Wednesday, March 9, 2016

Whether it is physical gold or paper gold ETFs, everyone is jumping on the bull market bandwagon

Here in the alternative media, when it comes to gold we try to advocate one important point... if you don't hold it, you don't own it, and thus we always cite the importance of owning physical gold rather than futures contracts or equity based ETF's.

But most Americans still don't have a true understanding of the power of physical gold, and instead trust in their brokers to provide them good information for both investing, and wealth protection.  And as the price of gold has moved into bull market territory, even brokers who have dissuaded their clients in the past to refrain from buying gold are now changing their tune to recommend gold as an asset in the paper markets.

Yesterday marked the 40th day in a row that total known holdings of Gold in ETFs rose. Not since January 6th has the precious metal seen a reduction in holdings. This is the longest streak of increased holdings since ETFs were born...

The expectations that gold will once again become a recognized form of money are growing, but this time when it does it will no longer be restricted to a price determined by governments, but instead by the market which will use it as a checks and balance against paper fiat currencies.
(GB) Do you think that gold and silver are actual money? 
(PS) They are not actual money now. Right now we have pieces of paper that used to be redeemable in gold and silver but are now not redeemable in anything as money. I think gold and silver would be used as money if we had a free market, but unfortunately we don’t. I think that when the collapse in the dollar occurs, there will be a widespread return to using gold and silver as money, or at least having other currencies backed by gold and silver as money again. With today’s technology the transition will be much easier than if we had tried to do this in the 80’s or 90’s. 
(GB) That said, do you recommend people to buy physical precious metals? 
(PS) Absolutely. If anyone has been following me for any time they should know that I do not put a lot of faith in fiat currencies. While there are some currencies that are relatively better than others, the reality is that all currencies are fiat at the end of the day and therefore subject to fall all the way to zero. I personally think the dollar is the most dangerous currency of all because of what the Federal Reserve has been doing for years at unprecedented levels. Gold and silver offer the only protection from outright currency collapse and bank failure. What we saw in 2007-2008 was just small taste of what is to come. Gold and silver are the only assets which can offer you protection from such an event and actually increase your wealth. I recommend putting anywhere from 5- 20% of your liquid net worth in gold and silver. - Peter Schiff interview via Silver Doctors


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