By Bruno de Landevoisin
One should never be too concerned about the gold price measured by a suspect faltering monetary regime. The value placed on the timeless hard asset class in terms of a fiat currency solely backed by the good faith and credit of bankrupt Governments, whose Central Banks are counterfeiting paper money, is only viable so long as the presiding monetary authorities legitimately maintain their credibility and supremacy.
The history of fiat money, to put it kindly, has been one of failure. In fact, EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well. (The Daily Reckoning)
The inevitable failure of the western world’s fiat based financial system will leave gold as the only veritable monetary store of value still standing. Once the capital and economic breakdown befalls, the trust between the nations tied to the previous monetary order will have been irrevocably shattered. Gold then emerges as the essential and only time-honored common denominator between the sovereign States, which no longer value each others’ previously accepted paper obligations. Having been entirely discredited, failed fiat currencies, that had hitherto readily facilitated the exchange of goods and services between nations, are simply discarded like worthless paper soiled with spilled ink, promptly tossed into the trash bin of history. Same as it ever was……..
The severe monetary, commercial and geopolitical dislocations which invariably ensue, unalterably follows the disintegration of the previous global means of exchange, in this case the Dollar. This is precisely the moment Gold takes center stage. When the dust finally settles, the only remaining store of value still trusted and acceptable as a means of fair trade is gold. It has consistently been so for well over 2,000 years of civilization’s monetary history, which is about determinative a probability as they come.
In time, a new monetary system is eventually reestablished between the decimated distrusting parties, forced to the negotiating table so as to resolve the ongoing global financial cataclysm. During that conspicuously uncertain period, the new monetary order can only be based on a universally recognized real money currency, and that my dear friends has always been gold. At the end of the day, the honest and genuine hard asset class is quite simply in a class of its own, unequivocally valued by all concerned parties, particularly at critically perilous junctures in time…..
It’s really quite simple, it’s not about the new Stock Market highs, nor the Dollar and U.S. Treasury safe haven. It’s all about tomorrow’s confidence in our Monetary System. Are you confident in the malignant malfunctioning monetization? At the end of the day, the only relevant question still remaining, is not if, but when our cocksure menacing monetary mad men will entirely lose their grip on their perverted paper
Money is stored labor. Labor is part of life. When you debase money, you devalue life itself.
Oh, and for those that incessantly dismiss gold as a barbaric relic, please be advised that the metal remains the best performing asset class of the New Millennium, by a country mile. Be sure to let me know when that changes……
Moreover, Gold serves as crucial financial insurance, whether you have paid $45 per month or $65 per month for the crucial insurance coverage becomes entirely irrelevant when an instantaneous incendiary inferno burns down your home.
To quote the timeless Bobby Dylan: “Come in she said, I’ll give you shelter from the storm”