Whether you are new or an old side to the issues of gold, gold and what is cash, you will probably have something in typical with a disappointed audience who we obtained an e-mail from this 7 days. He confessed that all the inconsistent details about how the globe financial program performs were "doing [his] go in!" Here is his e-mail and below it is our response.

I have been trying to inform myself about what is occurring & how the globe cash program performs. l am conscious that most experts believe that the present problems globally are due to the planned development of the cash provide. Some experts, such as you, consider gold & gold to be part of a protecting way to preserve success. Unfortunately I cannot eat gold or gold & it will not pay my insurance coverage, prices, or solutions expenses & will not put petrol in my container. Most experts believe that the cash program will fall short.

The whole aspect is a charade anyway & I think it quite possible that when the percolate breaks absolutely, "the club" who management the program in connivance with their puppet nationwide "leaders" (Obama etc) could basically clean all economical debt for their "members" and need some type of reimbursement or servitude from those not already in "the club". Thus they could almost instantaneously exchange much sovereign & personal success into their arms, they could announce it unlawful to business in anything other than their new selected "currency" successfully making gold and gold price Malaysia silver silver coins into exciting unusual bright things.

Ben Bernanke is popularly estimated as saying there was no real estate percolate in the USA and it would not occur because it had not occurred before. Yeah right I think you people at gold success details are trying difficult to existing an substitute technique, but are not you, like Bernanke, looking backwards? Gold has traditionally always had value but what is this value really centered on? Why is it more useful than useless paper?

Surely actual value can be found in meals, energy, effective area, seed products, animals, water etc. I think I'm switching Japanese. Money secured is just electrons that can vanish as amazingly as they came.

The more I pay attention to "expert" opinions from the non organization globe, the more I come to the summary that there really is nothing an personal I cannot believe in my government and certainly not the worldwide shadowy results who take the post.

Our reply:

Indeed the economical globe is probably the most complicated it has ever been! And perhaps this is by design? There is certainly no actual economical knowledge trained in our educational institutions - like good economical debt compared to bad economical debt, what is cash and how it is designed. Of course if this was trained it's likely we the public would not be nearly as docile and obedient either in our part as long term accumulators of economical debt. So there is the response as to why none of this is trained and more likely why we are trained just the opposite... Go to institution, do not ask too many concerns, go to University and develop up a big economical debt with no assurance of a job. Buy a home with a large home loan that needs two earnings to assist it and battle along.

But we digress and should get returning to the question's at side so...

Here's our ideas for what they are value. Keep in thoughts we are not economical experts so we cannot suggest what you should do. So of course at the end of the day you need to create up your own thoughts.

You cannot eat gold but...

The range of you cannot eat gold and gold silver coins are often trotted out. Of course the last time I ate a $20 observe I was still starving too! It's real that you can more quickly substitute report cash for meals and the other solutions you discuss at the existing. (Although if you look at extremely inflationary conditions it is the other - suppliers of items would want to obtain gold in return for the meals etc they offer - take Weimar Republic Malaysia or more lately Zimbabwe).

You can't eat report cash either!

But even if not in a very extremely inflationary atmosphere, but rather a continuously minimizing forex like that of the last 10 decades, gold and silver silver coins can quickly be interchanged for report cash and then used to buy necessary items and solutions. And if the last 10 decades are anything to go by and government authorities keep help out and list, when we do return them for report, we will have more report cash with which to buy said items and solutions than if we had basically organized the report cash over that interval.

You are right that on the globe we reside in the abilities that be could modify the guidelines and create it unlawful to own gold and silver silver coins or to start some type of tax on them. You may have study these already but we have given our ideas on both of these in previous periods few months:

Gold confiscation: Could it occur in New Zealand?

Windfall tax on gold: A New Zealand perspective

However if "The Powers That Be" (TPTB) were to do this it would likely have been after gold had "risen" much further than it has up to now. i.e. more and more individuals would be switching to gold and gold silver coins because of seeing report cash minimizing and so the TPTB would then want to create gold less eye-catching. So for this to have occurred we would have seen much higher decline of report foreign exchange. So the way I see it individually is that we are having to buy gold and silver silver coins as there is not much other option to shop any value we have designed up through our perspire and labor.

