Trust in the Lord and in your Husband

Silver Stock Report

by Jason Hommel, August 9, 2006


This report available online at
silverstockreport.com/email/Trust.html

My wife Shanna has some words of wisdom for the wives of silver investors today:

Trust in the Lord and in your Husband.
by Shanna Hommel

Why do some women feel better about themselves when they think they own a home?  If you have a home loan, you do not own anything but a paper promise that says that after you pay the loan back, then you will be the owner of the home (after 30-50 years).  The bank owns the house.  Your landlord is the bank.  Some women think it gives them security to have a home loan.  I believe the only security comes from trusting the Lord.   The Bible says in Proverbs 3:5, “Trust in the LORD with all your heart; and lean not unto your own understanding.”

The bible says in Galatians 5:22-23 that self control is one of the fruits of the spirit. It takes self-control to have the discipline to save money to be able to invest wisely.   As a mom of three boys, I want to teach them by example how to be a good steward.

My husband and I rent where we live and we own one vacation home (fully paid for).  Really, renting creates less stress financially.  Renting costs less per month.  If something on the rental breaks, we can call the landlord and they will fix it.  If something on the vacation home breaks we have to fix it.

I feel more concerned about the money when it is our vacation home that needs fixing.   We could have sold the vacation home, but it has sentimental value that cannot be sold for any price.
 
As a renter, I get nervous whenever a landlord comes over to fix something.  I feel like they will be judging how I live or how clean my house is.  These are just my fears on what people think of me.  I know I keep the house clean and I care for the landlord’s property as if it were mine. The bible says:

Luke 16:10 "Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much. 11 So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches? 12 And if you have not been trustworthy with someone else's property, who will give you property of your own?

Further, the bible says:

Galatians 6:9 And let us not be weary in well doing: for in due season we shall reap, if we faint not.  

It will not worry me if our landlord decided to have us move, I will trust the Lord and I know He cares for the birds so of course He will provide for me.

Matthew 6:25 "Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more important than food, and the body more important than clothes? 26 Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they? 27 Who of you by worrying can add a single hour to his life[b]?

28 "And why do you worry about clothes? See how the lilies of the field grow. They do not labor or spin. 29 Yet I tell you that not even Solomon in all his splendor was dressed like one of these. 30 If that is how God clothes the grass of the field, which is here today and tomorrow is thrown into the fire, will he not much more clothe you, O you of little faith? 31 So do not worry, saying, 'What shall we eat?' or 'What shall we drink?' or 'What shall we wear?' 32 For the pagans run after all these things, and your heavenly Father knows that you need them. 33 But seek first his kingdom and his righteousness, and all these things will be given to you as well. 34 Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.

I would like to buy a new home someday.   But it is more important to be in agreement with my husband and trust his investment decisions.  The bible says in Amos 3:3 “Can two walk together, except they be agreed?”  I want to respect, support, and submit to my husband.  This is what the Lord has called wives to do.  Ephesians 5:22 “Wives, submit yourselves unto your own husbands, as unto the Lord.”  Do not be concerned with what everybody else is doing, (buying new homes or new cars) just trust the Lord.  Keep your eyes on the prize.

Philippians 3:14  I press toward the mark for the prize of the high calling of God in Christ Jesus.   

If I feel like complaining, I think about the scripture that says

Philippians 4:8 Finally, brethren, whatever things are true, whatever things are noble, whatever things are just, whatever things are pure, whatever things are lovely, whatever things are of good report, if there is any virtue and if there is anything praiseworthy—meditate on these things.
 
Our focus should not be about having a home here on earth but our focus should be about our home in heaven.

John 14:2-3 “In my Fathers house are many mansions: If it were not so I would have told you.  I go to prepare a place for you.  And if I go and prepare a place for you, I will come again, and receive you unto myself; that where I am, there you may be also.”

In Genesis 3:12, Adam blamed Eve: “Then the man said, “The woman whom You gave to be with me, she gave me of the tree, and I ate.” Here is some great advice for wives: if you don’t like how your husband spends your finances, remember one thing, if anything goes wrong with the investments it will not be you to blame. Ha Ha!  Amen!

--Shanna Hommel
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You can see how abundantly I’ve been blessed with such a wonderfully wise and Godly woman as a wife.  Truly the Bible is correct when it says in Proverbs 31:10 “Who can find a virtuous woman? for her price is far above rubies.”

My wife’s commentary and practical application of the scriptures was so good, I hardly feel up to the task to elaborate on it.  But why has God given a husband authority?  Paul says why a man has authority over a woman, and why a husband has authority over his wife: because the first woman, Eve, was deceived.

