Climbing The Wall Of Ruin – America The Bell Tolls For You.
Tuesday, 23 August 2011
As the financial storm begins to intensify there is one paramount reality investors need to remember –
Physical gold and silver are the only port for wealth protection.
Americans in general and Wall Street in particular will surely deny this as they have in the past but this lesson comes straight from the annals of history. The week that was saw gold and silver hold up well into the financial stress. Could gold pullback soon? It seems a likelihood as rumors of a 2nd gold margin increase in less than a month swirled through the markets. Let’s all hope we get that selloff in gold to buy into, but don’t expect it to be long or deep – There are simply too few ounces in the world to protect investors who are beginning to awake to history.
The week marked the 40th anniversary, the measure for one generation, since America delinked from gold. For all intents and purposes, Americans should chalk up the dollar as the latest currency over the millennia to fail in the span of one generation. Seem an exaggerated claim? With its purchasing power decimated by 90% and our debts incurable, it is obvious to virtually all foreigners who can view the reality without emotion. What will you need, a 99% reduction in purchasing power to accept that the dollar has been destroyed by our politicians before our eyes? (But don’t despair, this transition back to our constitutional currencies of gold and silver will mark the dawn of an exciting new chapter in American financial history and political leadership– just be sure to own some before the announcement is made.)
The week saw Venezuela disengage from financial markets as an entire nation decided it was not in the interests of its citizens to trust Western paper gold promises.
Specifically Venezuela converted over 200 tons of its gold from paper into physical and recalled their metals to their shores. The potential ramifications of this could mark a run on the gold banks. Americans would be well served to consider the litany of central banks that have called home their physical gold, rejecting Wall Street’s mantra that “paper gold is just as good as physical gold if not better”.