Why I Will Always Own Gold and Silver

What I Know for Certain –  By:  GE Christenson

• Death and taxes!
• Fear and greed are powerful motivators.
• Individuals, businesses, and governments do what they think is beneficial for them.
• Businesses and governments protect their products and territory and resist competition and enemies.
• Concentrated wealth creates power and corruption. The greater the concentration of wealth, the larger and more pervasive the power and corruption.
• Gold and silver have been money for over 3,000 years.
• Unbacked paper money systems have always failed.

What I Think is True

• The basic product of a central bank is the unbacked paper currency it prints in ever-increasing quantities.
• Central banks will fight all competitors to their currencies. The oldest competitor to unbacked paper currencies is gold, ancient money.
• Politicians want to spend money and increase their power.
• Bankers want to create money, lend it to governments, and thereby secure a permanent and increasing revenue stream.

What I Think the Consequences Are

• Bankers use their wealth to “influence” politicians. Politicians respond with favorable legislation. It has worked for centuries.
• Central banks want an expanding money supply and ever-increasing debt. The consequence is that consumer prices inevitably increase.
• A currency collapse is like a bank run – everyone scrambles to remove his/her wealth from the currency (or the bank) due to a loss of confidence. In fractional reserve banking systems, bank runs are inevitable. Even though they may last for many decades, unbacked paper currencies inevitably devalue and eventually collapse.
• Bank runs and currency collapses are feared by bankers and politicians; they do what they can to support confidence in their products and to squash their competitors.

In the United States

• Debt and government spending seem likely to increase until a crash-reset occurs.
• The crash-reset will involve a dollar collapse.
• Gold and silver will eventually reach much higher prices due to the loss of value and confidence in the dollar, the banking system, and the sustainability of the current financial system.
• “Paper gold” will be seen for what it is – a promise that might not be paid.
• Physical gold will be seen for what it is – real wealth.
• The USA and Europe are sending their real wealth – gold – to China, India, Russia, and the Middle East. China, India, and Russia are buying aggressively and know that exchanging paper dollars and euros for gold will strengthen their economies and governments tomorrow.
• It is openly speculated that much of the sovereign government and central bank gold supposedly owned by the USA and Europe is either gone, leased, or otherwise committed.

Read: The Crash Before the Climb

Accept what you cannot change and act based on facts, not our current financial and economic fictions. Protect your financial well-being with physical gold and silver safely stored in a secure location.

GE Christenson
aka Deviant Investor