Silver and Gold Bullion is going to be the investment track to be on in the first years of the 21st century. Precious metals have held their overall worth for thousands of years and will hold it for thousands more. Those of us that have physical silver and gold on hand will be on the right side of the world’s biggest wealth transfer in history.
No doubt there will be considerable fluctuation in the prices but silver and gold will always hold some value. With all of the fiat currencies around the world one needs to seriously consider having some precious metals on hand when the fiat currencies really start to fail… It WILL happen...
No fiat currency has EVER survived. From the time the Romans started minting gold coins by adding copper and other metals besides gold, making them fiat money in essence, there has never been a currency that has gone fiat and then come back to solvency.
What is a fiat currency you ask? Well, Dictionary.com defines the word “fiat” as follows:
fi•at [fee-aht, -at; fahy-uht, -at]
noun
1. an authoritative decree, sanction, or order: a royal fiat. Synonyms:
authorization, directive, ruling, mandate…
…3. an arbitrary decree or pronouncement, especially by a person or group of
persons having absolute authority to enforce it: The king ruled by fiat.
The word itself comes from the Latin word, fieri: let it be done, to become.
So what is fiat currency or fiat money? Well, simply put, it is money or better stated, currency, that was ordered to be created by the government. This currency is backed by nothing more than the collective “word” of said government as to the value of the currency in hand.
Before 1971 all of the currency (coins and paper federal reserve notes, paper bills) in the U.S. was backed entirely by gold bullion. You could actually go to a bank and request your withdrawal in gold bullion instead of paper money. I doubt that it was quite as easy as that but it was an option. Then, in 1971, President Nixon took us completely off of the gold standard, (by decree) he basically made all of our currency fiat in actuality. Guaranteed only by the ‘word’ of the existing government.
Since, at that time, all other national currency was linked or backed by the U.S. dollar, in some way or another, that simple act of Nixon’s, transformed the world’s currencies into fiat currencies.
As stated in the definition above, ‘an authoritative decree, sanction, or order.’ The government ‘decreed’ that this federal reserve note, or piece of paper, was worth xxxx amount. Unfortunately for the holders of similar paper, you and me, every time the government decides to print more of these pieces of paper they are in fact simply devaluing all other pieces of paper printed previously.
The main reasoning behind Nixon’s action was due to the ever increasing national debt that the U.S. was incurring at the time. Using the same logic (or lack there of) when the banks and major corporations were having difficulties in 2008, then President Bush, simply ordered, or agreed to, more money being printed. Followed shortly there after by President Obama for the same reasons.
I found a quote by Alan Greenspan, former chief of the Federal Reserve, which sums up some of the thinking when there is a fiat currency in the works…
“The United States can pay any debt it has because we can always print money…”
– Alan Greenspan
August 7, 2011
Now obviously, I have taken that out of context, but you get the idea.
Then when you take the opinion of the current chief of the Federal Reserve, Ben Bernanke, when asked by Congressman Ron Paul, “Is gold money?”, he answered, “No”.
Well folks, gold has been considered money for 6000 years, why should it change now?
As stated in the title above, this transfer of wealth is going to rely mainly on the individual that understands that precious metals, mainly Silver and Gold, are… as they always have been… a form of money. Obviously the only form that has held up to time and the recovery system for all fiat currencies throughout
history.
Check out this interview of Mike Maloney and David Morgan, two of the experts on precious metals, and what they have to say about where the value of silver and gold (especially silver) are headed:
My wife and I have started to accumulate physical silver and gold each and every month. I don’t see us exactly getting rich from it, but I am pretty certain we will be in better shape in years to come than those people who rely on the paper documents that have established wealth in the past. Even if your current investment strategy includes silver and gold, are you in actual physical control of it or is it simply a piece of paper that states that you own xxxx amount of it?
AmericanGoldReserve.com is the vehicle that my wife and I are using to obtain
physical silver and gold. We are not wealthy, we do not have a surplus of cash that we can go out and plunk down a few thousand dollars to buy physical silver and gold on a regular basis. We are your basic middle class Americans, but unlike most, we refuse to be reliant on the past methods of securing our retirement. We are slowly, but surely, accumulating physical silver and gold on an ongoing basis.
We are also affiliates of AmericanGoldReserve.com and proud of the fact that we can bring this opportunity to other Americans just like us. One of the sweetest parts of this opportunity is that if someone does not wish to be an affiliate of AGR they can simply be a customer, giving themselves an avenue to purchase as much, or as little, physical silver and gold as they so choose.
Go check out this video and sign up for my eMail series if you are interested in grabbing your share of “The Greatest Wealth Transfer In Human History”
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