Gold & Silver – Understanding The Basics, How It Relates To Money & The Economy

Physical Gold and Silver have values that most people in the West can not see and do not understand. That’s not the case in several Eastern countries, where gold has always been a generally accepted alternative currency and a store of value.

This page highlights the key idea behind the most insightful articles that appeared on GoldSilverWorlds. It is structured in a way that reflects the major themes related to precious metals. Readers will find a wealth of knowledge and insights in the articles.

 

YOU MUST PROTECT YOURSELF IN THESE UNCERTAIN ECONOMIC TIMES

Priced for collapse - Peter Schiff details how this has all happened before and that the outcome is predictable by simply learning from history.

Did You Get These Warnings? Gold? - In the past decade, we have had a lot of signs that the economic and financial conditions are deteriorating. Did you listen? Did you prepare yourself?

How to Save Your Money And Your Life - Excessive (government) debt and price inflation are destroying the value of the money we hold as well as our purchasing power.

The Bank Was Saved, and the People Were Ruined - The outcome of our debt based system, so far, has been that the banks have been saved by the freshly created money but the purchasing power of people have been stolen by means of currency depreciation.

Money Printing vs Allocated Physical Gold - Governments apply an easy monetary policy based on the creation of (excessive amounts of) new money. The only hedge against the negative effects of money printing is physical gold in allocated form.

Physical Gold is the antidote against the ongoing global debt crisis - A global debt crisis is raging. Governments are responding by creating huge amounts of new money, debasing the value of money. In order to alleviate the debt burden, they debase their currencies. As most Western countries are doing it simultaneously, there is worldwide race to devalue currencies and hence purchasing power.

 

THE STATE OF THE BANKING SYSTEM & THE END OF THE DEBT SUPER CYCLE

Our exponential debt system - We are living for more than two centuries in a debt based system. In the past four decades, it has grown in an exponential way, spurred by the fact that money is not backed by anything tangible (eg gold) but only a promise (hence “fiat money”). This debt based system is unsustainable and ready to explode.

The Solution…is the Problem - What is the answer from central banks on the debt problem? Indeed, the creation of additional debt.

The End of the Debt Supercycle Draws Near - The debt based system is unsustainable, but how will it end?

The Fed is trapped – Gold is the exit - It’s a mathematical certainty that the amounts of government debt cannot be repaid. The US Fed did not expect to create so much additional money (almost 2 trillion in less than 4 years). There is no way back anymore. This could end in a very painful way.

Jim Rickards: This is how the US Fed blueprint looks like, gold prices to triple in the coming years - Jim Rickards explains how the US Fed is working / thinking and why their actions will lead to higher gold prices.

 

(HYPER)INFLATION IS LOOMING

The printing press is running hot, but where is inflation and how will it affect gold? - How is it possible that governments apply inflationary policies but we don’t see inflation yet? The answer is simply: almost all fresh money went to the financial sector, to prevent institutions to go bankrupt. It implies that the velocity of money is very low. Once the velocity picks up, inflation will hit (probably in an unexpected way).

Less than 900 days for hyperinflation in the US? - John Williams from Shadowstats has calculated that hyperinflation in the US is almost a sure thing. His calculations show that it could hit in 2014 already.

Stagflation in extremis & the explosive rise of gold - It is very likely that we are entering an era of stagflation. The answer to stagflation is gold. It protects your purchasing power and even creates “profits.”

Jim Rickards: Currency Wars, The Making of the next Global Crisis - Jim Rickards shows that we are entering a global currency war in which all countries try to debase their currencies in order to alleviate their debt.

 

PROOF OF THE LONG TERM GOLD BULL MARKET

Why globally coordinated QE and higher gold prices are unavoidable - Central banks keep on responding with easy monetary policies, worldwide. There is no way back anymore, except for the hard way (for which there is not any signal of prepardness). Those policies result in higher gold prices.

The Destruction Of Currency And Rise Of Gold - In fact, it’s not the gold price that rises, it’s a currency that is being devalued. A higher gold price is simply the result of a lower currency.

Why Mainstream Media, Main Street And Institutions Fail To See The Benefits Of Gold - Nick Barisheff explains why mainstream media and the general public do not understand the real benefits of holding gold.

Your Window to Buy Gold Below $1,700 Is Closing - It is likely that we will not see today’s gold price for years to come, now is the time to convert your paper based money to sound money.

 

EXCEPTIONAL STRENGTH IN SILVER – A ONCE IN A LIFETIME OPPORTUNITY

The Solar Silver Thrust - Silver is used as an industrial metal, apart from its monetary usage. The explosion in the solar industry contributes to a great future for silver.

John Embry Expects a Silver Price Explosion Driven by Physical Shortage - Silver is a tiny market, contrary to the belief of most people. Because of the increasing investment demand for silver,  experts believe that we are approaching a point in time where a physical shortage will occur. Such an event would make the price go through the roof.

The Silver supply squeeze in 1980 could look like a warm-up - The globally leading silver expert expects a silver price at its peak that will be multiples of today’s price.

 

GOLD IS MONEY (AN ALTERNATIVE CURRENCY)

Iran Says “Gold Is Money” - An increasing number of transactions occur worldwide in which gold is being used the primary medium of exchange (i.e. money). Countries in the (Middle) East are leading the way.

Big Changes Ahead: Gold Just Became Money Again - In a proposal for a new treaty for the banking sector, gold could be revalued to a zero risk asset.

A new gold standard? - It is likely that one or another form of a gold standard will be reintroduced, especially when today’s fiat based money system will haven proven to be no long term solution.

Does China Plan a Gold-backed Renminbi? - China is accumulating incredible amounts of physical gold and silver. Potentially the country is preparing a gold backed money system.

 

MANIPULATION OF GOLD & SILVER VIA THE PAPER MARKETS & GOLD CONFISCATION

Manipulation of the Gold Price & the Crash of Paper Gold - There are interventions in the gold and silver markets, probably from central banks and large financial institutions. But they only have short term effects. Interventions happen in the paper based market (future markets). That’s why they have a much higher risk. Hold your precious metals holding in physical form.

Government and gold confiscation: tips to protect your assets - Suppose governments would try to confiscate people’s gold, the best escape route is to diversify your precious metals holdings into gold friendly countries.

Is gold confiscation one of the risks of buying gold and silver - Gold confiscation happened in the 30′s in the US but is unlikely today. Gold was in the 30′s what QE is today (additional money for the central bank).

Silver Manipulation: a once-in-a-lifetime opportunity to increase your wealth - Silver’s price is expected to explode to the upside once the intervention will be exposed, just like in 1980. This kind of opportunities occur very seldom.