It’s All About Gold Now

By Greg Hunter’s USAWatchdog.com 

At the beginning of this month, the G20 met in France to try to find a way to solve the European sovereign debt crisis.  It ended with world leaders in disarray over a way to come up with a solution.  At first blush, it appears that nothing of any importance came of the meeting of the 20 leading economies of the world, but that is not the case.  It was widely reported the G20 came up with the idea that Germany might put up its gold reserves to back a bailout fund called the European Financial Stability Facility or EFSF.  Of course, Germany, with its more than 3,400 tonnes of gold (number 2 in the world), quickly shot that idea down.  End of story?  Quite the contrary–the gold story is just beginning to get interesting.

You see, the G20 did something accidentally that was very important, and that was confirm that gold has a place in the monetary system, especially in times of extreme turmoil.  Why doesn’t the EU use sovereign bonds to back the EFSF?  They are considered a store of value and are held as reserves in many European banks.  The simple answer is the world is waking up to the fact that debt can’t back up debt.  Europe finds itself in a tough spot, and the leaders there know it.  Reuters reported Monday, German Chancellor Angela Merkel said, “Europe is in one of its toughest, perhaps the toughest hour since World War Two,” she told her Christian Democrats, saying she feared Europe would fail if the euro failed and vowing to do anything to stop this from happening.”  (Click here for the complete Reuters story.)  Well, anything but put Germany’s gold up as collateral.  Maybe Chancellor Merkel will be the next leader to exit the European stage?  Who knows, but what I do know is that gold is once again going to become an important part of the world monetary system.

In a new book called “Currency Wars,” Wall Street insider Jim Rickards examines how countries try to get out of financial trouble by devaluing their currencies.  Rickards says, “Today, as yesterday, countries are attempting to devalue their way out of trouble. Following the strategy of beggar-thy- neighbor, the U.S., Europe, China and Japan all want to weaken their currencies. The flaw in the tactic should be clear. “Not everyone could cheapen at once,” Rickards writes. “The circle still could not be squared.” (Click here to read a book review by Bloomberg.)  Rickards predicts the U.S. dollar’s future is not bright, and if there were a “catastrophic collapse of investor confidence,” the dollar’s buying power could suffer suddenly and dramatically in a global sell off.

Gold would be the big beneficiary if the dollar declined, and Rickards’ top price for gold per ounce iswait for it–$44,552!   That price is the absolute highest possibility.  Rickards and others predict that in the next few years, America will go back on some sort of gold standard.  Meaning, the dollar will be backed by gold, but Rickards has stated on many occasions that there probably will not be a100% gold backed U.S. dollar.  Instead, Rickards contends it will be more in the neighborhood of 40%.  If that is the case, then gold would be $17,821 per ounce using Rickards numbers.  It appears gold prices are going much higher.

The main factor in determining gold price is money printing, and one of the biggest currency creators on the planet is the Federal Reserve.  It created enormous amounts of money in the wake of the 2008 meltdown, and it looks like it is getting ready to unleash mountains of even more cash to stop the impending Euro-land meltdown.  This week, St. Louis Fed President James Bullard indicated the central bank would take action if the EU sovereign debt crisis turns chaotic.  According to a Wall Street Journal report, “Bullard said that if overseas events worsened significantly, the Fed could respond, saying “the Fed can re-open some of the liquidity facilities that were used during 2008-2009″ to reduce related market disruptions. “It will be fairly clear if some sort of crisis occurs in financial market that causes trust to break down,” it would then be time for the Fed to take action to alleviate the market tumult, he said.”  (Click here to read the complete WSJ report.)  It looks to me the Fed will be forced to print money to stop another financial meltdown.  It is only a matter of time, and time appears short.

Renowned economist Martin Armstrong says, “What this is really about is it’s the entire Western civilization that’s starting to crumble.”  In an interview Monday on King World News, Armstrong warned, “Everything is falling apart and the politicians will not address it because it means having to change the system and that’s what they do not want to do.  The real big money that I speak to, they are really starting to look beyond Italy, Greece, Spain and Portugal.  They are starting to look at France and Germany.”  (Click here for the complete KWN Armstrong interview.)  Armstrong goes on to say, “They have borrowed year after year with no intention of paying it back.  The US had $1 trillion of debt when Ronald Reagan took office in 1980.  We are now pressing $15 trillion of debt.”  The debt crisis throughout the Western world will push the price of the yellow metal higher even though it is currently range bound.  Armstrong says, “Basically what you are doing is you are building a sideways type of base.  Eventually gold is going to take off to the upside, but largely when people begin to see the Emperor has no clothes and we’re getting close to that.  I would only give it a few more months.”

When the next financial calamity hits, the Fed and other central banks will have two choices.  They can print money to try and save the system they love, or let it implode.  That means this is really all about gold now.

