Risky speculation is running rampant when it comes to stocks, real estate, and digital crypto. If you are an experienced investor or trader, there is always an opportunity for speculation. Speculation can make you rich, and speculation can bankrupt you. Recently the price of gold was slammed overnight as someone liquidated $4 billion worth of physical gold. A few months ago, gold was slammed overnight after vaccine emergency approval and job numbers. Rumors say it could have been a forced liquidation by a hedge fund.
We can all see that the vaccine effect is wearing off as booster shots are now being talked about as mandatory. A vaccine is supposed to be permanent protection when there is not a remedy cocktail. It does not take an MIT scientist to realize this is not the case. Recently the Regeneron and Roche monoclonal antibody remedy was approved in the UK. There are remedies available. We all know that in some cases, vaccines are useful. We all know the pandemic needs to be taken seriously, but there is significant doubt that all of these case numbers are true.
So what exactly is going on? Think about that for a moment. The bottom line is that our financial system and economy are under siege. The attack is on our US dollar and our financial system as it exists today. Any false attack on the price of gold is a prime opportunity to own gold for the first time, or an opportunity to add to your existing hoard. Physical gold is the only form of money that has existed for thousands of years. It will always have value. Any manipulation in the price of gold is just another reason to add and own gold for the long haul.
Gold has always had value, fiat currency has not
The Roman Empire was once the global superpower. Yes, they started debasing their currency. Yes, their currency was turned into rubble. An economy and a financial system can not thrive based on debt and deficits. The end of rule and dominance is inevitable. The fiat currency is debased and destroyed into oblivion. Investors and savers who do not diversify are brought to the woodshed. We will state this again for those who have not been reading or listening for years as it is not too late to hear the truth. Most paper currencies, including the US dollar, have lost 97% of their value versus gold over the last 50 years. Most paper currencies, including the US dollar, have lost 80% of their value versus gold over the last 20 years. Yes, all of this printing and stimulus will destroy the purchasing power of our greenback. Any paper money that is not immediately needed for living expenses and emergencies is a guaranteed loser. Our dollar will not get a return, is not safe at our financial institution, and faces the likelihood of being debased into oblivion. The continued debasement of our paper money is just another reason to add or own physical gold to protect your nest eggs.
Physical gold is convertible into any form of currency
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. Many different forms of money have existed over time. Central bankers and our government say that our Federal Reserve note backed by nothing but a promise is our only form of accepted money. If a citizen counterfeits money they face jail. When our government counterfeits money, it’s seen as a stimulus. Many are becoming more aware that money is changing. No one knows what money will look like in ten years from now. Physical gold has always had value and has performed as money for thousands of years. Gold has been used to trade into homes, trade into other items, and is liquid in every country globally. Whatever form of currency exists in the future, gold will be convertible into it. Based on its track record, gold will even retain your purchasing power. Our paper money is changing and fiat money is in its final stages. Paper money has always been unreliable and loses significant value over time. Our leadership is unreliable. Global paper money is just another reason to add or own physical gold for the long haul.
Inflation is not just going to go away, and it could go hyper
Recent inflation numbers are at a 29 year high. The rate of increase of inflation may slow down, but prices will remain at elevated levels. There is also the possibility and likelihood that they will go parabolic. This is very likely since central banks will not stop printing money. Governments will not stop issuing debt. How can we expect central bankers and government officials to handle decisions correctly? The Fed threw $4 trillion at the economy in 2020. The government threw $5 trillion into Covid stimulus and $800 million into forgivable PPP loans. They can’t stop printing. They are in a position of no return. In the last fifteen years, the Fed, The ECB, the Bank of Japan, and the People’s Bank of China have gone from $5 trillion to $30 trillion on their balance sheets. They will not be able to just unwind this debt. The fiat currency experiment that started in 1971 was supposed to be “temporary” and was supposed to “stabilize” the dollar. The fiat currency experiment transformed assets backed by tangible gold into assets backed by nothing but worthless paper. Current and future possible out-of-control inflation is just another reason to own physical gold for the long haul.
All the talk these days is the Fed going to taper their bond purchase and at what rate they will do this. Does everyone understand that the Fed started monthly bond-buying in September of 2019? This is before any pandemic. There is a liquidity problem in the market that existed before all of this pandemic stuff even started. Now we have trillions more in the unregulated cryptocurrency markets. Now we have trillions more in global debt. Now we have trillions more in US federal debt. Now we have trillions more in corporate debt. It’s a vicious debt cycle that will continue until it all fails. Unfortunately, that’s the path we are on. A financial cleansing is needed before we can start fresh. In the meantime, protect what you can. Get what you can out of the banking system and the markets. All of this financial chaos that’s coming our way is just another reason to add and own physical gold as a substantial part of your defense. The writing is on the wall. Those who are paying attention can still do something about it.