For more than five years, the global financial system has been weighed under by a currency war that shows no sign of stopping. It is one of the primary reasons why central banks have resorted to zero or negative interest rates, and why countries like Japan have initiated a policy of endless QE.
But as we know in the gold markets since 2011, something or someone has been carefully creating a disconnect between the monetary metal and its checks against fiat currencies like the dollar. And it is one of the primary reasons why gold prices have not only declined 40% from their all-time highs in 2011, but have also lost its luster to most investors who only see gold as a commodity to be bought and sold like a security or stock.
Yet over in China and Japan, gold is not manipulated by their government or their central banks, and is reflected fairly correctly in price in relation to the Yen and the Yuan. And as China mulls the proposition of devaluing their currency another 10-15% in the coming months, gold, more than stocks or bonds, is proving to be the best investment for citizens within the 2nd largest economy in the world.
Finally, the real purpose of the PBOC's exercise in FX management today was, just like in August, to fire a warning shot at the Fed's rate-hiking plans. Only this time the warning shot is far, far louder.
In September the Fed postponed its rate hike as a result of China's devaluation. Will it do the same again next week? Because if China is about to unleash a 15% deval of the CNY against the entire world, expect a flood of Chinese FX reserves as the PBOC tries to control the glidepath of its currency, and avoid an all out collapse driven by soaring capital outflows.
In other words, we are now right back where we were in mid-August, just before the bottom fell out of the market.]
"The biggest risk in China is not really the economy," said Qian Wang, senior Asia economist for Vanguard Investments Hong Kong. "The real risk is, number one; the policy uncertainty, and number two; the currency. China is walking on eggshells."Chinese citizens, meanwhile, are anxiously awaiting tomorrow’s market open while mentally repeating the same three lines:
- Sure am glad I bought that gold last year.
- Wish I’d bought more gold last year.
- Wonder what I’ll have to pay for gold next week… - Zerohedge
So with China signalling a new devaluation, and the U.S. Federal Reserve speaking on Friday of not only retracting the interest rate hike they did in December, but perhaps even taking rates down into negative territory, how can you protect yourself from this paradigm of currency devaluation that will not end until many if not all of these currencies end in collapse?
With the very thing that as we see above increases in value as paper money declines. Gold.
And the best way to buy it and protect your wealth in any currency this is with a company called Karatbars
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.