CASH FOR GOLD!

 

 

“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.”

Alan Greenspan

 

Gold is money. It is the ultimate money. It is the underlying foundation of all the worlds financial systems. Some would have you believe it is nothing more than a mere commodity, a bygone relic, having no modern purpose or benefit.

If this were true, then why do Central Banks keep it?

“Gold is always accepted and is the ultimate means of payment and is perceived to be an element of stability in the currency and in the ultimate value of the currency and that historically has always been the reason why governments hold gold.”

Alan Greenspan testifying before Congress, May 20, 1999

 

In 1971, as the gold standard was about to be dropped, the leading economists made a prediction that shows how stupid economists are. They predicted that the price of gold would tank when gold was demonetized. When governments no longer accepted gold as valid for paying debts and taxes, the price of gold would crash. Before 1971, the US dollar was a promise to pay gold. The US was defaulting on its promise to pay gold because there was a shortage of gold. There were plenty of dollars; the government was printing them with abandon.

The gold standard was dropped. The US government defaulted on its promise to redeem dollars in gold. People were granted the right to own gold again. Contrary to everyone's prediction, the price of gold skyrocketed. The stupid economists were predicting that, after a default on a promise, the value of receipts for that broken promise would rise!

 

 

Gold-Silver

Gold and Silver bullion are perhaps the best investment a person could make this decade.

There are a few basic reasons why people have chosen gold as the bedrock of their financial foundation for thousands of years.

1. Gold retains buying power – unlike fiat currency, gold retains its ability to purchase goods over time.

2. Gold has intrinsic value – again, unlike fiat money or other “paper” investments that rely on a government or financial institution to give the paper its value, gold has intrinsic value.

3. Finally, gold has no counter-party risk. Regardless of what happens as financial institutions, and financial systems fail, gold retains its value internationally.

In a word, gold in todays economy represents security.

If you first understand the fundamentals of money, as in currency, you will understand why gold and silver are the safest place to be right now.

You see, gold and silver have been money for over 5000 years of human history, and we have become so smart (or is that stupid?) that we have figured out how to ‘make paper behave like gold’. How foolish we have become.

Gold is money.

Gold has been the standard used to measure a currency unit of value for thousands of years because:

• Gold is liquid and easily traded, with a narrow spread between the prices to buy and sell (about 1%).
• Gold is easily transportable, because it has a high value for its weight.
• Gold is money because it is divisible, you can divide it into coins, or re-melt it into bars, without destroying it.
• Also, gold is interchangeable. It can be substituted for another piece of gold with no hassle.
• Gold is also nearly impossible to counterfeit, as genuine gold is easily recognizable.
• When measured by weight, gold is easily countable, and verifiable.
• Gold is money because it is a great store of value. It is not subject to decay, rot, or rust.
• Gold has an intrinsic value, because it is rare, highly desired by the world over.
• Gold is no one’s liability.
• Gold depends on no one’s promise to pay.
• Gold carries no credit risk.
• Gold cannot be inflated (you can’t print more of it).
• Gold’s value cannot be altered by government decree.