grown up so strait and tall. AS I was talking to her father we both came to the conclusion that her growth was due to an American diet. My friend Fong Le who I haven’t heard from since Katrina hit New Orleans once told me the only trouble in the world is that half have food and the other half doesn’t. He had seen the worst that life has to offer. For me I was 7 years old when Pearl Harbor was hit — the war years gave me a lesson in what it is to be an American. I bought it hook line and sinker so what has happened to America in the last 20 years has been very saddening. I hope you are able to reach every American with your message so that more and more can protect themselves and their families from the long dark winter that is approaching. Happy New Year to you, Bill and David.
Thanks, much appreciated.
And a Happy New Year to you, too!
a