During the mini-crises of the 1970’s America suffered a dark age “stagflation” yet a few farsighted Americans made fortunes in gold and silver. I am taking action because I want to be one of the farsighted Americans of this century’s massive wealth transfer and I am willing to share with you the knowledge I gained staying up late every night for the past few months.
Why I want you to be successful? First of all because I didn’t risk my life two decades ago escaping communism to live in another third world country. Secondly, the history of Weimer Republic sends chills down my spine. If you don’t know what happened here is a quick snapshot of events. After WW1 the Treaty of Versailles imposed harsh reparations on Germany, an event the German people were not prepared to handle. In other words the country and its people were in tremendous debt (does this sound familiar with what’s happening here today?) As a result, the government was forced into printing a lot more money and at a very fast pace. The crises was inevitable and hyperinflation had forced people into looking to the government for help. It is no surprise that the rise of Hitler was the end result of a country’s impoverishment of the middle class. Fast forward 90 years and cross the ocean to America and you’ll understand that we are not far from it. If our middle class turns poor, our individual liberty is at stake and a totalitarian state may not be far-fetched. Therefore in order to maintain a strong middle class we should not ignore the past and we should take action right away. There may not be much time left.
I have decided to get on the train and if you are committed to do the same your primary goal should be to preserve your current assets’ value and acquire more of it. Preserving the value of your current assets is the key to preserving your purchasing power. Following is a quick criteria:
- You should hold currency that retains its value over long periods of time.
- You should hold currency that is appreciating relative to most, if not all other currencies in both the short and medium-term.
A quick look back into past century’s historic events reveals that during all previous economic crises when prices of commodities such as oil and wheat soared in dollar terms, they were more or less stable in gold terms. Central banks and governments have set a long-term trend of currency debasement. How likely is it that this trend will be reversed anytime soon? Not that likely. Historically, gold has been an excellent way of preserving purchasing power over long periods of time. Today it takes almost the same amount of gold to buy a barrel of crude oil as it did 50 years ago. Can we say the same about fiat currency? Let’s see what the facts are. Today’s crude oil price is at $83 per barrel while in the summer of 1960 its value in dollars was at $3 per gallon. There may have been events that contributed to the rise in price (OPEC, wars, increased demand, etc) but it’s not outrageous to say that inflation had also a major impact during the past fifty years (which was the direct result of fiat currency debasement.)
A $10,000 investment on January 1st 2000 in 3-Month US Treasury bills would have slightly decreased your purchasing power on 1 January 2011. A $10,000 conversion in gold or silver, however would have more than tripled your purchasing power.
Gold and silver are the only globally recognized currencies that cannot be created out of thin air, which makes both of them great stores of value (preservers of purchasing power) in the long-term. Unlike fiat currencies that can easily be debased, gold and silver remain the ultimate forms of money.
Two reputable companies I use are GoldMoney.com and GoldSilver. Both offer the opportunity to buy precious metals at exceptional premiums, to sell your metals back, and to hold gold and silver in your IRA. You can either acquire physical possession of the purchased metal by having it shipped to your location or you can choose to buy and have it stored in a secure and insured vault that is regularly audited. If you wish to go for the physical possession option GoldSilver is more desirable due to its ability to satisfy smaller orders and a variety of bullion products, anywhere from 1/10 ounce American Eagle Coin all the way to a 400 oz Gold Bar.
21st Century Gold In the nineties, GoldMoney’s founders had a clear vision that gold should once again fulfill a role as money, as it had done in the past. GoldMoney has been granted four US patents for all the research it has undertaken to enable gold to circulate as digital gold currency. These patents acknowledge that GoldMoney is advancing the ‘prior art’ of global payments. The company has created an advanced and robust currency with many superior qualities compared to prevailing fiat currencies. The patents illustrate why GoldMoney is a currency that is ideally suited for electronic commerce.
Through the patented currency, GoldMoney goldgrams® (1 goldgram = 1 gram of gold), you can make gold and other metal payments to other customers electronically. GoldMoney customers around the world can make immediate payments to each other, at a fraction of the cost of a standard bank transfer. Although you can send and receive funds to and from your GoldMoney Holding via traditional financial institutions, such as banks and brokerage companies, GoldMoney’s utility is not dependent upon the network of such institutions. This makes the GoldMoney payment system an ideal alternative to the banking system. For additional information regarding the security of the metal your purchase through GoldMoney please click here for peace of mind. Be sure to read all the way down to understand how your precious metals would be handled in the unlikely case of the company’s bankruptcy.
Storage When it comes to storage you have numerous choices of storing your allocated metal. With GoldSilver your physical vault choices are Salt Lake City, Miami, and Hong Kong. With GoldMoney the choices are Zurich, London, and Hong Kong. Should you wish to diversify your portfolio with platinum and palladium GoldMoney is your best bet at this time.
The metals you buy with these companies are 100% yours and only of the highest quality. Both companies offer discounts for volume purchases. And if you’re serious about buying any precious metals may I suggest you take five minutes to read my Structuring Your Physical Gold Portfolio article to familiarize yourself with the basics.
Part 2 James Turk, Carmen Alexe and Jay continue the conversation on the virtues of owing gold for protecting wealth against inflation and destruction of the U.S. Dollar.
Part 3 Carmen Alexe returns to talk more about the loss of freedoms in the U.S. and Roger Wiegand talks about the problems in China and the rise in commodities prices.
* FTC requires that I disclose I have an affiliate relationship with GoldMoney.