If there is one thing I try to relate, it is that gold is NOT an “investment,” but MONEY.
“Dollars” and “Euros” are currency, but currency is not MONEY. In my presentation last night, Andy Schectman and I were allocated two slides each before opening the floor for Q&A. Thus, I had to pick the most important topic in my repertoire, and this is what I chose:
First, a table listing the primary attributes of MONEY, which contrary to popular PROPAGANDA, is not just a medium of exchange. In fact, the only definitional parameters the dollar satisfies are the least important, its divisibility and fungibility. Conversely, it doesn’t come close to meeting the other four, all of which are vitally important to your financial health – particularly item #3, the necessity to maintain VALUE…
…which the dollar has NOT been since the Federal Reserve was unconstitutionally created in 1913, per the chart below. For that matter, you could replace the word “dollar” with ANY of the world’s nearly 200 fiat currencies, and the chart would look the same…
I CANNOT EMPHASIZE THIS POINT ENOUGH, and felt compelled to reiterate it when I came across one of Miles Franklin’s marketing pamphlets, titled “GOOD MONEY MUST HAVE SEVEN CHARACTERISTICS.” This timeless piece was taken from Richard Russell of Dow Theory Letters, and nothing proves my point better:
(1) It must be durable, which is why we don’t use wheat or corn or rice.
(2) It must be divisible, which is why we don’t use art work.
(3) It must be convenient, which is why we don’t use lead or copper.
(4) It must be consistent, which is why we don’t use real estate.
(5) It must possess value in itself, which is why we don’t use paper.
(6) It must be limited in the quantity that is available, which is why we don’t use aluminum or iron.
(7) It should have a long history of acceptance, which is why we don’t use molybdenum or rhodium.
Only GOLD and SILVER fit all seven characteristics.
When deciding how to allocate your wealth, think long and hard of what you consider wealth. If you owned stocks or real estate for the past decade, there’s probably little wealth left, as well as essentially all bonds except Treasuries, which are only higher because the Federal Reserve purchases roughly two-thirds of all issuance, soon to be 100%. Only PHYSICAL Precious Metals have maintained purchasing power over this period, or more accurately, dramatically increased it. Actually, they have done so for more than 5,000 years, leaving in their wake THOUSANDS of failed currencies.
The dollar, Euro, and Pound (among others) are no different than the thousands of failed currencies, and are at the end of their lifespans – simultaneously. It won’t be long before the lure of PHYSICAL gold and silver yields EXLODING DEMAND, wiping out supply so quickly that companies like Miles Franklin will no longer function. Not to mention, the simultaneous collapse of the fraudulent PAPER markets, which will destroy the bullion business and any remaining opportunity for you to PROTECT YOURSELF. When this occurs, gold and silver prices will go hyperbolic, and either you’ll be IN, or OUT.
ONLY PHYSICAL gold and silver are money, and shortly ALL seven billion of the world’s citizens will be painfully aware of this historical FACT.
PROTECT YOURSELF, and do it NOW!
Andy. A curious post came my way Friday about the Cartel’s real aim is to go back on a gold standard once they have acquired the bulk of the world’s gold supply. The author seems to believe that very few people have gold. Perhaps his perspective is myopic to the USA.
He seems to think that once back on a gold standard, the cartel will unload their gold, smashing the price, and ending up with all the $$$. Doesn’t quite make sense to me. If the cartel is buying gold at current rates and if they have so much of it as to drive the price down to $10 oz., would that not lose also?
And I get the impression that he sees people hold gold as “investment” instead of money. Anyway, it is a short article but an odd one in that he does believe in a banking cartel yet thinks they are working towards a gold standard. Says he is an EX Commodity Trading Advisor (CTA) or 14 years (1978 – 1992) and commodity futures trader of 33 years.
Article is here…
http://cafr1.wordpress.com/2012/03/30/gold-backed-currency-the-50-year-plan-is-coming-to-a-close/
William,
Given his conclusions, I won’t give this idiot the satisfaction of reading his moronic article.
The whole point of a gold standard is to value it at something closer to its intrinsic value, and hold it at that value.
What he claims makes ZERO sense, as on a gold standard the new currency has a value based on a stable price of gold.
Ignore him.
Andy
Sorry, the sentence at the end of paragraph 2 should read “would they not loose also?”
Andy, good attributes here. I have 6 attributes myself when I teach people why gold and silver are money. 1. Portable 2. Durable 3. Divisible 4. Fungible 5. Rare (finite amount). 6. A store of value over long periods of time. I tell people who want to argue with me to put anything in the world on a list and go down the line of these 6 attributes. Food, water, copper, salt, real estate, anything that has value. Everything on earth lacks at least one or several attributes, so theyre disqualified for the job of money that humanity seeks. Humanity doesn’t seek second best as money (example: copper maybe, not rare enough) they always seek what works the ABSOLUTE BEST. So through trial and error of trying valuable things as money, they end up selecting gold and silver in the end because they are the only 2 things left standing after they are tried. They are the best candidates for the job. Paper lacks 3 out of these 6 attributes. So why do we continue to use something that has 3 flaws? That, Andy, I’ll never understand. Maybe it’s convenient but that’s not a good enough reason for me to sacrifice value for…what do u think?