The Second Coming Of Gold

I am re-printing a reader comment verbatim because it’s one of the clearest explanations I have ever read explaining why the western Central Banks and Governments are attacking the price of gold right now.  It’s also just really well-written!

I will point out that, although not obvious on the surface, the “flock” is losing faith in the dollar out of a desperation that has been imposed upon them by the elitists unwittingly. When the history books are written on this period of time, what is occurring now will be explained as an unintended consequence of pure evil seeded in hubris.  Hillary Clinton is the poster-child for this.  I will elaborate on why I say the “flock” is being forced into “fleeing” later.

Here is “Zen’s” explanation for the historically unprecedented intervention in the gold market:

The entire Western financial system could be likened to a church and the dollar a religion built on a firm foundation of faith. Nothing more. It survives and thrives so long as the community of faithful continue to believe in the almighty dollar story and the higher power that prints it.

There are some big holes in the almighty dollar story and many vocal naysayers claiming that the dollar is not real, the religion is a fraud, and the church is corrupt, but nothing yet has surfaced to cause the flock to doubt their faith, as a result the dollar remains sacrosanct and is still worshiped by the masses. Consequently the high priests continue to preach the gospel according to Keynes, attract more believers, and the almighty dollar remains inviolate.

However, if evidence where to surface that the religion is a fraud and the dollar not real– that it is, in fact, only paper and ink, therefore has no intrinsic value whatsoever, the high priests of finance and the pressmen at the print shop would go out of business literally overnight, the dollar would fall from its privileged perch, and the flock of parishioners would become become so disillusioned that they would quit the church. No doubt some people would seek out a new church and many would become atheists, however most would turn to gold for their salvation.

The high priests and priestess of finance are well aware this fact, therefore they see their #1 job to protect the sanctity of the almighty dollar story at all costs –for the entire dollar religion depends on it. Anything that threatens the dollar threatens the church, and hence is a threat to their power and privilege. This cannot be allowed to happen.

Gold represents the major threat to the dollar not because it is competition for the dollar but because it contradicts the entire dollar narrative, bringing into question not only the church leadership, but in truth, the entire dollar religion. Gold therefore is antithetical to the dollar and is the antithesis of everything it stands for. You could say, gold is the anti-dollar.

Gold’s 5000-year old history as money is totally incompatible with the tall tale the high priests of finance have been preaching to their flock, which is why gold must be suppressed, hidden from view, and condemned, and anyone who believes in it disparaged as a blasphemer and gold bug.

Simply put, gold rises when the dollar falls…and not until then. So long as the community of faithful remain captured by the dollar religion and continue to believe in the church leadership, gold will remain to them little more than a shiny relic from antiquity, and the price will reflect this sentiment. If however peoples faith in the dollar is shaken, then they will turn to gold for their salvation and the price will rise.

Until that day I refuse to attend church or place my faith in the paper dollar religion, instead I wait for the second coming of gold …

 

23 thoughts on “The Second Coming Of Gold

  1. Here is a reply from my “local” coin shop… not a small one but a good shop with normally good premiums:

    “I understand the feelings on the 90% premiums, especially if you have bought it in the past. Unfortunately as of right now the premium has only risen higher. Before it was a $4 premium per ounce and now it has climbed to $5.50 per ounce on the full bag quantity. That would make a bag today cost $14,621.75 today at a $14.95 spot.

    and this was on a ~$25,000 order…

    Anyone else see this or see a reputable place to buy with lower premiums and quick delivery?

    beep beep

  2. We can debate among ourselves why the gold price makes no common sense and why the fundamentals should matter but nothing will change until THEY are forced to stop their criminal deeds. I fear that barring the appearance of a modern day Guy Fawkes of fundamental value and free markets the current environment will continue and we will all be driven into bankruptcy…or worse.

  3. the dollar is a measure …. that’s where its true value and “other life” can be found, should anyone care to look because this is simple fact.

    The measurement value allows for two debt-free “things” to trade for each other. One of them could be bullion.

  4. Hi, Dave.

    Zen…” then they will turn to gold for their salvation and the price will rise.”…

    Priced in what? If gold is money, why would we need the dollar as a price for gold.

    Thank you.

  5. Dollar as king made sense after WW2. Now, the king is old and sick. Not many others suitable for the throne besides gold and silver.

    1. Junior …. I agree and there’s a bit of an irony to what you are saying because gold & silver that circulate as debt-free currency actually save the dollar (and the whole fiat system) by allowing proper and prudent debt management that cannot be undertaken without the addition of the debt-free “supplementation”. Fiat currency is overburdened with the sole charge of supporting economic activity.

