The only thing that’s an absolute certainty is that the vast majority of people will remain utterly clueless as to “what money is” until the very second AFTER they learn that their “fiat debt notes” are worthless…or that the bankers took all of their digital zeroes and ones they “believed” were “money in their account.”
In the meantime, most will remain blissfully distracted by whatever the politicaliars and the corporate-controlled media chooses to tell them they care about.
Mose peepulz jess ain’t two turrbull smawrt.
It is von FökkenGrüüven’s uncompromising description of how most people are wired when it comes to the value of the money they earn and spend that I like the best.
It amazes me that people are just accepting of the debasement of their own currency.
But the thing is gold is the ultimate hedge.
It protects those who own enough of it from the wanton destruction of currency values by the globalist central banksters.
Today’s financial market madness with low yields and of NIRP (negative interest rate policy) investors are being squeezed at every turn.
Don’t get me wrong these elite GFG’s (globalist financial gangsters) have and weald the power to manipulate the price of gold as they do most financial markets but ultimately they cannot manipulate the physical gold supply to a great extent which is one characteristic of gold that makes it attractive as an investment.
Yes they may outright steal gold from the likes of Gaddafi but gold remains a finite resource.
According to the world gold council at the end of 2014 there was an estimated 183,600 tonnes of stocks in existence above ground.
But unlike paper fiat currency, globalists are unable to conjour up tonnes of gold out of thin air unless they too are on a massive buying spree like The East and are just not telling people about it.
Even if they were and news came out that they were it would be bullish for gold because for private investors just like central banks it is never too late to buy gold because it’s value is assured over the long-term when you consider the historical context noting specifically the world’s first gold coins:
Gold coin of King Croesus circa 550BC
We’re still minting and buying gold because demand has never really gone away.
Gold Doesn’t Pay Interest – Why Not Just Hold Cash?
Indeed cash pays interest – albeit at very low levels – but it is pays interest nonetheless.
As I’ve pointed out previously the value of cash has been steadily declining:
That’s a whole lotta value destruction right there pic.twitter.com/2ifdjr6iaT
— David Thomas (@djthomas) February 21, 2016
When I say steadily declining I really mean it is being actively destroyed by central banks via the excessive money printing, abandonment of the gold standard and a sleeping citizenry.
They have you by the short and curlies my friend and this trend is played out across developed Western nations who have racked up copious amounts of debt as a short-term fix to the long-term problem of a broken economy.
Don’t believe me?
Just check out the destruction in the purchasing power of the British Pound as this chart from a report from The Houses of Parliament shows:
Purchasing power of the British Pound
The paltry amount of interest you earn does not make up for the fact that the value of cash itself does not keep up with the destructive forces of currency devaluation – in essence you end up with a depreciating asset which technically makes it a liability.
Cash Is No Longer King
When I walked into a jewelers recently to inquire about their prices for the yellow shiny stuff I remarked that a lot of people are buying gold at the moment.
The welcoming Indian lady behind the counter agreed and said it was because people are ‘losing faith in the banks and are also not getting high rates of interest’.
Tip: high street jewelers prices for precious metals are inflated massively above spot and there are plenty of reputable online dealers that offer value for money.
This all leads me to a new habit of mine that I’ve picked up recently and it is this: whenever I find myself in possession of free cash flow I immediately try to turn it into something more valuable.
Regular readers will know that lately this has meant the purchase of physical gold and there is no change to in my outlook for gold and continue to be a buyer.
I read this week that a good portfolio weighting to aim for in regard to physical gold is between 2% – 5% of assets and this seems reasonable to me.
This week I’ve also looked at some mining stocks that are attractively priced compared to their tangible book value and earnings.
There really are some incredible bargains out there so I’ll also be turning free cash flow into mining stock investments.
I’ll report back here when I do.