In Gold We Trust

I have just began reading through the 2019 updated “In Gold We Trust” by Ronald-Peter Stoeferle/Mark J. Valek in preparation for my interview with Peter on June 18. If you miss the live broadcast, you can listen to it at on the following day. Also with me on that particular show will be Dr. Quinton Hennigh of Novo Resources and as usual Michael Oliver will provide his latest insights into key markets including gold. 

Printed on America’s Currency are the words, “In God We Trust,” which I believe goes a long way in explaining why our Founding Fathers chose the dollar to be defined in a specific number of grams of gold and a specific number of grams of silver. Gold was given to us by God to be used for money. It has all the attributes that has caused humankind to choose it as the best possible medium of exchange and store of value on earth whenever policy makers allowed them to do so. Gold fits very well with a free market. In fact, it is impossible to have a free market when ½ of every transaction is manipulated given the Fed’s manipulation of the value of money.

Gold as money cannot be created in infinite quantities so it serves to discipline investors to carefully select their investments based on risk/reward decisions. And since money cannot be created out of thin air and debt creation is constrained, consumers are disciplined in their spending habits. Ultimately as a 72-year old man, I put my trust in the Creator who lives both inside and outside of the four dimensions of time and space for as long as I have life and breath and a sound mind. 

As the authors of In Gold We Trust document, trust among most western countries is in a sharp decline in no small part because of ongoing manipulation of the monetary system by central banks and governments. The insanity of negative interest rates has been tried and all that has resulted is an even more ridiculous quantity of money creation and mal investment leading the higher than ever debt/GDP ratios around the world. Now even crazier proposals are being aired and as the next financial crisis and/or global economic crisis erupts, the limits of Modern Monetary Theory will be tested as people within nations and nations to nations lose trust in one another.  We are facing a time like no other when gold and/or silver as asset-based money will win out over debt-based fiat money which will ultimately enter the dust bins of history as the debts upon which fiat is created cannot be paid leading to currency collapse. It’s not possible to know when collapse will occur but tariffs, wars, rumors of war and potential insolvency abound suggesting you best be prepared, first with gold bullion, and next with gold shares that perform well during equity declines.