GetGold999 – Page 2 – Gold is lawful money, has always been and will always be.

From monetary reform to global currency

Governments use inflation as an indirect tax to systematically devalue the currency and, by doing so, get rid of the national debt.

Paying off the national debt is impossible. The growth of taxes and debts is due to the system. Money is exclusively created out of thin air and put into existence because banks give credit. If all debt would be paid off, then there would be no more money around any more. Although monetary base and debt are growing at the same pace, the debt is a heavier burden because of compounded interest charged on top of it.

Normally economic growth generates wealth. This wealth only flows where it belongs, such as to the ones who worked for it. If growth is higher than the interest rate because primarily the creditors are paid first, the surplus then becomes available funds.

Apart from the inherent unfairness involved, there is also a mathematical systematic error:

The economy may grow for a while, but to grow consistently is absolutely impossible. On the other hand, compound interest for the interest payments builds up. Maybe that is why the bank(st)ers have chosen a long-term interest rate of 5% so that a crash reoccurs only every 70 to 80 years – too long for a lifetime to remember the lessons from the past.

The Kondratieff Cycle states that the economy cannot grow faster than exponentially growing interest payments.

But the main objective of the elite establishment is to create a global currency mostly controlled by the Fed. And why not create 9/11 in our monetary system in order to have the justification to do so? Nothing in the world can grow infinitely. Even a cancer can only survive until the body dies. Economic growth is like the body trying to grow faster than the cancer in order to keep it small percentage-wise versus the body.

Even John Maynard Keynes (1883-1946) as one of the most important protagonists of our financial system had to admit exactly that. He did not want to cope with it. His answer was, “In the long run we are all dead.”

The consequence of this is the regular destruction of all wealth every 70 years. Another war – whether economic, financial, or military – will be inevitable in order to conserve the financial economic system we live in today on its way to global currency.

To prepare yourself for the global currency get some silver and gold bullion as your intrinsic asset. With it you can go shopping, when there is blood in the streets and make bargains. Tap into the biggest transfer of wealth, mankind has ever seen. How? ….simply go to Gold Souk.

Demystify and Buy Pamp Suisse Gold Bars

There is no doubt that gold is a very precious commodity and those who buy Pamp Suisse gold bars can affirm the constant quality in different locations worldwide.

The value of gold has risen steadily in last few decades and the trend indicates an upward climb even against the backdrop of serious economic downturns and crises.

One of the most trusted brands is the Pamp Suisse gold bars.

Refined to the finest levels of purity, these bars have gained universal acceptance as a hallmark of excellence and therefore buyers and sellers are assured that their investment in these commodities is safe.

There are no controversies surrounding the motives of those buy Pamp Suisse gold bars except the fact that they are synonymous with quality. These bars are some of the hottest gold commodities in the gold market because the gold bars are refined up to 99.9 % which gives the buyer the opportunity to possess pure gold. The word Pamp is derived from a French name of a maker of precious metals in Switzerland. This firm offers interested buyers quite a wide range of high quality gold bars which are well refined. Interested buyers can purchase 1 gram gold bars, bullions, among others.

Those who buy Pamp Suisse gold bars in small denominations will find that they are embedded in special cards which contain the manufacturer’s certificates. Each purchase always has this mark of quality and so those who purchase these gold bars without the certificate need to ask for the right ones. Pamp is the hallmark of excellence in gold refining and trade and it has gained worldwide acclamation for several years it has been in existence. Traders who purchase any of the firm’s gold products can be assured of good quality and standard gold bars, and get full value of their money.

Investors from different parts of the world buy Pamp Suisse gold bars because they are deemed as one of the safest forms of investment available. Gold bars are normally made from pure gold and are highly liquid and tangible assets. Pamp products are traditionally guaranteed for both weight and level of purity. Thus, the makers usually issue an assay certificate for every purchase which is an assurance of the above aspects of quality.

