Making the Case for Gold and Silver
According to Ronald-Peter Stoeferle and Mark Valek, co-authors of the annual In Gold We Trust report, gold and silver have performed remarkably well in the post-gold standard era (since August 1971), racking up average annual gains of 10.8% (Gold) and 12.7% (Silver), and that's despite heavy-handed suppression tactics undertaken by powerful forces behind fiat currencies.
Western central banks, in particular, the Federal Reserve, Bank of England (BOE), and the European Central Bank (ECB), see gold and silver as competing currencies, i.e., money, and have, over the years, sought to keep their values relative to dollars, pounds, and euros, in check. Much of the underhanded dealings have been documented by GATA (Gold Anti-Trust Action Committee) among others.
By most accounts, they've done damage, but, lately, the price of gold in particular seems to suggest that they are losing their ability to control the price, mainly through futures contracts on the COMEX via the CME.
Besides the obvious rise, fall, and re-rise of bitcoin and crypto in general, the top performing assets so far in 2024 have been silver and gold. They have outperformed stocks.
Speaking of central banks, some of the world's most prominent central banks have been purchasing tonnes and tonnes of gold over the past three years, particularly after the BIS (Bank of International Settlements) designated alocated gold as a Tier 1 asset for central banks. This means that gold is the ultimate form of collateral, as good - if not better - than cash, banknotes, and government-sponsored bonds, notes, and bills.
Central banks store gold in their own vaults and many market observers and economists believe that there could soon be a return to a gold standard and an end to floating fiat currencies, which has been the standard for the past 50+ years.
Gold and silver have long been viewed as exceptionally good insurance or a hedge against inflation, long-standing stores of value (purchasing power), and generational wealth. When considering gold or silver as investments, individuals should consider the following:
Most importantly, when buying gold or silver, one should be looking only for bullion (bars, rounds, coins) at prices near the current spot price and be assured of reasonable delivery terms. As the expression goes, "if you don't hold it, you don't own it," meaning, one wants to buy actual bullion, measured in ounces or kilos, not jewelry or "paper gold" ETFs like GLD or SILV, , numismatics (collectible coins), or mining stocks. Those are derivative plays, decidedly NOT what purchasing gold and silver bullion entails.
With gold and silver, there is no other party, making precious metals the hardest of "hard" assets, known primarily as "hard money."
As the world seems to be teetering on the precipice of major conflict between superpowers and the purchasing power of currencies like dollars, euros, yen, and pounds continue to be questioned, gold and silver allow individuals freedom from risk and worry in stressful times.
Granted, as currencies are debased by Western central banks at what seems to be an accelerating pace, while gold and silver may provide inflation protection and peace of mind, they are still at the mercy of international cartels and are not generally accepted for payment for goods and services, which are primarily handled with fiat currency, but, while it's still necessary to transact in accepted currencies, gold and silver in one's possession acts as a backstop against devastating cataclysmic events, and, with proper foresight and careful planning, can at times be employed as currency, or at least as a partial payment device.
As more people become aware of the casualty of conducting their lives within the framework of the fractional reserve debt-based banking system in use today, gold and silver will be increasingly useful in commerce, a fact well-known by governments and central banks.
With gold hitting record after record price in 2024 and silver outpacing it in terms of percentage return, it's in everybody's interest to at least consider allocating some savings to gold or silver and educate oneself on the virtues of honest money.
For individuals, gold and silver can readily be purchased online on ebay with minimum risk. Be sure to check a seller's reputation via his or her feedback scores, though the safest method is to buy from the vast number of dealers who are regular sellers, such as Bullion Exchanges, Scottsdale Mint, Apmex, Nadir, Pamp Suisse, Perth Mint, and many more.
Here's a brief list of some of the best dealers on the internet, many of which offer free shipping over certain dollar amounts. Prices are generally in line with current spot quotes, plus premiums, with discounts for multiple or larger purchases. These are mong the most reputable dealers in the world.
