Commodity Trade Mantra

Posts Tagged ‘paper currencies’

Divide Global Money Supply by Global Physical Gold = Correct Gold Price

It’s true that there’s a limited quantity of gold. But there’s always enough gold to support the financial system. It’s also important to set its price correctly and there can be a debate about the proper gold price. Just take the amount of money supply in the world, the amount of physical gold in the world, divide one by the other, and there’s the gold price. It’s not complicated mathematics.

Gold And Silver Remain Unchanged - It's The Paper Currencies That Got Smashed

It is ironic that many say there is already a bull market in gold and silver. The fact that it takes more and more Euros or Pounds to buy the same ounce of gold or silver is an acknowledgement that the fiat paper has lost more of its perceived imaginary value. Gold and silver remain unchanged. It is the deteriorating so-called “value” of fiat currencies that have worsened economic conditions.

There will be a Panic Into Gold after the Panic Out of Paper Currencies

I think there’s going be a panic into gold and out of paper currencies. So this small up-move that we’ve gotten here since the beginning of the year, that’s just a harbinger. I think this time around, we’re looking at $2,000, $3,000 an ounce. I think it’s going be incredible. The question is why? Here’s the reason for a bullish outlook on gold, & how silver could hit $100 /oz.

The Two Different Worlds of Gold and Silver: East and West

He who has the gold makes the rules. The “world” in the East has never ceased to recognize the Golden Rule. The “world” in the West now contemptuously scorns this eternal wisdom. While in the East, even the most humble peasant understands why we need to store our wealth in gold and silver money, there is no longer a need in modern economy for this “Perfect Money” in the West.

GOLD: The most consistent form of Money in World History

Empires rise and fall. Governments and central bankers come and go. Paper currencies lose their dominance. But gold lasts. And if you hold a long-term view, and believe that the path to prosperity is not paved in debt and money printing it makes sense to consider holding at least a small portion of your savings in the metal.

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.

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.

The Minimum Price for Gold, Part II

As Western bankers debauch – and destroy – the world’s paper currencies (and at an accelerating rate), the sane populations of Asia are funneling ever-greater quantities of their own wealth out of that paper (where it can be stolen via “competitive devaluation”) and into gold and silver, where it is immune to the crime of currency-dilution.

Silver, Gold and Living By The Sword

If you live by the “sword” of debt based paper currencies, you can reasonably expect detrimental consequences as the purchasing power & confidence in those paper currencies gradually dies. However, if you live based on the continuing value of gold and silver, you should experience a safer and more secure financial future.

Gold Prices Benefit From Economic Sins

Governments spend paper currencies as if tomorrow will never come, believe debts can increase forever, more money will always be available & debts can be rolled over forever. Such economic sins ultimately hurt people & economies. Gold has & always will protect people from inflation, wars & irresponsible governments.

No Clear Trend In Gold and Gold Stocks Yet

Gold has surrendered the $1,350 short term bull/bear demarcation again, but a secondary level of support has held – At present, the bears still win as many battles as the bulls, but eventually a breakout from the recent area of congestion will occur.

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