Email: invest@goldenlionmint.com
Phone: 828-350-1454
"What Caused the Temporary Retraction in the Price of Precious Metals?"
Usually when such price dips occur, it’s due to the central banks dumping gold onto the market. Those insiders who know this ahead of time then “short” the market. That means they make a lot of money when the price retreats.
Dumping gold suddenly can make a lot of noise. It’s much like a police officer I once knew. Coming home late one night to his secluded house, he heard something rustling around in the woods. He took out his service revolver and emptied all the bullets it held into the darkness. Sure, it made a lot of noise, and things were pretty quiet for a while. Like I said, pretty quiet for a while….but nothing had changed at all.
Well, this time the central banks didn’t dump gold (they haven’t but a few bullets left); they suddenly intervened in the impending collapse of the U.S. dollar. The central banks exchanged foreign currencies to buy U.S. government debt, held conveniently for them by our own Federal Reserve. Which, by the way, is about as federal as Federal Express! The central banks were buying up U.S. dollars simply to save the dollar from collapsing.
Hey, it’s like the crew of the Titanic trying to figure out what to do with all that water flooding the bottom of the ship while everyone else was sleeping soundly. Yes, we’re still being flooded with printing press dollars. Both the M1 and M2 money supply expanded; thus, no supply shortage. This means no brakes applied to inflation. The annual inflation rate continues to outpace the interest you can earn holding U.S. dollars. U.S. banks are still on the skids and haven’t seen the bottom yet. The federal deficit is like a runaway team of horses. There isn’t a single fundamental I can find to support the integrity of our currency. Nothing has changed. The problem isn’t fixed.
When you need other countries to come to the aid of the U.S. currency, there’s something out there that’s not right. To have other nations worried about our fiscal health tells me we have more serious things to worry about that we don’t know about - like the big gash in the bottom-side of the ship of state.
Robert Ringer wrote, “If ever there was an area in which to do the exact opposite of that which government and the media urge you to do, that area is the purchasing of gold”. Here’s your choice: gold, the choice of honest trade spanning over 4,000 years, or monopoly money that’s magically pulled out from beneath the table. In the early years of our idealist new nation, Daniel Webster wrote, “Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money.” Gold doesn’t require being propped up by the world’s central bank. Gold has never in this history collapsed in value. Its value isn’t based on financial statements or the solvency of any particular nation. Its value is eternal.
Price retractions are only blips on the radar screen. They’re wonderful opportunities to add to your position and personal security. In the last 15 years that I’ve been in the precious metals business, I’ve seen wild swings in price. It’s all part of the game, and I continue to be unfazed by its regularity. I hold gold and silver for the long haul. It’s the way I build the financial foundation of my investment pyramid. Now that I think of it, the legendary investor Warren Buffet is said to have acquired a major position of owning and physically possessing more silver than any other human on earth. Do you think he’s worried, or even watches the tiny day-to-day fluctuations? I don’t think so. You shouldn’t be worried, either.
Consider that, just a year ago, silver was in the $12.00 range and gold was $650. Where will we be next year at this time? People who study the fundamentals of the precious metals markets, folks who know a heck of a lot more about gold and silver than I do, are forecasting well over $1200 for gold and $30 for silver. Of course, they could be wrong, but what other choices do you have? Paper promises? Promises that sedate your nerves and have you straightening deck chairs on the Titanic, the unsinkable, indestructible vessel? Or should you be securing your own life raft and hoping you’ll never have to use it?
I don’t know about you, but I’m not ready to sell my life raft for an empty promise – how about yourself?
Tony: invest@goldenlionmint.com
Or Call: 828-350-1454