Posted on 02/10/2013 11:06:39 AM PST by blam
The Number One Reason To Invest In Gold…
Mac Slavo
February 10th, 2013
With the the U.S. economy having once again dropped into negative recessionary growth, currency wars around the world heating up through direct and indirect devaluations, and trillion dollar fiscal deficits piling on, how is it possible that the stock market, a key measure of economic health for many Americans, is touching near all time highs?
Marin Katusa, Chief Strategist at Casey Research, suggests that this effect can be traced to monetary machinations that are happening behind the scenes, where few people are willing to look.
“Because they’re printing and making the availability of money so easy, the market is really confused right now,” says Katusa.
The reality is that literally trillions of dollars have been borrowed and printed to bail out the United States and Europe, and much of that money has been injected into stock markets to give the appearance of recovery.
It is, at best, an illusory effect.
Given that more people than ever before are out of work, over half of American households are dependent on some form of government disbursement to survive, and prices for essential goods like food and energy are consistently rising, it’s only a matter of time before confusion in financial markets turns to panic.
And when it does, just as we’ve seen throughout history, only real, tangible assets will be of value.
One such asset that has always maintained real value in times of calamity is gold.
Despite arguments that gold doesn’t grow like typical modern day investments and simply sits in a vault gathering dust, according to Marin Katusa in a recent interview with Future Money Trends, there is one key reason for why it should be in your diversified basket of goods.
The number one reason to invest in gold is insurance.
Because of the massive liquidity and the dilution of, not just the US and not just Bernanke, but all of the major countries – they are a printing press… The main reason to invest is because gold is money.
Before they had fiat currencies – that’s the currencies like today… there was gold.
The Romans. The Egyptians. The Babylonians.
For thousands of years they used gold before they used these fiat currencies.
And, every time in history a fiat currency ends in disaster.
We have recent examples. If you look at what happened to Yugoslavia, or Zimbabwe, or even Germany with their fiat currencies… gold always holds true value.
That’s why we believe gold is a true, original money.
…
I think at least you can see with gold, it is the insurance policy to bet against the bankers.
(Click to the site to watch a video)
With all of this money – literally hundreds of billions of dollars – being thrown into stock markets by leading financial institutions that were just a few years ago on the brink of insolvency, there are massive price distortions happening across the board. This includes rising stock markets, one of the key benefactors of the Federal Reserve’s printing press.
Another not so positive effect (at least not for the American people) are ever increasing prices in the free market, something that Katusa says is going to continue:
[There is a] One hundred percent [chance of inflation].
You can guarantee these three things in life: Taxes, Death, and Inflation.
Inflation is coming… I just don’t know if it’s next week, or in six months, or twelve months.
But the reality is, it’s coming.
That’s why if you have a percentage in gold, you’re covered.
It’s an insurance policy.
When all fiat monetary exchange mechanisms fail, only one asset has stood the test of time as a store of wealth.
Gold is and always has been an insurance policy.
It will be the only thing left standing when the U.S. dollar, the Euro, the Yen, and other paper currencies are inflated to oblivion by their respective governments.
Make sure you have some when that happens
No, it is not. The price of gold has not kept up with inflation over the long haul.
In about 1890 my grandmother was paid a 20 dollar gold coin for her first month of teaching school. In the late 1950's when my father told me this story, gold was selling for $35 per ounce while teachers were paid approximately the value of ten ounces of gold per month. Today teachers are paid about twice the value of an ounce of gold per month.
The price of gold fluctuates more rapidly than some commodities, giving some a short term profit but it hasn't been a good investment in the long term.
The greatest problem with gold in hard times is that you can't buy a loaf of bread or a few gallons of gas with gold. There are many far better investments that can be bartered in bad times.
What would you expect to use to buy a D-8 or a 977 loader?
Sean ‘spicoli’ Penn, Economic Guru!
Beans, bullets, bandaids and a defensible position are the keys to survival.
The wealthy and powerful going after gold includes the government.
As of now, no 1099 for selling gold coins, just bullion.
Bear in mind, however, central banks are the tool of new world order, lesser known as international banking.
