There are many gold misconceptions distributed about. The propaganda is meant to keep us from buying gold. The Federal Reserve is a private institution representing the interests of 12 US banks. The Fed’s foremost agenda is to defend their banking system. Secondarily it represents broad economic interests as mandated by US Congress. Those objectives do not always work in harmony.
Gold is the central bankers Achilles heel. Interest in gold means people are losing faith in the fiat. Bankers will print every piece of paper needed to suppress the price of gold, to keep us from investing in it. Gold is one of the few assets that while the price goes up, people actually buy more. Bankers can’t let it go up in price until the very end of their fiat scam. They will stop at nothing to defend their power over us. Below are some ‘cute’ arguments commonly regurgitated in effort to convince us that gold is silly. You should know, it is those parroting this propaganda whom are the silly and foolish ones.You can’t eat gold.
Actually you can eat gold, though there’s no nutrition. Money isn’t meant to be eaten though! It’s precisely that gold is not ‘useful’ in being eaten or consumed that it can better serve as a medium of exchange. It is best to have a universal medium of exchange. Precious metals have proven to be the go-to choice though all history.Energy should be currency.
Oil, coal, radioactive material, solar panels and windmills? These materials have no qualities of money! Important resources like these are consumed, not to be used as currency. Energy is notoriously difficult to store.The United States Dollar is backed by gold.
Before 1900, we used a bi-metallic system, both silver and gold. President William McKinley signed the Gold Standard Act in 1900, making one paper dollar convertible to 1.5g of gold alone. President Richard Nixon effectively abolished the gold standard in 1971 (“temporarily”, as he stressed at the time). Dollars haven’t been tied to gold since. Since that day in 1971, the price of gold has risen from a fixed price of $35/oz to where it is today, with no connection to the dollar. We have nothing remotely similar to a gold standard today.Gold is cumbersome, difficult to store and could be stolen.
1 ton of gold is worth over $35,000,000,000 ($1,200/oz). How many of us are hauling around such an amount of money? Today, the weight : value of gold : $50 bill is similar. If gold rises to a more fair value once made money, it would weigh less and buy more than the $100 bills we use today (any bill weighs 1 gram). We have technology to put a thin strip of gold, strips so thin that sunlight shines though, between paper. We can even print with gold! Many transactions today are done electronically. Gold ownership can be transferred via banking electronically exactly like the paper money we use today. There are many ways we can transact gold without coins. Further, about being stolen, anything could be stolen! Gold as well as paper dollars, there is no difference. Keep it in a bank and spend it on your debit card if you’re so paranoid. Are you keeping millions of dollars in cash tucked away in your closet, thinking it can’t be stolen?No one will want gold during an economic crash, buy whisky and toilet paper.
It’s a common misconception that the only way gold could become money is during an ‘end of the world as we know it’ economic collapse, where people are starving and anarchy reigns. This is propaganda designed to keep those with such a mindset from buying gold. A transfer to a gold-backed money can be smooth and simple. Remember how seemingly simple the the Euro roll-out was? The ‘new’ gold-backed money can stabilize our economy before fiat hyperinflation destroys commerce and civilization totally. If you don’t have gold you will be in dire situation, a slave to the central bankers whom own much of the gold. You will drown yourself in that whisky, wiping your tears away with the toilet paper investments. Although, plenty love to get drunk and cry about life too.Gold is a store of value, not an investment.
Under a gold standard or fair markets this would be true. However, gold is traded as it were of infinite supply on paper while the real supply is quite limited. Anyone can ‘sell’ gold on the market, without having any real gold to sell. Relatively tiny amounts are being traded between bankers, tiny amounts! As a result, the whole share of gold’s value is controlled. Our fiat money and pricing mechanism has little or no correlation with real gold. Gold may quickly and exponentially climb in value against all other assets, especially once a global gold standard is established.The powers that be won’t allow gold money.
They simply won’t have any choice. They can't abandon one failed fiat (unbacked) dollar and replace it with the exact same thing. Our problem in the first place is an ability to print unlimited dollars, 'as needed', by decree. People would rather trade seashells than accept another fiat and experience the disaster of hyperinflation again. All the trust and ‘full faith’ concerning their money will be destroyed for some time. When the crash comes, people will be more keen on what's really going on today.
