Own your Gold today
July 29th, 2008By Bruce Sands
With gold production on the decline, the Federal Reserve policies which constitutes the injecting of money through the printing press or via the digital route, will only aggravate and hasten the impending economic crash.
An Act to ‘provide relief in the existing national emergency in banking, and for other purposes’ was formulated in the Act of March 9, 1933. It prohibits the hoarding of gold coin, gold bullion, and gold certificates within the continental United States by individuals, partnerships, associations and corporations.
The regulation calls for the withdrawal of the hold from hoarding them. It applies to both individuals and corporations.
The concerned people were required to deliver their gold holdings to the Federal Reserve Bank or its branch or agency. The exceptions being that eth said gold is required in customary use by an industry for a limited period or, the gold do not exceed the aggregate $100.00, under an individual holding, or it has a special value for being rare coins.
This had led to the earning of more than $600,000,000 in the form of gold and gold certificates in the coffers of the Federal Reserve Bank.
Why is gold riding the bull market today?
- There is a huge imbalance between production and consumption. The annual deficit between them is in a consistent rise.
- The Federal Reserve would continue with its policy of printing dollars.
- The fiscal deficit of eth US government has become the order of the day. Its not going to change.
- The US congress is least bothered about the deficit spending.
- The nation’s private debt has touched the record high figures.
- Most of eth major banks are over-enthusiastic regarding the derivatives.
- The war against terror is not going to stop. War costs money resulting in inflation and it always runs beyond its anticipated period.
- The US is no longer the net creditor, its today the net borrower.
- The dollar is trading in a bear market.
- The central banks are overstating their gold reserves.
The order for the return of the gold which was in the government possession has been issued during the period of the emergency and it enabled to get their gold exchanged for any other currency. The purpose of eth order was to restore the country’s gold reserve in dire times.
With reference to the present circumstance there is a huge benefit of owning the gold minted before 1933.
By Bruce Sands
Though past performance can never be a guarantee to the future performance, but it is nothing new that gold has been facing price appreciation for a long period. It thus becomes a logical analogy that gold will do well in future too. In fact, even better due to their immense potential worth. Apart from gold bullion, one can effectively invest in gold coins too. Known as the ‘barter coins’, they can form one of the important components of a well balanced investment portfolio.
Gold happens to be the only substantial asset which has withstood the rigors of time. For over 6000 years of human history, it has been a commodity characterized by a store of value and never as a liability.
‘America’s fiscal condition has deteriorated beyond any hope of a solution within the existing system’ says John Williams, founder of shadow Government Statistics. Financial experts are of the opinion that even a 100% personal income tax shall be unable to fulfill the deficit. Williams further states that, ‘Net of all accounting gimmicks, the actual
What makes a smart investor buy gold? The purchasing power of all the major national currencies around the world is suffering rapid erosion in terms of their valuation. Their purchasing power is being fast diminished due to the constantly rising inflation. So, what is the answer to preserve this purchasing power? You can do it by owning gold.
The increase in money supply into the market system is an attempt to avert the impending fiscal recession. If you happened to think that it is a positive point that a sure shot disaster is forestalled, think twice! The negative aspect is looming far too large than the positive one. It is sharply devaluating the market currency. This devaluation is occurring consistently and at an accelerated pace. The purchasing power of the dollar is simply crashing and the result is a direct rise in inflation rates. Loss in purchasing power will always cause inflation.
The gold price is in an ever increasing rise. In fact its characteristics are fostered by the basic bullish fundamentals of the market. There is virtually no possibility of any considerable dip in the market by any conceivable practical means. Where every imaginable aspect in the market is fostering its growth, you can only anticipate a price reduction when the following probabilities are materialized.
With the economic depression looming large, the investors and the Fed Reserve have their pulses racing. In fear of a probable crash, it has hastily slashed the interest rates. It is nothing new to a sincere market observer that the Fed will cover any length in order to keep afloat the economy and avert a major slump.
The value of gold is the determinant of tolerance of the financial market’s character. Gold and economic freedom are said to be inseparable. It is a panic-stricken sense of hostility to ascertain the value of gold. Every economic transaction is aided by the common denominator that is money. It is a universally acceptable medium of exchange. This is an exchange economy where we pay for goods and services. An ideal medium of exchange ought to have a standard market value, enabling it to become a perfect means of saving.
The banking system in America is nationalized by the Federal Reserve. Even heavy handed measures aren’t enough to control their messy state. Their final option would be to print the paper currency and toss around credit cash at everything in their view. And you will be faced with legendary inflation. Eventually the call would be for its ultimate demise and dismissal.
The policies of the New York money boys are incomprehensible. Already plagued with severe housing credit loans, incredibly excessive job cuts, and industry slump and soaring food prices, the policy makers are doing nothing to relieve the tax payers or improve the situation. By trading derivatives they are actually behaving crazily. Yes, the global investment banks are already in a ‘crash and burn mode’.
Should we begin by saying that the Wall Street has always been immature? Even during the hyper-profitable bull market of the 1970s, they were either completely hostile or ignored the existence of the precious metals like Gold. They never paid any attention to gold until it crossed $650 but then they had lost much of the possibility of their clients to make money. Since the 1980s the aging bull market dived into a multi-year decline. The result - the buying was high, then held for too long and finally sold low. This feeling of resentment for gold had its own funny and mythical (!) reasons. It has always been believed that rising gold prices always implied a falling economic market or some impending crisis. But in today’s economic condition another gold bull market is unthinkable.
“Men haven’t changed much in the last 2,000 years and, in consequence, we must still learn from history.”
You are grossly mistaken if you think times are changing for the better. Almost all the industrial sectors in America are gearing the brunt of the present economic crisis. And this adds to the further deterioration of the financial market. The ever increasing level of job cuts which is plaguing the employment market is a reflection of the depressing times.

