The importance of gold and silver

[beermann2]

I just wanted to pass along this article on why Gold and Silver are important and often manipulated.
[h2][/h2]

[h2]Gold And Silver: Why They Are Important, And Why They Are Often Manipulatedhttp://neithercorp.us/npress/?p=184[/h2]
http://neithercorp.us/npress/?p=184
By Giordano Bruno

Neithercorp Press - 11/18/2009

http://neithercorp.us/npress/wp-content/uploads/2009/11/umicore__silver_gold_bars19719394s7.jpghttp://neithercorp.us/npress/?p=184

http://neithercorp.us/npress/?p=184 http://neithercorp.us/npress/?p=184

For decades, gold and silver investors have been warning the masses about the catastrophic weaknesses inherent in fiat currencies; currencies backed by nothing but empty promises and printed out of thin air ad nauseam by Central Banks. Precious metals, they said, were the only safe form of currency because they were finite, and could not be duplicated, meaning they could not be inflated to worthlessness. Until recently, these warnings have gone almost completely ignored by the general public.

Critics of gold (often proponents of Central Banks) contended that gold was an unrealistic and outdated foundation for an economy because its limited supply restricted liquidity, and kept a country from being able to "spend effectively."

Well, America is closing in on the year 2010, and most of us have now had an opportunity to see that "free money" actually has a price. As I write this the dollar is hurtling down against numerous other currencies due to the private Federal Reserve's decision to keep interest rates artificially near zero, as well as their decision to pump trillions of dollars of liquidity into foreign and domestic banks. Bloomberg estimates that nearly $24 Trillion has been pumped into the financial system by the Fed:

http://neithercorp.us/npress/?p=184http://www.bloomberg.com/apps/news?pid=20601087&sid=aY0tX8UysIaMhttp://neithercorp.us/npress/?p=184

What critics of precious metals didn't seem to grasp was that gold's limited supply was actually a saving grace, not a weakness. Gold has been used as currency for over 6000 years, and the U.S. Dollar was backed by gold right up until 1971 when Richard Nixon severed the Greenback completely from any tangible resource, though the Dollar to gold ratio had been waning since the establishment of the private Federal Reserve in 1913. America's greatest industrial and financial accomplishments were made during the gold standard era, so to claim that a gold standard hinders economic progress is simply absurd. Even former Fed Chairman Alan Greenspan once vehemently defended the use of a gold standard:

http://neithercorp.us/npress/?p=184
"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."
Alan Greenspan, 1967

http://www.usagold.com/gildedopinion/greenspan.htmlhttp://neithercorp.us/npress/?p=184

Its a long article and you could continue reading it here. http://neithercorp.us/npress/?p=184

 

[majik214]

I wish I was holding on some gold. I have a friend who's gold chain value has tripled since it was given to him.


The problem with gold is that it's bought at retail and sold at wholesale, right??

 

[sloane kettering]

My dude has a good number of silver bars stashed for a "rainy day"....next is to cop some gold bars, but the prices on them are ridiculous.

 

[bboy1827]

You realize that the only reason they have any power themselves is because of the same faith that we have in the dollar? Come on think about it, thereisn't some divine reason why Gold and silver hold the value they do, they do because we put our faith in it. I'd much rather hold some actualassets(property) than gold any day.

 

[kingjamesvehs]

clifford......... does he have notes?

 

[shatterkneesinc]

Originally Posted by bboy1827

You realize that the only reason they have any power themselves is because of the same faith that we have in the dollar? Come on think about it, there isn't some divine reason why Gold and silver hold the value they do, they do because we put our faith in it. I'd much rather hold some actual assets(property) than gold any day.

gold and silver are rare beautiful and have industrial uses

you ask yourself this quesiton.. why does art have the value they do?

 

[andycrazn]

 

[shoedinidc]

What kinda buisness are you in, banking or something?

 

[freshprince]

I was hoping this was a Patron thread

 

[finnns2003]

i don't have much precious metal, but i'd like to. you never know...

 

[beermann2]

bboy1827 wrote:

---

You realize that the only reason they have any power themselves is because of the same faith that we have in the dollar? Come on think about it, there isn't some divine reason why Gold and silver hold the value they do, they do because we put our faith in it. I'd much rather hold some actual assets(property) than gold any day.
Um no.
Precious metals have an intrinsic value. You cannot walk down the street and hope to find one. You have to dig it up, separate it and melt it. Its anexpensive process. History has shown that gold and silver were and are always money. Not paper money. Gold is a great way to store your wealth because youcant create a printing press to make gold or silver. Property and physical precious metals are good to hold on too.

ShoediniDC:
I'm just a regular joe. But I do follow whats goes on in our economy.

Finns2003:
Its never too late. But research first.

 

[ac4three]

Nice post.

 

[awon23]

nice post

bump to inform

 

[ugk4life]

Originally Posted by FreshPrince

I was hoping this was a Patron thread

i was thinking the same thing...lol

-Tyler