Tuesday , 29 July 2014

Gold & Silver vs. Fiat: Do You Live In An Imaginary World Or In Reality?

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Make no mistake about it, it is the central bankers that are leading governments around by the nose, and by proxy, governments leading people around by the nose, and that “nose” is inhaling “lines” of fiat. Unless cured, all addictions end badly, and the only “cure” central bankers have for ever-increasing fiat is, ever-increasing it more. [You can protect yourself, however, by] demanding less of the valueless fiat and keeping, and growing, your wealth by buying and accumulating real value: physical gold and silver.  Anything less, and you are still dealing in the imaginary world that is failing. [This article explains why that is the case.] Words: 834

So writes Michael Noonan (http://edgetraderplus.com) in an edited excerpt from his original article* entitled Gold And Silver – Who [What] Do You Trust?  You Have A Choice.

[This article is presented by www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) for information purposes only. The article may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.]

Noonan goes on to say, in further edited excerpts:

It is indisputable that for centuries, gold has always been considered a store of value.  It preserves one’s wealth against fiat currencies, and during times of fiat upheavals, it also creates wealth.  With wealth, one has independence. With independence, one need not rely upon government.

With no gold, ergo no wealth, however, almost half the American population receives food stamps from the government, and the elderly are dependent upon Social Security, Medicare, etc, all largesse from the corporate federal government teat.

Most all Americans are also drowning in debt, foisted upon them, as planned by the moneychangers, keeping them all credit-addicted and unable to accumulate any real wealth, aka independence. As Chuck Colson, Special Counsel henchman to “Tricky Dick” Nixon, heartlessly reiterated:  “When you got them by the (financial) balls, their hearts and minds will follow.”

There is a Chinese proverb that says: “If you collect the money, you disperse the people; If you disperse the money, you collect the people.” [and] the corporate federal government is in the business of collecting people. Serfdom is alive and well in the USA.

Yes, there is a point to this.

  1. What are the controlling influences for ANY market? Supply and demand.
  2. Who determines and controls the supply of fiat?  The central banks.
  3. Who determines the demand side?  You!  A collective “You,” to be sure, but the collective is composed of individuals, and you have a choice
  4. What happens when demand wanes vs. an ever-increasing supply?  The “value” of the supply collapses. Why? Because fiat has NO VALUE!  It is purely imaginary.

Take a minute to absorb that thought.  IT IS PURELY IMAGINARY.  If you imagine something has value, it does, by virtue of your belief. A belief is NOT reality.  It is merely  a thought maintained ABOUT reality, but not necessarily the reality itself.  Change the belief and you change the reality.  Stop believing fiat has any value, and your reality about fiat changes, as well.  “The Emperor is wearing no clothes!”

Gold and silver are NOT going up in value.  An ounce or gold or an ounce of silver is still the same ounce.  It is the imaginary “value” of the fiat you hold that is being debased and is relentlessly dropping.   It is a subtle, but necessary change in “belief” one must always recognize, (and there are many who do, just not enough).  Instead of 250 or 900 units of fiat, it now takes 1650 units of fiat to purchase the SAME ounce of gold, and 30 units of fiat, instead of  5 or 20 units to purchase the same ounce of silver….

Despite the above circumstances, very few Americans actually own physical gold and silver. The numbers are greater through participation of paper holdings of gold and silver [BUT] everyone needs to learn this mantra, if they have not [done so already], “If you do not hold it, you do not own it.”  Just ask Germany if it still “owns” all its gold held outside of its country, like in London and New York.  Usually, there is some degree of loyalty among thieves…apparently not, when it comes to gold.  Rich irony. Think MF Global – Peregrine.  Where do you want your gold and silver to be when the elephants start stampeding?  There is already a rumbling in the distance.  You have a choice.

Back to our last point.  Not enough Americans own and hold the actual physical.  The numbers are growing…a record 50,000 oz of gold Eagles were sold in January, but what are ounces when compared to  tons? Remember the supply/demand factor.  Do you want to make your “vote” count?  Demand less of the valueless fiat, and keep, and grow your wealth by buying and accumulating real value: physical gold and silver.  Anything less, and you are still dealing in the imaginary world that is failing.

Conclusion

Let the fiat fall where it may, and it will fall, with or without you.  Better that it falls without you.  There will come a time, and we keep getting closer to that still unknown time when gold and  silver will rise as many imagine possible, and most will not believe.  You have a choice – at least for now…

We have said repeatedly, buy the physical NOW, while the buying is good.  Back in 1933, by government decree, (central banker dictated), people turned in their gold at $20.67…a Gordon Brown moment.  Today, gold is $1,650.

Get thee to a dealer’ry; why wouldst thou be  a breeder of fiat!

*http://edgetraderplus.com/market-commentaries/gold-and-silver-who-what-do-you-trust-you-have-a-choice

[Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]

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One comment

  1. Good advice about the perception of “value” of paper (aka flat) money and like trust, it can change in an instant for any number of reasons. Those that have traveled to other countries, know how quickly the paper money in your pocket can change in value, while physical PM’s retain their worth, especially during periods of currency “adjustments” and PM’s are easy to use in other countries, where “foreign” paper money may not be usable at all!