Dollar Will Lose Value Over Time: Guaranteed.

Until 1971, U.S. currency represented tangible value. Today, the dollar has no intrinsic value; and the dollar-supply is unlimited

In 1971, the value of the dollar was tremendous (thirty-five dollars equaled the value of a 1-oz gold coin). Since then, the dollar has fallen 3,600% against gold (it now takes 36 times as many dollars to buy the same gold coin).

Over time, gold preserves purchasing-power. The sole purpose of gold is to store value. On the other hand, printing-press-money loses value over time. If you keep your savings in dollars, money-printing will destroy your purchasing-power — it is guaranteed.

THE EAST IS DE-DOLLARIZING.

The day  credit collapsed around the world (August 9, 2007), the London gold price was $662.60/oz. After 2007, China implemented a strategy to slowly de-peg from the PETRO-DOLLAR, and aggressively add gold to its foreign exchange reserves. On March 14, 2008, people were shocked when gold surged past $1,000/oz for the first time ever

Image result for forest for the trees luke gromen

BULLION IS MOVING FROM THE WEST TO THE EAST.

Since the global credit-collapse in 2007, the East has been accumulating most of the world’s gold production. Chinese, Russian, Indian, and Middle Eastern purchases have been unprecedented. Buyers from Shanghai, Hong Kong, Thailand, VietNam, Turkey, Singapore, Dubai, Bangkok, etc. vacuum up available bullion on every price-dip.

Gold Kilobars

In the last ten years, there has been a massive draw-down of deliverable gold at the London Bullion Market Assn. [LBMA] and the New York Commodities Exchange [COMEX]. As a result of scrap shortages, the world’s five major refineries have waiting lists for deliveries of pure bullion. Warehouse inventories of available “Good Delivery Bars” [400 oz gold bars, 1,000 oz silver bars] are extremely low at bullion banks. 

Image result for naked silver shorting

Two of the bullion banks under pressure are JPMorganChase Bank (custodian of the silver Exchange Traded Fund “SLV”) and the Hong Kong & Shanghai Banking Corp (HSBC is custodian of the gold ETF “GLD”).

PAPER SILVER • PAPER GOLD

Today, more than half of the world’s population believe that the only real money is gold and silver. On the other hand, less than ½ of 1% of Americans own physical precious metals. Most investors in the West buy PAPER silver and gold ‘derivatives’ [options, commodities futures contracts, and ETFs].

The PAPER market is an entirely ‘different breed of cat’ than the PHYSICALS market. Physical bullion cannot be printed; the supply is limited. The highly leveraged PAPER market has an unlimited, ‘virtual’ supply of silver and gold. In this securitized, fractional-reserve system, they sell gold and silver contracts without the bullion to back the contracts ounce-for-ounce [the practice of selling 100s of ounces to every 1 oz of stored physical silver is called “naked shorting.”]*

NAKED SHORTING DISTORTS SUPPPLY AND DEMAND. 


Thanks to an unlimited supply of PAPER silver and gold, the digital market is in control of spot prices. Prices do not reflect actual supply and demand for physical bullion. During intervals in 2011, 2013, 2014, and July 2015, supplies of silver were so tight, U.S coin dealers were unable to satisfy over-the-counter demands. But each time, the market was flooded with massive tonnage of PAPER silver to suppress the price.

Shortages of actual silver and gold bullion can be hidden as long as naked shorting controls the pricing mechanism. The last time free-market forces prevailed against the trading desk of the New York Federal Reserve was in 2011.When silver and gold supplies completely dried up around the world, silver climbed 160% in only nine months. Coin dealers across the nation were “Bid only” – “No offer.” 

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PRINTING DOLLARS

The official money supply quadrupled from 2009 to 2014. But the Federal Reserve no longer reveals how much or how fast the total monetary base is expanding. To avoid the spotlight on the ballooning total, the Fed quit publishing the “M3” monetary aggregate in 2006. [Image of the Adjusted Monetary Base courtesy of Zerohedge.]

Image result for st louis fed adjusted monetary base

The chart above shows how rapidly the monetary base has been expanding. Money-printing is showing up in rising costs: in the inflated stock market and select real estate markets, for insurance, rent, utilities, tuition, medical care, groceries, gold, and crypto-currencies.

DON’T END UP HOLDING A PIECE OF PAPER.

A whole lot more money-printing is headed our way. And deliverable bullion in the West is in short supply. Extreme product shortages always end up triggering runs to higher highs. The next move up in precious metals will be propelled by HUGE supply deficits. The exchanges are selling the same ounce of physical gold or silver over and over. It is estimated there are 400 claims to every 1 oz of “deliverable” silver at the N.Y. COMEX.

Silver is called ‘the poor man’s gold.’

Take delivery while actual coins are readily available in North America. If markets are disrupted, old U.S. silver dollars and U.S. 90% silver dimes, quarters, and halves [pre-1965 coins] could be used in small transactions. PHYSICAL silver and gold coins are valuable under all market conditions. Don’t end up holding a piece of paper!

