Why the Banksters Don’t Care About Your Gold
I regularly hear how important it is to hold silver and gold and how dangerous the central banks and their banksters (a combination of bankers and gangsters) really are. I’m sympathetic, of course, since I don’t like central banks and I do like silver and gold.
But these folks have a problem: Their plans never seem to bear any fruit. Mostly, they are waiting for the banksters to lose control, for the financial system to fall down, and for their silver and gold to save them from an apocalypse.
But it has been a lot of years now, and the banksters seem to have no concern about precious metals in the hands of average folks. In short, they don’t fear your silver and gold at all, and I think it’s important to examine why.
The Obvious Reasons
There are several obvious reasons why the banksters don’t fear metals in private hands, and then there’s a much bigger reason. Let’s start with the easy ones:
- The banksters already hold most the world’s silver and gold and control its pricing. The ‘official’ price of gold is set every day by a group of bankers in London.
- They lease it to each other and their friends.
- The largest bankers more or less control the gold futures markets. At last count, the big commodities market had 102 times more gold under contract than they had physical gold. Since this “paper gold” passes for real gold, manipulations can abound.
- Governments are very good at stealing gold from a populace. The US government did precisely that in 1933, and there’s no reason to think they wouldn’t try again when they want. Taking money is what governments do.
The Big Reason
All the reasons above are significant, of course, but there remains a vast amount of gold and silver in private hands. And this could present a serious problem to the banking monopolies, except for one thing:
The people who hold these metals never use them.
I regularly hear people asking, “How do we destroy the banks?” And the answer is obvious: Stop using their products.
That, of course, is where the inquiry usually ends.
The “gold bug” crowd already has the tool of victory in their hands – but they don’t use it. There is more than enough gold, silver, and copper in free circulation to conduct a great deal of commerce. And if they were serious about ending the reign of central banks, that would be the way to do it. (Bitcoin would more than suffice for international transactions.)
But they almost never use their metals. Rather, they hold them in safes, in drawers, and on shelves, treating them like little idols. Every so often they pull out their stacks, dust them off, appreciate them for a moment, then put them back into storage. Then they wait for the apocalypse to come, when they’ll finally do something with them.
Again, I like silver and gold; I think they are honest money and a good store of wealth. But if you want to great rid of central banking tyranny, you’ll have to USE your silver and gold. That’s the choice: Treat it like an idol or treat it like money.
As long as your coins remain static, they remain powerless. If you use them like money, big things can happen.
The Bitcoin Kids Have It Right
A lot of silver and gold people hate Bitcoin. But regardless of Bitcoin’s features or flaws, the Bitcoin community is doing one thing very well: They are using their currency, rather than merely admiring it.
This is why the banksters and governments are freaked out about Bitcoin and not about silver and gold. By using their currency, the Bitcoin kids are chipping away at the banksters. If left unmolested, these young people would seriously weaken the banksters and eventually render them obsolete.
- The banksters fear Bitcoin, because people are using it in daily commerce.
- The banksters don’t fear precious metals, because they are not used in daily commerce.
Silver and gold will start chipping away at the banksters when people pull their metals off their shelves and use them… and not before.
Paul Rosenberg
[Editor’s Note: Paul Rosenberg is the outside-the-Matrix author of FreemansPerspective.com, a site dedicated to economic freedom, personal independence and privacy. He is also the author of The Great Calendar, a report that breaks down our complex world into an easy-to-understand model. Click here to get your free copy.]
This article is great! Do you imagine yourself using your gold and silver to buy beef and produce from people you know who have gardens? Thinking they’ll take your PMs over the payment of people trying to pay with dollars? I live in a 2BR condo, which is all I can afford, and can’t even grow a garden. But I do live in a farming state. Maybe I’ve been a dumbass all this time, and just need to invest in the stock market.
Look, I’ll never be able to stop working, and I’m already over it.
Nice theory, but it may not hold up in view of the “tragedy of the commons”. If China or another large sovereign gold holder sees an opportunity for an advantage, they may just take it, especially if it puts a thumb in the eye of the West. Then it’s off to the races. Either way I’m hangin’ on to my stack; just wish I could afford to keep stackin’.