These bars can be bought from different gold dealers at various prices, although they tend to cost more than other commodities, they ultimately give the buyer a sense of satisfaction, assurance of quality, and full value for their money. Those who cannot access Pamp Suisse Gold bars easily from local dealers can check out these commodities in trusted like ebay and amazon.com. There are other reputable stores that sell these commodities such as www.where-to-buy-silver.com among others. These stores offer great deals and the most important thing is that the buyer can get full back money guarantee when necessary. However before you buy read this Gold Warning…

There are many markets from which one can buy Pamp Suisse Gold bars. They are traded in many parts of the world. Ideally they are among the safest gold investments that one can get regardless of the size. The fact that they are pure means that one can be sold and bought with relative ease in the gold market. The gold bars are available in various weights in order to satisfy the diverse needs of buyers. Generally, the bars can be bought in weights which range from as small as one gram to four hundred ounces. www.where-to-buy-silver.com, sells 1 oz, 10gm, and 5 gm and above.

How about the storage of precious metals?

once you have your precious metals, the next question comes up: How about the storage of precious metals? How and where to store them? Storage of precious metals

First of all store them on your own and let NOBODY know, where! Avoid facilities for the storage of precious metals provided by third parties, otherwise you end up in the same position from where you started, with paper only and nothing but liabilities… Storage facilities, bank deposit boxes and precious metals dealers’ vaults will be the first targets when it comes to gold confiscation by our Government. You need direct, discrete and immediate access to your precious metals. … I really mean it!

Storage of precious metals:

Temperature: Precious metals like the same moderate temperatures and low humidity that we like. That’s why the attic and the basement are ruled out as places to keep your coins. Your storage media will suffer as well. If you have coins in holders of flips containing PVC, heat will speed up the PVC damage. An important point is to not only dispose of plastic flips that contain PVC, but get rid of the plastic-vinyl album pages that contain the chemical. Fumes from PVC will seep into your neutral plastic holders stored in a PVC-laced vinyl page. As a general rule, most flips that contain PVC are soft and pliable, while most Mylar and other safe plastics are stiff and hard. A closet shelf may come crashing down under the weight of the coins, and those under the bed will catch a lot of lint for the cat to play with. It’s amazing how much a small box of coins will weigh. Don’t put them in a freezer, as crooks have learned that is the first place to look. A wall or floor safe, securely bolted down is one option, but you will probably have to compromise on a burglar proof safe, as the fire proof safes may contain chemicals that will damage your coins. Try and find a storage place that isn’t that obvious, which also rules out the back of the closet. Think out of the box. For example, a box buried under old clothes in a clothes hamper is not likely to draw unwanted attention. Use your ingenuity. Storage media is a hot topic.

Storage media: Store any coin of substantial value to you in an inert, hard plastic holder. These are somewhat similar to the holders (slabs) used by the grading companies. They provide maximum protection, especially for proof or uncirculated coins. “Always use products specifically designed for coins.”

For a pot full of cents, or dozens of dimes, the next best things are inert plastic coin tubes. A glass prescription bottle may hold a handful of coins, but drop it and you’ll be picking up glass splinters for days. The hard plastic holders give the coins the best possible protection. Oddly enough, an exception to the rule are plastic bags used to hold various foods for human consumption.

Next come the plastic 2×2 coin flips and the matching paper ones. Make sure that you get rid of the PVC plastic. Mylar Flips will replace them, but can damage coins if they are moved in and out frequently. The plastic and paper flips should not be used for long term storage – more than six months. Under exceptional conditions they will protect your coins over a longer span, but the big problem is that they are not air tight. The same is true for the cardboard 2×2 holders. They have a Mylar window so that you can see both sides of the coin. These can be stapled shut, again with the warning not to get the staples or the stapler too close to the coin. To keep the coin safe the 2×2 needs to be stapled on the three open sides. Again the reminder to use your pliers to flatten the staple legs so they don’t damage an adjacent coin. Staples will rust, but there are stainless steel staples on the market.