No other country would accept another fiat as valuable or useful to them. Our economy is more global than ever. Countries need a money which is accepted and recognized globally. That is gold. People will realize this, and certain countries will embrace gold as money. Those countries will force everyone else to follow. Any attempt at another fiat will simply be rejected from world trade.The global economy is trillions of dollars – there is not enough gold.
Trillions of dollars is simply a function of inflation, years ago, it wasn’t such an amount. Our economy could run on much less, if the value of each unit bought more. Fiat is not wealth anyway, but a debt that must eventually be returned to the central banks. This debt is nothing but a unit of exchange and account, the value is only perceived. It’s a mistaken assumption that there is even an optimum amount to be used for trading. No matter the amount of gold in existence, the price of things (priced in gold) will be a reflection of the supply of gold. Gold will simply rise in value against other assets to meet the needed demand while functioning as money. Once gold finds the optimal value for trade, it will become stable for as long as the bankers do not pervert the gold standard again.Gold is pointless because it’s a sterile, non-productive asset.
This assertion was made popular by Warren Buffett. He liked to compare the value of gold to mega-corps, asking which you would rather own. The problem is, gold should function as money, not like a company or investment. Gold’s value is suppressed in part because it’s not being used as money. Imagine if it were! Money IS suppose to be sterile and stable. A dollar bill laying on your dresser isn’t doing anything neither! It isn’t making you money, you’re actually losing wealth though inflation. The only reason fiat pays interest, dividends, or anything else is because bankers manufactured this – it is not an inherent quality of dollar bills to magically reproduce themselves in your pocket, making you richer. We could very well get paid interest on our gold too, if bankers stored and loaned it. Anything a dollar can do, gold can do too, and better, if bankers wanted that.The Gold Standard caused depressions, including the Great Depression of the 1930’s.
The idea that western countries were on the gold standard just before the Great Depression is questionable. The US had already begun to increase fiat beyond its gold reserves. Banking officials expanded credit and artificially stimulated markets without creating more jobs. By the time of the crash, bankers already had paper gimmicks in place, and the stock market became inflated too. There is no convincing argument that gold caused it, but rather a phenomena of speculative market crashes and over-lending, which we call bubbles today, unrelated to the gold foundation. As a result of the ‘crash’, FDR senselessly abandoned the gold standard in 1933. He made the public turn in all their gold to the US government, then raised the value of gold, effectively stealing wealth from the public. We were effectively off the gold standard for another 8 years during the Great Depression. It wasn’t until World War II before our economy was ‘fixed’. It’s clear that gold was blamed for the failure while it was really banking schemes in an over-leveraged economy. Further, had gold not been confiscated, the depression may have been very short.
Government should never try forcing a value to the price of gold, as they did in the past. Instead, the value of everything else should be priced in gold via free markets! That just happens automatic, without intervention.
Why Buy Gold?
While writing about gold investing, I do not exclude silver as an investment either. For the sake of simplicity, I mostly refer to gold in text.
Call this an index of fundamental ideas to help us realize the case for gold. Check back often for new content exploring individual points in depth.
Mainstream Propaganda Suggests Gold Is Merely A 'Store Of Value'.
Such propaganda is meant to keep people from investing in gold! As of today, gold is much more than a store of value — it's an investment, an excellent one.
Understanding the potential of a gold investment requires an understanding of history, economics, supply / demand and much more...We'll get to why gold makes the perfect money but first let's explore why our current system exists all-the-while being absolutely doomed to fail. Absolutely doomed to fail. Funny concept for money, right?
There Is Manipulation Across Most Asset Classes, US Dollars Being Central.
Interest rates are a basic yet fundamental aspect of our managed monetary system. Short-term interest rates are set by central bankers! It's manipulation. There are no 'free-markets' at the root of our monetary system. The central banks uses trillions for buying treasury bonds at a determined rate, effective pegging the rates. It's exactly how they set rates — overpowering any market forces with the unlimited money they may print. Such policies, they'll have you believe, are necessary. Centrally planned money is not necessary. It wouldn't even seem legitimate with sound money.
It should be common sense that banks have their best interests in mind. Those interests don't particularly align with mine or yours, the peoples. Their ability to function, profit, even expand is the bank prerogative. To reject that, you need overlook all of history. No matter their initial intention, human greed crept in. Fiat money, a supply manged by individuals, fails every time. This time is not different, a mathematical certainty since inception.
