Bullion Investors Hang Tight

The precious metals futures markets launched shortly after Richard Nixon closed the gold window and removed the last vestige of gold backing from the Federal Reserve Note. Officials introduced paper gold and silver contracts specifically to increase price volatility and discourage physical ownership of metals.

After nearly 50 years, it is safe to say their strategy was a success.

It is often excruciating to own metal when the short-run price action is completely disconnected from fundamentals.

The price smash in the last couple of trading days is a case in point.

Nobody can make a coherent fundamental case for the move lower. It is best to simply remember there are very good reasons to own physical metal even when it feels like you are being punished for doing the right thing.

The Federal Reserve and Wall Street bankers want you to buy stocks and bonds. Their fingers are always on the scale.

That is why the equity markets are at all-time highs, despite extraordinary amounts of uncertainty and rising dependence on artificial government stimulus.

Wall Street banks have at times operated as criminal enterprises. The Fed and other regulators enable them to rig markets by making sure very little is investigated. Where fraud is proven, they make sure the punishment never fits the crime.

These people blow the bubbles. When the bubbles pop, they bail themselves out with taxpayer money and leave the rest of America holding the bag.

They didn’t apologize in 2008, and they won’t apologize when the next financial crisis wipes trillions of dollars of value from investors’ net worth.

The banking cabal does not have Americans’ best interests at heart, which is reason in and of itself to reject their advice and buy metal.

There are, of course, other good reasons. Gold and silver are assets that are guaranteed to be valuable tomorrow, next year, and next decade. This will be true regardless of what happens in the world.

Economic Collapse Money

1 2 3
View single page >> |
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.