Commodity Trade Mantra

Posts Tagged ‘Fiat Currencies’

Hope in Currencies is a Poor Investment Strategy - Trust in Gold is Better

If somebody gives you gold, you don’t have to trust them or the instrument that you have been given – they represent payment in & of itself. Fiat currencies are not really payments. They’re promises to pay, and they work well as long as social trust remains. How long will the trust remain? Well, hopefully for my lifetime & yours too, but hope is a very poor investment strategy.

Gold and Silver - In the World of Absurd Statistics of Inflation

The real rate of inflation in Western economies is already soaring higher at 10+ % per year. Either before or concurrent with such a mea culpa, we will see the One Bank’s choke-hold over the precious metals sector also be shattered. Suppressing gold and silver prices in a high-inflation world is not feasible. At roughly the same time, we will see both inflation statistics & PMs start to soar higher.

Gold Prices Are Bound To Rise Because …

Currency units will devalue, the purchasing power of savings will disappear, and gold prices will revalue HIGHER. Place your trust in gold and silver … or trust that your assets, savings, and purchasing power will be protected by bankers, politicians, and fiat currencies. It should be an easy choice. Gold prices are bound to rise because …

Gold Prices vs National Debt: The Big Picture

Since the peak in gold prices in 2011 the Federal Reserve has “generously” supplied the world with trillions of dollars of newly created digital and paper debt, all backed by nothing but faith and credit. Bonds have rallied and the S&P is higher by 50% or so. The US national debt has steadily increased and gold is still bumping around a bottom.

The Doomed Currency - Euro Is Not Dead

Based on the turmoil created by the European Debt Crisis, the continuing problems in Greece & other overly indebted southern tier European economies, many investors may have come to assume that Euro boosters will be forced to ultimately throw in the towel & call off the entire experiment, thereby leaving the Dollar completely unchallenged as the champion currency.

Currencies Need to Depend on Faith, Gold Doesn’t

Gold should not be compared to stocks or real estate, but to other forms of money, such as any one of a number of fiat currencies now in circulation. Ironically, in a world awash in fiat currencies that are created at an ever increasing pace, and whose value is solely derived from faith in the issuing state, gold is the only form of money whose value does not require a leap of faith.

I Haven't Lost any Conviction on Gold and Silver: Eric Sprott

Of course it has been a very, very tough game for the last four years here. So far, everyone in the press is downplaying gold and silver but I haven’t lost any conviction whatsoever. There are lots of signs that the economy is not strong & it could fall apart pretty seriously all of a sudden. So you had better be prepared. Have some ‘good’ currency — gold and silver.

Can Gold Save The World From the Credit Bubble?

Governments & central banks created the currency & credit bubbles. When fiat currencies crash in the next crisis, backing currencies with gold could “save the world” & restore confidence in fiat currencies but only after significant trauma. Perhaps central banks will do the “right thing,” but only after exhausting all other alternatives.

What Is the Gold - Oil Ratio Telling Us?

One way to establish if a commodity or asset is relatively expensive or inexpensive is to price it in something other than a fiat currency, for example, gold. As a thumb rule, oil is relatively expensive (gold is relatively inexpensive) when the Gold-Oil ratio is below 9 & oil is relatively inexpensive (gold is relatively expensive) when the ratio is above 20.

Netherlands, Germany Have Euro Disaster Plan - Possible Return to Guilder and Mark

A Euro without Holland and especially Germany is currently inconceivable. It is interesting to note that it is these two countries, Germany and Netherlands, whose citizens have also been at the forefront of the gold repatriation movement currently sweeping across Europe – France’s second largest party entered the fray this week.

Central Banks: When We Succeed, We Fail

Central banks around the world share a few simple goals. Should central banks succeed in jacking up inflation, devaluing the purchasing power of fiat currencies and pushing stocks to the moon, they will have failed their citizenry. Should they succeed in reaching their goals, they will trigger catastrophic instability.

Gold Will Benefit As US Dollar Faces Competition From Other Currencies

BRICS – an alliance of powerful countries will not allow the West to impose its currencies, and its debt-based economic philosophy on everybody. The result of these developments will ultimately reduce the hegemony of the US dollar. Only followers of a policy of sound money that includes holding of physical gold will survive this coming crisis.

The Top 10 Reasons To Buy Gold And Silver

Fiat or national currencies are faith based that are not backed by anything of value and throughout history have all failed 100% – I believe that before the end of this decade there will be an unavoidable, inevitable, historic economic crisis. So here’s a countdown of -The Top Ten Reasons To Buy Gold And Silver.

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