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If there
is one thing I try to relate, it is that gold is NOT an
“investment,” but MONEY.
“Dollars”
and “Euros” are currency, but currency is not
MONEY. In my presentation last night, Andy Schectman
and I were allocated two slides each before opening the floor for Q&A.
Thus, I had to pick the most important topic in my repertoire, and this is
what I chose:
First, a
table listing the primary attributes of MONEY, which contrary to popular
PROPAGANDA, is not just a medium of exchange. In fact, the only
definitional parameters the dollar satisfies are the least important,
its divisibility and fungibility.
Conversely, it doesn’t come close to meeting the other four, all
of which are vitally important to your financial health – particularly
item #3, the necessity to maintain VALUE…
…which
the dollar has NOT been since the Federal Reserve was unconstitutionally created
in 1913, per the chart below. For that matter, you could replace the word
“dollar” with ANY of the world’s nearly 200 fiat
currencies, and the chart would look the same…
I CANNOT
EMPHASIZE THIS POINT ENOUGH, and felt compelled to reiterate it when I came
across one of Miles Franklin’s marketing pamphlets, titled “GOOD
MONEY MUST HAVE SEVEN CHARACTERISTICS.” This timeless piece was taken
from Richard Russell of Dow Theory Letters, and nothing proves my point
better:
(1) It
must be durable, which is why we don’t use wheat or corn or
rice.
(2) It
must be divisible, which is why we don’t use art work.
(3) It
must be convenient, which is why we don’t use lead or copper.
(4) It
must be consistent, which is why we don’t use real estate.
(5) It
must possess value in itself, which is why we don’t use paper.
(6) It
must be limited in the quantity that is available, which is why we
don’t use aluminum or iron.
(7) It
should have a long history of acceptance, which is why we don’t
use molybdenum or rhodium.
Only GOLD
and SILVER fit all seven characteristics.
When
deciding how to allocate your wealth, think long and hard of
what you consider wealth. If you owned stocks or real estate for the past
decade, there’s probably little wealth left, as well as essentially all
bonds except Treasuries, which are only higher because the Federal Reserve
purchases roughly two-thirds of all issuance, soon to be 100%. Only
PHYSICAL Precious Metals have maintained purchasing power over this period,
or more accurately, dramatically increased it. Actually, they have
done so for more than 5,000 years, leaving in their wake THOUSANDS of failed currencies.
The
dollar, Euro, and Pound (among others) are no different than the thousands of
failed currencies, and are at the end of their lifespans – simultaneously.
It won’t be long before the lure of PHYSICAL gold and silver yields
EXLODING DEMAND, wiping out supply so quickly that companies like Miles
Franklin will no longer function. Not to mention, the simultaneous collapse
of the fraudulent PAPER markets, which will destroy
the bullion business and any remaining opportunity for you to PROTECT
YOURSELF. When this occurs, gold and silver prices will go hyperbolic, and either you’ll be IN, or OUT.
ONLY
PHYSICAL gold and silver are money, and shortly ALL seven billion of the
world’s citizens will be painfully aware of this historical FACT.
PROTECT
YOURSELF, and do it NOW!
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