Comments
  1. EC Steve

    Y’know, if I were some big-shot money manager, I wouldn’t buy those bonds even if they had German gold behind them. Because I could have no confidence that, if/when push came to shove, and the bonds went bust, my claim on the gold would be honored. Look at what they just did with Greek CDS.

    I guess the implication of what I’m saying is that there’s a catch-22 in the works. You need gold to create confidence, but you need confidence to mobilize gold. I don’t know how confidence comes back; but history tells us that it doesn’t, until copious volumes of blood and tears have been shed.

  2. jay

    greg i saw gerald celente on another site saying the big banks stloed his gold. do you know anything about this?
    being a poor man i know what its like to lose,however im sure gerald has a lot of gold in his hands still.
    thank you sir…for leading me into physical gold and silver.

    • Greg

      Jay,
      Apparently Mr. Celente has been ripped-off by the “White shoe boys.” He was trading commodities at MF Global when it went bankrupt and now his money it tied it.
      Greg

  3. Truth Machine

    Greg,

    Heres the real question to be answered. Will the criminal class that makes all of the rules allow the smart sheep like me who have attemped to protect myself to keep the profits I deserve.

    Thats the question none of you folks will ever address. Will I, who have placed my bets on gold and silver ever be able to maintain enough freedom to use them for my protection and profit from having maintained them as a core holding.

    I’ll bet my life depends on that answer. But I bet you know damn well I’ll be killed before the ruler scum ever let me save myself with gold or silver.

    • Brad

      Hey there Truth,
      If they make commerce in gold and silver illegal, the black market will fill in the gap. You find yourself in the company of a neighbor with an apple tree or a sack of potatoes. You furtively flash him a few silver coins and nod toward the potatoes. He looks back over his shoulder to see if anyone is watching, gives you a nod back, and the transaction is done. He will not want your Zimbabwean dollars. As things progress toward greater privation, then perhaps the silver and gold will be less useful, but in the interim period of perhaps years, you have preserved purchasing power with metals. Don’t ask the government bastards’ permission, just do it!

  4. Hoppe

    I don’t buy it – Rickards numbers that is, for an ounce of gold. With his numbers, a new suit and pair of shoes will cost- wait for it, $17,821. That is the historical value marker for gold in the last 200 years.

    That would work out to a months worth of groceries for a family.

    More likely, when the central bankers have achieved a level of control they are happy with, they will start writing down the rest of their debt.

    • Greg

      Hoppe,
      We are on the precipice of great change and anything can happen. What is coming is a dramatic turning point in history and nothing less. Much higher gold prices are on the way, or better put, a much lower U.S. dollar. Thank you for your comment and for supporting this site.

    • ToServeGod

      Refer to German hyperinflation of the early 1920′s. I’m not saying that it is going to be that bad, but the price of a full suit and shoes going 10 fold isn’t that unrealistic. Do I hope for that kind of inflation, No. But am I trying to prepare and protect myself from that possibility, yes. If our printing presses go to production so fast that we start seeing it only printed on one side to conserve resources and time of printing it will be too late. I am going to try and post a link, but if it doesn’t work, just do a Google search on German Hyperinflation price of bread and look for the joelscoins site. Interesting history.

      http://www.joelscoins.com/exhibger2.htm

    • Raphael

      On average, the 1 oz = 1 suit holds true. It may not hold true at a particular point in time. As I understand it, inflation of consumer goods is typically preceded by periods of deflation.

  5. Vess

    Moving to a gold standard is simply not possible before the complete collapse of the current financial system. As we all know, the current crisis is caused by too much debt. Greece is a fine example of the problem – too much debt, no chance to repay it, and no way to devalue it by printing money. Switching to a gold standard will put all countries in this position – they already have too much debt and now they can’t even default by devaluation, since they can’t print gold.

    The crisis must reach its logical conclusion first. The financial system must collapse, the debt must be written off. Only then we can build a new financial system, based on sound money. Not before. Trying to do it before will only speed up the collapse.

    Besides, I don’t think that they will implement a gold standard before stealing most of the gold from the common people first.

    • Brad

      They won’t find my gold!!

    • carmen

      “Only then we can build a new financial system”: may be the financial system could be changed, but how could we change the people, especialy those in power. How you eradicate coruption? how long it will take? in my opinion it is really a mess that could not be fixed in. appologies for the next generation, we missed to keep it under control :(

  6. Austin in Ohio

    Greg,
    Thank you for the insight. I have been arranging my business debt to fixed terms and trying to aquire some precious metals. I am 35 years old, I have 6 children and 22 employees and I count every month of decent work as a blessing. I have little confidence in the near term, but I wil be ready to help rebuild this country after the
    worst of the collapse comes.

