... Gold and economic freedom are inseparable. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. Gold stands as the protector of property rights. If one grasps this, one has no difficulty in understanding the statists antagonism toward the gold standard. Alan Greenspan, “Gold and Economic Freedom”, in Capitalism: The Unknown Ideal. Ayn Rand, ed., (New York: New American Library, 1967), 96. We live in a period of increasingly radical fiscal and monetary policies. The level of government intervention in financial markets and the private lives of citizens has reached a level that calls for thorough consideration and preparation. Excessive increases in the money supply (monetary inflation) and financial repression have resulted in a substantial misallocation of resources, global economic imbalances and distorted market signals. Seasoned investors know that short-term predictions are extremely difficult or nearly impossible to make. However, what can be said with some certainty is that as governments across the globe continue down their path of quantitative easing, negative interest rates and competitive currency devaluations, fiat paper money will continue to depreciate relative to real assets, and, in particular, relative to gold. It is easy to get lost in the gibberish of daily financial news and spectacle. However, we believe it is important to focus on the big picture and not to get lost in the details. The continuously rising debt burden is the biggest issue in our view! The leading nations of the world such as the United States, the United Kingdom, the European Union and Japan are facing the highest levels of public debt in times of peace. In addition to these high levels of debt, there are unfunded liabilities which have reached unprecedented levels. Considering the aging populations worldwide and increasing unemployment, our social safety nets and financial systems are under enormous strain and unsustainable in the long-term. In such an insecure economic situation, we are convinced that the preservation of ones wealth is paramount, or as Mark Twain put it, I am more concerned with the return of my money than the return on my money. Physical gold is the most effective antidote against the ongoing global debt crisis. It cannot be printed and therefore its value cannot be destroyed by any central bank policy.
Posted on: Sat, 13 Dec 2014 06:50:42 +0000
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