So if we sat by and took no activity in this situation we would likely see a large decrease in buying energy.

Yes we are looking in reverse for sure (although hopefully with more understanding than Ben Bernanke!) - but at a several million decades of individual history! Gold has been easily selected as cash as it satisfies the specifications of cash better than any other aspect or artificial innovation to date...

1. Store of value (obviously report fiat forex is not satisfying this need currently!)

2. Method of exchange

3. Device of account

Key Point: Gold Has the Maximum Shares to Circulation Ratio

The proven reality that it is not absorbed and is very constant with regards to above floor stocks is key. Actually its stocks to stream rate are the biggest of any financial commitment - at about 80 to 1. Significance its "stock" i.e. the amount easily accessible above floor is 80 periods more than its yearly excavated development. Silver is next at only about 5 to 1 (from storage give or take). Philip Barton of the Gold Conventional Institution does an excellent job here of describing this reality which is not generally discussed...

As John p does an excellent job of describing, even if the excavated development of gold were more than doubled (which would be an outstanding feat) the stream of new gold to promote would only be 3%. This balance of provide - that is not existing in any other aspect - and is definitely not existing in any Main Loan company managed fiat forex, is an overall key aspect as to why gold is cash.

History reveals plenty of cases where the kings have tried to 'cheat' the individuals by cutting silver coins or contacting it returning in and decreasing the gold/silver articles. And currently we are in a exclusive interval where there is nothing but fiat forex the globe over so the "stock" of report cash has been and is continuous to be improved season after season.

What about Governments modifying the rules?

As you say government authorities likely cannot be reliable to do the right aspect of their own union and they could modify the guidelines and create it more challenging or even unlawful to keep gold. But do we surrender and provides up? If we think there is a chance of confiscation etc some way down the monitor, then the chance of maintaining all report cash secured would seem to be even higher than this to me.

They could also create it unlawful to own area or tax actual estate asset more intensely but should individuals quit being property owners just in situation this happens in the future? The Powers That Be do have the capability to modify the guidelines but in this very connected globe they might have more problems moving huge guidelines the globe over than they were in previous periods when they managed all press (we optimistically hope).

Swapping fiat forex for gold and gold silver coins is also a election against the position quo. By eliminating some of our success from the program we not only secure what we have gained and designed up from going to zero, but we also give rise to the end of the present unfair/immoral and decreasing moving away program.

So why is Gold more useful than paper?



As you say "real value can be found in meals, energy, effective area, seed products, animals, water etc." That declaration is without question. But how do we evaluate this value? How do we business this value? After we have marketed how do we shop this value? Currently we evaluate it with the comparative of a (very) flexible band!

The way I look at it gold and gold silver coins are not an financial commitment. Having or committing in companies that provide the above described items are financial commitment strategies. Gold and gold is - or should be a - indicates of dealing the goods/services these companies generate (i.e. medium of exchange), calculating the comparative value of these companies and items (unit of account) or saving the value once you have marketed the products/services/businesses until you find something else you want more.

Until someone can display me something else that satisfies these 3 tasks of cash I will keep and acquire gold and gold silver coins, until I can use its "medium of exchange" to substitute it for some defeated down "investment" such as actual estate asset, area, companies. Regardless of whether it profits to its rightful part of being commonly approved as cash. But of course I'll keep an eye on what our dearest government does along the way and consider if there are other locations were the value I collect through my labor will be handled better too.








Learn how to buy and invest in physical Gold and Silver bullion with a particular focus on New Zealand. Gold Survival Guide features regular articles on the precious metals market with a uniquely New Zealand slant. Gold Survival Guide also offers readers the chance to save both time and money when buying physical gold and silver bullion from a range of local New Zealand suppliers. By knowing where to go for particular products we can get you the best price of silver plus gold and you can avoid having to phone around yourself to compare. You'll pay no more and in some cases even less than going direct to the bullion suppliers. Visit website and get your Free Ecourse showing you 9 specific ways to invest in gold If you cherished this short article and you would like to obtain far more information about buy sell gold kindly stop by the web site. .