    • Greg

      Austin,
      Thank you for sharing your strategy and leaving a comment.
      Greg

  7. Robert T.

    Imagine how simple life was before WWI: you could travel freely and use any currency you wanted, because they were all gold-backed. And with today’s technology, nothing could be simpler than a return to a gold standard- and not a “40% backed” variety either: make the “security thread” in currency an actual alloy of gold (or silver). There would be no need for bullion vaults, no chicanery, real freedom.

    • Greg

      Thank you Robert and Luke.
      Greg

  8. MasterLuke

    How to you cover up these urgent financial issues? With a good ole fashion war with Iran. The skyrocketing plummet of the U.S. Economy will be second news when the U.S. decides to attack Iran. They keep digging the hole. Maybe China really is on the other side.

  9. Truth Machine

    Greg,

    so your answer to my question is to just delete it. No answer. OK, I get it, you know deep inside the rulers won’t let us sheep keep our rightful gains in gold and silver but you’re too terrified to publish such an thought.

    • Greg

      Truth,
      I posted your comment.
      Greg

  10. ONTIME

    If these politicians in leadership cannot comprehend the damage to the market they have created then gold would be a acceptable standard to have to create a quality to value and not some fluxuating commodity demand that is in a state of change. The country and all others seemed to be able to negotiate with a gold standard prior to WWII, the siezure of gold held by individuals was not all it was cracked up to be, the gold the government took was still in play and now with the over printing of paper gold has simply rebounded to assert it’s dominance over uncertainty.

  11. hbeachrealist

    Wow. Nice article as always, Greg. Steve Quayle linked you today. I’m bookmarking your site. I think I’m missing out on too many of your great articles. As you know, Gerald Celente just got hit by MP this week.

    Anyhow, gold and silver will be going through the roof. It’s all fundamental.

    I just thank the Good Lord that I woke up when I saw “Loose Change” just three years ago.

    If it wasn’t for that day, I would never have woken up and I wouldn’t be stacked in gold and silver today.

    God Bless.

    • Greg

      hbeachrealist,
      Thank you for supporting this site and for your kind words and comment.
      Greg

  12. Luis Chavez

    Greg, excellent article, as usual.
    Here in Querétaro, Mexico, we follow you very closely.
    Thank you again for your brilliant mind and honest soul.
    keep up the good work.

    • Greg

      Luis,
      Thank you for your support and feed back from beautiful Mexico!!
      Greg

  13. Greg

    Hi Greg, Thanks for your continual efforts of “getting the word out”. I really appreciate your articles. Question for you:
    Your last statement, “When the next financial calamity hits, the Fed and other central banks will have two choices. They can print money to try and save the system they love, or let it implode. That means this is really all about gold now.”

    Does that mean you believe either way (whether they print money or let it implode) it will be good for gold?

    • Greg

      Greg,
      I think they print and we still end up with a new system where gold finds a place at the monetary table.
      Greg

  14. nm

    “I would only give it a few more months.”

    Before they do what? decide not to print? Politicians will print and if thats the case, will inflation creep up slowly or will it come on with a bang?

    • Greg

      NM,
      I think Armstrong meant a few more months before gold breaks its trading range to the upside.
      Greg

  15. Agent P

    Greg -

    It is actually all about a descent into One-world government, but I realize that sort of outlook is the territory of ‘tin-hats’… It’s actually also a descent into a Full-On Authoritarian State – in the U.S. at least, for that is what will be required to quell dissent among those dependent on government largesse once the wheels come off. Of course, no one is thinking in that direction here, because if one has never lived through Authoritarianism – or even, what brings it about in the first place, then one has no center from which to derive rational and logical conclusions – save for perhaps a keen understanding that while times and technology have changed, human nature has not…

    While we fuss & fiddle with Herman Cain’s peccadilloes, Mr. Gingrich’s Fannie (and Freddie) and Romney’s careful flip-flopping, all about us are the signs and movements of radical change coming about, much of it a direct and Full-On frontal assault on Liberty.

    • Greg

      Agent P,
      Valid analysis and point of view. I see no “tin hats” in sight!!
      Greg

  16. steve

    Great article Greg on pointing out how gold will play out in our next financial calamity!!

    Now that the EU has opened the door in using gold to back the bailout in the EU, it will be something to watch as the governments that are in financial trouble take their view gold, investment or currency. I also read, someplace, even though Greece is in so much trouble they for sure are not at all going to use their gold to pay down their debt. Now that speaks volumes.

    I could not help but think of when Ron Paul ask Fed Chair Bernanke, “Is Gold money?”

    Bernanke with a long pause, (um guess he had to think this time)

    And the answer is?

    NO!

    Good interchange between the both of them. Here it the YouTube link:

    http://www.youtube.com/watch?v=2NJnL10vZ1Y

    I am also amazed how the countries in the Western Civilization are, out of everyone in the world, “starting to crumble”. I thought we were supposed to be the smartest folks on planet earth, I have to shake my head.

