Rise Of The New Gold Rush
31 Comments »By Giordano Bruno
Neithercorp Press – 06/21/2010
They called us “kooks” and “crackpots”. They said our ideas were outdated and incompatible with modern finance. They said it wouldn’t last. Oh yes, Gold, they said, was a silly investment with no inherent value, and soon, precious metals investors would be “wiped out” by the “inevitable implosion of the gold bubble” (gold bubble….?). Mainstream establishment economists and Keynesians have been yipping and snarling like overanxious Chihuahuas for the past two years against gold and silver, most specifically their use as a hedge against collapse in stocks and currencies.
The vitriol they have aimed at PM’s and PM enthusiasts, though, borders on the obsessive. If we are all “crazy survivalists” and Y2K’ers, then why bother with us? Wouldn’t the folly of our financial strategy be blindingly evident to the majority of investors if we really are all madmen waiting for the seas to boil? If there is no chance of monetary implosion, why bother to plead and beg with the average American NOT to buy gold? Why invent wild generalizations and stereotypes of precious metals investors to dissuade the public from examining our model for economic security? Wouldn’t the mere passage of time prove us inaccurate? What is it about gold that frightens them so…..?
As it turns out (and just as we expected), gold and silver have held strong and even made record gains. Gold is one of the top performing investments of the decade, rising over 277% in value from 1999 to 2009:
All while the media published assassination attempt after assassination attempt, lashing out at gold in a vain effort to dissuade the masses from even considering any option outside stocks and the dollar. Their dismay at gold’s meteoric rise is evident, and there are many reasons why they were unable to predict it. One; establishment economists are used to a particular status quo, a certain narrow way of looking at the ebb and flow of the economy. They have lost all ability to imagine or comprehend unique scenarios. When confronted with a problem or environment that is new, or beyond the scope of their experience, they lose objective footing, and simply deny that the situation exists at all. Two; gold is the bane of any system based on fiat money creation and centralized financial control. Precious metals represent competition to paper currencies as well as an alternative that protects against the hidden tax of inflation. Possession of gold allows one to be independent, or “off-grid”, in the fiscal sense. Establishment analysts are commonly taught during their formative years in university to ignore or even despise the idea of a gold standard, producing an army of talking head economists who parrot the global elitist ideology. Three; for years, naked short selling of PM’s, and the overselling of metals securities (paper stocks representing gold and silver that the banks don’t actually have), has been used by the banking elite to suppress gold and silver prices. Recent exposure by whistleblowers, with the help of organizations like GATA, are beginning to lay open this fraud, while foreign central banks have been stockpiling gold unabated for the past year-and-a-half at least. Demand for physical is beginning to overwhelm the big banks and their ability to manipulate paper securities. The dynamic of the market is changing, and mainstream investment forecasters are falling far behind.
We believe that the fundamentals today show that this is just the beginning for precious metals and that they may soon play an essential role in events to come…
Gold And Silver Break Into The Mainstream
Precious metals are making waves in mainstream investment lately, and this has establishment cronies and apologists on the war path, making wild and unsupported statements about gold and silver. This segment from CNBC’s ‘Closing Bell Exchange’ hosted by Maria Bartiromo is a prime example of anti-gold propaganda, in this case aimed at Ron Paul, of course:
http://www.youtube.com/watch?v=Qhe5Jc0RgzM&feature=player_embedded
The man making the attacks on Paul in the video above is Ron Insana, who ironically, tried to start a hedge fund company in 2006 after leaving CNBC, only to run it into the ground less than two years later. Investors who sunk money into Insana’s company received a -5% return. Insana charged his investors “management fees” during his fund’s operation, which means, not only did he lose their money, he also charged them for the opportunity to lose their money! And now, we are supposed to take the advice of this financial hack over the advice of Ron Paul, who predicted the subprime collapse years in advance as well as the subsequent recession, and the skyrocketing price of gold? How would you have fared if you had invested on Ron Insana’s advice vs. Ron Paul’s advice? Read more here:
http://www.economicpolicyjournal.com/2010/06/ron-insanas-brutal-attack-on-ron-paul.html
CNBC’s Maria Bartiromo has since run with the anti-gold rhetoric on her show, accusing Ron Paul of a “conflict of interest” in his quest for a gold standard because he also owns gold (Ron follows his own advice. This should be respected, not ridiculed). Bartiromo, as far as I can tell, knows little to nothing about real economics, but the mainstream media, especially in the field of finance, is commonly overrun with incompetent people who are willing to tow the global corporate line for a paycheck. CNBC’s ratings, by the way, have suffered record declines in the past couple years. It won’t be long before these people are only talking to themselves:
Despite the yammering of media clowns, many in the general public are turning towards gold as a viable option for protection of savings. The World Gold Council has predicted according to current trends that gold demand will be very strong for 2010, not just by central banks, but by private investors as well:
http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010052773525
China’s gold demand is projected to increase by 50% in the next ten years (a conservative figure in my opinion). Last year, China alone accounted for 11% of global gold demand:
Since around 2007, gold bullion (physical gold) is now outperforming gold stocks (paper gold). There is now a very discernable divergence between the values of paper gold stocks and the physical metal:
http://www.marketoracle.co.uk/Article20056.html
There are many reasons for this decoupling, but I believe the main cause is the fact that more and more people are demanding physical delivery of their gold instead of allowing their investments to remain as abstract ‘securities’ which exist in writing only. More investors are beginning to dump their holdings of paper traded gold and mining stocks and are now buying coins and bars, which is why the price of physical is dominating over stocks. This is supported by reports of gold shortages across the world.
In the UK, dealers are struggling to meet gold coin demand:
http://af.reuters.com/article/metalsNews/idAFLDE6571T720100608?sp=true
And German dealers are snapping up disappearing gold Krugerrands as fast as possible in light of the EU’s sovereign debt crisis and the falling euro:
Gold bullion demand has led to increased need for storage. Vault operators world wide are now straining to meet the new requirements for protected storage space:
http://goldnews.bullionvault.com/gold_bullion_061520103
Total announced gold ETF holdings now exceed total world production, while global mining output of gold is falling rapidly (ETFs are supposed to stockpile gold bullion, as opposed to ETNs, which use derivatives, however, there is evidence to suggest that some ETFs claim to hold gold reserves they don’t actually have) . South African mines have seen output drop by 50% or more over the past ten years. What this means is that by a simple function of supply and demand, gold should leap in value over the next year. The Swiss asset management firm UBS has now predicted gold will rise to $1500 an ounce in the next six months:
http://goldnews.bullionvault.com/gold_price_061420105
Of course, this prediction would be correct only if current economic instability remains steady, and does not accelerate. If the situation becomes even more untenable (which is likely), gold and silver could jump to levels never before seen by modern markets. The current fervor for precious metals and the protection they provide is only the beginning…
Inflation Or Deflation?
Ever since the recession/depression took hold of the U.S., economists and analysts from around the world have predicted that one of three possibilities would result. Some have forecast a V-shaped recovery, or even a “jobless recovery”. It is obvious now that a V-shaped recovery is a pipe-dream, and there is no such thing as a recovery without job creation to provide support. The other group (those who realize that we have only seen the onset of this collapse) is split into two camps; Inflationists and Deflationists.
Traditionally, those who believe inflation is imminent pull away from Dollar based investments and turn to PM’s as a hedge against currency devaluation. Deflationists on the other hand, usually believe that the Dollar will maintain or increase its value and that commodities like gold will fall in value along with everything else. Problems arise though in this dynamic because there are many variations of “deflationary theory” and “inflationary theory”, not to mention about as many definitions for inflation as there are economists. Even those who agree that there will be inflation often disagree on the form that inflation will take.
This confusion has arisen, I believe, because we are confronted with a fiscal conundrum no one has ever faced before, composed of elements that have occurred in the past, but never occurred together in the same event. We are seeing functions of both deflation and inflation working in tandem during the same crisis, and unfortunately, they do not cancel each other out! We are seeing capital destroyed by malfunctioning and toxic debt securities, which have caused deflation in jobs and markets, yet prices on goods including food and energy have increased 18.7% from March 2009 to March 2010:
http://www.breitbart.com/article.php?id=CNG.f4ca4a183df2102e9ad9338f1c9b7c75.171
This shows that while deflationary elements are in play, we are not seeing an event similar to the Great Depression of the 1930’s. We are seeing something much worse. This may be partly due to the fact that America is far more financially interdependent with the economies of other nations today. In the 1930’s, America was an independent manufacturing powerhouse with a mostly closed system. Now, we are a 70% consumer based society with little manufacturing capability on our own soil and trapped in unsustainable debt to nations like China who do not necessarily have our best interests at heart.