Why Do We Have Fiat And A Central Bank?
Our system is the result of bankers infiltrating government over 100 years ago. Relinquishing control of money from the government to banks. The system benefits both those, with a layer of "accountability" between our money and government. It's clear though, the bank will provide for the government as needed, as they are the host. Without the governments blessing, the central bank will not exist. Each may blame each other for problems and brush them under the rug. It adds confusion and complexity to something that should be so simple, allowing them to get away with stealing our generational wealth for themselves via inflation.
A Debt Based System
Banking is managed top-down probably more than any industry. Granted, a healthy economy is in the banks best interest as failed economy will result in the loss of their control mechanism, US dollars. That isn't to say they can't essentially impoverish and enslave a population. Say, a productive population accepting of a relatively low wage. We should all have an 'easy life' compared to times past given the progress in production methods and technology in particular. Humanity has become exponentially more efficient, therefore individuals should either work less or have more. This is not happening. Class disparity is becoming greater.
We see the need to over-print by the ever expanding debt totals. We have a debt-based system after all. Our economy can only grow by adding on exponentially more debt. Problem is, it inevitably leads to hyperinflation. Many dollars will be printed for our economy to expand. At some point, the credibility of our entire system will be questioned by all. That's just when things begin to get interesting, when everyone is talking about it. All at once, everyone will seek to store wealth in an alternative to dollars. That's mainly gold and silver, obviously. Within days, there will be none for sale. People will be holding and waiting for the dust to settle.
How Banks And Government Will Maintain Control
They will offer us the best and only solution. Gold money, sound money. Countries and their banks all around the world own much of the gold. They have spent decades brainwashing us that gold is nothing but a relic, with no place in today's monetary environment. You should know better. Gold is no different than dollar bills in the most basic sense. The difference is they can print dollars for themselves, not gold. Once banks own much of the gold and silver they will have a small windows of time to implement a new set of rules, based on sound money. The whole world will agree, especially more prepared governments like Russia, China and India. There is no chance anyone left in denial will be able to effectively reject gold as money.
Why Buying Gold Today Is Important
Hyperinflation happens exceedingly quickly. The solution will be put in place with haste. If you don't own gold during this time, you'll be a slave working for their gold dust. Such a time is approaching startlingly quickly. No one knows a day where people are knocking down the doors of the gold and silver shops. It can happen before you can react though. Perceptions change in the blink of an eye, word travels fast. There isn't much gold, not enough for everyone. Spread evenly, every person in the world would have about 1/2 oz of gold. Unfortunately, most, almost all, is already vaulted away, not for sale.
The Percivied Value Of Dollars
The value is only based on faith, faith that the system works, faith that debts can be repaid. It cannot. The debt was $5,749,916,000,000 at the end of January 2009 and $11,825,322,000,000 at the end of January 2014, according to the U.S. Treasury’s Monthly Statement of the Public Debt. Today the debt is about $22 trillion! The debt is increasing exponentially. This $22 trillion can never be repaid without issuing much more money. Doing so would cause hyperinflation! It won’t reverse, contrary, it will grow more. We are running trillion dollar deficits, and making ever larger interest payments. It’s just like a runaway train. There is no fixing it.
The problem is the debt-based money we use. We abandoned sound money entirely in 1971 when Nixon removed the gold redemption from dollars. This was a planned process, and steps were made leading up to this for over 100 years. It was the bankers plan all along, to control our economy, take it away from the government, the people, and issue wealth for themselves at will. The dollar is an instrument of debt. It is not money, it is debt! A dollar BILL, like those you get in the mail. Or a NOTE, like a car note. The Federal Reserve (Not federal, no ‘reserves’), is NOT part of the USA government. The Federal Reserve, whom issues and controls our money is literally a private company with share holders, some of the richest banking families in the whole world, going back 100’s of years. The US Federal Reserve holds over $4.3 trillion USD of assets. That makes this single private bank multiple times more wealthy than any company in the entire world. Doubt you’ll read that on the cover of Forbes anytime soon.