    I also received my book, “Currency Wars” just yesterday and am anxious to read Richards view. I have listened to him on King World News many of time, he has a sharp mind.

    And if his top price for gold plays out, believe me, we should all be long on gold, I am!

    I know that there is no getting around the next financial calamity, I just wish it wasn’t so. The world is a change’in, get prepared, I am.

    • Greg

      Thank you Steve.
      Greg

  17. Jason

    “It is useless to shout to the drowning money lender ‘Give me your hand!’ He does not know how to give. Instead, shout ‘Take my hand’. And he will clutch at it.” This is the true nature of the soon-to-be antiquated Mr. and Mrs. Banker. Switch now, people, switch your monopoly money for silver and gold. True, you cannot eat gold, but you can eat what it can buy. Plus, remember the golden rule – he who has the gold makes the rules. This is figuratively true today, with gold = money, and will be literally true in the future, with gold = gold. Great article/site Greg.

    • Vess

      “He, who has the gold, makes the rules” is a think of the past. Ever since the FDR era, it has been “He, who makes the rules, takes the gold”. :P

  18. BigTom

    Greg, I believe you are correct, “….a dramatic turning point in history.” Those who think there must be a financial collapse here before rebuilding America do not understand what this collapse is all about in the first place. As for Germany? Poor Germany….supposedly much of their gold is in storage here in America protected by the ‘full might of the United States military!’ Good luck on them getting their gold back!

  19. Sean

    Greg, thanks for some meaningful reporting.

    I read a book about 20+ years ago that still falls into the realm of conspiracy theory in the minds of most mainstream economists. Hindsight being 20:20, the book so close to reality that it borders on prophetic to those who don’t know how we’ve arrived at our current state. The author made a list of seemingly incredible claims that related to currencies, global trade, military planning, domestic policing, economic integration, and other things. All of these claims were tied to a small group (relatively speaking) of influential individuals who were like-minded in terms of structuring and managing an economically integrated world system.

    It was an interesting read until I had strong doubts and decided to take the piece down to my local library (before internet was in our homes) and start digging into the claims and references. Primarily because in my mind, such a “fantastic” tale of duplicity by prominent individuals couldn’t possibly be based on facts. It must be the author’s fantasy.

    I dug through years worth of publications, government records, and every possible source I could get my hands on in several good libraries to verify the claims in the book. As a young man who believed in our institutions, principles, and values as a patriotic and supportive citizen, I was left dumbfounded. Everything I had been taught to believe in had been dismantled in a few short days. I had found tangible records and reference materials that legitimately supported almost all of the authors claims. At my fingertips in records, publications, microfische, etc.

    At that point the veil of deception was removed and I had the tools in hand to literally watch and understand as global economies have been established over the last two decades, as resistant nations have been castigated, denigrated, invaded, or decapitated, as currencies have been integrated and devaluated, and as key players from private institutions have been moved into policy making roles to continue the process, and as domestic policies have been implemented, ignored, or thwarted etc in a manner that supports the long-term plan of geopolitical integration and interdependence.

    Reality is that the toxic mortgage ponzi was the planned bunker buster that was injected to undermine the very core of our economic foundation, after our core industrial base was deported. The real recovery plan for the US and European economies is this: To not recover. Why? Because the patriotic American and European people will not accept a pure or full economic and geopolitical integration unless we’re on our knees and facing a perceived existential threat that reaches down to the very heart of our individual belief systems. A combined set of perceived and real/manufactured threats that includes complete economic collapse, complete warfare, complete duplicity by political leadership, and complete lack of trust in local leadership.

    The response to all of these is waiting in the wings as a solution that will claim to repair economies, prevent wars between sovereign nations, be a bastion for global equality, and restore faith in political leadership. With all nations signing on as participants in a new order that is designed from the top down to promote peace, equality, and economic balance etc.

    In fact, if you Google UN Agenda 21 or UN Sustainable Development (they are the same program) you’ll find a very in-depth and comprehensive set of web pages and reports on progress for harmonizing internal domestic policies and systems within most countries across the entire world. This activity is already close to completion as the foundational component for a successful integration of sovereign nations. Go to the World Trade Organization site and you’ll find similar pieces in place in nearly every nation.

    With regards to gold and silver valuation, I personally don’t know how much benefit they will provide (or not) as globalist plans are moved forward, but I do know that the key to planning is understanding, and the key to managing risk is to plan and prepared for all viable contingencies. Clearly, that level of preparation under our current circumstances includes investing in real gold and/or silver coin.

    Something else to keep in mind if you are in business for yourself, if you are with a dynamic forward thinking organization, or even if you decide to make some extra income with some sort of eCommerce, is that now is the best time in history to establish and diversify your client base and income potential across different global regions and market segments.