In fact, China’s recent announcement that the Yuan will now depeg from the Dollar signals trouble for U.S. Treasury Bonds. With a stronger Yuan and a shrinking trade deficit with the U.S., they will no longer need or want to continue purchases in American debt:
http://www.reuters.com/article/idUSTRE65I2Z420100619?type=ousivMolt
As the Chinese currency appreciates in value, it is likely they will dump their holdings of our T-bills in response. This would cause severe devaluation of the dollar, and it is a development we have been warning about for years. The only question now is, how quickly will China get rid of U.S. Treasuries?
When the Great Depression hit, markets, jobs, and wages fell, but so did prices on goods. We did not turn up the printing presses and monetize our debt unabated during the depression, which is what the private Federal Reserve IS doing today. So far, it seems the Fed has no plans of ending this printing anytime soon, and without a full audit of the central bank, there is absolutely no way of knowing exactly how many Dollars are circulating in the world. We can only estimate, and hope.
I feel it is likely that as the collapse progresses, we will have to deal with a combination of obstacles. We could see deflation in stocks, jobs, wages, real estate, and capital, while at the same time face a falling Dollar and rising prices on goods. The EU is suffering from the symptoms of this new brand of financial anarchy, with falling markets and real estate, but without the advantage of falling prices on goods because of the weakening Euro. Consumer prices in Greece and Spain continue to rise even though they are in the midst of a deflationary spiral:
http://www.businessweek.com/news/2010-06-08/greek-may-consumer-prices-rise-on-higher-fuel-drinks-update1-.html
http://news.xinhuanet.com/english2010/business/2010-05/28/c_13321462.htm
But where does gold fall in all of this? Gold has flexed its muscles during this implosion, proving it can withstand both deflationary and inflationary factors. PM’s are sought after in the EU, Asia, and the U.S. and are breaking free of their traditional relationship to markets and paper currencies. Basically, gold and silver are acting like currency again, as they did less than a hundred years ago, instead of just commodities, as they have in the past few decades.
Will gold suffer drops in the near future? Of course. But one has to look beyond the next quarter and examine the long term trend of an investment. For gold, that trend has been phenomenal the past ten years and shows no signs of abating. How many people foolishly claimed that gold would never top $500, $600, $700 an ounce, etc.? Regardless of inflation or deflation, no one in their right mind can deny that precious metals have been sound protection.
Why Buy Gold And Silver?
Buying a stack of gold coins is more than an act of wealth protection. It’s more than just an investment. It is a social and philosophical statement. When you buy precious metals, you defy the restrictive nature of central banking and fiat currency. Paper money has never been OUR money, it is the establishment’s money, and always will be. Gold offers us an opportunity to hold our own money, on our own terms. The more widely used gold and silver become, the less dependent we are on Federal Reserve paper, and the less power they have over our financial life. If everyone used PM’s, the elitist central banking system could conceivably disintegrate. Buying gold is an act of monetary revolution, a revolution that is necessary if we are to save this country.
I have heard the argument in the past that during social catastrophe, gold and silver are meaningless compared to bullets and bread. This is partly true. No currency should ever take precedence over survival. However, no modern economy can grow on barter alone. A return to the village square would be an admirable start in the process of wrestling power from global banks, but for the economic maintenance of an entire nation of people, a stable common currency grounded in tangible wealth is also absolutely vital. Gold and silver have been and probably always will be the best way for us to decentralize economic control yet still preserve a national financial structure that lends itself to progress. At the height of a collapse, PM’s can provide a stop gap for purchasing of goods when paper money has lost all allure. Their use may decline after a meltdown, but collapses heal over time, and rebuilding always requires the induction of a new and solid currency, usually made of PM’s or backed by PM’s.