Next come coin folders and coin boards. These have holes for each date and mint, and in some cases the outstanding minting varieties, such as overdates. These are what you most likely will use to start your collection. The folders have a paper backing, so you can see only one side of the coin. They expose the visible side to the atmosphere and any pollution, contamination or fingerprints. Our recommendation is that you use them for circulated coins that will not show problems.

Your uncirculated coins need special protection and proof coins should be left in their packaging. The album pages allow seeing both sides of the coin, usually held in place by plastic strips. This type of album should also be used for circulated coins, as the plastic strips can scratch the coins as they slide back and forth. There are also albums designed to hold the coins in inert plastic holders, such as those used by the grading companies. These of course can be used for proof coins and uncirculated grade coins. Coin folders are the basis for many, if not most collections, because they provide several collecting aides. There is a hole for coins for each date. Under the hole is the mintage figure, which tells you the relative rarity. Canvas mint bags are among the poorer storage media. They obviously are not immune to water or contamination. Plus, every time the bag is moved the coins rub and scratch each other. At the very bottom of the list are paper wrappers and the plastic tubes used by the Mint to ship coins. The paper wrappers offer only a bare minimum of protection. They tear easily, offer no protection from water damage and are easily penetrated by contamination. The “shotgun rolls” have the two end coins exposed. The soft plastic tubes also offer limited protection, with open ends. As with the paper wrappers, they should not be used for upper grade coins. The odds are that you may have stored some coins in aluminum foil. This is something you need to immediately change. Any moisture will result in the metal-to-metal contact corroding the coin. Every coin had suffered damage that no collector would want. If you are using a shoe box for coin storage, you are running the risk of contamination. Trade it in for a plastic bin with a tight fitting lid, which will keep out anything in the air.

Storage facility: As mentioned before, store it on your own without having to rely on any third party in between. When you will suddenly need your coins for bartering or selling, you want to make sure you have direct access to your coins. This is the reason why Gold Souk does NOT offer storage – in opposite to many other precious metals dealers.

Vaults: Get two vaults! One with some cash inside in order for a possible burglar to have his success and the other one for your precious metals, jewlery and items that really matter.

Keep paper away: Keep paper (except 2×2 coin flips) such as tissue paper, envelopes and cardboard away from your coins. Paper contains sulfur, which will turn your coins black. Cotton lined flips are relatively safe, but as with the regular flips, they should not be used for long term storage. A reminder again, use products specifically tested and intended for use with coins. Even with the best of care, your proof and uncirculated coins may discolor or tarnish. In many cases this is from exposure prior to being packaged.

Silence is Gold: Back during World War II they used a slogan to warn against giving information to the enemy: “Loose lips can sink a ship.” Today you can lose your collection to a burglar by bragging about it, or openly displaying it. You need to impress on your relatives and friends that they are a risk to your collection if they talk about it to strangers, or even have their conversation overheard.  Coin dealers go to great lengths to overcome this problem. Gangs of thieves have been known to follow a dealer for miles when leaving a coin show and breaking into the vehicle when he stops for food or gas. As a collector you are not likely to face this problem unless you display a bunch of gold coins at the show. Use your head.

As you will receive your silver and/or gold monthly you will not need to rely upon an external storage of precious metals, once you hold them in your hands… Here you’ll find another important warning for gold: (read more)

From intrinsic assets to monopolies

The sectors of diamonds, gold, copper, zinc, uranium, telecommunication, media, food, and arms are controlled by the Wall Street cartel. These are the monopolies, we are talking about.

The banks are not really after the money, as we can see, because they can just produce or print the money themselves. For the bank, it is a means of power in order to acquire goods and services. Socialism and our version of capitalism are like two sides of the same coin. This is where the monopolies are.

In order to hold that very coin in your own hands, simply get some bullion silver coins, and win your own monopolies!