    We may not like the cards we’re being dealt but we can be smart and use them to our benefit. Establish good contacts and be prepared to build on them or with them in direct business, collaboration, and other roles. Market yourself, your organization, and even your thoughts and ideals to a global audience. Be creative and use the tools under your fingertips to prepare and establish broader pipelines, networks, and personal contacts. If you have pieces in place, when it’s time to start bobbing and weaving (if dramatic socioeconomic changes begin to unfold), hopefully you will be prepared to sustain yourself in an environment that would not be manageable without some level of forethought.

    • Greg

      Sean,
      Good advice. Got to make the best out of the cards dealt to you.
      Greg

    • rrrobert

      what book did you read 20 years ago (treads 2000)?

      • Sean

        Hi rrrobert,

        The book is called “The Shadows of Power” by James Perloff.

        You can preview the first chapter at this link:
        http://www.amazon.com/Shadows-Power-Council-Relations-American/dp/0882791346#_

        It’s an invaluable read on the Council on Foreign Relations, whose private invite-only membership (which includes the nations leaders in finance, industry, media, academia, and military) has comprised the majority of every Presidential cabinet for the last several decades. To paraphrase, our federal policy is crafted by a select group of invite-only individuals from a private organization of like-minded individuals. No matter which party is in office. The book is only a foundation and doesn’t cover near the level of detail needed to understand our current challenge, but as a foundation it’s very solid and still very improtant today, 23 years after it’s initial publish date.

        Interestingly, most of the claims from the book are easily found today throughout the internet but many of them appear in highly questionable or odd websites. When I researched the material before the internet was popular, my effort took me straight to source material like the Congressional Record, policy papers from the Library of Congress, press reports, and other sources. Today an internet search might take you to questionable web sites that play silly eerie music with over-the-top graphics and alien warnings etc.

        On todays internet, the perception to a novice researcher (that’s a researcher who doesn’t trace material back to it’s original source) can easily be that the material comes from a bunch of conspiracy quacks. In reality, it comes from very legitimate and traceable sources if someone is prepared to spend the time it takes to truly make a determination on the accuracy of the material.

  20. Frank Rizzo

    I recently spoke to a German man that said in Germany there is talk of a separate northern versus southern euro. Also, I read an article that Germany recently printed a bunch of Deutschmarks to be used in case they leave the Euro. Germany is in a catch 22, because if they leave the Euro their Deutschmark will be too expensive and the won’t be able to sell their exports. So Germany needs the Euro unfortunately for them.

    The idea that fiat currency can be turned on and off like a water faucet without the proportionate population change or productivity change is really the influence of the banks. Gold pegging to a currency is really a money value referee. It is obvious that governments surreptitiously influenced by the banks cannot help but ruin a currency for their own advantage to the ruin of a society. We need another Andrew Jackson to shut down the Federal Reserve.

    • Greg

      Thank you Frank for the info.
      Greg

  21. George

    My belief is that until the power to create money is taken out of the hands of the banks, things will always be the same. Just with a different appearance and style.
    Gold, Silver or Kryptonite will not change the fact that, as long as money can be created out of thin air it just repeats as history has always proven true.
    I don’t see any new plan that addresses those issues. Just backing any currency only changes the appearance, it still keeps the creation of credit and currency in the hands of those it does not belong.
    Until then, enjoy the ride and pray that the bankers allow any that turn to metals to keep their profits, but I highly doubt they will.

  22. Meatdawg

    Okay, okay the “minimum” price of gold, north of 15k an oz. What does he say about silver? I can’t afford gold!

    • Greg

      Meatdawg,
      No doubt that silver will go up in price over time but the swings in silver (both up and down) will be much more violent. When buying silver buy quality. I suggest only government minted coins. If the price goes up dramatically (as many believe it will) they will be instantly accepted and will require no assay. There is more about this on my how to buy gold and silver post right under my photo. Just click that black box. I do not sell gold or silver so I don’t care where you get it. I just don’t want you to get ripped-off.
      Greg

  23. joeblow

    I concurr with many of Agent P’ s assesments.
    I’ve been telling people I know, to take a good look around because this is as good as it gets folks.
    Our standard of living here in North America is going down no matter where you live. (I’m Canadian). This is a reboot people and many of us wont believe what they will see hear and witness. Our consumeristic lives and lack of economic education has ensured and created a “Normalcy Bias” so complete we’ll be willing to be loaded onto rail cars heading for a fema camp nearest you. It wont be much better here in Canada, 70% of our trade is with the U.S. I havent seen a pay raise in more than 3 years and I expect the reverberations from the U.S. to be economically catastrophic when they hit.