Gold is now in the international view and is liable to stay there for years to come. The next step would be to begin trading gold and silver as currency again in a new liberty based economy free from the one we are forced to live in now. Such an endeavor would require men with some financial clout, ingenuity, honesty, and the courage to defy the globalist system. It would also require today’s investors to STOP buying paper gold stocks and derivatives like ETFs, ETNs, and CEFs. Until all investors demand physical delivery of their metals, the manipulation of the gold and silver markets by banks such as JP Morgan will never end. In this way, we could preempt the engineered collapse of the fake globalist economy with the formation of our own internal economy, and perhaps even soften the terrible crash to come.
I have said it before and I’ll say it again; a truly free man seeks to provide for himself and provide for the people what the system does not. Eventually, the system will have to try to stop him. If the system cannot stop him, it will have to conform to him, or find itself obsolete in the minds of the masses. Precious metals offer us a valuable avenue in making our existing oppressive system of fiat and debt obsolete.
RSS
The most brilliant yet.
Amazing.
My savings account is brass, silver and beans.
The real question is, why on earth would anyone invest in paper? What has paper done since 1913? What have gold and silver done? What have bullets done? How much does a pound of rice cost compared to 25 years ago?
Pretty simple stuff here.
Hello Giordano,
Firstly may I say that I am a huge fan of your work, your website is one of the resources that finally convinced me that an economic collapse has been on the globalist agenda for sometime and that we are moving frighteningly quickly towards one world government. While you do not pull your punches, compared to many blogs of a similar nature, I find your educated and measured view far more compelling and have found the content to be a lot more acceptable to my many “sheeple” friends.
I was wondering if you could kindly give us some advice on how to invest in precious metals and whether silver or gold would be the more intelligent investment at present. I believe that buying coins is supposed to be one of the best methods but this is quite time consuming and difficult for the first time investor to have confidence in. What do you think of these companies that allow you to invest in actual gold and then charge you for storage? This sounds good to me but I have concerns about whether an investor would have any chance of getting their hands on their gold/silver bars when the global collapse inevitably occurs.
Many thanks.
Great article. Thank you.
I have been buying an oz or two of silver every week from Ebay.
The guy on there that I trust is colorodolabels. I’ve bought 4 .999 1oz silver bars from him. I paid about 22-23 dollars an oz, (gold was at about $18.50) and he does not charge shipping.
PS. I stream 24/7 documentaries in HQ on http://www.justin.tv/revolutionrequired
One video of particular intrest according to this article is called Money and Debt. You can probably youtube it.
-Danverse
thedailybell.com
YOUnique Wealth offers people the opportunity to become gold and silver shop business owners and position them selves in front of this financial crisis with gold and silver to preserve their wealth.
Visit http://www.younique.co.il and register for a free online webinar to learn about the deception of financial monetary and how to protect your self from the upcoming meltdown with gold and silver.
- Mark
“I believe that buying coins is supposed to be one of the best methods but this is quite time consuming and difficult for the first time investor to have confidence in.”
Huh? You can go to Kitco.com and place a real time order for gold, platinum or silver bullion. Ditto for NWTMint.com (Northwest Territorial Mint). If you can read spot prices and point and click a mouse you can order bullion easily. I’ve ordered from both companies over several years and have had few complaints – except for the occasional lag time it takes to fill orders when demand is high.
Gio,
I am seeing a common method by which wise people operate. See, the things we use and become mainstream get, essentially, co-opted by the corporate goons and then hijacked so they can get their cut. The currency in the uSA has been the same way. They have been taking a larger and larger cut as time goes on.
You sound very much like Jack Spirko (http://TheSurvivalPodcast.com) when he talks about growing your own food. Even just a little.
Even if you just do a little bit of investing (like myself, a few ounces or a few hundred ounces of silver and then start to use it) it makes a difference. Spirko says that if each of us can just grow a little of our own food, the economic and psychological impact is great. I think that is what you are saying here. Even if you just buy 10oz of silver or 1/4oz of gold, it will make a difference in the end how you think about your wealth and value in general. Excellent article.
