One of
the ways we know that the gold bull market is just barely getting started is
when we find so many myths and errors about gold being reported in the media.
When even a "positive" article on gold comes out, there is usually
some sort of comment buried later in the article that slams gold as being
inherently "bad". Multi-generational anti-gold propaganda that
people learned in "Fed-funded" Universities, media and culture
needs to be opposed and refuted because it is like a cancer on a civilized
and free society.
The
latest gold myth comes from James Saft, a Reuters columnist, whose opinions
are his own.
His
article was titled, "Fed
audit push gives impetus to gold rally"
http://www.reuters.com/article/governmentFilingsNews/idUSN2326178720091124
The
article starts out positive:
"HUNTSVILLE,
Alabama, Nov 24 (Reuters) - Auditing the Federal Reserve may or may not be a
good idea, but one thing seems pretty sure: just discussing it seriously will
tend to drive the price of gold higher."
For
the record, I didn't think the Fed audit had a chance, but I support it. If
Government thinks it has the right to probe into every nook and cranny of our
finances when it makes us pay taxes, why can't the Fed come clean on its
finances? Kind of a double standard wouldn't you say?
Later,
the invalid anti-gold diatribe comes:
"It
has to be said; the very idea of buying gold,
which adds nothing to
the creation of wealth or innovation
and is only conceivably a hedge against bad actions of other people, is
dispiriting. If you buy gold you cannot tell yourself that you are doing well
by doing good, as perhaps you can with a biotech or fertilizer company. You
are simply limiting the damage that can be done to you, and then only in very
particular circumstances. What's more many of the people who advocate it as
an asset show a disconcerting monomania; the type who if they sit next to you
on a commuter train makes you consider pretending the next stop is
yours."
Every
statement in that paragraph shows a misunderstanding of gold, and it is those
misunderstandings that are "dispiriting", and are the cause of
James Saft's angst. He says he would not want to sit next to anyone who
advocating gold. That's perfectly understandable. After all, it is generally
uncomfortable to sit next to someone who continually explains why most of
your beliefs are wrong.
He
says that buying gold "adds nothing to the creation of wealth or
innovation"? How untrue.
In the
last thirty days, gold's
rise in price has created $868 billion of new wealth among all holders of
gold. Details to back up that statement? Gold has moved from
a low of $1025.90 to a high of $1194.80, for a gain of $168.90 per troy oz.
It's estimated that there are 160,000 tonnes of gold that have been mined in
all of human history and remain on the earth, in many different hands. There
are 32,151 troy ounces per tonne. That's 5.2 billion oz. of gold in human
hands. The increase of $168.90 per ounce, times 5.2 billion ounces, has thus
created a measurable wealth creation of $868 billion dollars, in the last
thirty days. All the world's gold has increased in that much purchasing power
in the last thirty days. If that's not wealth creation, then what is?
It's
also quite innovative as far as wealth creation goes, because that much
wealth did not originate in the hands of the Federal Reserve who will only
waste it, but rather, all of that new wealth was created among all the
various savers of gold, so the wealth was widely dispersed, instantaneously,
like the speed of light, coursing through everyone's ounces of gold
simultaneously. No distribution system yet invented by man has the capacity
to distribute so much wealth, so widely, so fast.
Next,
James writes, "If you buy gold you cannot tell yourself that you are
doing well by doing good." But there are so many good side effects of a
rising gold price, of course you are doing good, in the following ways.
1.
Buying gold creates wealth among all gold holders, widely distributing wealth
all across the world to many people simultaneously.
2.
Buying gold reduces monetary fraud, and fraud is bad.
3.
Buying gold reduces oppressive government power, and it does so without any
violence.
4.
Buying gold makes gold mining more profitable, and thus, increases high
paying mining jobs that range from administration, refining, minting,
production, mine development, to exploration and much more.
5.
Buying gold increases gold mining by-products such as silver, copper, zinc,
lead, and many other less well known metals that are needed for modern life.
6.
Buying gold increases freedom among men, specifically by reducing the debt
load of people who owe devaluing paper money, which increases humanity's
overall productivity, and especially inspires and enhances freedom for
yourself.
7. Buying gold increases wealth among savers and long term planners, which
are the best and most productive class of men among humanity.
8.
Buying gold prevents others from stealing your wealth, ("limiting the
damage done to you", and a "hedge against the bad actions of other
people" which James thinks is bad?) and that is a good thing, as it
rewards defenders, and thwarts (but does not harm) would-be thieves.
9.
Buying gold preserves capital in your own hands, your own town, your own
nation, so that you, and the people to whom you will give it when you spend
it, will all be better off after a currency collapse.
10.
Buying gold can prevent mass starvation that can result from a complete
economic meltdown that may come. The preservation of capital can be used to
purchase and preserve farms or food production facilities or distribution
networks that may go out of business in an economic collapse. Buying gold is
more honorable than hoarding food or buying food staples on leverage with
futures contracts, which can cause mass starvation by driving up food prices
out of the range of the world's poor people, since paper money is worth
perhaps hundreds of thousands of times more than the existing food supply.
11.
Buying gold saves lives by preventing and limiting wars which can only be
funded by paper money.
12.
Buying gold saves lives by increasing the standard of living of poor miners
in many poor nations who can barely afford the basics.
13.
Buying gold can lengthen your own life, as it benefits your own personal
finances which can enhance the quality of food that you can buy and eat, and
it can enhance your notion of personal responsibility for your own health as
well as your own finances.
I'm
sure if you think about it for just a little bit, you can recognize a lot
more of the good that buying gold can create. Why not pause now, reflect, and
email me some of the things that I might have missed. Email: j@silverstockreport.com
If
buying gold is noble, virtuous and good for so many reasons, then buying silver is perhaps 10
to 60 times as excellent, beneficial and uplifting for mankind.
Why? Because of the leverage inherent in silver's smaller market. Silver's
smaller market means that the price of silver is more easily moved upwards
with every purchase.
So if
buying gold is good (and buying silver is better), then lying about gold to
prevent men from buying it is bad, as that causes the opposite of every good
that I listed.
Lying
about gold thus causes death by starvation & wars, encourages fraud,
rewards theft, encourages slavery, destroys productivity & wealth or
capital, causes unemployment, causes misallocations of wealth, encourages
oppressive government, creates misery, rewards laziness, and ruins lives.
So
let's forgive James Saft, the reuters columnist, whose opinions were his own.
I'm sure he didn't mean to encourage all those bad things and destroy all
those good things by bad mouthing an inert, innocent substance that can cause
so much good. The learning curve for gold is steep, and none of us have
perfect knowledge. Some of these things are difficult to learn, especially
when so few teach them these days.
After
all, as the Preacher said, "Without God, we are but dust--" And as
the 4 year old girl asked, "Mommy, what is butt dust?" Maybe the
little girl was thinking of this:
Baby Farts Baby Powder
http://www.youtube.com/watch?v=cJQU6x9qJko
Speaking
of which, I hope I have blown away Jame Saft's anti-gold diatribe.
The
contact information for James Saft is listed at the bottom his reuters
article.
You
can contact me at the JH MINT. www.jhmint.com
Sincerely,
Jason Hommel
www.find-your-local-coin-shop.com
www.silverstockreport.com
www.miningpedia.com
www.bibleprophesy.org
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