    A few notes however on the bright side of gold and silver.
    It’s your wealth that you worked hard for, staring you in the face.
    That shinny ingot or brilliant coin represents your sweat and ability to produce. It takes human labour, giant machines (built by humans), billion dollar companiesbuilt by humans) to pulverize tons of rock to retrieve tiny little flakes of gold and silver and turn it into a coin in your hand That is the basis of money and none holds it better than gold or silver. 5000 years have proven this because it’s the only default currency/money we humans get to run back to each and every time the bankers and politicians f#@k the monatary system up. They push gold and silver out of the monatary system so they can print and promise as much as they like.
    That’s why no fiat currency throughout history has ever survived, none. This is also why bankers and politicians hate gold and silver because they are natural baromerters that reflect the inheirent inflation in the monatary system itself. Gold and silver are the nemesis of bankers and politicians because on one side the banker can create unlimited amounts of currencies and politicians can create unlimited amounts of promises, they are a perfect marriage and go hand in hand. Now that people are running towards that faithful hard currency of gold and silver again this represents a transfer of wealth from fiat to hard assets like physical gold and silver, land. I’m just glad to be awake enough to break my finacial fall and woe to those not savy enough to pay attention to history.
    Long live the sovereign individual!! And may the G-20 become known as the 20 GOLD nations of honest money.

    • Greg

      Joeblow,
      You are anything but ordinary! Thank you for the comment.
      Greg

  24. Dennis

    Greg:
    Consise and very thorough! That’s what I like about your writing. You don’t take 10,000 words to get to the point. Your point was the title of the article.
    My concern now isn’t about myself but about the possibility that Ft. Knox, West Point and the NY Fed doesn’t have all the gold they’re supposed to. What happens if they have swapped it with other banks or worse yet, sold it physically? Hopefully we have all 8100 + tons we claim to have and perhaps even hold lots of tonnage from other central banks like Germany. Don’t forget, he who holds the gold, wins!
    Dennis

    • Greg

      Dennis,
      I think America has its gold and the gold of many other countries as well including most of Germany’s. You should be creating your own Ft. Knox.

      Greg

  25. Epicname

    I’m sure this has nothing to do with the fact that Germany doesn’t want to set another precedent whereupon it is relied on to bailout weaker/more indebted economies in the eurozone. Certainly because it refers to gold, it must solely be about the value of gold, and not the relative ability of one nation to provide another the means to avoid insolvency through the sacrifice of the wealth of the initial nation’s citizenry. Thus, because Germany wants to keep their gold, it must be good, and one must invest, right? (Without context, decisions mean nothing. Markets are volatile, and the idea that this decision had only to do with the valuation of gold, and nothing to do with political decisions and general German geopolitics, will only lead to greater susceptibility to market fluctuations.

    The real accident was keeping Obama and Sarkoczy miked up while they talked smack about Netinyahu.

  26. TeeCee

    If this is close to right, it will be long since confiscated.

    I think the Indians have it right – buy jewelry. Gold chains can be exchanged / traded / bartered, and the individual links are a more useful unit size.

    • Greg

      TeeCee,
      You have to have coinage to make it in the barter world. Coins date back 1,000′s of years. Jewelry is not like a one ounce coin with uniform content and weight. What would stop someone from confiscating your jewelery?

      • TeeCee

        Jewelry purchase is less traceable?
        It’s probably better than nothing.
        I agree assay is a problem.

        • Greg

          TeeCee,
          I think we are really on the same page. Thank you for participating on this site.
          Greg

  27. goldwillgocrazy1233@yahoo.com

    Precious metals will go crazy. The black market is already higher than Wall street’s published price by 30% or more. Don’t believe me? buy some futures of silver and Just try to get delivery of silver at $32 per oz and listen to the spin stories that you are told. Additionally, there is NOTHING the Fed can do to stop the upward price climb of commodities (except to raise interest rates) which the bank will not do. Therefore, greg although I don’t know if $17,000 per oz of gold is in our immediate future, but at some point there will be an INDIRECT relationship between an oz of gold and some other variable.

    Best advice has not changed since the 1914 swindlers took over this country. Gold and silver are your best bet for long term savings.

  28. Jeff C

    Greg: Thank- you for your insight and research. You are a gentleman and a scholar.

    From what I have read.. The German Gold is held at the NY Fed vault. If this is true, then good luck to Germany getting it back. The Gold has more than likely been loaned out to countless third parties over the decades and is no longer actually available (other than through a useless promissory note). Good luck to them with that.

    The lesson to be learned is to buy and hold physical Gold and Silver. Do not trust ANY third parties to hold your Gold. Become your own Central Bank. As you say.. It really is all about Gold, now.