Be sure to take physical possession of your precious metal. Don’t leave it in a mainstream bank’s deposit box. Hide it in multiple places. Don’t put all you eggs in one basket.
James,
I would say gold and silver are perhaps the easiest of all investments. All you have to do is find a coin dealer in your city that carries 1 ounce bullion coins, and then buy whatever you can afford. You can then check the daily changes in silver and gold values on sites like Kitco or Bloomberg. No hassle, no sweat.
The main purpose of buying PM’s is to get them before major destabilization of the economy. I have been buying mainly silver, because I feel it is on the verge of a major rally, and it is currently very affordable compared to gold. If you are looking to buy, don’t wait. Buy in the next couple weeks if possible, even if you only buy a little at a time.
Your style of presentation is very impressive. The meaningful contribution of your mind reflects on those people who are looking for new ideas and informations regarding Silver Bullion Coins. I would like to tweet on it and keep spying at every moment you blogging.
Re: James
Here is the easiest way to buy metals.
1. Go to your local coin shop
2. Buy Gold and Silver bullion rounds and
junk silver (pre 1965 American coins)
3. Take physical possession, store it at home
in a safe or other secure place, somewhere you can get to it in a hurry if need be.
4. Avoid ETF’s, Warrants and other paper
substitutes
5. Don’t listen to the main stream “economists” they are invariably wrong
That’s it! It doesn’t get much simpler than that.
RE: James
Two honest, highly reputable web sources to purchase physical metals:
apmex.com
gainesvillecoins.com
You can google both sites for more information/reviews.
For buying physical, stored remotely… respected gold/silver advocate James Turk runs goldmoney.com … You can buy gold by the gram and their vaults are independently audited. Google goldmoney to learn more.
I could NOT Agree with you more, I have
removed ALL my connections from the
corrupt system:
IRA/401K/Stock market/Banks
Never over pay the government in taxes
on deductions, claim high, pay @ the end of the year.
We live in a new paradigm, where
deflation and inflation is happening @ the same time.
Stock up, educate those around you, be as self sufficient as possible.
Gold/Silver/Brass/Food/Water.
For anyone interested in purchasing coins and bullion I’d recommend taking a look at the inflation.us website gold and silver seller reviews. They actually purchased an item from each of the dealers listed and rated them on pricing, selection, customer experience etc…
Once the coins pile up, storage can be a problem, especially if you live in an urban environment and in a rental unit. I’m struggling with that and the idea of a safety deposit box :-/ leveraging which is more/less secure?
Excellent article, Gio. I’m glad your site is back up!
Daniela,
I would NEVER trust a bank. They are, essentially, in league with our government and will hand over anything they ask. If they ask to examine the SDBs, the bank will just give them a key. Many people have had items confiscated and never returned by “Law Enforcement”. No, silver or gold in an SDB is not secure.
I would bury it in a state park far from prying eyes if I had that much. Of course, I keep mine in my house in a place that is extremely difficult to find. Click on my name, above, to see some of the stuff I’ve got.
You could always hide it in plain site by various means. But, if you’re renting, I suppose that is a problem.
I think some of you misunderstand the media types that say “Gold is not a sound investment.” What they mean is gold never increases in value! Oh, sure, the dollars go up because of inflation. The actual value of gold never changes. Stocks values actually go up. They also go down. Gold is a very bad investment if you are attempting to create value. It won’t do it. HOWEVER, if you are trying to STORE value, it rocks your socks! NOTHING beats gold for holding value. If you are execting to get rich buying gold, you will not. However! If you are ALREADY RICH, you should be buying gold. The government can’t tax it since its static.
This is very much unlike dollars which are not static. If you had a $100 bill in 1930, guess what? The US Government has stolen 98% of the value from that $100 bill. How did they do that? They made more $100 bills.
Your $100 of value would have bought about 2oz of gold. (I know the “official price” of gold was $35oz, however, if you wanted to buy it and possess it, you had to pay more. ) Now, it will only buy about 1/12th of an ounce.
But, had you bought 2oz of gold and kept it, you could have redeemed that gold for about $2400.00 today.
The prices of things vary. And so does the price of gold. But, you can see the performance of gold over the years as opposed to dollars. Its not an “investment”, it is a storage medium for value. Do not confuse the two.