Im not giving anyone my silver at $21. I don’t wanna use my real money until the manipulation ends and its true value is revealed. Until then I’m strictly stacking. I guess that is the authors point, but my local grocery, gas and electric company, fuel for my car, insurance, etc… cannot be paid using the metals. Sure I can barter with friends but in reality how else could I transact in metals right now?
If gold and silver rocketed might not the government make the decision to tax them to death? So poof, there goes your wealth protection and I suspect most assets would have a similar ax hanging over them.
Because of fiats, PM’s are like any other asset, like land. Do you take a shovel full of your land to the grocery store to purchase food? The same with PM’s, that’s not why you hold them.
Why do some people hold farmland, or apartment buildings, or foreign stocks or bonds? The wealthy do not hold paper, they own assets that can be traded, or valued in the currency of the day.
The president has issued his executive order to impose sanctions on Russia.
Russia doesn’t care, they have been making trade deals with other nations to trade not using the reserve currency. The dollar will soon be insignificant, and whatever new currency is the new reserve will be the one you can then trade your assets for to obtain. I doubt you can trade US fiat for it, or at least you will require a whole lot of it. Eight $ to one? Ten $ to one? Look at any country with a failing economy, they love PM’s.
If PM’s are soon to replace fiat currency, then why are PM dealers so eager to exchange the PM stocks for fiat?
Flash,
Not the PM dealers but the mines are eager to exchange PMs for fiat. It`s because the TBTF banks loaned them FRN`s for their future production at comodity price not monetary value of those PM.
So it goes.
I don’t see PM’s replacing fiats, but a new reserve currency backed by PMs.
“He who has the gold, makes the rules.”
John Williams of Shadow Stats has this to say:
Don’t look for the U.S. dollar as the safe haven because Williams says, “Historically the dollar has been the safe haven in a political or financial crisis, but that hasn’t been the case for four or five years now. Instead, what you have seen is a flight to other traditional safe havens such as gold and the Swiss Franc. The dollar has lost its magic. Nobody wants to hold it. So, if the Russians follow through and convince the rest of the world that they are going to do it and it looks like China may join them, a lot of countries will want to dump dollars and get out ahead of the crowd.”
On the overall economy, Williams says, “It is rolling over, and the numbers are starting to show we are starting into a new recession. You should have an actual quarterly contraction in the first quarter GDP. One of the best indicators of that are retail sales, and they gave a clear recession signal in January. That’s the strongest recession signal since September of 2007, which is three months before the ‘Great Recession’ took place, and I’ll contend it never ended.”
Funny thing , Eugene, I don;t know anyone buying directly from the mines.I can see how the mines need to service their debt with fiat issued , but the dealers do not…I think of it as a game of musical chairs….but the band plays on, regardless the background noise.
Flash,
Did you noticed the article dated maybe a month ago regarding Swiss refiners working three shifts a day to supply gold to HK and China? Well a small part was scrap gold but central banks are no longer sellers, in some cases they are openly buyers.
The only place to buy is from mines, with the same FRNs the TBTF banks gave them. The only differece is them are eastern owned (China) FRNs. And here I put both RMB and cinese owned USD.
cHinese, God Damn It!
“I note that China is doing two things: it is building up its gold reserves, and it is building up its military. Furthermore, I believe China is getting ready to make its currency, the yuan, convertible. I’ve been saying this for years, and I’ll say it once more: China is preparing to make the yuan the world’s next reserve currency. And I’ll ask this question once more — would you rather own a yuan which is backed by gold and a powerful military, or would you rather own a dollar, which is backed by debt and a shrinking military?” – Richard Russell
As long as gold`s price is not FIXED everything will be ok. Military might Will Matter No More in short time. Trade, free, agreed upon and unmessed-with trade will be again the rule.
Eugend, sure, I’ve even posted a link via Forbes to it -inadvertently causing man-boob to froth at the mouth-but, China is not US and there is nothing but speculation on the purpose intended.Giantsd play in different arenas than we mere mortals.I don’t know that we’ll ever see an unfettered market…again I apologize to man boob, nevertheless here is the link .http://fofoa.blogspot.com/2014/02/think-like-giant-3.html
Once you had built up a stash consisting of, say, hundreds of tonnes, which probably took generations to accumulate, it would suddenly have a much greater value than the market price said it was worth. It would kind of be the inverse of this: “It is to say” your wealth isn’t as great as your currency says it is”!” In this case, it would be to say “your wealth is far greater than your currency says it is.”