    • Greg

      Jeff,
      I agree.
      Greg

  29. neeraj MATTA

    dear sir
    Can u please elaborate indian context for gold investment. At the current price of RS 29000 /10GMS AND 1DOLLAR EQUAL RS.50.
    IF U.S. DOLLAR IS DEVALUED THEN GOLD MAY BE CHEAPER IN FUTURE HENCE LOSS AT CURRENT PRICE.
    FURTHER DOES FIAT CURRENCY EXISTING IN INDIA.
    PLS/TALK IN LENGTH AS IT MAY BENEFIT SO MANY INDIANS.
    THANKS
    NEERAJ MATTA

    • Greg

      neeraj MATTA,
      India does have a fiat currency. If you can buy gold coins not jewelry. It is easier to value and trade.
      Greg

  30. josef zack

    Yes. Gold will explode as valued in currency. ANy currency or perhaps, all currencies.

    That said, silver, classically “poor man’s gold” will explode higher in a percentage sense.

    By that time though, civil disorder will be such, that a liquid market in exchanging either gold or silver, for things of value, (food, clothing, fuel and what not) will be impracticable.

    We are all in line for some exciting times .

  31. Jm

    From Jim Sinclair’s blog”

    “At the close of business on Tuesday, the debt of the federal government exceeded $15 trillion for the first time–with the largest single owner of the publicly held portion of that debt being the Federal Reserve”.

    Can someone explain this? The government is printing it’s own money then buying it’s own debt? I don’t get it.

  32. slingshot

    Can anyone rememember when the only thing we had to worry about was the threat of communism and that they were going to bury us? Dropping 90% silver coins on the table and listening to the ring they made. Our educational system was the best in the world. There was no Rust Belt and Made in America was marked on everything. Our Agriculture fed the world and our country was a shinning light for Freedom.
    Soon most will be asking, Why am I in this basket and where am I going?
    I think as long as the markets still function and people make some money, we will continue in a downward spiral, reguardless of the implications. The specters of inflation and taxes will still erode at our standard of living and when they exceed our individual limits, we will have change at an accelerated pace. That is what we must protect against by buying gold and silver.
    There are more people who have awakened to this ponzi scheme. The shear amount of gold and silver eagles sales supports this point. The buying of gold by central banks and the reluctance of Germany to throw their gold in Euro Money Pit is evidence that gold has a place in the future financial world. So the question of whether gold is an asset or liability is proved out by the central banks actions of acquisistion.
    Will we be allowed to save ourselves with our gold and silver? I would say, Who in the hell do they think they are! Buying gold and silver is a renouncement of the Fed and governmental slavery.
    Ask yourself. How much more can they do to us? Suspend the Constitution? Tell us to turn in our precious metals? Turn in our guns?
    Well, we shall see.

  33. Randy

    Greg first of all thanks for allowing us to be part of your website last month. The currency wars are only a portion of what is happening worldwide. The trade wars are getting nasty also. China who controls 97% of the rare earth and rare industrial metals market is shutting down mines left and right. On the other hand there are talks of nations like South Africa and India refusing to export metals to China. We are in for a very rough ride in the coming years and folks better own metals. If you are new to metals stick with Gold and Silver. Once again thanks Greg, for keeping the public informed.

    • Greg

      Thank you Randy!!!
      Greg

  34. john anderson

    greg,
    just wanted to thank you for responding to the many individual comment on the thread. for those that submit comments and have credible questions and comments those responses are very valuable. that personal interaction is very welcome. thanks
    john

    • Greg

      Thank you John for your complement and support.
      Greg

  35. Jen+family

    Greg, I work for a gold and silver buyer,I should probalbly start buying it for myself and my family? Actulally I know that I should,it could never be a bad investment right?

    • Greg

      Jen+family,
      You just have to have it as a core family holding. This cannot be money you may need in a few months. You must be able to hold it as a long term investment. That said, Yes it is a good thing to have and it may be vital to financial survival in the future.
      Greg

  36. Cindy

    I have read articles that state as the DOW declines gold is sold to cover margin calls. This decreases the price of gold. If the DOW loses 50% or more will gold fall as far?

    • Greg

      Cindy,
      I have no idea, but if the price sells off do not think you will be able to get your hands on it because everyone will be buying it. The same thing happened a few years back when silver sold off. It was very hard to buy physical, and even the U.S. mint ran out of supply. This is a core holding (physical gold and silver not ETF’s) not a trading vehicle. If you buy, you will need to be able to hold it through the price swings. The swings will be extremely volatile in BOTH directions.
      Greg

  37. M SMITH

    Greg, I would like to quote Jim Sinclair, “Become your Own Central Bank” and then follow up with a plan to become self reliant for all of life’s needs for you & your family. Some may say it is not possible, but there is time left. How much is any ones quess. I have been working on that plan for years & I sleep well at night. The JP Morgan’s & other manipulators are handing ‘those who look’ a ‘gift’ that will not be here much longer. You can act or become a victim.

    Thanks Greg for keeping the truth in front of self interest, that takes more than guts to do what you have done.

