Turn on the television or read a newspaper. It is a sickening repetitive message to buy the dip in the stock market. It is a constant promotion to stay in the fiat banking system and all of the paper investment products out there. The fact of the matter is that things have changed. The buy-the-dip mentality and the risk in the trade of tech stocks and bonds are no longer working. It will not work for a long time simply for the fact that it worked for so long based on printed money, abnormally low interest rates, low inflation, and financial engineering. The gig is up. Gold as both a commodity and currency is more relevant than ever.
Some financial advisors have tried to portray gold as a boring relic that pays no dividend. It is so inconvenient to store and move around. It is dangerous to keep safe from theft. It is much easier and much cheaper to trade paper and hand 100% of your wealth over to the investment banking system. Our bank accounts are insured by the FDIC. A media expert said, Gold is the worst investment you could ever make.
These are all very interesting to fuel the fear-of-missing-out trade, yet all very wrong in today’s riskiest market of all time. Gold is more relevant today than ever.
Gold provides financial privacy
Executive Order 14067 was signed in March. This Responsible Development of Digital Assets is a game changer. This digital system is about control and surveillance. It would be insane to keep all of your assets in this type of monitored system with zero financial privacy. Gold is relevant today because it provides financial privacy for some of your assets that you do not want to be wrapped up in their system.
Gold is relevant because it has always been a medium of exchange
No one knows what money will look like exactly in ten years. If they say they do they are guessing or lying. Money is whatever someone will take in exchange for goods or services rendered. Gold provides these options if we need to use gold as money. I don’t think that will be the case but we must have options instead of being locked out of our money. Gold is relevant because it has been money for thousands of years. As banks put out whitepapers about transitions to digital currencies and President Biden signs executive orders paving the way to monetary digitization, how important is it to hold wealth in a private currency?
Faith in world currency as a store of value is eroding
We are all drowning in a world of fiat money. The Euro has lost 25% of its value in the last six months. The yen has lost 28% of its value in the last two years. This isn’t even considering inflation and the actual rise in actual prices of everyday goods and services. The US dollar is just as toxic as our government drowns us in debt and is still spending. Gold is relevant because the US dollar will crash someday. When this happens, investors in gold will be saved from total financial ruin. The trust in our fiat money is waning.
Gold is the financial crisis asset
The UK pension system has already needed help from the Bank of England. There is and will be a more serious liquidity problem globally. The derivative market is entirely too big and too leveraged. The entire global financial system is too leveraged. Derivatives will be a catastrophic financial problem as so many have to be misunderstood and not controllable when the levee breaks. Gold is not leveraged. If you hold gold, you own that gold outright. Gold will prove to be a critical asset the global financial system is being reset and will ultimately fold up like a house of cards. Printing a lot more money will be attempted, but it won’t work.
Third-party counter risk is very real
Credit Suisse already needs a cash call. The derivatives that they control are a land mine waiting to explode. We have seen many crypto platforms go bankrupt. Some hedge funds will go belly up and shut down. Paper gold or assets we hold at the bank are not safe. A serious banking crisis looms. Paper assets can just disappear. It’s happened before, and it will happen again. Gold is relevant because it protects your paper assets from third-party risks that you have no control over.
Gold holds and sometimes increases your buying power
Gold has averaged roughly a 10% return annually since 2000. Fiat currencies have lost 80% of their value versus gold since 2000. The yellow metal historically holds your buying power, while the paper fiat money always buys less over time. With our current situation with inflation and interest rates, get ready for your dollar to buy a lot less in the future. Gold is still relevant today as money because, with more printing and spending on the way, our dollar’s buying power will suffer greatly.
Gold does well as a war asset
Global tensions are right in front of us. It feels so good to have such experienced leaders calling the shots for us. I’m being sarcastic of course as our leadership is embarrassing and sickening. The conflict over Taiwan is brewing. North Korea and South Korea are testing missiles daily. The Ukraine and Russia situation could go nuclear to some degree. I’m not a military general, but it seems to me something is about to happen. With war tensions ultimately playing out to some degree, it would only make sense to have the ultimate war asset. Because gold is this global-tension asset, it is very relevant today.
Central Banks control our financial system
What will be the ultimate cause of the financial system meltdown? That is a simple question to answer. The global central banks will be the reason our system and our money crash. They have created a system that is addicted to printing and spending. This has gone so exponential, that risk now is even more exponential. They created a credit problem by printing currency and will attempt to fix the problem with more debt. What’s funny is these central banks are all piling on to their gold positions, but they continue to pump the devalued currencies on to us. Gold is relevant because global central bank action has been criminal. And the whole world is doing it.
All things ultimately revert to the mean. Markets have become so stretched. It’s just a matter of time before it snaps back just as far in the other direction. We are already seeing this happen as stocks and bonds begin to melt away. What was once inflated is now being deflated. We have not even seen a world event yet. What happens when we get one? Well, it will be too late to do anything at that point.
It would be a great idea to not be in that position. Be in a position of strength, not in a position of retreat. Investors need to be proactive, not reactive. It will be very relevant to make some moves now. It will be very relevant to get some personal and retirement assets out of the system while you still can. It is relevant to know your money will always be there when you need it and will always be worth something. A portion of your dollar-denominated assets needs to be diversified into gold. You need to control a portion of your assets outside of the banking system. All of your assets can not be in speculative markets like stocks and bonds. This simple move into gold is and will continue to be very relevant.
