What’s The Truth about owning gold and silver? If you are in the gold and silver business, anything you publish suggesting “gold is good” will be considered questionable. Cynical new clients often believe that you’re not objective. They believe that you’re probably the stereo-typical salesman, who like a teenage boy in heat, will say absolutely anything to commit “the dirty deed”.
Whenever I read what other coin dealers put together I often think it’s self serving dribble. I’m in the gold and silver business because of the way I think, not vice versa. Put another way, I have toughed it out for almost three decades through some mighty lean times. I believe that gold and silver coins and and a good gun or three are essential for the hazardous times ahead. We live in country that would absolutely shock our fathers or grandfathers who fought in WWII. Everything you want to do is A-okay, as long as it involve living the traditional “American Dream”. Don’t feel like getting up 5 days a week and going to work to support yourself? There’s a subsidy program for that.
Would you rather drink beer than go to work? You’re obviously in need of Social Security disability until you can “cure” your “disease”.
We live in a world where the president of the United States (POTUS) that takes advice from the race-baiting huckster “The Reverend Al Sharpton” because he can deliver millions of “under-educated voter” votes to the liberal candidates of his choice. One or two texts on election day via the free Obama cell phones “the poor” all can have and he can swing an election.
The leadership methodology of POTUS is to ignore problems and blame negative developments on “the other party who doesn’t want to be fair to people…”. Some examples of “the message” we get from the Obama administration:
1.) We are counseled never to judge Muslims by the behavior of thousands of Christian and Jew killing lunatics, although we have been encouraged to evaluate all the firearm owners by the practices of a couple of mentally ill idiots.
2.) On a regular basis we hear all about how Social Security is going broke.
Why it is that we do not ever hear about how social welfare programs or the food stamp program is blowing through money and may go broke? Remarkably the first group “worked for” their money, but the second typically had no duty or obligation to do anything involving work to pre-qualify.
3.) Why are we cutting benefits for our veterans and cutting our army to a troop level lower than before WWII? Are we irresponsible and stupid?
- Why do we offer payments to illegal aliens such as monthly payments for housing, food stamps and often free education? Why does The B.O. Administration fight voter I.D. laws? Does this issue go back to the long-corrupt Chicago political machine that put Obama in office? Acouple of mottos’ out of Chicago on election day has long been: “Vote early and vote often” or “Have a relative that passed away? Make their vote count… twice!”.
- Screwball, liberal policies will bankrupt a country or a city or state for that matter. Look no further than Detroit. Just two generations ago it was the capitalist mecca of the United States. It was the center of the American Dream. Today, the liberal policies that enable people to not work has destroyed the city. The city of Detroit is giving away houses for a dollar and there are no takers. Few who are sane and have a good job would want to live there. It’s a welfare fueled hellhole.
- The destruction of the dollar through runaway inflation does not mean the end of The United States. It does means that if you hold paper and intangible assets, you can be wiped out. The most liquid, divisible, transportable and significant assets you can own in an inflation are silver and gold (and to a certain extent firearms). You can do things with these assets that you can not accomplish with other assets (like make arrangements to keep your family fed). The simple fact of the matter is once gold and silver coins are in your possession for a few years they become a hidden asset, that is unless you have a big mouth, neighbors, family and friends will not know you have them. I have a client who has left a letter with his attorney, sealed until he dies, telling his kids to NOT sell the house until they dig up the brick BBQ in the backyard. It’s literally a million dollar BBQ grill.
- The demand for gold and silver increases during the course of inflationary times. Which means that, that they counterbalance the ravages of a diminishing currency. Chances are you already know you need more financial safety in your life. The question is just how much more do you need and how do you maximize your paper dollars into metals? Call us and see if we have some no-B.S. ideas on the subject.
It’s come to the point where the U.S. pays half its bills with newly created money. We’re printing $550,000,000,000 a year. This debt monetization will ultimately destroy the value of the dollar. If you do not prepare for this likely outcome you could face destitution. Many will. Financial suffering will be of epic proportions. Years ago the noted banker and economist John Exter (1910-2001) warned, “The marketplace is a crime and punishment world, and this Federal Reserve credit expansion is the greatest monetary crime of all time. Accordingly the punishment will be far and away the greatest punishment of all time.”
The late professor Hans F. Sennholz (1922-2007), an articulate economist of the Austrian school wrote, “The ultimate destination of the present road of political fiat is hyperinflation with all its ominous economic, social, and political consequences. On this road, no federal plan, program, income policy, control, nationalization, threat, fine or prison can prevent the continuous erosion and ultimate destruction of the dollar.”
Nowadays the book stores are full of volumes warning about the dangers of inflation and the doom of the dollar. I like to base my thinking on the writings of those who first warned about the dangers of fiat money and inflating. Foremost among these was the leading thinker of the Austrian School of Economics, Ludwig von Mises ((1888-1973). Many consider him to be the ranking economist of the twentieth century. He had first-hand experience with hyperinflation during the Weimar inflation of 1921.
He wrote “Continued inflation inevitably leads to catastrophe.” He explained further, “Inflationism cannot last; if not radically stopped in time, it must lead inexorably to a complete breakdown. It is an expedient of people who do not care a whit for the future of their nation and its civilization.”
We are inflating now more than ever. The government requires this money to pay for our exploding welfare state. Talk of cutting those expenditures is meaningless. We have passed the point of no return on entitlements.
A great Austrian economist and one-time Newsweek editor Henry Hazlitt (1894-1993) wrote of this dilemma, “The tendency of welfare spending in the United States has been to increase at an exponential rate.
“The causes of this accelerative increase are hardly mysterious. Once the premise has been accepted that the ‘poor,’ as such, have a ‘right’ to share in somebody else’s income – regardless of the reasons why they are poor or others are better off – there is no logical stopping place in distributing money and favors to them.
“Once the premise is accepted that poverty is never the fault of the poor but the fault of ‘society’ or of ‘the capitalist system,’ then there is no definable limit to be set on relief, and the politicians who want to be elected or re-elected will compete with each other in proposing new ‘welfare’ programs to fill some hitherto ‘unmet need,’ or in proposing to increase the benefits or reduce the eligibility requirements of some existing program.”
Our taxes are paying for greater levels of welfare socialism. In addition we borrow and print money to foster more socialism. The philosopher and economist Leonard Read, (1898-1983) knew what it was all about when he wrote, “Inflation makes the extension of socialism possible by providing the financial chaos in which it flourishes. The fact is that socialism and inflation are simultaneously cause and effect; they feed on each other.”
Of socialism Ludwig von Mises wrote, “It is not the pioneer of a better and finer world, but the spoiler of what thousands of years of civilization have created. It does not build; it destroys. For destruction is the essence of it.” “A society that chooses between capitalism and socialism does not choose between two social systems; it chooses between social cooperation and the disintegration of society. Socialism is not an alternative to capitalism; it is an alternative to any system under which men can live as human beings.”
The economist Milton Friedman (1912-2006) famously said, “There is no free lunch.” It’s true that everything has its price. Nations have to pay that price too. The economist and author Virgil Jordan (1892-1965) wrote, “Ultimately with God’s aid, Truth always emerges and finally prevails supreme in its power over the destiny of mankind, and terrible is the retribution for those who deny, defy, or betray it.”
When the day comes that the U.S. Dollar is exposed for the watered down relic of it former self, the lines will be long to buy gold and silver.