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One
of the things I encounter regularly is the overall lack of awareness by the
general population on why we should be buying gold and silver. And not just
buying it here and there like some kind of hobby or collectors’ item,
but transferring a good portion of your savings into tangible metals. I feel
compelled to write this entry to address this immediately. Simply stated
everyone needs to begin doing this now for the following reasons.
Inflation:
We need to
protect our savings from a silent economic cancer that robs us of our prosperity
even while we sleep; inflation! Alan Greenspan (Before he went over to the dark side)
said in his famous essay, "Gold and
Economic Freedom",
"In the absence of the
gold, there is no way to protect savings from confiscation through inflation.
There is no safe store of value.”
 We work hard
for our money and are already faced with a long list of taxes that already
cut into our earnings. Overtime, inflation eats into your savings and your
hard earned money, robbing you the natural opportunity to keep up with the
cost of living. Inflation exists due to global central banking systems and
fractional reserve banking. This is a sophisticated system where the issuing
government allows their central banks to create non-gold or silver backed
currency at their discretion. It is plainly and cleverly deconstructed here
in Chapter 8 of Chris Martenson's Crash Course. Essentially, it becomes a massive counterfeit printing
press where paper money is loaned back into the market. It is this influx of
additional money in the market place that causes an increase in prices.
Gold and silver over many millennia have proven to be inflation-proof. They
are not subject to inflation like paper money and hold their purchasing
power. When our money was backed 100% by the the gold
standard,
there was little to no inflation per the inflation chart above (bear in mind
also President Nixon completely denied and abandoned all gold backing in
1971).
You can find out more here why the little square pieces of paper in your
wallet are actually worthless in this piece called "What is Money"? by Jeff Nielson.
National Debt Crisis:
The national debt has now been conservatively
estimated at 13 Trillion Dollars. In the 1950's the USA lead the world in
manufacturing and were the  world's largest creditor. Now, the
table has completely turned and they are the world's largest debtor! Since
the USA no longer has a strong manufacturing base and simultaneously has
extravagant government spending habits, this debt has grown so big that there
is no way the current generation can pay it off. Enter the morality issue.
This debt now belongs to our children and their children. Is that fair to
them? When speaking about any debt, it is important to understand the power
of compounding math. As the interest compounds on this
size of debt, its steady growth can suddenly shoot up to parabolic
proportions like this graph. Considering that the US Government is doing
nothing drastic to stop unnecessary spending and eliminate national debt,
where do think this graph will go from here? This is the bubble of all
bubbles! The Debt Bubble. The US has been borrowing from the rest of the world
for years now. What happens when its creditors call in that debt? This will
burst the bubble.
This is why
it's crucial to be financially prepared for the worst. Just because our lives
are seemingly not being affected that much right now, but due to the
exponential growth factor of a massive debt and no sign of anything being
done to correct it, the debt will continue to rapidly grow. Without much
warning, things can go from bad to much worse very suddenly. Consider also
that the US Government really has no means of paying this debt off and of
course, eventually, China and other countries will stop lending them the
money.
Buying gold and
silver will protect you from this kind of economic fallout as well as the
debasement of our currency and hyperinflation.
"As
the sovereign debt crisis deepens and the debasement of national currencies
at the hands of central bankers and politicians becomes increasingly
recognized, more and more people are starting to understand the true nature
of gold. It is not only money, but a better money than any national
currency." James Turk
The
Long Term Manipulation of the Price of Gold and Silver.
Finally, we are going to address this not much talked about but very
important factor in why NOW more than ever it is the right time to buy gold.
The
Governments and central banks along with other players such as Federal
Reserve and Treasury, various other central banks, and bullion banks like
Goldman Sachs and JP Morgan Chase in a couple of different ways are
surreptitiously suppressing the spot price of gold and silver in the market
every day. They do this to satisfy their agenda of maintaining their
positions and the status quo. It can be summed up quite nicely in this Daily
Bell interview with Chris Powell of GATA.
Gold and Silver are Honest Money
They are elements of the earth that have always reflected man's labour to
extract and refine them into a useable product and therefore have always had
real value. Gold and Silver are an enemy of Wall Street because in history,
when gold prices go up, it means the economy is going in the toilet and it is
a sign of the devaluation of the currency. Governments and central banks
don't like them because they can't print them into existence like they can
fiat currency. I wanted to point out that despite this outside manipulation,
gold has still risen 400% in the last 10 years, so the central banks scheme
in stopping the driving force of gold constantly asserting itself as true
money is failing. Several experts in the industry have pointed out that
gold is still very undervalued today and without this daily tampering on the
spot price, it should be almost twice as much as it is now and will continue
to go up from there accordingly.
Today's
prices are artificially low and there will come a day when the long arm of
manipulation will be exposed to the point where it will stop. When you push
something down for years that has its own life and propulsion in the global
market, it stores up energy and when that interference ends, like a coiled
spring, the market will explode and the price of gold will go up very
quickly. This is all illustrated very nicely in this video of Mike Maloney interviewing
Bill Murphy, Chairman of GATA.
The only good thing about this situation is that it creates a buying opportunity for
people to get into the gold and silver market before it soars.
All highlighted text in this entry are links to important videos and articles
that can greatly further your research on this matter. There are many other
reasons to support the accumulation of physical gold and silver and I welcome
any comments, questions or additional information in the comments below.
Kirsty Hogg
Gold Wars
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