    • Greg

      Thank you M Smith. In the gold arena Jim Sinclair is one of the very best in the world! That is fact.
      Greg

  38. Tommy

    They can’t use Germany’s gold to back up all that paper debt. BECAUSE GOLD ISN’T MONEY!!! Don’t believe me, just ask Bernanke.

    • Greg

      Tommy,
      I like your sarcasm.
      Greg

  39. Ron

    Well…it looks like gold and silver took a dump today folks.

    • Greg

      Ron,
      I think that is the case because the monetary wizards are about to dump lots of money on the EU. The powers want it not to look so inflationary so they took gold down. This is just my gut reaction. There could be further corrections and it might last a few weeks or months but it will not stay down because there is just too much money that needs to be created to save the system.
      Greg

  40. therooster

    Gold is already a currency and the 21st century gold standard is not likely to be about gold-backed dollars, but about competitive gold backed digital weight. It already here and been around since 1996. You can buy a single jelly bean on the other side of the globe now. You can pay for it with exact gold weighted payment in the form of weighted title, digitized and fully backed in a decentralized business model that separates gold buying/selling from the web based account interface and the actual holding of the bullion. Debt-free store of value has now married with instant global liquidity. There is no monetary problem, not for us , only for those idiots who think the solution has to be a top-down one. Welcome to the new kingdom that will host the great wedding in real-time.

  41. neeraj matta

    dear sir,
    pls, explain…..
    if we buy gold in india at 1724|oz converted to rs.29000/ 10 gms ‘ because 1dollar =rs 50.
    now in future when dollar is devalued ,meaning rupee would appreciate hence loss in gold?at
    current price.
    can u pls elaborate in this case.

    thanks
    neeraj matta

    • Greg

      neeraj matta,
      I would not consider wealth in dollars or rupee. I would think only how many ounces of gold do I have. I am not a trader. I only think of gold and silver as core long term holdings.

      Greg

    • Denarius

      NEERAJ MATTA,

      I think Greg did not “talk at length” because it makes no difference
      which fiat currency you use to associate with gold or silver. All fiat
      currencies will decline to their natural value of zero. Each fiat currency
      will become like Zimbabwe dollars. No amount of paper “money” will
      buy anything. The only association you will have with gold and silver
      – in beads, in rings, or in coins — will be how much food or fuel you
      can get for each gramme, not how many rupees or pounds or dollars.

      Your new money will be denominated in grammes of pure metal.
      Get comfortable now with pricing things in grammes. How many
      to buy a litre of motor fuel, a kilo of rice, a measure of cooking oil?

      The advantage of coins is that the assay is part of the design. The weight
      and purity are guaranteed by the mint that made them. Of course, over
      longer time spans, even guaranteed coins are debased by governments.

      In the final years of the Roman Empire, the denarius contained only five
      percent of the silver it had originally. I am sure at that point the purity
      markings on jewelry were trusted more than government coins. So, over
      time, using jewelry in trade for food and fuel becomes normal again. If
      you live long enough, you will see at every store and street vendor a scale
      for weight and a test kit for purity. You can get these for yourself, too.

      Do what Greg says and stop pricing gold and silver in amounts of paper.
      You will see your question has no answer because the rupee will devalue
      along with dollars, pounds, renmimbi, rubles, francs, krona, yen, etc.
      Break the paper pricing habit and you will see things more clearly.

  42. nanal

    You said in an earlier post that the gov won’t find your gold. How do we do that?

    • Greg

      Nanal,
      I don’t remember saying that. I did say we do not use gold as a currency (such as a $20 gold piece) so there is a little less incentive to confiscate to take it off the market.
      Greg

  43. Phil Smith

    The Gold Standard is a sham because it gets the camels’ nose under the tent. Physical gold based transactions are the only way. In the future I see two prices for everything. Price number one for paper and price number two for physical gold.

  44. Steve

    Well, if this is all to come about, realistically speaking, how much gold and silver would a family need of 5 need to survive? Would it be better to invest in farmland now, or wait for aforementioned farmland to decrease in price and buy it with newly elevated gold prices?

    • Greg

      Steve,
      There is not one thing to invest in. I would invest in many things that could help a family survive.
      Greg

      • Phil Smith

        Agreed and I would add that these things are not investments but tangible things with utility in everyday life.

  45. mik

    The key word comes down to TRUST.
    Why trust a paper bond “backed” by gold, when you can just buy the gold your self and TAKE possesion.
    Gold pays no interest…well why don’t the central banks just sell it then…
    Because they bought it with Fiat money, so it cost nothing.

    Trusting paper gold at this stage is insane, and the MF heist tells the rest. !!

    A U 2 U
    Mik

  46. rolf

    bring back the OTTOMAN EMPIRE

    • Greg

      Rolf,
      Please explain your meaning of this comment. I think you are refering to the Turkish Empire from the 1299 to 1922. Is that correct? Thank you.
      Greg

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