Gold’s most important use is as insurance against the paper (fiat) currency of the country you live in, in our case the United States. Fiat in Latin means “by arbitrary order or decree” (Source: The American Heritage Dictionary, 1983). Thus, our currency exists by decree only – and arbitrary at that! Stated another way, our currency is money only because our government says it is – not because it has any intrinsic worth.
What worth does it then have? We are supposed to take solace in the fact that our dollars are as stated on the U.S. Department of the Treasury website, “backed by the full faith and credit of the U.S. government.” It seems that something about the preceding sentence is on the wane.
Real money exists independent of decree. How much of your wealth is impervious to the printing press? How much of your wealth are you entrusting to governments’ ability to restrain the printing press? How may of your eggs do you have in the same basket?
All Things Considered – John’s Commentary
When was the last time you sat down and calculated your net worth – I mean actually revised your own personal balance sheet? What percentage of your balance sheet is susceptible to our government’s fiat money system? Do you have at least a small percentage of your wealth in a form that is impervious to (or even grows as a result of) poor government monetary policy? Is it 10% at an absolute minimum? That still means you are betting the other 90%!
Action to take: Start by establishing at least a 10% foundational holding in physical precious metals today.
What to buy now: Silver – because it’s so heavy! What did I just say?? I visit with people all the time that complain about owning (and storing) silver because it’s so heavy. In their mind, “it’s not worth the weight”. Believe me, when silver gets to $50 (and much higher), we are all going to be wishing we had a lot more weight! Silver will outperform gold by a factor of four, or more, before this bull market is over. Take on as much weight as you can possibly handle. You’ll be glad you did.
Quote of the day: “All previous attempts to base money solely on intangibles such as credit or government edict or fiat have ended in inflationary panic and disaster.” – Donald Hoppe
When was the last time you sat down and calculated your net worth – I mean actually revised your own personal balance sheet? What percentage of your balance sheet is susceptible to our government’s fiat money system? Do you have at least a small percentage of your wealth in a form that is impervious to (or even grows as a result of) poor government monetary policy? Is it 10% at an absolute minimum? That still means you are betting the other 90%!Action to take: Start by establishing at least a 10% foundational holding in physical precious metals today.
What to buy now: Silver – because it’s so heavy! What did I just say?? I visit with people all the time that complain about owning (and storing) silver because it’s so heavy. In their mind, “it’s not worth the weight”. Believe me, when silver gets to $50 (and much higher), we are all going to be wishing we had a lot more weight! Silver will outperform gold by a factor of four, or more, before this bull market is over. Take on as much weight as you can possibly handle. You’ll be glad you did.
Quote of the day: “All previous attempts to base money solely on intangibles such as credit or government edict or fiat have ended in inflationary panic and disaster.” – Donald Hoppe