      Our solution is a mix …. a hybrid where each strengthens the other in a symbiotic relationship.

  6. Dave,

    The guy whose comment you posted is a fool. He either doesn’t understand that the price is manipulated or is a Libertarian who doesn’t want to acknowledge corporate malfeasance. You yourself have pointed out this manipulation many times.

    It’s the typical Libertarian claptrap – “If people would just wake up and start buying precious metals the price would rise!” Sure, the average dumb American has no idea what gold or silver are, but worldwide demand for physical gold and silver is skyrocketing. I stopped buying both 3 years ago because I realized the criminals that are driving down the price will never be prosecuted. And please don’t tell me that it’s a good long term investment unless you can tell me why the suppression will stop “in the long term”.

    1. Circulation ….. that will breed new demand based on the new application of providing debt-free liquidity. We can only be beat up by “the stick” for so long before we learn.

    2. Agree Mike

      Whilst I like the religious analogy the fact is that the faithful don’t change their mind when presented with evidence. What looks obvious fraud on the ‘outside’ is central to a deeply held belief for those on the ‘inside’. You only have to look at scientology for evidence that people will believe just about anything.

      Likewise, I wonder if the suppression can continue, why shouldn’t it? If we are relying on an ‘awakening’ then I think we will be in for a very long wait.

      Perhaps what I have will simply be a curio for my son (“what was my father thinking??”) – not going to sell it….. not inclined to buy any more either.

      Japan hasn’t blown up in 20 years despite printing yen out of the yazoo.

      Si

  7. The federal reserve dollar is a “note.” A first year law student is taught that a note is a debt. We carry around a debt that in essence says that the bearer of this note owes this debt back to the federal reserve with interest attached.
    And this is what we call “money?”
    Not in my definition. I’ll stick with what the world has called money for 5000 years, not with what a bunch of crooks have called “money” for 44 years.

  8. While the artificial scarcity of (dollars/euros) can be created by CB’s and the artificial
    illusion of abundance of metal (Gov/ mints) works I suppose the scam will continue. At the point it doesn’t work of course you better be holding metal.
    The monopoly of credit through legal tender laws a mighty powerful thing. But the reciprocal of that is the public/ taxpayer monopoly on debt.
    What are we complaining about? You have got to laugh.

    1. Dave …. while what you say is true, it is only a half truth. The USD has “another life” as a real-time measure in support of debt-free trades between two debt-free objects/widgets such as an ounce of gold and a man’s new suit or gold and a new hi end TV.

      I would hope that we can both appreciate the flexible price of “real-time gold” where the dollar does NOT act as a settlement currency but as a real-time floating measure in order to settle a trade in debt-free bullion weight.

      Yes … the FED fooled us all. We still get to choose how we see the dollar, however.

      1. won’t be the dollar – it will be the yuan. and actually before the world gets to that stage, there will be a world war.

        1. I don’t think China has any desire for war with the US and the notion of China launching a bullion backed Yuan is utter nonsense and market “noise”, IMO. What incentive would the Chinese have to peg ? It’s far too restraining. That’s not to say they would not use their gold in a currency role, but there’s no reason and no advantage to pegging the yuan.

  9. Gold is a product of Nature.

    Gold was valuable a thousand years thousand yeargo.

    Gold is valuable now.

    Gold will likely be valuable in a thousand years.

    That’s all I need to know to make it MY money.

    If everybody else wants to use IOU’s as currency, God bless them!

    Exchange rates and arbitrage are just the here and now, so I can live in harmony with my fellow monkeys.

    1. Gold ownership is also transferable as a digital currency in real-time, which adds a unique characteristic of instant and scalable liquidity to gold’s classical features.

      Debt-free store of value marries instant and global liquidity. All are invited to the great wedding. 🙂

  10. I’ve lost a lot of my money (78%) believing in gold and investing in gold miners. The facts are the facts. I wish I had put my faith in the dollar instead of gold. The future may or may not change gold’s performance, but because I had faith in gold, I’m entering retirement much poorer for it. The facts are the facts.

        1. Almost any investment can win or lose on the basis of when you buy it …….. and sell it. Let’s not forget about the sale ! I held bullion well beyond its peak , close to $2000/oz.

          Never leverage (borrow) ON BULLION OR BULLION BASED STOCKS, ever , IMO.

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