There truly is a “Giants’ circuit” that has always been isolated from the rest of the marketplace. When you’re a Giant, and you buy Giant stores-of-value, your marketplace truly consists only of other Giants. They, as a whole, are the future counterparty you count on should you, or your progeny, ever have to dishoard. You can’t, and therefore don’t, count on the rest of the marketplace.
Flash,
You forgot the most memorable take-home ideea: It`s not expensive because they say it is, it`s expensive because They hoard it.
Peace
Using gold and silver as money is not ever going to work. Besides it’s dumb.
A better approach is to save in physical gold. Earn, spend, borrow and lend fiat. Sell all your mutual funds and stocks. Do not contribute to 401ks. Choke the system of what it needs, your man hours in exchange for digital credits.
Doc, that`s you? Ohh …. silver may worth something, but gold is gold-you know .. 🙂
not always true
I paid the carpenters who built my home entirely in silver for the labor, and currency for the materials
of course I am from Canada so I have more sense than you yanks
Banksters don’t care, huh?
That’s okay. I don’t buy my PM’s to use while fiat is in use… I buy my PM’s for future use when fiat collapses and nobody will accept it (or only accept titanic amounts of it for small things, like bread).
However, I will say that I give folks I work for the OPTION of paying me in fiat, silver, gold or something else of value for trade (ammo, powder, primers, tools, a good knife, optical sights, fertilizer, etc..)…
Rosenberg has a serious case of the hates for banksters… and that’s fine. I do too. But I’m not going to start using my PM’s to buy stuff because HE’S got a vendetta… what will I use when my PM’s are gone and I have to resort to fiat again, and then when fiat collapses? My good looks? Chickens? You know how long it took to amass what we have, a little bit at a time?
The Rosenbergs of the world might have heaps of Secret Jew Gold laying around, but folks like me do not… like the rest of our kind, we have to figure out what we need well in advance and then set aside enough fiat, month by month, until we have enough and THEN we go buy it. Buying massive amounts of PM’s with change we dug out of the couch isn’t in the cards, Paul. And I define “massive amounts of PM’s” as anything over $5,000 at a shot when it comes to silver and anything over $15,000 when it comes to gold… maybe Paul, with his stash of Secret Jew Gold has a different definition?
Why the Banksters Don’t Care About You…
Well, no shit.
Pretty obvious when you look around and realize they are skimming 20% (or more) off the top of EVERYTHING, that they don’t care about us.
They care about their next bonus check, appointment, luxury buy and vacation.
If they cared one freaking whit about “us,” none of the shit that has gone down would ever have happened.
I don’t buy, nor keep, PMs waiting for the end.
I acquire them because I now that in 50 years they will still have SOME value – even if the silver is nothing more than a method to make antibiotics, or if my kids decide to go into the jewelry (or teeth) business. Odds are good that I will be able to exchange them for the THEN in use fiat.
Only if my wildest nightmares come true will they be used for other things.
I truly, truly, hope that our fiat never crashes and that I never have to exchange said shiny things for food, or heat.
But damn, it sure is nice to know I’ll have some option.
Unlike the other 95% of our population that will have no options.
I don’t understand why Paul has decided to try and dissuade citizens from protecting themselves.
Things that make you go, ummmm?
T4C – there is no true sovereignty of the Indian Nations. Wish iit as different but it is not.
Cog Dis. Yesss.
It’s all about price discovery. That’s why the author is an idiot
In reading various comment made by posters on other sites I get the impression that a majority of them are buying PM’s with the goal of trading them for fiat when the prices soar. They are looking to get rich quick but relative to what?
I don’t realistically expect to spend PM’s as money but they should protect what little money I have from continued inflation and an eventual revaluation of the dollar. It would not surprise me to see junk silver being used to purchase goods and services as we move forward. Some merchants are already doing that mostly as a novelty or as a way to increase their own stack.
What I would really like to see is the smaller local banks and credit unions accept PM’s as collateral for loans. As long as you had an income to repay the loan you could use the value of your PM’s to buy property without paying the tax associated with selling them and end up with both your PM’s and property.
I_S