What Should We Think When They Protest Too Much?

The WealthCycles Staff
“In truth, the gold standard is already a barbarous relic.”

--John Maynard Keynes, Monetary Reform

The free market proponents at TheDailyBell.com took on investment strategist Don Hays yesterday in a response to Hays’ video clip on Yahoo Money, Gold Is A “Fear Index” That Must Come Down.

"Gold, pure and simple, is a fear index," says Hays in the attached clip. "People try to paint it with a lot of different colors, but it's a fear index."
He's troubled by many different aspects of the gold rally, noting that since the dot-com bubble burst in 2001, the fear index (gold) has persistently moved higher as consumer confidence has consistently fallen.

Just another effort to keep wealth in the hands of the elite by impugning gold, TheDailyBell.com responded:

It's surely a dominant social theme– that gold is a fiercesome and deadly commodity. In fact, the powers-that-be HATE gold-as-money and will do anything they can to rid the middle classes of its possession. The idea that anybody can go into his or her backyard and dig up MONEY is a real problem. The bottom line, of course, is that NO ONE should have access to money if it doesn't come via elite-approved channels.

Hays is merely the most recent in a long and long-standing roster of financial and political elites to denigrate precious metals investing as dangerous. The U.S. government took up the refrain during the throes of the Great Depression, when in order to salvage the U.S. dollar, private ownership of gold was not only banned, but positioned as being selfish and anti-patriotic. Despite the government and establishment media’s spin job, many people refused to hand in their gold; those who did got the raw end of the deal, and those who didn’t were never punished.

There are many more recent examples. The government’s 1980 collusion with the exchanges to raise margins and cap silver trades in order to stymie the Hunt Brothers’ run-up of silver prices clearly was engineered to protect the embattled dollar against robust gold. (See the WealthCycles.com article, How The Hunt Brothers Capped Gold…Yes, GOLD! for more of this tale.)

The Gold Anti-Trust Action Committee (GATA.org) has compiled reams of evidence of government and financial sector manipulation of the gold market. And yes, every week or so, some high-level financial guru or establishment economist opines on the recklessness, volatility and foolishness of investing in gold.

The government has serious skin in the game of gold versus fiat currency—serious enough that it will bring all the forces of political persuasion, coercion, legal threats and regulatory pressures to bear. The bottom line is, pure and simple, that gold is a threat. When the tide turns, and the public rushes to gold, it will sound the death knell for our debt-based fiat currency system.

The more successful they are at making us feel reckless or stupid or naïve for putting our faith in real money, the longer they can keep the economic Ponzi scheme afloat. But just remember—the more worried they become, the louder they will holler.

A fiat currency is created by a government decree. The Latin word fiat means “let it be done.” And with the stroke of a pen, or the crank of a printing press, “money” is created. Fiat currency has no inherent value—the paper that a $100 dollar bill is printed on is surely not worth $100. It might have been worth a few cents before the government ruined its utility as scrap paper by printing green words and numbers all over it! Compare this with gold, which is a precious, rare metal that is, in many cases, the only substance on earth that can be used for certain human purposes, including science, medicine, and of course—adornment.

From Wikipedia.org:

A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.

With all this going on ..silver should be alot higher and it is not...I keep buyingh more..there is no shortage...I feel I am being suckeres after 2 years of stacking

I get the same replies Anon. But what they fail to realise about gold and silver is the monetary aspect. It is not a commodity but a currency measured against others. Until they recognize that fact, they will never truly understand it. I have also noticed a strong correlation between the "gold bubble" parrots and sheeple. The ones proclaiming "gold is in a bubble" are also the ones who spend most of their time updating the status of their Facebook. Mindless zombies living in an alternate universe, where everything will magically work itself out, you just have to have faith. Let the experts worry about it... Lets all just have meaningless sex!

The only problem about "the experts", is that they're not the people in charge and making decisions. The people that actually have good ideas and sound reasonings would never be elected because they don't "know the right people". Also, their ideas and fixes would hurt too many people with the money and pull. More and more the only outcome that will wake these people up to reality is a total collapse. So in the meantime....sex all around!

Every time I mention to someone that I am in silver or gold, it's always the same response. "Oh that bubble is about to burst." Or, "why, we'll come out of this ok." I really do hope we come out ok, but the reality is it's just not in our favor. I'll keep investing in silver for now and hope for the best.

How to decide whether investment in silver or gold is more profitable?


I would reference you to speak with someone at our sister company GoldSilver.com


Awesome post. Thanks.

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