The Joke's On You
We were sold out and taken by bankers long ago. It’s worked so far, we are getting relatively poorer and the are getting richer everyday. They buy up real assets as long as their fake money is accepted. Bankers own just about everything today. Almost everyone owes the bank for their car, for their house, their credit cards, everything. The credit issue isn’t getting better – it’s been getting worse! No matter how you want to spin the facts, or assume you can pay it back, the reality is they own it right now. If the credit problem is getting worse, we can safely assume they will continue to own more as time goes on. And yes, they own a lot of gold and silver too. This was their plan after all, to discretely take the gold and silver and hide it while we are distracted by everything else. They spend a lot of their fake money distracting, bashing, lying, and just keeping everyone’s attention off gold. It might sound far-fetched, and too impossible to pull this kind of wool over people eyes, but don’t be fooled. They were, and still are some of the most well organized, connected, and richest people in all of history. The money is our lifeblood, if they can control the money they control all of us. They literally dominate the world, and hold our lives in their hand. They have control over everything, media and politicians too. It was a long, slow, drawn out effort to consolidate money and power within their group of ‘elites’, and it’s been working so far.
Gold Is Their Achilles Heel, Sort Of
They hate sound, fair money. They love the rigged game where they have unlimited dollars to do with what they please. They spend billions of dollars artificially suppressing the price of gold and silver while they covertly buy up the real thing. The exchanges that determine the price are not even trading real gold. Legally, there is no real gold backing the contracts. Anyone with cash can ‘sell short’ gold on the market, and influence the price. There is an unlimited amount of gold they can sell, because remember, they are not selling real gold, just paper gold! In fact, many times more gold is owed to people ‘on paper’ than is actually available. There in lays the problem. Gold is a finite resource, but our very pricing mechanism treats it as it were infinite, like a stock share, where they can just create more if they think the price is getting too high. If they want to move the price down they simply sell fake paper gold at market, often billions of dollars in an instant – without offering any real gold for sale!
Rigged Markets: Conspiracy Fact
Our bullion exchange pricing mechanism will come crashing down when people realize there is no real gold or silver to trade on these platforms. The exchange is just a fantasy, where anyone can pretend to buy and sell using dollars, not metal. It was created by bankers to allow for price suppression without risking any real metal. The bankers print our money and buy many short positions to keep the price where they want: low. Yet, they are buying the real thing off-exchange!
The metals exchanges are exceedingly complicated, designed to keep regular investors out. How many people do you know that invest in futures markets compared to stocks? You need lots of money to even have an exchange account. They really want to be the only ones in the game, putting the price where they want without anyone else playing. If people like you and I do accumulate long positions on the Comex amounting to a few billion, bankers simply throw down a few more billion against us, pressuring the price down, and wearing us out. They have a lot more money than us, they have unlimited money…Remember, they have $4.3 trillion in assets. It’s all about who has more money to throw down on the positions they want, moving the price in their desired direction by either going short or long. Literally, everyone in the world could invest in gold on their exchange, but bankers would push the price down still. The only way to stop it is buy real gold. Buy gold until word spreads like wildfire, that there is no gold for sale at the published prices. Only then will people start to question what is going on. Only then will the scam’s thin layers deception be exposed, and reality will set in for everyone, very quickly. “Only then” is approaching rapidly, weather you buy or not.
Higher Gold Prices
A higher gold prices spells big trouble for the dollar. Gold directly competes with their dollars. Precious metals gravely threaten the legitimacy of dollars.
At some point the Comex and other exchanges will fail by default, no credibility. Reality will set in when their perverted rules will fail, as does everything corrupt, given enough time. People will demand physical metal, not paper. They won’t even want to invest on exchange, but demand real metal. When gold drys up as people become keen, the price of real physical gold will decouple from their fantasy paper markets. These perceptions will change extremely fast. I imagine a ‘rush on gold’ lasting only a few weeks, before the price is 20+ times higher than prior. It will become clear to everyone, there will be no denying it, the pricing mechanism is a fraud! The emperor has no clothes. People will panic, and question everything. Sadly, the world will be in a brief period of chaos here. They will wonder why exchanges are saying gold is worth $2000/oz, but the local dealers have no gold for sale, or it’s 20 times more expensive than the exchanges list. People will pay exorbitant premiums for physical gold while the exchanges lose all creditably. Ultimately, gold and silver cannot seek fair value until it’s traded on exchanges that limit the amount being sold proportional to the supply of physical medal actually available for sale!