Gold serves as the basis of the global monetary system for the simple reason that it exists as a finite, physical store of value. And unlike every issuance of debt or piece of printed money, there is no counter party risk – unless, of course, you don’t actually have the physical gold in your possession. Then it’s no more a basis of one’s reserves than all of the digital money created with a keystroke.
The 99% and the 1%. We see it all over the news. There are protest movements in almost every major city focused on it. We all know that something is wrong, but almost no one can put their finger on the root cause. The reason is that the vast majority of people have no idea how banking works or where money comes from.
If you’ve watched the news for any length of time you’ve probably heard mention of speculators and how they seem to be responsible for much of what ills us. Last week, Japan’s Finance Minister Jun Azumi said that a massive intervention in the Yen market was necessary as there were signs of speculation. Much of the price inflation in commodities over the last decade has been…
Various reports coming out of last week’s G20 meeting in Cannes are suggesting that some member countries had proposed Germany use its gold reserves as collateral for a Eurozone bailout fund. This brought a series of quick and unequivocal responses:
Last week, the History Channel’s series Decoded, took on the question of whether Fort Knox actually contains any gold. It is available on Youtube in three parts, in case you missed it. Admittedly I had pretty low expectations for the mainstream media’s treatment of the topic. Of course the question is never answered, but by the time it was over…
Obama still doesn’t get it – Government can’t create economic growth, only prevent it.
Can I make a small request? Before we go throwing more good money (American Jobs Act) after bad (American Recovery and Reinvestment Act of 2009) can we review some basic economics?
Asahi recently posted a story about Japanese pensioners who are selling their gold. Remarkably the perception of gold has been quite a bit different in Japan than around the rest of the world. The country as a whole has been a net exporter of gold since 2006 and according to the World Gold Council, Japan is the only major economy where the demand for gold is decreasing.
I can’t remember the last time I watched the local news. It’s probably been at least two decades – and for good reason. It tends to consist of people repeating information on topics that they have little inherent knowledge of. Take a look at the clip…
Many gold and silver investors sell locally because of the inconvenience of having to package their metals for shipment. In do so, they often leave a lot of money on the table because CMI Gold & Silver Inc. has the strongest bids in the country for gold and silver bullion products. CMIGS has prepared a video slide show on How to Ship Silver. It provides details as to packaging silver (and gold) for shipment.
There is no single topic of greater importance to the cause of liberty and peace than the nature and control of money. When free market participants are no longer able to choose their medium of exchange, a critical part of the free market dies. The resulting seeds of a centrally planned economy slowly grow and suffocate the power of choice.