The 2024 In Gold We Trust report is available for free download from the idleguy.com library.
And don't forget what's known as "junk silver," U.S. coins minted before 1965 which are 90% silver content. A list with current melt prices of these dimes, quarters, half-dollars and dollars is available at Coinflation.com.
Disclaimer: This article is not to be construed as investment advice or recommendation to purchase any of the assets described herein. All investments involve risk. Downtown Magazine Inc. and idleguy.com are not investment advisors and are held harmless from any claims resulting from use of the information provided herein or anywhere else on idleguy.com or dtmagazine.com.
Here's where Bitcoin, Gold, Silver, and the Major Stock Indices stood at the end of September:
While the returns for 2024 have been impressive, most individuals do not invest in or purchase precious metals for appreciation. Rather, many long-time holders of precious metals do so to protect themselves from catastrophic errors made by governments and/or central banks, such as inflation, currency devaluation, war, and sovereign defaults.
Perhaps the most provident reason to invest or save in gold and silver is its lack of counter-party risk. In other words, a holder of gold or silver has the asset unencumbered by liens, margins, lease, loan or service requirements. The asset is completely the property of the holder. With stocks or bonds, there's always another party on the other end. Stocks are subject to market conditions, the company's management, and the whims of brokers and dealers. Bonds or fixed-income assets are purchased from governments or corporate entities, and the risk of default is always present.
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HYPER-ECONOMICS, HYPER-DEBT, AND ANOTHER GREAT DEPRESSION
By Gregory Mannarino
According to the Congressional Budget Office, US Debt is expected to exceed FIFTY-FOUR TRILLION DOLLARS by 2034. With that, the World Economic Forum, (WEF), President, recently stated that; "We Have Not Seen This Kind of Debt Expansion Since the Napoleonic Wars." (Vast debt expansion during the Napoleonic Wars fostered the illusion of economic prosperity which led to a Post-War Depression). What is important to take note of here is vast debt expansion invariably creates an unsustainable illusion of economic prosperity, which also invariably ends in economic disaster, and depression).
The current HYPER-CYCLE of vastly expanding hyper-debt expansion will also lead to another Great Depression - on a global scale.
Today the pace at which global debt is rising has accelerated beyond that of any other time in history, and this mechanism is what is directly responsible for mass-currency devaluation/loss of purchasing power, and inflation.
Currently the world economy, despite VAST debt expansion, is slowing at its fastest pace on record. The mechanism of vast debt expansion and thus accelerated currency purchasing power losses, creates a need for MORE CENTRAL BANK ISSUED NOTES, (as the currency continues to lose purchasing power, it takes more currency to purchase the same goods).
Currency creation is debt creation, which is itself inflationary/purchasing power negative-so the need for even more currency creation/debt expands faster. (This mechanism further empowers central banks). The NUMBER ONE GOAL of every central bank on Earth is debt expansion. Debt is the ONLY product of any central bank, and the more debt a central bank can issue, or is allowed to issue, or is called upon to issue- THE STRONGER THEY BECOME.
Today it is "HYPER-ECONOMICS" again fostering a grand illusion.
HYPER-ECONOMICS is also responsible for the stock market hitting a series of new all-time highs with now the SP500 having its longest winning streak since the "Financial Crisis."
The fact is this: WE ARE IN A FULL BLOWN-FULL-ON Economic HYPER-DEBT nightmare CRISIS, which is being deliberately engineered.
Currency devaluation, and ESPECIALLY ARTIFICIALLY SUPPRESSED BOND YIELDS, (AS CENTRAL BANKS BUY MORE DEBT) will continue to create MASSIVE price-action distortions across the spectrum of asset classes.
In the video below, Alan Hibbard of GoldSilver.com takes a somewhat misinformed and disturbed individual to task as Nolan Matias attempts to rationalize - very unconvincingly - why physical gold and silver is a bad "investment." Fair warning: listening to Mr. Matias may cause brain cell damage. Watch, listen, learn.
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