by Jeff Nielson, Sprott Money:
Readers of these commentaries may have wondered if they were receiving mixed messages over these past many months. On the one hand, they have been told that converting our paper wealth into gold and silver is one of our most important wealth management strategies. Indeed, this has even been described as “the secret of wealth preservation” .
The strategy is a simple one (as opposed to simplistic). The banking crime syndicate is continually diluting our paper currencies as a covert means of stealing the wealth contained in those currencies. We know this, because we have a confession from one of the ringleaders of these financial criminals, before he became one of the ringleaders of these financial criminals.
In the absence of the gold standard, there is no way to protect savings from confiscation via inflation.
– Alan Greenspan , 1966
The word “confiscation” is just a polite term for theft. The excessive greed of whatever bankers are in control of the printing press inevitably results in the exchange rate of the paper currency being driven to zero. We know this, because in the 1,000 years since humanity first began using these un-backed “fiat” currencies they have always gone to zero – or been removed from circulation before that could happen.
The same fate which befalls these paper currencies – worthlessness – also affects any paper instruments directly attached to those currencies, with bonds being the notable example. Of course in the case of Western bonds, the debt instruments of hopelessly insolvent governments , they could plunge to worthlessness even before the paper currencies themselves. Just ask some of the bond-holders of Greece’s debt.
Precious metals protect our wealth from theft-by-inflation while the bankers are perpetrating their crime. Gold and silver are also the ultimate insurance from the final death-spiral of these paper currencies which this excessive dilution always causes.
At the same time, readers have been frequently warned for the past two years that the bankers’ current bubble-and-crash cycle in our markets is now ripe for detonation . U.S. markets, the apex of this fraud, have been at all-time highs for more than two years.
When these bubbles are detonated (including our real estate bubbles ) so that the bankers can also profit from the “crash”, readers were told that precious metals will not be spared. Indeed, this was the reason for the “fake rally” of 2016: to raise gold and silver prices off of multi-year lows so that they could be slammed lower along with virtually all other asset classes.
We know that the Next Crash is coming because there is little profit to be made by the banking crime syndicate in continuing to pump these bubbles higher. We merely await the bankers’ timing.
If gold and silver will also see their nominal prices plummet in the Next Crash, where is the value/incentive for people to use these eternal metals to shield their own wealth? This is the crux of this article.
There are several reasons why people should be sheltering their wealth in gold and silver now, even knowing that the nominal price of those metals will drop over the short term.
1) When the paper goes to zero it never recovers.
This article will regularly refer to the “nominal price” for gold and silver. This is simply the number we attach to gold and silver, denominated in a particular form of the bankers’ paper. Irrespective of how the bankers manipulate the paper price of gold and silver, that price can never and will never go to zero because gold and silver have intrinsic value.
These metals have aesthetic value, being greatly in demand as jewelry and in a near-infinite number of ornamental applications. Gold and silver are the world’s best “money” – perfect instruments for that use. They are also incredibly useful in industrial applications.
Silver is the planet’s most-versatile metal, incorporated into more new patents than any other metal. Gold is also extremely useful from a metallurgical standpoint, but it is deemed to be too important as a form of international money to be used in industrial applications.
The paper has no intrinsic value of any kind. When confidence fails in a paper currency it goes to zero. When a government reneges on its debts, its bonds go to zero.
When the bankers push gold or silver prices to particularly absurd lows, the price boomerangs higher because these are hard assets with real value. We saw this after the Crash of ’08. We will see it again in the Crash of ’17 (’18?).
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