“Gold is the currency of kings, silver is the currency of Gentlemen, barter is the currency of peasants, and debt is the currency of slaves.” – from The Richest Man in Babylon by George S. Clason
With that said any investor needs to understand the difference in Gold and our fiat money or Federal Reserve debt instruments that are “called” money. The US Dollar has no “value” but it has “purchasing power.” Our Federal Reserve Notes in our wallets have no Gold or silver or any other value supporting it. This is a hard truth we all must face in the once great united states of America. We are basically using debt as currency. Note the quote above – every man, woman and child is a slave to pay off that debt.
I was a middle of the road type peasant who learned about the Stock Market from my dad, and I decided to learn further so I took several advanced courses in Investing, Trading and Technicals. After this I began to see a pattern of economic systems and theories as well as who runs the world – The Central Bankers and the Bank of International Settlements. It is the same as always – he who has the money rules. Who fixes the price of Gold? You need to understand how it has been manipulated for years and is just now getting “outed” by organizations like GATA (Gold Anti-Trust Action Committee; www.gata.org). They have found the “smoking gun” evidence of how Central Banks clandestinely and covertly in an allegedly free market are leasing their Gold into the market through their bullion bank associates. It gets complicated but the research and articles are all over the Internet. Here is the excellent November 2005 article on the smoking gun
The bottom line is that the price of Gold has been artificially suppressed by the powers behind the throne. Does the Wizard of Oz ring a bell? As our Dollar declines (and it is going straight to zero eventually; all fiat currencies do) Gold and Silver become a solid foundation to preserve your wealth. As the Fed’s keep printing worthless debt instruments (your dollars in your wallet) in increasing amounts the Dollar’s purchasing power diminishes (that loaf of bread will be costing you $10 before long). There are some great articles on Helium.com on how the economics of the world and the US work and I encourage you to read them all. Here are some great quotes to enlighten the savvy investor:
“Gold has no agenda, no allegiance and functions as honest money in a world of lies, corruption, overstatement and spin.” -Jim Sinclair, Author & Chairman of Tan Range JS Mineset 2-25-07
“Gold is now being accepted as the fourth currency along with the dollar, the eruo, and the yen. But there is a difference. Gold is also being recognized as the tangible currency and the ONLY SAFE currency. That Gold pays no interest – but is at a 25 year high in terms of dollars – is a testament to its value and safety in the eyes of sophisticated investors.” -Dowtheoryletters.com
“Gold is a hedge against US Government mismanagement.” -Robert Kiyosaki, Author, Rich Dad
I for one am off to shop for more Gold in my portfolio. If you haven’t noticed, it is on sale! As Warren Buffet has stated before in many ways: buy when everyone else is selling. By the way, his mega billion dollar stock portfolios have very strong positions in Gold and Silver. Gee, does that tell you anything?
In closing I encourage you to research the Federal Reserve’s creation and real power. It isn’t federal, it is privately owned. To understand Gold you must understand the Feds, Central Banks and the World Bank, etc. There are several excellent books that are outing the greatest scam ever perpetrated on the American public. “The Creature from Jekyll Island” by G. Edward Griffin is a good start. Just google that title and you will get a wealth of information. It will wake you up. Who knew that the secret meeting on Jekyll Island, Georgia at a JP Morgan resort in 1910 would change the course of a whole nation and birth a Banking Cartel?
“The best way to destroy the capitalist system is to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens.” -John Maynard Keynes, Socialist Economist
Here in America we are practicing Keynesian economics where “debt” is good for governments. Gold is the only hedge against this insanity.