Gold and Silver in Bible Prophecy

To the novice Bible interpreter, it might seem as if these are contradictory passages that on the one hand say that gold will be valuable, and on the other, say it won’t be valuable. But even these passages about “casting away silver” strongly suggest that gold and silver will be quite valuable at that time. Consider the phrase, “their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD”, which is also repeated in Zeph 1:18. This phrase is not only suggesting that God cannot be bribed, but that the forces of Satan which will rule at that time will also not be able to be bribed. But there is no explicid notion that gold and silver won’t be valuable at that time, on the contrary, there is a passage saying that even these supreme representations of wealth, gold and silver, no matter how valuable they might be, will not be able to save them from the time of the wrath of God.

There is one other prophecy passage in the in the bible – New Testament – about gold and silver in James 5:1-6 which is especially relevant to what we see today in the precious metals market.

James 5:3 Your gold and silver is cankered: and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.

This verse is not advice against owning gold and silver. This verse is not saying that it is honourable to maintain wealth in the form of any FIAT currency, which, remember, are fraudulent weights and measures which are an abomination. Holding legal tender would place one in the category of the worker whose wages of wealth were “kept back by fraud” as indicated in James 5:4. If anything, James 5:3-4 is a testimony against the bankers who have stolen gold and silver from the people through fraudulently issuing more and more paper contracts that they never intended to honour in the first place.

But James 5 is also a testimony against the banking practice of leasing gold and silver. For when they do that, their gold and silver literally “rust away”, as they attempt to continue to list as assets in their books the gold and silver that is gone! Truly, gold does not rust, it is only the insane practice of leasing gold that helps to explain how gold could be cankered and rust away. Furthermore, the verse says that the rust of the gold will be a “witness against you”, and today, we see the increasing awareness among people of the fraudulent banking practice of metals leasing, which, increasingly, is certainly a witness against the banks.

In conclusion, analysts do not know exactly when the set sequence of events in scripture will begin. Perhaps the rapture will happen this year, or 4 years from now, or 10 or 30 or more. But they are confident their interpretation of the scriptures, that they have placed them in the correct time sequence with regard to the overall prophetic outline of events. They are extremely confident that Israel will become wealthy in gold and silver, and that this will take place before the return of Christ. (Ezekiel 38-39) They are also extremely confident that the Bible does not condemn ownership of gold and silver, as these are truly the only Biblically approved forms of money, and the metals are the very embodiment of “just weights and measures”.

Where to purchase ethically Gold and Silver from? Well, Gold Souk has proven to be a very trustworthy and reliable source. Here is the link for those interested in upgrading their sound money: Gold Souk

From Intrinsic Money to Promissory Notes

Circulating Gold Currencies existed until World War I. Every Circulating Gold Currency has the disadvantage that you cannot increase the gold supply as fast as the economy might grow. Deflation could prevent the economy from booming. Therefore many nations switched to indirect gold currency by having their central bank issue promissory notes (paper money) which were linked to the gold and silver which that nation had in stock. Its value was guaranteed by the option to exchange these promissory notes back to gold when presented to the central bank (Gold Core/Reserve Currency). In this situation the government could issue even more promissory notes than it possessed gold and silver because they knew that not everybody would exchange back to gold and silver at the same time.

This monetary system worked out globally. Even the countries that did not possess gold or silver pegged their national paper money to other currencies which had a gold reserve. At least indirectly there was a link to gold (Indirect Gold Core/Reserve Currency).

If you want these old days back with Gold Reserve / Gold Standard, why not buy some silver and gold bullion coins? Click here, that will help you to replace your promissory notes by “intrinsic money”.

This Depression will be called “THE GREAT STARVATION”

…yes, you have read the title of this post correctly, and better get – not only gold and silver bullion, but also a good stock of food, and also become self efficient energy-wise, security-wise etc.!

I really mean it! I could have continued my career in the investment banking industry – as done so until 2006 for more than 20 years. But my soul was stronger that the greed for these fake FIAT-currency notes and stronger than being an amplifier for the wrong side – Wallstreet or in better words Satan.

Gold Guru Mike Maloney once said, you must be crazy not to participate in their (monopoly) game…. Well then I am crazy. I will never ever sell my soul to Wall Street or Brussels.