1 Timothy 2: 11 A woman should learn in quietness and full submission. 12 I do not permit a woman to teach or to have authority over a man; she must be silent. 13 For Adam was formed first, then Eve. 14 And Adam was not the one deceived; it was the woman who was deceived and became a sinner.  

I know that today most women want to own a home, or be in the process of paying down a mortgage, for the supposed “security”.  

But home ownership today is a deception.  Men are more likely to know that homes today are overvalued.   Other times, homes are undervalued.

Today, a new home costs less to build than they can sell them for, and so, builders have been building like crazy to get the profit (and now they are slowing down, as the housing boom appears to be ending).  Other times, existing homes cost much less than new, and it makes more sense to buy a home “under cost”.

I have enough money to buy my wife a home.  I could buy four or five homes, but I only own one—the one that I will never sell.  Undoubtedly, I will own many homes later in life.  I’ll probably buy 30-100 or even maybe 1000 homes when they return to being undervalued.

Our current home where we rent has a market value of about $750,000.  We pay $1900/month.  Should I buy the home for $750,000 to save $1900/month?  I could.  I’d also gain the security of not having to move, and I’d also have the responsibility of having to fix anything that breaks—which would be extra costs. 

But let’s look at just the basic money.  $1900/month, x 12 is $22,800/year.  Price is $750,000.  Earnings (savings) is $22,800/year (less the cost to fix things).  That’s about 3% of the total cost, annually. That’s a P/E ratio of 33!  If I put $750,000 into a stock with a P/E of 20, I’d do better, as my investment would be earning 5%.  But even such typical stocks are overvalued, and that not my desired alternative.  Silver lately has been increasing at about 30% per year, and I expect silver to increase at about 30% to 60% per year for the next several decades.  See
http://www.silverstockreport.com/email/Future_Gold_and_Silver_Prices.html

If I put $750,000 into silver at $12/oz., and if silver continues to gain 30-60% per year as I expect, then that is a gain of $225,000 to $450,000 in the first year alone, which is ten to twenty times as much as I’d save on the rent!  That’s enough to buy another house free and clear!

Furthermore, I fully expect housing prices to go down, so it’s a financial win in two ways by investing in silver instead of owning a home.

Why are homes so overvalued?  The reason is simple.  There is too much easy money available to borrow to buy a home.  Too many people own homes.  Too many buyers buy on credit and put 30%, 10% or no money down which creates higher home prices.  These buyers are also not really buyers; they cause unrealistic and excessive home demand.  First, people with low incomes and bad credit who borrow money push up prices artificially, because they can’t really afford the home in the first place.  Second, speculators who buy more than one home; homes they don’t live in, further push up prices.  

Ever hear about the great depression in the 1930’s in the history books?  It was caused by the Federal Reserve lending too much money.  People used borrowed money to buy stocks on margin.  They could put down 50% of the value, and the rest was borrowed money.  Borrowed money led to increased demand, and ever rising stock prices.  When stock prices started to go down, everyone on leverage was wiped out, as they were forced to sell.  

How can the housing market avoid the same fate?  I believe interest rates must rise to attract money away from the competing asset classes of gold and silver that will continue to go up at 30% or more per year.  How many people who are paying variable rate mortgages will be able to afford their rent payments if interest rates rise to 20% to 50%?  People won’t be able to afford a single payment, and the value of their homes could eventually lose 90% of the value, just like the stocks did in the 1930’s stock market crash!

Today, I’ve heard that 70% of homeowners have home mortgages, and 30% own homes paid in full.  When that group of 70% is forced to sell, what do you think is going to happen to home prices?  Prices could collapse by more than 90%, or worse, if in many cases, there may be no buyers at all!

Married men, it is your job in the relationship to take the lead, and exercise the discipline to do what you think is right, not what your wife may feel is right.  Do you put yourself through pain when exercising because you know it is good for you?  Do you avoid junk food and eat healthy foods that may not taste as good, because you know it’s good for you in the long run?  Do you spend time managing $10,000 worth of stocks, but neglect the $50,000 in home equity that you may have due to the housing boom?  Men, you ought to love your wives as yourselves, and not allow them to be deceived by the false security of home ownership in today’s overvalued housing market.

Men, trust in the Lord, and in His ways.  Be faithful to manage God’s money according to God’s guidelines.  As the Bible says:  Proverbs 3:5, “Trust in the LORD with all your heart; and lean not unto your own understanding.”

Bible Verses on how to Manage Money
http://www.bibleprophesy.org/goldismoney/biblemoney.html

Recent articles on specific silver stocks can be found in the archive.  silverstockreport.com/ssrarchive.htm
Specifically:
http://www.silverstockreport.com/email/IGMI_Today.html
http://www.silverstockreport.com/email/buythedips.html
http://www.silverstockreport.com/email/Gains.html


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Sincerely,

Jason Hommel
silverstockreport.com