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Russia’s Collapse Demonstrates Why One Should Own Gold in One Simple Chart
by John Galt
December 16, 2014 19:10 ET
The naysayers on CNBCFBNBBGCNN and various “financial” experts have long proclaimed that gold is a worthless investment, that over the years it provides little if any return, and that the risk of a collapse in the United States is so low why waste one’s time or money on purchasing risk insurance like precious metals when paper alternatives are better.
What they did not tell you is that many of the same pundits were lying through their teeth and buying physical gold, land, guns, and taking cash out of the banks and locking of all that into their own personal safes at home in anticipation of a potential total collapse in 2008-2009.
Gold, despite the protestations of the paper pushing used car salesmen, is still a monetary currency as demonstrated by the one simple chart below courtesy of Goldpriceoz.com(latest quote above 83,000):
If one lived in Russia and had purchased 10 ounces of gold as insurance against financial instability, that individual will be set for hyperinflation or if they so desired they have the ability to sell the gold for another currency in any denomination they would like; be it Euros, Yuan, Yen or US Dollars. With companies like Apple beginning to halt online sales in Russia due to the Ruble’s instability, it is little wonder that the lines formed at Forex Money Exchanges and banks to get out of the Ruble and into other currencies.
Care to wager who was at the front of the line at the Russian banks and exchanges to obtain Euros or Dollars?
Probably the individual with the gold. Just like they would be in the United States or perhaps even our new military “ally” of Ukraine (chart courtesy of GoldBroker.com):
The failure of the “experts” is to understand that the purchasing power of gold has not decreased, only the expression of gold in the price of various fiat currenciesy. Hence if one understands the risks of global economic and political instability, including potential world war, then gold becomes the safest haven of them all for survival over a long duration barring confiscation by government agents at gunpoint. Ignore this lesson, once again just 6 years after America’s most recent economic disaster, at your own risk.
by John Galt
December 16, 2014 19:10 ET
The naysayers on CNBCFBNBBGCNN and various “financial” experts have long proclaimed that gold is a worthless investment, that over the years it provides little if any return, and that the risk of a collapse in the United States is so low why waste one’s time or money on purchasing risk insurance like precious metals when paper alternatives are better.
What they did not tell you is that many of the same pundits were lying through their teeth and buying physical gold, land, guns, and taking cash out of the banks and locking of all that into their own personal safes at home in anticipation of a potential total collapse in 2008-2009.
Gold, despite the protestations of the paper pushing used car salesmen, is still a monetary currency as demonstrated by the one simple chart below courtesy of Goldpriceoz.com(latest quote above 83,000):
If one lived in Russia and had purchased 10 ounces of gold as insurance against financial instability, that individual will be set for hyperinflation or if they so desired they have the ability to sell the gold for another currency in any denomination they would like; be it Euros, Yuan, Yen or US Dollars. With companies like Apple beginning to halt online sales in Russia due to the Ruble’s instability, it is little wonder that the lines formed at Forex Money Exchanges and banks to get out of the Ruble and into other currencies.
Care to wager who was at the front of the line at the Russian banks and exchanges to obtain Euros or Dollars?
Probably the individual with the gold. Just like they would be in the United States or perhaps even our new military “ally” of Ukraine (chart courtesy of GoldBroker.com):
The failure of the “experts” is to understand that the purchasing power of gold has not decreased, only the expression of gold in the price of various fiat currenciesy. Hence if one understands the risks of global economic and political instability, including potential world war, then gold becomes the safest haven of them all for survival over a long duration barring confiscation by government agents at gunpoint. Ignore this lesson, once again just 6 years after America’s most recent economic disaster, at your own risk.