Now let us focus on:

1. European Financial Stability Facility EFSF;

 2. What happened to the spot-price of gold? 

3. Urgent immediate steps to defend your liberty – or what is left of it, so that you can survive the Depression, which will be called “The Great Starvation”.

1. EFSF:

As German Parliament had approved the bill for EFSF, so that the banks get their rescue-package again as Greece is insolvent and cannot pay it itself. But even more importantly EFSF is taking away national authority from Europe’s member states and converts Europe into a transfer funding union with financial directive from Brussels – or in other words: Financial Dictatorship and with it loss of national budgeting rights and democracy and monetary enslavement is underway…and nothing/nobody can stop it unless you act NOW!!!

Furthermore the EU-commitee in charge is guaranteed immunity for any responsibility of their actions! The Third Reich will have been peanuts compared to this.

Here is a map of all the countries and their votes supporting this or not:

 http://www.telegraph.co.uk/finance/financialcrisis/8797958/German-bailout-vote-is-too-little-too-late.html

Future European generations have been enslaved for additional 440 billion EUR to the private banking industry. This is just the beginning of an entire Monetary-Enslavement-Agenda. Competencies are getting taken away from a national level to the “United States of Europe” – Level. New World Order is underway and unstoppable. Once this will be done it will be a small step to global government.

This rescue package of almost half a trillion EUR does NOT as many may think help the Greek, no(!) it goes into interest payments directly to the banks. The man in the street in Greece will not see one cent! This is Master-Closing at its best by the SATAN banks.

“It is not our Governments who rule the world – it is Goldman and Sachs” said a trader from London who got the bigger picture.” “He who controls the money, controls the world….” “The € is BEYOND dead!”

Here is the interview:

 http://www.youtube.com/watch?feature=player_embedded&v=aC19fEqR5bA 

Apparently there is nothing European Governments can do.

So how can we react on a individual level in order to get prepared for this financial dictatorship which goes along with and towards Agenda 21? Well, the answer is: Cut living standard back now before the markets do it for you and later on EU-regulation does it for you and become self-efficient on all levels! In other words: Welcome to the Apocalypse. Have you got Gold? and Silver?

2. What happened to the Spot-price of gold?

MASSIVE price manipulation! Many people may say now “I knew and told you that gold was in a bubble”. Although I do not really care too much about the current valuation of gold in “their” monopoly-funny-money-system, here is what happened: The FED has spent 78 billion dollars in the past few months to suppress the price of gold, silver, oil and other commodities while pumping up the DOW and the S and P Stock Indices. They cannot do this for much longer… they usually only do this for two or three days at a time like around COMEX options expiration or a major address by the President or someone really important like Bernanke. The point is that they are continuing this operation for a reason. They fear a crash and with it the Great Depression will come sooner than they wanted or are prepared for. They might hope to gain time to start a war or pull off another false flag operation in the near future to divert the public wrath. Eventually, the markets will overwhelm the FED. It is possible that JP Morgan has bought CDS (Credit Default Swaps) to insure the losses they expect to rack up when gold and silver go higher forcing them to buy bullion to cover their short positions. The fly in the ointment is that the institutions that sold CDS to JPM will default sending the New York banks, America and the world into immediate bankruptcy.

So long story short: Gold was not and is not in a bubble. On the one hand the corrupt axis Wallstreet/Washington intervened with massive price manipulation of the spot price through shortening the derivative market of gold and silver. On the other hand we observe shortages in supply of the raw materials and a divergence of spot price and price for physical bullion products. On September 26th 2011 London Gold Exchange was permanently closed for business:

http://www.londongoldexchange.com/maintenance due to overflow.

“They” want you to believe that Gold was and still is in a bubble in order to avoid further continuation of the run on the banks.

As World’s Reserve Currency – the US Dollar has been backed by crude oil instead of physical gold, there is no point of measuring the price of gold in dollars, because it is the wrong (inflated) benchmark. Let us take a look at gold vs. crude oil and let us see what we get:

 This clearly illustrates how the substitute back-up of the dollar (crude oil) relates to gold in the long-run.

