Gold and Silver bullion are perhaps the best investment a person could make this decade.

There are a few basic reasons why people have chosen gold as the bedrock of their financial foundation for thousands of years.

1. Gold retains buying power – unlike fiat currency, gold retains its ability to purchase goods over time.

2. Gold has intrinsic value – again, unlike fiat money or other “paper” investments that rely on a government or financial institution to give the paper its value, gold has intrinsic value.

3. Finally, gold has no counter-party risk. Regardless of what happens as financial institutions, and financial systems fail, gold retains its value internationally.

In a word, gold in todays economy represents security.

If you first understand the fundamentals of money, as in currency, you will understand why gold and silver are the safest place to be right now.

You see, gold and silver have been money for over 5000 years of human history, and we have become so smart (or is that stupid?) that we have figured out how to ‘make paper behave like gold’. How foolish we have become.

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This is the best method I found found after 3500 hours of research on how to buy gold and silver bullion in quantity: The Anglo Far East Bullion Company.

• Total Privacy, Numbered Accounts in the Swiss Tradition
• Private Vaulting Outside the Commercial Banking System, Located in Switzerland
• True Wealth Protection, Multi-Jurisdictional Legal Structure Insures your bullion lies beyond a wall of legal bullwarks.
• Acquire, Store, Liquidate Online
• Any Quantity Up To Tonnage Levels – no constraints such as what is being experienced at the retail and mint levels
• AFE is one of the largest private gold and silver bullion custodians on the earth
• Impeccable record in the bullion industry spanning several decades
• World Class security, LBMA Accredited vaults located in Kloten Switzerland
• All Bullion 100% Insured By Lloyds of London
• London Bullion Market Association Accredited Good Delivery Bars and Storage Facilities
• Unmatched governance – all vault transactions require signature of third party custodial trustee, third party auditors as well as vault agent must be present to add or remove gold or silver from the vault system. No other bullion custodian I am aware of goes to this extreme to guarantee your protection.
• Total Privacy – numbered accounts, non western country jurisdiction of management corporation.
• Complete ownership – you are the undisputed owner of your gold and silver, no fractional reserve banking, lease/lending, or leverage of any kind.

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The reason that our currency was tied to gold and silver, is that it acted as a check on the government, preventing it from printing unlimited dollars.

Politicians, being politicians, of course want you to feel like they are Santa Claus, so they figured if they could seperate gold and silver from the dollar, they could go out and print as much as they like for social welfare programs, wars, and all kinds of other Santa Like projects.

Now to understand why thats bad, you have to understand what inflation is. Inflation is adding currency to the pool of available currency. Inflation IS NOT prices going up, that only happens after the act of inflation has occurred. For example, one of the reasons money retains its value is because it is somewhat scarce, if dollars were as common as rocks lying on the ground, they wouldnt be worth much now would they?

So people wonder why the cost of food, gas, energy, etc is going up all around the world. The answer is simple, we have added trillions of dollars to the pool of available dollars, making every single dollar worth less, so it takes more dollars to buy the same goods.

The US Dollar has lost over 96% of its value since the creation of the Federal Reserve Act in 1913.

So basically your money is on fire, smoking, and devaluing at a rate of 8%-20% a year.

If I offered you a job earning $100k a year, but there was a requirement that I would reduce your salary by 8%-20% each year, completely at my discretion, would you take the job? Of course you wouldnt, you would have to be an idiot to accept it. So why do we accept this in terms of what is happening to our money?

Did you know, that gold has retained its buying power for thousands of years? An ounce of gold could clothe a man head to toe in the finest clothing available thousands of years ago, and today, an ounce of gold will still clothe a man in the finest clothing available.

Lets contrast that with $20 US. One hundred years ago $20 would buy you an entire wardrobe. Today, you would be lucky to be able to buy some underwear and a pair of socks with that same $20.

Now, consider that the only way we can stabilize our currency is to link it to something of intrinsic value and you understand the opportunity here. Not only will you retain your buying power instead of losing it all in the stock market as the baby boomers retire and start sucking money out, not only will it protect you against inflation, but when the world shifts back to linking currency to something of intrinsic value it will be a massive transfer of wealth virtually overnight. Gold has always been the ‘Money of Kings’ and all things in history repeat, I believe it will be again!

The total value of all the paper money and bonds in the world is about $100 trillion, and all the gold ever mined in all of human history is just under about 5 billion ounces. So, world money divided by world gold gives a figure of $20,000 per ounce!

World central banks are running out of gold, and some are starting to buy gold, such as Russia, China, South Africa, South Korea, and more! The central banks claim to have about 30,000 tonnes of gold, but they may have less than half of that, as most has been lent or leased into the market over the past ten years.

So, even though the U.S. dollar is no longer backed by gold, any holder of dollars could wise up at any time and start buying gold, or silver. China, for example, could spend their $1.65 trillion U.S. dollars in bonds and buy gold anywhere in the world, such as Switzerland, Dubai, Tokyo, or even send agents to buy gold at the 4000 or more coin shops in the U.S. The dollar could drop 50% or more overnight, and there’s not a single thing the U.S. government, or you, or I could do about it.

Annual gold supply from mining is about 2500 tonnes. With 32,151 troy ounces per metric tonne, that’s 80,377,500 ounces of gold. I estimate that if China bought that much gold, the price of gold would jump up about $500/oz. to about $1,200/oz. At $1200/oz., that would cost about $96.5 billion, which is less than 10% of China’s U.S. dollar bond holdings. A prudent diversification into Gold on China’s part could cause the dollar to lose 50% of its value overnight.

When France redeemed U.S. dollars for gold in 1971, it ended the gold standard. This was not the fault of France, it was the fault of the U.S. for printing too much paper money, and we have not yet learned our lesson.

There is a Chinese saying, that wisdom begins by calling a thing by its proper name.

Gold is money.

Gold has been the standard used to measure a currency unit of value for thousands of years because:

• Gold is liquid and easily traded, with a narrow spread between the prices to buy and sell (about 1%).
• Gold is easily transportable, because it has a high value for its weight.
• Gold is money because it is divisible, you can divide it into coins, or re-melt it into bars, without destroying it.
• Also, gold is interchangeable. It can be substituted for another piece of gold with no hassle.
• Gold is also nearly impossible to counterfeit, as genuine gold is easily recognizable.
• When measured by weight, gold is easily countable, and verifiable.
• Gold is money because it is a great store of value. It is not subject to decay, rot, or rust.
• Gold has an intrinsic value, because it is rare, highly desired by the world over.
• Gold is no one’s liability.
• Gold depends on no one’s promise to pay.
• Gold carries no credit risk.
• Gold cannot be inflated (you can’t print more of it).
• Gold’s value cannot be altered by government decree.

For an excellent video education on what is occurring in the economy, why we are currently in a financial crisis, and how to protect yourself, see this video series:

The Crash Course

Sincerely,

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Buy Gold and Silver Bullion – Acquire, Store, Liquidate – Large Quantities Up To Tonnage Levels – Vaulted In Switzerland – Insured By Lloyds of London

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