For five thousand years, gold and silver have been
humanity’s premier form of money; real money, not the faux-money
manufactured by our central banks. During that same period of time, these
metals have been our premier instruments of wealth preservation and therefore our
There is nothing accidental about this phenomenon. Gold and
silver have obvious aesthetic appeal. Indeed, silver is actually the more brilliant
of the two metals. It is their aesthetic appeal that makes these metals
“precious.” But more than simply their aesthetic appeal, they are also
If diamonds were as common as pebbles, it would be
impossible to impress one’s potential bride-to-be with such stones, even in a
setting of gold. Diamonds have their value, both real and sentimental, not only
because of their aesthetic qualities but also because of their perceived scarcity.
The situation is the same for gold and silver. If gold and
silver were as common as iron, zinc, or even copper, they would not be coveted
as greatly, regardless of their aesthetic appeal, because of their abundance.
It is the qualities of being “rare” and “precious” which are essential in order
for any commodity to be considered a suitable currency. It is these properties that
make a commodity a source of value. There will always be demand for these metals;
therefore, they will always have value. For these reasons, gold and silver preserve
and protect wealth.
Gold and silver are both precious and rare, but they are more
than that. As metals, they also exhibit uniformity. Once refined, any gold or
silver coin is indistinguishable from any other. Conversely, diamonds lack
uniformity, therefore they are not a good candidate to be used as “money.” Venders
would complain that a particular buyer was using “low-grade” diamonds for
payment. On the opposite side of the ledger, purchasers with stones of superior
size or quality would seek to negotiate premiums on their “money.” It would wreak
havoc for commerce.
Gold and silver are perfect money, but they are also more
than that. They are forms of money that are available at what must be termed
near-optimal quantities and fulfill two separate but equally important
functions. Silver is rare enough to be valued for its scarcity yet plentiful
enough to be the ideal Peoples’
Money. It can be the wages of the workers; the payment used in basic
Gold is more scarce than silver. Because of its greater
degree of scarcity it derives greater value, yet it is still plentiful enough
to be a tool of commerce. However, gold is not the Peoples’ Money. Rather, it
is the money of nations or, alternatively, the wealthy. It is the money of
investment and industry. This additional level of prestige makes gold ideal as
for a national or global monetary system.
Paper previously released on this topic explained how and why “a gold
standard” was the optimal basis for a monetary system in our modern economy.
That same paper then provided extensive empirical evidence documenting the
horrific economic carnage that resulted from the loss of our gold standard in
the early 1970s.
When our nations had gold as the money of governments and
silver as the money of the people, we enjoyed a level of prosperity and
economic stability that we have not seen either before or since that era. In
the four and a half decades since these metals have lost their official
monetary status, our economies have been destroyed,
our governments have been bankrupted,
and the currency in our wallets is fundamentally
Decades of relentless brainwashing in the West have
convinced the vast majority of our populations that there is no longer a place
or role in our modern economy for Perfect Money. Consequently, the masses in
the West generally shun gold and silver by storing and protecting only a tiny
percentage of their wealth with these metals, in comparison with any other era
in our society’s history.
This is how gold and silver stand today from a Western
perspective. What is continually forgotten beneath the veneer of our cultural
arrogance is that the rest of the world, and the vast majority of humanity’s
population, have a fundamentally opposite perspective regarding the world’s
only Perfect Money.
Unexposed to the decades of monetary brainwashing directed
at Western populations, Eastern populations have never forgotten the important
role of precious metals in our societies and economies. Even the most humble
peasant understands why we store our wealth in gold and silver money – not the diluted and debauched
paper currencies of bankers.
Real money is a store of wealth. Mere paper currency is only
a tool of commerce. As a store of value, these currencies are the equivalent of
bucket.” Over a period of thousands of years, gold has perfectly preserved
the wealth of its holders. In the mere century in which the Federal Reserve was
entrusted with “protecting” the dollar, it has lost 99% of its value and the
Now that is a big
leak. And it’s getting worse. Thanks to the ever-increasing rate of Fed money
printing, and thus U.S. dollar dilution,
75% of that loss in value has occurred over just the last quarter-century of
Federal Reserve fraud and mismanagement.
We needed gold and silver for our financial protection a
century ago. We really needed gold and silver 45 years ago when Paul
Volcker assassinated the last vestige of our gold standard. And we really really need gold and silver to
protect our wealth today – as the monetary crime of “quantitative
easing” has rendered these faux currencies fundamentally worthless.
In the East, China and Russia are relentlessly accumulating
gold, observing a “rule” which is now forgotten by the arrogant oligarchs of
the Corrupt West: the Golden Rule. He who
has the gold makes the rules.
Conversely, the Corrupt West has squandered its own once-vast
reserves, both officially and surreptitiously. For the better part of two
decades, Western governments were dumping hundreds of tonnes of gold per year into
the market to suppress the price. Meanwhile, the central banks of these regimes
were secretly dumping at least that much gold onto the market.
This process was done via what these crooked bankers call “bullion
leasing”: (supposedly) ‘lending’ their gold. Regular readers are already
somewhat familiar with such frauds. “Gold generates no income.” The bankers
tell us this all the time. Thus there can be no legitimate commercial purpose
to so-called bullion-leasing.
Instead, this “borrowed” gold is also dumped onto the market
(i.e. sold), with much or most of that gold gone forever. Yet our corrupt
central banks continue to register every ounce of gold on their books – pretending to continue to have legal title
and possession of this gold.
No one has seen any of this gold in decades. In the case of
the United States’ mythical “gold reserves,” there has been no public
accounting of this gold in over 50 years. The farce has grown to such an
extreme that any time any significant quantities of this Western “gold” is
transported, it is done secretly so that no one outside of these corrupt
regimes ever gets even a glimpse of this myth-gold,
let alone a touch or an official audit.
The West’s gold is gone. Yet out of one side of their
mouths, these rancid governments boast of supposedly gigantic reserves, while
out of the other side of their mouths they continually denigrate its importance
as a monetary asset. “Gold is a barbarous relic.” One would never hear such
ignorance and idiocy emanating out of the East – or anywhere outside of the
Western governments and their deluded populations are about
to get a history lesson and economics lesson all rolled into one. It could and should
also be a lesson in humility, though that is likely too much for us to hope.
and Russia are not accumulating vast reserves simply to engage in idle
boasting, as does the West. Both of these nations are deliberately understating their total reserves –
significantly – though not declaring the gold they acquire domestically. With
any gold acquired from domestic sources (i.e. gold mining) such declarations
are entirely voluntary.
The purpose of such massive stockpiling can only be with the
intent of resurrecting “the gold standard.” The difference would be that these
Eastern nations could and will occupy the drivers’ seat of the new system,
which will replace the fraudulent Western system of un-backed and totally
debauched paper currencies.
He who has the gold makes the rules. The “world” in the East
has never ceased to recognize the Golden Rule. The “world” in the West now
contemptuously scorns this eternal wisdom. Another expression long forgotten in
the arrogant West: pride cometh before a