What really happened: During the past 40 years gold went along with WTI (West Texas Intermediate) at an average ratio of 15.6. Increasing crude oil prices implement increasing inflation. With a kind of jet-lag gold also becomes more expensive. In answering the question, when gold will be too expensive and oil too cheap, many analysts look at this gold to crude oil ratio.

By looking at it this way you will develop a true ‘overstanding’, how much the price of gold can still increase or the price of crude oil decrease. As you are aware of the real picture now, you may now realise why headlines like “Gold is in a bubble” is total nonsense. Headlines like this are just proof of incompetency.

A propos ‘incompetency’, in case you want to laugh your head off, watch this interview, which is an example of media being totally insane:

http://dailybail.com/home/must-see-gold-stupidity-from-tv-reporter.html 

For how stupid do they take their audience??

Gold has to be backed by the Dollar???

Isn’t it the other way round???

But apparently she seems herself in believing what she is saying…. another good example for corporate media and mass control…

The opposite is correct: It is more than likely that Gold will break even/through the $2,000 milestone. Putting this into perspective with crude oil, we will have just reached a ratio of 23.

Since 1980 the purchasing power of the US-dollar has suffered significantly. Therefore the price of gold would have to rise CPI-adjusted to at least $2,400 in order to meet the all time high of 1980. So realistically there is enough upside left (44.5%).

3. Urgent and immediate steps may be not to avoid the Great Depression but to defend your liberty:

a) Join this viral movement against EFSF and for conservation of liberty-rights. Here is the link: http://www.avaaz.org/en/eu_people_vs_banks/?cl=1298262050&v=10538 just perhaps a chance to change the course of history by signing up.

b) before you buy gold and silver (as much and as long as you can) read this warning for gold and follow the instructions.

Aren’t Silver and Gold in a bubble?

The premise of this question whether or not silver and gold is in a bubble is wrong which would define gold as an investment. Although it takes even professional financial experts to wrap their heads around this: How can real money be too expensive?? You better get some as long as you still can do so with our fiat currencies…as “they” are debasing the currencies in small increments.

How can you anybody talk about “gold in a bubble”? For example 100 years ago a brand new man’s suite cost ca. $20. Today it costs a four digit Dollar amount or in other words exactly the price of 1 oz of gold. That means in terms of lawful money the gold price remained the same – 1 oz of gold. In legal tender, price got inflated from $ 20 to whatever the price of gold is right now.

…this example shall clearly illustrate what real money is. We all have been conditioned to believe that this monopoly printed paper would be worth anything. But it is not. It represents debt. The more of it you have, while you may be thinking yourself getting rich – the more debt you will be liable to, …public debt. That’s the trick. After an almost parabolic rise in the valuation of gold and silver lately, one may ask him-/herself “How much upside is left?”, “Is Gold in a bubble? If so, when will the bubble burst?” During all these years we have met buyers and non-buyers. The latter thought back then already, that gold and silver must certainly be in a bubble. Today they know better… This chart illustrates Gold London (USD) since 19.03.2001 

Today I came across an interview with one of the most successful investors in the world, Jim Rogers, and I could not have answered the question better than him, whether silver is in a bubble or not: “If silver would continue to go up like recently without collapse of the US Dollar, I would be worried.” …mmh, a lot of content in that short statement. Something to think about…

In order to put this into perspective, if – and how much – is gold and silver really overvalued, or in other terms, if – and how much – upside is still left, here are some milestones to break even with first on the way up: 

As you can see, gold is nearing its inflation-adjusted 1980 high- and that peak was a spike that lasted only one day.In the right column you can see the return needed to reach those levels.

From their 1971 lows to January 1980 highs, gold rose 2,333% (!), while silver advanced an incredible 3,646%. This table applies those past gains to our 2001 lows and shows the prospective returns from current prices. 

