For gold bugs, investors, and those feeling the pinch of price inflation in the general economy, there has rarely been a better time in history to buy and store up a modicum of the precious metal. And contrary to the ways both London and the Comex have destroyed the paper spot price through massive manipulation as a means to protect the dollar, according to long-standing analysts within the industry, consumers may never see prices this low again in our lifetimes.
When the Federal Reserve began its unprecedented programs of zero interest rates and Quantitative Easing, it set in motion an extraordinary expansion of the U.S. monetary system. And to protect the global reserve currency in this new paradigm of money printing that would have killed the dollar through a domestic and international loss of confidence, the banking cartels needed to manipulate the one form of money that acts as a check and balance for the people's confidence in a fiat backed system.
They had to manipulate the price of gold and silver.
The Fed’s policy of monetizing one trillion dollars of bonds annually put pressure on the US dollar, the value of which declined in terms of gold. When gold hit $1,900 per ounce in 2011, the Federal Reserve realized that $2,000 per ounce could have a psychological impact that would spread into the dollar’s exchange rate with other currencies, resulting in a run on the dollar as both foreign and domestic holders sold dollars to avoid the fall in value. Once this realization hit, the manipulation of the gold price moved beyond central bank leasing of gold to bullion dealers in order to create an artificial market supply to absorb demand that otherwise would have pushed gold prices higher. The manipulation consists of the Fed using bullion banks as its agents to sell naked gold shorts in the New York Comex futures market. Short selling drives down the gold price, triggers stop-loss orders and margin calls, and scares participants out of the gold trusts. The bullion banks purchase the deserted shares and present them to the trusts for redemption in bullion. The bullion can then be sold in the London physical gold market, where the sales both ratify the lower price that short-selling achieved on the Comex floor and provide a supply of bullion to meet Asian demands for physical gold as opposed to paper claims on gold. - Dr. Paul Craig Roberts, former Assistant Secretary of the Treasury
There’s a story of a boy who worked as a bellhop in a German hotel prior to the hyperinflation of the 1920s. One day the boy received a one-ounce gold coin as a tip from a rich hotel patron. The boy saved that gold coin. Later, during Germany’s hyperinflationary depression, the boy bought that entire hotel for the one-ounce gold “tip”.So for all intents and purposes, gold serves as insurance against a dying currency, and not as an investment as many pundits on Wall Street try to sell it as. And like Bitcoin's purpose, gold functions as a true form of money to act as a balance against the currencies we have around the world today that simply act as a form of legal tender. (And it is important to study and learn the differences between money and legal tender)
As of today, the dollar is resting upon the precipice of going over 100 on the index, and for most analysts, signifies the strength of the currency. But the reality is, the dollar's so-called 'strength' is not from an actual desire of individuals or country's to hold the currency, and in its purchasing power for goods and services, but from a different economic principal known as the Velocity of Money. The velocity of money is defined as the rate at which money is exchanged from one transaction to another, and how much a unit of currency is used in a given period of time. Velocity of money is usually measured as a ratio of GNP to a country's total supply of money.
And as of right now, that ratio is well over 100%, meaning there is more debt (As our dollar is a debt instrument, not a form of money with value), than total annual production for a given year.
And this more than anything has been what has kept prices from hyper-inflating while the money supply already has. By keeping this printed money out of the general economy, and flowing from transaction to transaction (Velocity of money), the central bank has been able to keep printing new currency year after year, while for the time being limiting its consequences (Price inflation - Price hyper-inflation) from destroying confidence in the currency completely.
The question then remains... how long can the Federal Reserve actually keep this velocity down while still growing an economy that now needs more and more credit (Debt) just to survive? (See Japan and where massive money printing has not stopped for 10-20 years just to keep markets propped up)
This is why gold is insurance, and not an investment, and why it is the most vital thing to own when a nation or banking system reaches that critical mass of probable collapse. In less than 100 years in the U.S. alone we have seen two major currency events, once in 1933 and again in 2008, and worldwide hyperinflation has occurred 29 times in the past 100 years.
No one can predict when a hyperinflationary event will come, but when it does it occurs swiftly and faster than anyone can prepare against once it begins. This is why nations like China, Russia, India, and many others are buying gold as quickly as possible, and stockpiling it for what they inevitably know is coming due to the dollar's devaluation and expansion. And because the West has programmed their populations into believing gold is nothing more than a commodity, a collectible, or an investment, and not real money, there has been little outcry when the central banks have forced down the spot prices they control through the use of naked shorts and derivative paper contracts.
Yet this manipulation has provided those who have eyes to see and ears to hear a chance of a lifetime, and the opportunity to prepare themselves for the end of the dollar, and what is already manifesting as a return to a gold standard of money. And while many can't afford to begin buying this insurance and wealth protection even at $1140 per ounce, they can do so by buying it in gram sizes with a company that is recognized around the world for their concept of affordable gold.
Buying gold through Karatbars is one of the easiest things on the net. In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.
And as added perks to signing up with Karatbars, as a customer or affiliate, Karatbars is working on a new e-wallet system that functions just like an offshore bank account, and is outside the authority of the banking system. From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.
Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet. And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.
But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate. Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.
Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.
How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money? And there is never a mandatory requirement to buy beyond what you desire, on your own schedule. And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.
The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold. And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?
To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.