The precious metal world is changing at an alarming rate. One benefit of founding a site like the one you’re reading is the ability to see a worldwide stage, not just my neck of the woods. My goal is to provide clear concise PM (precious metals) information and then justify its worthiness backed up by today’s current events.
In my opinion, never before has silver and gold been so significant.
Most readers still wake up each morning looking for validation to buy some, or more, silver and gold. This validation is usually based on PM’s moment in time. Today we will provide several world events providing such validation with hopes more take notice how only real assets, like silver and gold of course, will hold necessary value during a time of worldwide fiat debasement.
I realize many are new to PM thus my goal is to simplify metal as much as possible.
Everything should be made as simple as possible, but not one bit simpler. Albert Einstein
SPAIN BANS CASH TRANSACTIONS:
THE DAILY BELL: Spain Bans Cash Transactions Over 2,500 Euros … Spain has outlawed the use of cash in business transactions in excess 2,500 euros in order to crack down on the black market and tax evaders. The motivations behind the push for digital currencies is exposed as Spain heads down the road of the Greeks in combating their sovereign debt crisis. As the government scrambles for every tax dollar it can get its hands on, even though they already gave every Spaniard $23,000 Euros in debt last year alone (approximately $32,500), they are now banning all large cash business transactions. Why? So they can track the transactions and make sure that people and business are paying taxes. Being able to track the transactions is also aimed to combat the growing black market in Spain. – Alexander Higgins’ blog. Read more here.
PROSPECTOR: It is no wonder that folks in Spain have turned to a black market economy considering the level of taxation needed to support sovereign debt. Spain and Greece are nothing more than a snapshot of America’s tomorrow. In fact, they are a worldwide snapshot as governments fix debt problems with more borrowing and government overreach. Does anyone honestly believe more taxes on a global scale are anything but likely?
Folks, these economic corrections we’re discussing today are all caused from too much spending and excluding something restraining like a gold standard. This news is sad for the folks in Europe and, soon, very sad for the rest of us.
GREEKS TURN TO BARTER:
BBC NEWS EUROPE: A few months ago, an alternative currency was introduced in the Greek port city of Volos. It was a grass-roots initiative that has since grown into a network of more than 800 members, in a community struggling to afford items in euros during a deepening financial crisis.
“We have reached the bottom of our lives and we now have to think in a different way,” says Tasos, a vegetable-seller. Read more here.
PROSPECTOR: This article is nothing short of fascinating since it validates what we have written over the last 14 months. People do not collapse even though a currency does. They find meaningful ways to trade, regardless of euros, dollars, yen, yuan, etc.
We’ve said it before but it deserves mentioning again. Silver and gold are real money. They both will return to a worldwide currency but not before governments fight taxpayers to the end. The people will win and governments will reduce themselves to a realistic portion of our society and economy.
SHOULD WE RETURN TO A GOLD STANDARD?:
USA TODAY: SHOULD WE RETURN TO A GOLD STANDARD–But returning to the gold standard also has myriad problems. On a practical level, there’s not enough gold in the world to return to a gold standard — and no one else in the world is on the gold standard. By tying the value of the dollar to gold, the government cedes control of monetary policy, making it unable to increase the money supply in times of economic crisis.
The growing U.S. debt — $15.6 trillion, if you throw in Social Security and Medicare — is one reason people fear inflation and think that the monetary system is out of control. “Never in history have we run debts and deficits to this magnitude,” says Lance Roberts, chief economist at StreetTalk Advisors. “We’ve never been here before.” More here.
PROSPECTOR: This article is worth reading two times if you ask me. Why, because it validates how far removed we have drifted from individual economic independence? The article above mentions, “By tying the value of the dollar to gold, the government cedes control of monetary policy, making it unable to increase the money supply in times of economic crisis.”
Yes, absolutely correct. This is why it is so important to remove aggressive monetary capabilities from government. The choice is always to borrow and spend as long as borrowing is an option. Our worlds will not fall apart if government can’t expand the money supply.
Comments & Questions:
Question: Love the site but need some help here. My wife is convinced that spending our savings for gold is a form of investing. I say it is no different from a savings account outside typical banking institutions. We both agree gold is the best hedge for inflation but less agreeable where the money should come from.
It seems our world is hell-bent on printing money until it is as worthless as post WWII Germany. Am I correct in believing a cash savings is far more at risk than a real asset like gold? She is having a hard time letting loose of our cash savings.
PROSPECTOR REPLY: Thanks for the question, and reading our site. Boy, regardless what I say at least one of you will not totally agree, sorry in advance. Here we go. She is correct that cash today is king. You are correct that over the longer term cash will continue to lose buying power (not sure if it will go into hyperinflation as you mentioned, it certainly could).
I suspect we will hear this same question many times over the next few months as families try to decide what the best protection for assets is, including a savings. I personally view money invested in silver in gold as a savings. This is the beauty of international storage facilities like Bullion Vault or GoldMoney. This new age savings account offers physical silver and gold at near spot prices. Fees to resale are non-existent too. The only real fee is a monthly storage charge (not much different from some banking accounts).
This type of gold savings (international storage facilities) offers the best of both worlds. Trading metal back into cash is as easy as selling some, or all, as and when you decide. The money is then wired back into the banking account of your choice. Trading gold back into cash is easily exchanged online.
One final thought. You both will know when the time is right to protect hard-earned savings with PM. Trust me, it will be soon, and she’ll need little convincing.
Just a reminder:
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