Instead of using the manipulated Consumer Price Index (CPI) as a measure for inflation, let us implement John Williams’ Shadow Government Statistics, whose data is much more realistic. This is what is left as your potential upside until the real inflation adjusted former all-time highs.will be broken even with:

As you can see, gold and silver are still far undervalued, and the upside left is HUGE. So, if you were hesitating getting into the market and trying to do ‘market-timing’ by waiting for those commodities to come down, forget it, this is not going to happen. The past has proven over and over again, that people attempting to do market timing have lost more money with trying to time the market, than through corrections while being invested into the same.  And for now, compared to how much “confetti” has been produced, gold and silver is cheap! Gold in a bubble? No, it is not the Gold and Silver that is in a bubble – it is the printed paper, we (still call it money).

In order to get some gold and silver simply go to Gold Souk.

The constant purchasing power of Gold and why Gold is NOT an investment

Often I receive that question and this one: “What do you think about the new Utah money where people are able to pay taxes and their goods and services they sell in gold and silver coins?”

Utah just legalized gold and silver as a currency, where you can see the big difference between “legal” and “lawful”. Bear in mind that gold and silver is the only “lawful” money. Some regions in the world want their money to be “lawful” again, so e.g. in Utah. Gold and silver will now be exempt from state capital gains tax in Utah. However, Utah does not have the power to exempt it from Federal capital gains tax. (No tax or legal advice) After all, when gold prices go up you actually aren’t making money. You are simply retaining your purchasing power as the U.S. dollar goes down. Fiat currencies are unconstitutional. The Federal Reserve Bank is acting unlawfully (to use polite wording) and is literally stealing the wealth of all Americans and other people around the world through inflation or in other terms “legalized confiscation” by debasing the world’s reserve currency.

But why is the purchasing power of gold constant and ever lasting?

For example 100 years ago a brand new man’s suite cost $20. Today it costs a four digit Dollar amount or in other words exactly the price of 1 oz of gold. That means in terms of lawful money gold the price remained the same – 1 oz of gold, and with it the purchasing power of gold. In legal tender, price got inflated from $ 20 to whatever the price of gold is right now.

In the long term it is even better: During thousands of years one ounce of gold could buy you, half a year of free housing, free transport, free food, free staff at home.

For further information go to Gold Souk.

Let us put that into perspective for the last 10 years and other currencies also, so that you can see, how much you have been robbed. Here is the annual performance of Gold measured in various fiat currencies:

As you can see, in average an “investment” – in order to be one – would have had to outperfrom e.g. 18.4 % p.a. in USD or 18.3 % p.a. in GBP or 14.6 % p.a. in EUR during the last decade. But the reality is, that investments cannot even ‘break even’ with lawful money, which is Gold (and silver).

Enjoy, prosper and profit from constant purchasing power!

Shadow Gold Price currently at $20,645 per ounce

The Shadow Gold Price

Nothing can explain the fair price of gold better than the Shadow Gold Price, because it “disinfects” the price of gold from any price manipulation. But what in the world does Shadow Gold Price mean?

The Shadow Gold Price indicates the fair value or in other terms unmanipulated “price” of gold.

Here are the 7 definitions of the SGP – Shadow Gold Price:

To identify the intrinsic value of the dollar today, we examine the corollary – the intrinsic value of gold in dollar terms, which we dub “The Shadow Gold Price” (SGP). To do so we assume that Federal Reserve Bank liabilities are again exchangeable into gold (recall, FRB reserves are bank assets – the stuff that used to have to be gold). One would simply divide the dollar amount of current Fed liabilities by official gold holdings. This calculation, while simple, is intellectually honest and produces a breathtakingly large “equilibrium” gold price of approximately $9,500 per ounce today ($2.5 trillion divided by US official gold holdings of 8100+ metric tons).

M1 Money Supply vs. U.S. Gold Reserves: The U.S. M1 money supply consists of currency and bank deposits. As of 9/29/2011, the U.S. government currently holds approximately 260 million ounces of gold. If the government were to back each dollar in circulation with gold as numerous governments are now considering around the world, the result would be a shadow gold price of $8,102 per ounce (M1 $2.1 trillion / 260 million ounces). This represents potential symptoms of ongoing inflation and corresponding near-future gold price increases.

