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Perspectives on America, ‘Short Takes on Wealth – 114
G O L D
This is Jeff Bennett for the Preparedness Podcast, with another installment of Perspectives on America, ‘Short Takes on Wealth – 114’
Today’s topic, “G O L D”
Gold: Get Some
Bill Sardi
I can recall listening to radio broadcasts over the past two or three decades where a purveyor of gold bars or coins came onto the broadcast to say the world faces economic gloom and doom and we had all better buy some gold.
Typically, as the sales spiel would go, radio listeners would hear that the market for industrial gold and silver is opening up in China and that if just one more ounce of gold or silver was used by every person in China, why there would certainly be a shortage of these precious metals. Based upon limited supply and increased demand, the spot price is sure to rise.
Gold for the day of reckoning
If the day comes when the US dollar becomes confetti (it could any day), US gold and silver coins would likely be the only medium of value that US citizens and shopkeepers recognize as an alternative to paper money.
However, today, with obvious worldwide debt that cannot be repaid and the printing of fiat money to meet the government’s obligations, and predictable hyperinflation to follow, a worldwide economic crash is imminent. Marc Faber, publisher of the Gloom & Doom Report, confirms that this time the “gold bugs” (investment counselors who are bullish on buying gold) are not “crying wolf.”
You can play with the big boys
You may perceive the sale of gold bars and coins as a relatively small market compared to another commodity such as oil. But actually, the London Bullion Market Association “over-the-counter” (OTC) gold market, which trades approximately 90 percent of the world’s physical gold trade, averages 2100 metric tons @$1150 per ounce = $21.8 billion in sales a day, compared to 82 million barrels of crude oil per day @$77 per barrel, which totals just $6.3 billion a day. The gold market is 3.5 times greater than crude oil! So you can fully understand the big buyers control that spot price of gold. You can also understand, while you aren’t a big enough player to buy oil, you can buy gold!
Not only do central bankers and gold distributors influence the price of physical gold, but super-wealthy individuals can also influence the spot gold price. George Soros, the billionaire trader, actually attempted to sucker holders of physical gold to sell their holdings as he drew news media attention for his statement that gold represented “the ultimate asset bubble.” However, it was Soros himself who was swooping up all the gold he could buy.
And there are bigger buyers of gold than Soros. If you think Bill Gates and Warren Buffet are the wealthiest people in the world you are falling for the propaganda the world news media delivers. Some investigators report the hidden wealth of the Rockefeller family in 1998 was ~$11 trillion, and the Rothschilds in England $100 trillion.
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