Commodity Trade Mantra

Posts Tagged ‘Paper Money’

Future Prospects for Fiat Currency Money & it's Purchasing Power

The faith and credit-standing of issuers of paper money, and not the known and suspected inadequacies of commercial finance, is the last rotten pit-prop supporting the system. We can easily see how a new round of monetary expansion designed to save the global banking system from its nemesis will lead, not to a Lehman-style outcome, but to a collapse of 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.

The Sooner You Realize That Gold Is Money & Not Investment, The Better

We’ve noticed there are quite a few myths and misconceptions about gold out there. Probably the biggest misconception investors have about gold is that it’s an investment. People check the price quote every day to see how their “investment” in gold is performing. The sooner investors realize that gold is money & not a conventional investment, the better off they’ll be. Here’s why.

Gold Once Again Proves To Be The Best Defence Strategy

We need to redirect the mindset of our culture which has been brainwashed into thinking there is no such thing as “perfect money”. History, society and markets alike have tested gold and pushed it to its limits, and the verdict is clear and resounding: Gold has passed the test of time, as the only reliable option to protect, to preserve and to secure wealth.

JPMorgan: People Have More Confidence In Gold Than In Paper Money

Global CIO & Head, Global Fixed Income, Currency & Commodities Group of JPMorgan Bob Michele, who earlier today was on CNBC, admitted “Gold at $1,200 an ounce, what does that tell you? It tells you that in a flight to quality, people have more confidence in gold than in bank deposits or paper money. I think things have gotten out of control.”

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 And Silver - What Money Is and What Money Is Not

One huge obvious lesson that escapes people throughout the Western world is that voting does not matter. In the end, the bankers rule and get their way, and people have no say. What is always at the bottom line for all decisions? Money, and guess what? Very few people have the slightest clue what “money” is. That is the central tragedy around the globe.

Warren Buffett And The Chinese Are Loading Up On Hard Assets

I would say look at China buying gold, look at Warren Buffett buying hard assets in energy and that will give some guidance. The two other ones, powerful, biggest, best and foreign investors in the world are getting out of paper money into hard assets. They’ve created a hedge where they win both ways.

Why You Need to Own Gold In 2015 and Beyond

Gold’s universal appeal across continents makes the metal extraordinary. But it is gold’s appeal across time that makes it unique. What will happen to the gold price when masses of cynical people tire of holding dishonest money and look for an incorruptible alternative? Smart investors aren’t waiting to find out.

Your Personal Gold Standard

You can put yourself on a personal gold standard just by buying gold. In other words, if you think that the value of paper money will be in some jeopardy, or confidence in paper money may be lost, one way to protect yourself is by buying gold, and there’s nothing stopping you.

How Inflation Helps Keep the Rich Up and the Poor Down

It would not be uncharitable to characterize inflation as a large-scale rip-off, in favor of the politically well-connected few & to the detriment of the politically destitute masses. It promotes endless debts, puts society at the mercy of monetary authorities such as central banks & to that extent entails moral corruption of society.

Gold And Silver Are Money: The Truest Form Of Money

Let us be clear about one thing & to never forget: gold and silver are money – the truest form of money. Everything else, the fiat Federal Reserve Note, erroneously referred to as the “dollar,” the Euro, the Yen, the Swiss Franc, or any other form of currency is worthless paper money, backed by nothing.

Of Paper Money, Digital Money (Bitcoin) And Gold

Money – authentic money must be the most marketable of all commodities. This is why gold is money! Silver follows in second place. No fiat currency has ever been successfully introduced into circulation without a monetary value ultimately derived from when that currency was gold or silver money.

Owning Gold as a Hedge Against Paper Currency

A major reason why gold so often looks good is that the alternatives so often look so bad. Money, by definition, observation and experience, has no intrinsic value. It is just a way to hold your place in line. A virtual currency such as bitcoin may someday prove superior, but for now gold is No. 1.

Gold Is On Sale - So Is It Time To Buy Gold Now?

By now, everyone knows of the shortages in the gold market; JPMorgan has to be as aware of that as the rest of us. It just isn’t safe for them to continue to lean on the market. Being aware, it looks like they are taking the bet that gold will rebound, so they could do well on the other side of the trade.

Currency: Signs That It’s Time to Head for the Exits

What happens when the citizenry want to leave the government’s currency? If history is any indication, the government will get mean. Don’t expect US to stand by silently while you try to protect yourself by trading depreciating dollars for gold, stocks, foreign currency, or whatever else.

When A Stock Bubble Goes Horribly Wrong And Hyperinflation Results

When A Stock Bubble Goes Horribly Wrong And Hyperinflation Results – Could the same be true of Europe? A challenge that’s perhaps most visible in the Eurozone is how best to balance dispersed, country-specific debt issuance against more centralized authority over monetary policy.

Gold And The Four Words That Define Western Economic Policy

It makes sense to own gold because currencies are being printed to destruction; the long-term downtrend in paper money remains intact – The debt mountain cannot and will not resolve itself and there is a non-trivial chance of a gigantic financial system reset.

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