Comparing Gold Bull Markets: Many gold experts agree that gold is currently in a bull market. However, to put the current bull market into perspective, in the 1970s gold prices rose from $35 to $850 per ounce, which was an increase of approximately 24 times. The low price of the current gold bull market in 2001 was $255.95. It is useful to compare magnitude increases between similar market phenomena to determine the potential phase of development a trend may be in within a given economic cycle. In this case, if we multiply today’s gold price of $1,620 (as of 9/29/2011) by the same factor (24), the current gold price would be $38,880 per ounce. This may seem high, but the inflationary environment of the 1970s triggered a flight to the safety of gold that has a high probability of occurring again.

Global Money Supply vs. Global Gold Reserves: As currency devaluation continues in many of the developed economies due to irresponsible fiscal and monetary policies, global governments may be forced to back their currencies with gold either wholly or fractionally. Assuming governments pay market prices to acquire their gold, and given total reported global M1 money supply of approximately $19.2 trillion, and given total reported gold reserves by all global financial institutions of approximately 930 million ounces, the resultant gold price today would be $20,645 per ounce.

The Dow/Gold Ratio: The Dow Jones Industrial Average converted into ounces of gold is commonly called the “Dow/Gold Ratio”. This ratio was at “1” when gold peaked in 1980, which indicated that the index value of the Dow and the price of an ounce of gold in 1980 were the same price. To bring the Dow/Gold Ratio back into balance today based on the Dow’s level of 11,153 as of 9/29/2011, the price of gold would need to be $11,153 per ounce. This imbalance between the Dow and the price of gold suggests that the stock market is over-inflated and a significant downward correction is likely in the near future.

U.S. Trade Deficit vs. U.S. Gold Reserves: If the U.S. trade deficit is not reversed, the U.S. will eventually become insolvent because no individual or nation can survive by perpetually spending more than their income. However, if the U.S. trade deficit is reversed, dollars will flow back into the U.S. and contribute to domestic price inflation as the money supply expands. Based on the 2011 cumulative trade deficit of approximately $10 trillion (up from $6 trillion in 2007), and given U.S. gold reserves of approximately 260 million ounces, if the $10 trillion of foreign-held dollars were to be rapidly unloaded into circulation within the United States, the price of gold today could increase to as much as $38,462 per ounce.

U.S. Government Debt vs. U.S. Gold Reserves: According to the Government Accountability Office (GAO), as of June of 2011 the U.S. Government’s balance sheet is overwhelmed with approximately $61.6 trillion in future liabilities for Medicare and social security. If the dollars required to pay for those entitlement programs were soundly backed by gold, and given U.S. gold reserves of approximately 260 million ounces, the price of gold would need to be $236,923 per ounce.

Can We Predict the Day of the USD / GBP and EUR Collapse and the Price of Gold?

First of all the question contains a mistake within itself. The mistake is the presumption that real intrinsic money could rise or fall, although its purchasing power remains constant. It is the presumption that an inflated, debasing currency could be used as benchmark to measure the ROI on gold and silver.

One ounce of gold is one ounce of gold, period. Regardless what governments decide or print on their legal tender promissory notes.

But back to the question. Before FIAT currencies return to their intrinsic value which is zero, Gold will of course “rise” on its way in terms of Dollars, Euros or whatever FIAT currency you use until the reset of the monetary system will appear. That is when you will not be able to buy anything any more with FIAT currencies. Neither will you be able to buy gold and/or silver any more(!)

Therefore it is imperative that you put yourself on Gold-Standard now. Many countries around the world are increasing their gold reserves massively. What is good for a government / country cannot be bad for the individual.

Here is why.

And it is not too late to get into the markets before the shadow gold price will become reality in terms of current spot price. Enjoy and profit from your precious metals!