Don't Count on Gold!

May 17, 2001

The readers of this website are certainly more perspicacious than the average surfer. They open their eyes and use their minds and realize that the truth is far from what they are told by possibly well-meaning, but nonetheless wrong, pundits and commentators. And they have the sophistication to detect the subtle, and sometimes not so subtle, ploys of the government/banking axis. They appreciate, for example, the clever stratagem of "leasing" gold which is then sold short, in anticipation of repaying it with cheaper gold; but understand that this can only work as long as banks have gold to sell. When there is no more bank gold to dump, what then? The game is over, and the price of gold will once again be determined by genuine market forces, not tricks of its avowed enemies, who have declared it a "barbarous relic."

Furthermore, foreign investors in the "strong" dollar will drop it like a hot potato when that "strength" begins to evaporate. Of course, the government may counter by the issuance of another "dollar," one intended for use by foreigners only. Or it might issue a new currency at a devalued rate, or both. But once the bubble bursts, or even begins to leak, only a fool or an ignoramus will cling to dollars. Gold is, and always has been, sound money which cannot be depreciated: an ounce of gold is an ounce of gold, with the buying power of an ounce of gold, regardless of what its enemies in banking and government may call it, or say about it. The wise man has, and will, cling to, gold. Of course, an investment in gold earns no interest, and pays no dividends, but, on the other hand, its value remains constant, and in that sense, it earns interest over a depreciating fiat. What must be considered is timing: when to dump dollars for gold. Ideally, of course, this is just prior to the collapse of the dollar, and the feeling of some who write for GOLD-EAGLE seems to be that that day is not far off.

So buy gold! Historically, logically, philosophically, economically: any way you look at it, it makes sense to buy gold! Even if your timing is off, better to get rid of your dollars a year too soon than a day late!

Except for technology! What will distinguish this crash of fiat from prior crashes is the technology available to the enemies of gold, and the utter disregard for the law and human rights which characterize modern governments, including, sadly, our own.

Admittedly, our government has already exhibited a total disdain for its citizens as long ago as 1935, when it seized, totally unlawfully, the people's gold. But in those days, it relied upon the naiveté of the populace. People were asked to turn in their gold, and told that the government knew what they had in their safe-deposit boxes. Apparently, many, if not all, people believed this, and dutifully gave their gold to the government, never to see it again! (Oddly, our government, which actively inserts itself into the effort by European Jews to recover gold seized from them by Nazis, has no interest in returning to Americans the gold seized by the Roosevelt gang.) Today the people are not quite so gullible; they will not believe that Uncle Sam knows what they have in their safe-deposit boxes, or under their mattresses, or buried in their back yards. But will that make any difference?

My fear is that our enemies have, or will soon have, technology enabling them to detect the presence of gold on your property simply by driving past in a vehicle with the proper sensing equipment aboard. They may not only be able to tell that you've gold secreted about your place, but how much. Ditto for silver. And surprise! Precious metal ownership will be illegal, again.

But suppose I am wrong: the gold you've planted under the tomatoes is safe, and cannot be detected. What will you do with it? Eventually, you will want to exchange it for something. With the stroke of a pen, the President can issue an executive order (never mind what Congress might think, assuming they think at all) making all sales or trades involving gold illegal, with drastic punishments for those caught. In that instance, everyone possessing gold becomes a potential felon. If it becomes unlawful to buy, sell, or swap, gold, it probably isn't even necessary to outlaw its ownership.

Can you take your gold to another country and sell it? Well, you'll have to get past the metal-detector at the airport, or train station, and any significant amount of gold will be so heavy as to make it difficult to carry. Can you walk across the border into Canada or Mexico and sell it? Maybe, if the Berlin wall isn't resurrected between the U.S. and its neighbors. Take a boat from Florida to Cuba, if you dare, but you'll find Uncle's agents everywhere, and the Coast Guard will be watching carefully. And if your gold is stolen, to whom will you complain?

Of course, a dedicated and intelligent person will find some way to exchange his illicit gold. Will you be among that number? Will you be able to do it more than once? Can you trust those with whom you deal not to accidentally, or on purpose, disclose the fact? The government can issue great rewards for those who snitch. What can you offer?

As I mentioned above, the readers of GOLD-EAGLE are more sophisticated than most. But in realizing the obvious and undeniable superiority of gold over fiat as a medium of exchange, an additional bit of sophistication is needed. Anyone savvy enough to realize that the bankers, and the governments which they've bought with their credit, will do anything to discredit gold and prevent its use by the people, should also be savvy enough to realize that when credit crashes, as it always has, and inevitably will, the government/banking axis will not simply shake its head and say, "Well, too bad. There goes our power and influence. We're out of business. Let's start over." At one time, the inability of the rulers to track down and seize gold might have made that possible. Today, with the power to rule the entire world at stake, and the technology to make gold ownership and/or exchange virtually impossible, it's a different story. Before you put all you own into gold, think about it!

Gold is still being mined and refined at the rate of almost 2,600 tonnes per year.