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.
mckinley hobart sound money buttonOver the last 100 years, Americans have completely lost control of their Constitutional money; to the point where they must pay a tax to essentially make change. Imagine breaking a twenty dollar bill and only getting a ten and a five back, with the other five going to the government. This is the potential problem one encounters when attempting to spend gold or silver money. It’s no accident. The laws are specifically set up to force everyone to use fiat currencies.
S&P’s downgrading of US debt has all the news, but is this crises worse than the 2008/2009 Global Financial Crisis? Possibly not, but gold move to the upside suggests a real crisis nonetheless.
Congressman and presidential candidate Ron Paul recently introduced legislation calling for the federal government to cancel the $1.6 trillion debt held by the Federal Reserve. Such a move creates legal challenges, one of which would be that the Fed would openly acknowledge that it is a private entity and that fedgov has no authority confiscate its assets. (Fedgov had no “authority” to call in gold in 1933, but legal tests to that stood up.)
If you’ve paid any attention to the inflation vs. deflation debate you’ve noticed that it is fairly convoluted. I’ve read the arguments in great detail and have come to the conclusion that it’s mostly a problem of semantics. Strictly speaking, deflation is a decrease in the supply of money and credit. As bad loans are written off, the supply of credit, which represents the lion’s share of the money supply, decreases.
Clearly a reckless Federal government is good for gold – or more accurately, our collective can kickers in Washington DC are very bad for the dollar. Contrary to the disinformation campaign of Wall Street, and their Federal Reserve sponsored economists, gold is not a bubble. Central banks are now net buyers of gold, and not because of tradition, as Mr. Bernanke would have you believe.
Perhaps the most prevalent mental images of the Great Depression of the 1930s are the photos of the soup lines and breadlines where the “down and out,” those with absolutely no hope, stood waiting meals. Today, however, soup lines are a thing of the past, and they will not be evidence of just how bad the economy is.