Why Gold Is A Superb Investment Strategy

As noted above, gold is a monetary “canary in the coal mine”. As currencies are serially diluted, the gold price rises in response.

If you’re a central banker (wanting to hide your monetary crimes), you don’t want this canary to be ‘singing loudly’.

What do you do? Suppress the price of gold.

Gold “leasing” is the surreptitious and illegitimate means by which Western central banks suppress the price of gold.

Western central banks have openly declared they will suppress the price of gold via gold leasing. But these anti-gold bankers also have other allies: the Big Banks.

The Big Banks are the chief beneficiaries of all the central bank money-printing: an endless gravy train of free ‘money’. They are also (literally) partners in crime with Western central banks in suppressing the price of gold.

More specifically, the Big Banks have been criminally convicted of perpetrating almost every form of precious metals fraud imaginable.

The central banks and Big Banks regularly attack the gold market with various forms of illegitimate price suppression. This delays (but does not prevent) the rise of the price of gold – as we have seen for 50 years.

It also regularly presents buyers with superb buying opportunities.

Perversely, as one of the most suppressed markets on the planet (silver is suppressed even more than gold), investors know that gold is never overvalued.

Put another way, as a result of the constant market attacks from the central banks and Big Banks, gold is never able to reach its full monetary value.

It is not only an asset class that is guaranteed to rise dramatically over time. It is an asset class that (for obvious reasons) will never be allowed to be overvalued to the point of a bubble.

In an era of horrifying asset bubbles – caused by central bank monetary policies -- this is a rare prize for true investors.

The rise in the price of gold is never more than a fraction of the rate of dilution of our fiat currencies. A permanent bull market. Permanent value for investors.

The virtues of wealth preservation

The reality is that the “gain” realized with the price of gold is actually only wealth preservation. Avoiding the losses that most people suffer by storing their wealth in ever-depreciating paper currencies. Paper currencies are leaky buckets for storing wealth.

Why would any sane individual store their wealth in a leaky bucket? Gold doesn’t leak.

For individuals who don’t think wealth preservation is ‘sexy’ enough for their hard-earned investor dollars, consider a hypothetical example.

A person is born who will live for a full century. At his birth, he is given a million dollars – literally. $1,000,000 in U.S. cash.

Foolishly, this person trusts in the Almighty Dollar and keeps all his wealth in cash.

Paper currencies now pay no interest. Assuming the Federal Reserve doesn’t increase the speed at which it is destroying the dollar, how much will this “millionaire” have left the day he dies?

In real dollars: $10,000.

Storing your wealth in paper is a great way to turn a large fortune into a small nest-egg. Understand that bonds are denominated in the same paper currencies and thus suffer the same dilution in real value.

Today, Western sovereign bonds represent the worst investment in the history of markets. They pay no yield while steadily and relentlessly losing real value. And they are issued by hopelessly insolvent governments.

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Disclosure: 

 

SKRR Exploration Inc and Leviathan Gold are clients of Dynamic Wealth Research. The writer holds shares in SKRR Exploration ...

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