Submitted by Denise Rhyne

END NOTES

* NAKED SHORTING (three articles):
http://www.youshouldbuygold.com/wp-content/uploads/2017/09/GOLD-SILVER-9-1.pdf

The British Pound Sterling lost its status as the primary basis of global trade in 1944. Why? Because the Treasury of the United States held title to about 4/5ths of the world’s officially-held gold reserves [more than 20,000 tons after WWII]. The dollar became the world’s “reserve currency” because U.S. government creditors could convert their dollars to U.S. gold [from 1792 until Aug. 15, 1971].

GOLD, THE PETRO-DOLLAR & U.S. FOREIGN POLICY:
http://www.youshouldbuygold.com/gold-the-petro-dollar-and-us-foreign-policy/

Since gold convertibility was suspended in 1971, the dollar has retained its reserve-currency status because of its forty-year monopoly in settling OPEC oil trades.

WEIGHTS, MEASURES & BALANCING SCALES:
http://www.youshouldbuygold.com/weights-measures-and-balancing-scales/

TABLE of CONTENTS: Ancient Monetary System; CARAWeights; KARAT Purity; TROY Weights; METRIC Weights; MILLESIMAL Fineness; FAR EAST Weights; POUND (Pound Sterling, Pennyweight, Sovereign); DOLLAR (Old Gold Coins); Historical GOLD-to-SILVER RATIOS (U.S. 90% Silver Coins, new American Eagles); BIBLE Weights: TALENT, MANEH, SHEKEL, GERAH, BEKAH (Table); WORLD COINS (Gold Contents).

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Gold Price Manipulation Will End.

We are living in an age of manipulated financial markets – interest rates are artificially low, and the stock market is artificially high. Demand for physical gold is at historic highs, supplies are strained, yet the price is relatively low. When will manipulation of the price of gold come to an end? 2020.

First, it is important to understand why the Federal Reserve is pulling out all the stops to repress the price of gold. A high gold price makes the dollar look bad. No one would want dollars if the price of gold were allowed to rise according to actual demand and actual supply of PHYSICAL bullion.

Over many decades until 2007, the Federal Reserve kept the price of gold artificially low by selling tons of bullion. However, coordinated gold sales by central banks stopped after the 2008 crash. Continue reading Gold Price Manipulation Will End.

IRAs/ Pension Funds: Fear is Driving People to Cash Out.

A few days ago, I heard from an old customer. As with so many others who have called, her pension fund had taken a huge hit since the crash.

In 2008, her IRA account was worth more than $1 million. Last week, the trustee said it was worth $550,000.


She bit the bullet and cashed out her IRA.

She told me she has been watching what is happening all over the world – capital controls; ‘soak-the-rich’ taxes; seizures of bank accounts (bail-ins); and forced conversions of private retirement funds into government bonds. She believes our own government is going to do the same as more than a dozen industrialized nations have already done.

KWN Embry I 1:7:2016

After taking out $77,000 for the taxes and penalties,
she put the remaining $346,000 into gold and silver coins.

A gutsy move and also a very smart move. Her decision to convert paper assets into gold and silver coins is prudent considering the rapid devaluation of the U.S. dollar.

The dollar is in the process of losing its status as the reserve currency of the world. My customer is no longer willing to be lulled into hoping everything will turn out O.K. during the ugly transition to a new global monetary unit. Continue reading IRAs/ Pension Funds: Fear is Driving People to Cash Out.

Gold is Reserve Currency of Banks

For the last nine years, sovereign nations and central banks have been vacuuming up the supply of “good delivery” gold (400 oz gold bars). Central banks have purchased record amounts of physical gold — at even a faster pace than just before the U.S. dollar was disconnected from gold (Nixon severed the gold-dollar tie in 1971).  

ARE BANKS PREPARING FOR A GLOBAL RE-SET?

The gold-buying frenzy is related to the changing status of the dollar. Central bank gold demand is the highest since 1964 and the period of time leading up to the collapse of the London Gold Pool in 1968. The banks are systematically adding to their gold reserves in exchange for their dollar reserves.

As supplies of physical gold become available, countries such as Turkey, the Philippines, Ukraine, India, VietNam, Russia, South Korea, Sri Lanka, Kazakhstan, Argentina, Mexico, and China line up to take delivery. Continue reading Gold is Reserve Currency of Banks

Bonds Are In the Bubble of Your Lifetime.

The Federal Reserve has been inflating the U.S. Treasury Bond Bubble for more than thirty years. Managers of some of the world’s largest bond funds are warning investors to act now. The bond market bubble is just about to  pop.

Martin Kozlowski, Wall Street Journal

Chances are, you are far more exposed to risk than you realize. It is likely half of your ETF [Exchange Traded Funds] portfolio is invested in U.S. Treasuries (read the fine print). And probably 40% of your retirement funds are allocated to bonds. Your nest-egg is not safe in a bond fund.

When the bond bubble pops, PHYSICAL gold and silver coins will become scarce

By Denise Rhyne

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GOLD IS A PRUDENT INVESTMENT:
http://www.youshouldbuygold.com/gold-is-a-prudent-investment/

TEN COMPELLING REASON TO BUY SILVER NOW:
http://washingtongoldexchange.com/2014/ten-compelling-reasons-to-buy-silver-now/

CONTROL YOUR OWN PORTFOLIO INSURANCE:
http://www.youshouldbuygold.com/control-your-own-portfolio-insurance/