Now, if you spent that $100 in the right stocks and moved it around and so on and so forth and you gained even a modest 10% per year, think of what you would have. If you were good and you were lucky, you can step through and find that you’d have a ton of money. But, considering that the government is working against you, you have less than you might think. The whole scam is that we think dollars are static, they are not. They are fiat and the government is stealing from you right not. Everytime they print another dollar or stamp another quarter, you get screwed.
Hey y’all,
I’ve been wondering if the Cash4Gold mania has been an under the table “calling in” of the gold reserves of America, similar to confiscation, but without having to upset the people over being robbed of their gold. If indeed the US gold reserves are lower than expected, it would make sense that the gov’t would want to confiscate gold. What better way than to pay people federal reserve notes (trash) for their gold during the deepest recession in the past 80 years, a time when people need cash?
It will be time to sell your gold when they start selling gold to you en-masse, like they are now buying with the Cash4Gold gig.
Peace.
Thank you all for your advice, I very much appreciate it. What a great bunch you are! James
Do not but PM’s and STORE them, DO not buy ETF Funds(you will never see real metal if you cash out).
BUY physical take delivery.
If you do not HAVE it in your hands, you do not own it.
DO NOT BUY off eBay, you are paying premiums of 30-40%!!!!
Buy from people like:
APMEX.com
Learcapital.com
5-5.5% premiums on Gold, and shipping
$.79-.99 over spopt on Silver at APMEX-Rounds
$1.00 over spot at Goldline -Rounds
You will pay a premium for Eagles & Maple leafs………..$2.00-$2.50oz.
Whoever you buy from, make sure their REPUTATION is stellar…both these(I have no ties to), will deliver your products!.
Sheisters are everywhere, coin shops will rape you.
Steer clear of Nuimismatic Gold & Silver, premiums are outrageous, and you are trying to INSURE your money, not lose it.
Gold & Silver is not an investment(it can be, and it’s volitile), so be aware of that.
But in light of the worlds problems, one thing it will do, is MAINTAIN it’s purchasing power, fiat currencies do not, and are just paper…………….
Good Luck, and do not lose your lifes savings to a hyper deflation, or inflation………
Or a devaluation (maybe even a new currency, 5-1, 10-1,100-1), where will your net worth be then?.
Also, DO NOT STORE it in a Bank safe deposit box!!!.
You need to have access to it, 24/7/365………
Net Ranger…love your posts and replies…one thing that concerns me is you putting out there what you have…I understand the mentality of “come and take them” …however,why give “them” reason. Art of war tactics comes to mind here for me…just saying,aside from that…great stash! lol!
BS flag,
I’m not into “come and take them”. I’m more into watching them from a remote location and putting a bullet through their knee as they exit my house. Some people don’t understand that sometimes I’m “home” but I’m not at the house. If I’m not at the house, you can just bet I’ve got something that goes bang over my shoulder or in my pocket.
Someone would have to be very clever to figure out where I am. Obviously it could be done but it would be difficult. Only a very few trusted people even have an idea what state I live in. There is a thing called OpSec. And while my pictures give away certain aspects of my BIL (Bug In Location), it doesn’t give away much.
Honestly, someone would have to work very hard to find out where I live, and, once done, work very hard to get my stuff without dying.
If they did get that far, then they would have to sell it to convert it to dollars. Though the police don’t know of all the guns I have, they would at that point any any gun that got a hit on the serial number would be returned to me and the perp tracked.
Its just not worth it. If I had any really expensive stuff, yeah, it might be a problem. But, my stuff is really only valuable to petty thieves. The place is also guarded 24/7 for various reasons. Between my wife who is in and out all the time to my father who can still shoot a fly off the neighbors fence to my crazy brother who calls the police about once a week for various reasons. …and also because of the fact that you can cruise down the county road and never even see the place. Its reasonably safe.
I suppose somebody could possibly track me, however, I do use someone else’s connection and I am often proxied.
Regardless, my biggest investment is my belief in two things: the Salvation of Jesus Christ and my ability to adapt. Steal my stuff and I’ll just get more. …and when I do, I might just come for the stuff that you stole. Though I am an elder and Christian I see the modern pacifist interpretation of the Bible as incorrect. Stealing my stuff is an act of war and I don’t like to lose.
