Global Currency Crisis & Gold – What’s Really Going to Happen in 2011 – 2012

Following on from the first 2 parts in this series: Whats really going to happen in 2010 Whats going to happen in 2010/2011 – part II Another great writer and analyst makes it into our categories section, Bob Chapman of Global research with a seminal must read piece outlining the road ahead towards a new [...]

Gold is Not Rising – Paper Money is Falling

by admin on 16/01/2010

We get asked this question a lot, at social engagements, dinners with friends,  holiday visits with family friends, you know the kind of situation, someone mentions that we have the majority of our money in Gold & Silver, and how well it’s going, (as though this is a sudden development, not that our investments have outperformed all other investments classes over the last decade or anything :) )

and someone will invariably spark up..

” But how do you know it won’t suddenly go down too, like in the 80′s..” ?

And the very simple answer then seems to perplex a most of these questioners, as though it’s something they are not aware of, or don’t believe we’re telling the truth.

It’s simply:

Because, over the long term, Gold & Silver neither lose nor gain value simply hold their value..  ..while all the paper currencies (which are only the numbers that  the metals are denominated in) fall when measured against Gold & Silver

Whilst it sounds like the same thing, it is crucial to understand that it is not the same thing. Since we were “released” from the Gold standard, to allow all paper currencies to “float” against each other, they have all been sinking, just all at different rates.

You can see this clear as day  in the chart below.


Because one Dollar (or Pound / Yen / whatever) in your account is still one Dollar in ten years time, does NOT mean that it still buys the same amount.

Gold DOES, whatever the paper by which you measure it’s value has done to your “stored value” over that time


Gold is in effect “The Anti-Money” which is why the money-printing Governements of the world have tried so hard to suppress and interfere with it’s true market value for so long, prevent us from protecting ourselves against their continual currency debasement, which could also be called THEFT, or “Stealth Taxation by inflation” depending on your leanings.

The Plain facts are that:

Gold does not rise in value over time, the same amount of Gold  will still buy you the same comparative same things now, as it did 5 years ago, 10 years ago, or 100 years ago.

However the “paper value” or “number” assigned to the transaction will reflect the world’s governments currency meddling, as it’s clear that $30 wont buy you the same now as it did back in 1910..

So yes, the figures may swing up and down with the daily machinations of the forex markets, but we would rather put our faith in the 5000 year old “Anti Money” winning the way it has against every single Fiat “Paper backed by nothing” currency” in history, ever.

One day, every paper currency we know of in existence now, will be gone. On that day, Gold will still be here, and it will still have value.

This isn’t even economics, it’s just having only the vaguest sense of history, and the vaguest application of common sense, yet it’s a perspective that the vast majority (STILL!!) don’t possess.

The time will come when they do, and they will, but that will be nearing the end of the opportunities in Gold & Silver, you’ll have missed the boat, be in too late, already lost all your worth via “paper” one way and another..   It’s your call.

For further reading please read The Purchasing Power of Gold vs Paper vs Time

Then Buy – Buy – Buy Gold!!

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