Saturday, June 19, 2010

When Is A Good Time to Buy Gold and Silver?

Why Is It Now Crucial To Our Finances And Future To Buy Gold and Silver?
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.

By Kirsty Hogg
YOUnique Gold Tribe Member
Goldvestments Copyright © 2010

6 comments:

  1. It's akin to standing up to your waist in the surf pushing a large helium inflated beach ball under the water. You might be able to do this for a little while, depending on oceanic conditions....but as soon as there is even a little turbulence and now try to push the ball down deeper you know what will eventually, inevitably happen...you will lose your grip and the ball will come rocketing out of the water. That is what is happening to gold right now...it's on its way out of the water. And with the next leg of the recession almost upon us, expect gold to go through the roof. It will soon be unobtainable at any price.

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  2. I concur with one exception, and I know I have said it before. I have no problem with buying gold if you have the money. But to the average American, silver may be the better buy and for various reasons (see silvermakesmehappy.blogspot.com or silverbugs group on Facebook)and one day, maybe not for a while as we exhaust this planets resources, silver will become rarer than gold.

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  3. Hi Larry - I love your analogy! We'll see these metals start to go up like that soon.

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  4. Hi Greg - Thanks for the comment - You know how much I love silver too and that is why I put "...time to buy Gold and Silver" in the title of this entry. You're right though, silver does have its unique qualities that make it a great thing to buy also. I'm a member of the Facebook Group - "Silverbugs" - It's a great place to hang out to learn about silver.

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  5. The federal fiscal situation is now out of hand. Most of the bonds notes and bill being issued by the goverbment are being purchased by the federal reserve. Most folks are not yet aware of how dire the financial postion of the united states is.

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