Of course, what you don’t know is that maybe all this stuff really isn’t mine. It might be prudent for a few friends to band together and one concentrate on food. Another concentrate on guns and ammo and the other concentrate on storage of precious metals. …and if those three friends were within a mile or so of each other, they would be able to keep watch over each others stuff all the time. It could be that those three friends work different shifts and travel different ways so that all this can take place. It could be.
:)
Notice how the food, the guns and the outside look like totally different places. Maybe they are? It could also be that NetRanger is more than one person.
You just never REALLY know about us, uh, er, uh, me, do you?
I’d say you’re well on your way. Someone that would think of that will do well in the new SHTF economy.
:)
I’ve been buying gold off the internet for a while now. I’ve been to all the sites, kitco, ebay, amazon, nwt, etc etc, blah blah. They all are overpriced. However, by all means if you feel comfortable paying more than you have to.
By far the best hands down best; price(lowest markup), selection(TONS), service(helpful/friendly), delivery(Fast), http://www.providentmetals.com
I have no affiliation with them. Just an average joe informing other people about the best PM site on the interwebs.
http://www.providentmetals.com
NetRanger…thanks man,keep it real…good post and thanks for sparking my curiosity.peace!
Necessities of Life = Inflation
Pleasures of Life = Deflation
Gold doesn’t really go up; it’s just the paper funny-money going down.
gold as new currency??
divide all gold discovered in the world by the world population: less than 1 oz by person. impossible!
or maybe you think that only occidental people deserve it.
tnof94:
Gold and Silver have been used as currency for 6000 years, so I’m not sure where you are getting the idea that it is “impossible”. Try reading a history book sometime, it would be good for you.
Also, you obviously have no understanding of how gold backed currency works. First, the scarcity of gold versus the demand for gold determines its value. If gold demand is high, then its value increases proportionately. There could be ten ounces of gold in the entire world and it would not matter. The value would simply be increased to match the demand. Therefore, supply is in NO WAY a detriment to the establishment of a gold based or backed currency. This is actually very simple. I’m not even sure why it needs to be explained to you.
Thank you for the advice. I’ll try to read some books. (but I think it was easier to use gold when the world population was thousand time less)
now you talk about gold backed currency, and I undestand that. you can look back in your article it’s not so evident.
but for me in the long term it’s only paper with the false promise of the value of gold, like your country did until 1971.
at the beginning I though you were talking about gold and silver coins like in the early 1900′s.
I’m just french and maybe I didn’t undestand all the subtleties
tnof94:
Again, population is irrelevant. The amount of gold is irrelevant. Value (in a true free market) adjusts to the supply and demand present in a market. One ounce of gold in a high demand market could be worth tens of thousands of dollars. The liquidity issue is mute.
Our country was taken OFF the gold standard in 1971 by Nixon, and that’s when our real troubles started. Check any graph of our dollar’s buying power from 1970 to 2010 and you will see why a commodity backed currency is so important.
giordano,
No, everybody buying gold doesn’t solve anything.
Gold used as a conductor is important for society. It is needed in our computers and in other equipment. This is true for all precious metals.
So if the price of Gold skyrockets to 1000x the current price, it would have an effect on our prosperity since it would be more expensive to use a computer – for really no purpose.
The result would be worse living standards for all.
The reason you want to use Gold is that you don’t trust the government. Instead, what is needed is a currency that cannot be manipulated easily (Gold can still be manipulated).
My suggestion is to use a total diversity measure. Something along the Modern Portfolio Theory management system.
Basically you sum up all the value in the world, that is, the value of all stocks, precious metals etc, and diversify into ALL OF THEM.
Make some system that represents all of them. Somthing like a big “ETF” that represents the world economy.
Then money is simply shares in that ETF.
The thing is, money is just a storage medium. You want the storage medium not to be robbed. The best storage medium is the world economy, not Gold.
Instead of letting the Fed take care of storing your money, let your money represent a tiny fraction of the whole world economy.
This will make it impossible or very hard for any government to control the money.