Buying gold – how important is it to our future economic survival

As a survivor of a psychologist who has been practicing thought meditation for about 35 years, I have to assess exactly as fully and as accurately as you know about both inner and outer realities. To me this is to continue with wise and often quoted verse from Proverbs, "where there is no vision, the people perish."

However, seeing clearly in a world filled with complex, opaque, deceitful, and sincere lies as ours is the very challenge to say the least and require a great deal of complexity to search for the truth.

In this context, I would like to briefly summarize what I have learned recently when I researched the importance of future financial production of money. I hope it will be helpful for others who are interested in answering this important question in detail.

To this end, I think it is important to understand the following fundamentals:

1. Gold has long been the fundamental standard of economic affairs in many world empires. For modern times, it has officially become the standard by which another currency was fixed, first as the gold standard and later as the gold standard . The former began in Britain in 1821. Canada followed suit in 1853, as in the United States and Germany in 1873.

2. In these and other countries, these standards have been abandoned due to the monetary crisis associated with economic depression and / or war. This happened in a British highway at the start of WW I, in Germany in 1920 and in the United States in 1933.

3. After WW II, the Bretton Woods contracts set up a system similar to the gold standard. With this system, many countries made their exchange rate relative to the US dollar. The United States then agreed to keep the gold price at $ 35 per ounce. Effectively, all currencies had attached to the dollar a fixed gold value.

4. This fell in 1971 when President Richard Nixon completed a direct US dollar conversion to gold to help fund the Vietnam War. These offenses came to be known as "Nixon Shock." Since then, the monetary system of almost all nations has been fully built on "fiat money" – the currency declared by the government to be legitimate, even if it has no real value and is not supported by gold or silver. For this reason, it is at high risk of being undervalued or even worthless through inflation.

5. For over 70 years, the US government has returned to printing fiat money to stay afloat. For about the first 40 of these years, this was done fairly cautiously and the US dollar continued to maintain its credible position as a universal money. The debt generated by this process began to accelerate sharply from 1970 to 1990 and has risen sharply since then rapidly moving on to the international dollar. This has enabled the United States as a whole to enjoy a high standard of living. The level of this national debt has now become abominable and amounts to approximately US $ 62,000 in a US family.

Current financial troubles as a nation, then very similar to a person at high risk of bankruptcy. In other words, if our domestic creditors were to stop trusting in US dollars and if those money lost the consequence of the world's global money, this could be a huge debt burden. On the basis of historical prejudices in other countries, this would not only destroy US wealth with high inflation, but it would probably reduce our US freedom too.

The only way to defend against this potential financial catastrophe is to divide money into something of its own value, which will continue to hold on to such monetary policy. Because of the long history of monetary value maintenance, gold is the most commonly chosen product as the best way to secure at least a portion of equity.

It has been very important for me to learn the history of the gold market, especially in recent years, and in order to gain a clear vision of its likely path in the near future. By doing so, I have also taken into account the current consensus of some reputable financial experts, including Mark Faber, Michael Maloney, Robert Kiyosaki, Mark Arbeter, Mark Luschini, Scott Redler and others.

Over the past 11 years, gold has steadily increased in value from $ 253 per ounce to 9/99 to $ 1,266 on 6/28/2010, averaging 45% annually. Without exception, all of the above jurisdictions predict that this increase will continue. Some of them, in fact (Mike Maloney and Robert Kiyosaki, in particular) argue strongly that it will continue to rise much higher – to $ 5,000 per ounce, or beyond, over the next few years.

I find Mike Maloney's reasoning in this regard to be strictly compelling. He points out that this gold surge is first driven by a significant increase in concerns over the progressive worsening of monetary systems around the world. In addition, this is the first time in the recent history of the gold market that the inhabitants of Russia, China and large South American countries are capable of contributing to the high demand for gold. According to his analysis, this-all in itself – in fact, double the demand for gold.

As a result of this great diligence I came to a pretty strong conclusion that most would probably be wise to change at least some of their money into gold. This view has been strengthened by learning that it is now possible to buy gold in very small (1 gram and 0.5 gram) quantities and to have it stored free of charge in the dome of a very prestigious Swiss bank. At least one company has also developed a gold medal card that allows its customers to pay for their gold account purchases.

Even impressive, this same company pays an attractive commission to its customers to refer others, who then become customers as well.

For more information, please click on the link below.


Leave a Reply

Your email address will not be published. Required fields are marked *