International banking/nwo/globalists are financial firms; they deal in gold and other commodities; in fact, they deal in most everything that is traded.
If a government had to “back” their currency with a precious metal like gold, that would be a profit bonanza for international banking, since the government has to come to bankers to buy gold for every new dollar they issue. It’s just a variant on what the Treasury does now; they pledge to pay back the Fed for every dollar the Fed creates and gives to them in exchange for the “IOU” Treasury debt instrument. In either case, the Treasury goes to the bankers for money instead of just creating money itself.
It’s one thing to have some gold or precious metal as an investment, but the best investment one can have is one’s own productive business(es). In them, one can be astute, not wasting when investing in it, knowing when to shut down an operation, continually reinvesting profits and diversifying. Inside a corporation one can conduct any business activity, even investing, yet not have any personal income from it until one decides to. No special magic, just the way things work.
Most sellers who own gasoline stocks enough to sell recognize the sight and value and portability of silver US coins, pre 1964 quarters, dimes etc, and Morgan dollars.
Right now the value of one Morgan dollar would fill up my gas tank. How many bags of rice could you offer a seller as a comparable?
One silver dime today's value will buy a loaf of bread. How much ammo will you trade for flour?
Two golden eagles will pay for a year of community college. How many bags of rice are you willing to offer the college?
I think most of the folks who see the wisdom in stockpiling food stuffs and selected commodities other than precious metals expect a total worldwide meltdown of society and the financial systems. They are not worried about paying for college...
In that scenario gold will have little value to those that survive as it wont be denominated in dollars it will be denominated in a third world like barter economy and its true worth is what it can be exchanged for to provide sustenance shelter or defense. Gold is only good when you have a marginally stable economy (like that in the US today) with a class of folks with an excess of whatever the local currency is and are willing to put that excess into gold.. Ive spent a lot of time in third world economies and no one in the masses there are the least concerned with the price of gold. They are concerned where the next meal is coming from... If you think the system will somehow survive then an argument can be made for holding a small amount. If you believe and are preparing for the SHTF then gold is a very poor investment in spite of what the folks peddling the stuff will tell you...
sheltering in place sounds great until the zombies find you or at least find your garden, and you run out of ammo
for the typical suburbanite shtf should consider the value of accumulating junk silver for the bug-out bag, for small survival purchases... and maybe some gold to buy you a piece of safety (real estate, liveaboard boat, or whatever) when you find it
precious metals should nor be considered as or compared with investments, they are wealth preservers, or as the article states, insurance - of retaining the value of some of your wealth in something that has universally been a prized barter item (aka money) for over 6000 years
so we have different goals - different strokes for different folks
Cheap, easy to store, easy to conceal and carry if you go on the run, universally recognized as “money” in any barter system
Mine is far more pessimistic than yours I suspect.
Everybody needs to make their own way and plan accordingly..
If shtf happens you’d only “go to college” to loot the place.
If shtf happens you’d only “go to college” to loot the place.
If shtf happens you’d only “go to college” to loot the place.
If shtf happens you’d only “go to college” to loot the place.
If shtf happens you’d only “go to college” to loot the place.
If shtf happens you’d only “go to college” to loot the place.
Oops...
Trouble is, the PTB can make the price of gold be whatever they want. They do it by selling “paper gold”, gold contracts supposedly redeemable in gold metal.
But they already got the edge, because of something called “force majeure”, a kind of Act of God clause that says if they can’t give you the metal, they can basically settle for whatever price they pretty much choose.
IF! and note I said IF the dollar collapses, the price of these types of portable commodities, gold, oil, wheat, silver, rubber would go to the moon.
But I suspect WWIII would happen about that time. And it WOULD NOT be a coincidence.
Yup.
Everything necessary for life would sky-rocket in price...even chain-saws.
Got my saw in good working order just today! Ran like a champ!
Bar oil, tightened down the chain, took down about a 40 foot maple and a bunch of brush maples.
Thing is, auto work, electrical, that stuff don’t bother me. But I ain’t no lumberjack. I have a very healthy respect for chain saws and monster trees falling down!
So now I take time to relax with a Scotch or three...
;-)
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