Tuesday, August 2, 2011
Let's Get Real About Gold!!!
By Nicholas Contompasis
I was having a conversation the other day with another independent financial analyst who has been pushing gold like a new mouse trap. The conversation was fun and easy because some people have depth of experience and book knowledge while others have neither.
Investors today are at a crossroad. They are asking themselves questions that ten years ago would have been thought inconceivable, what if, what if, what if, always what if?
What if the currency markets collapse? What if America collapses? These are hard out-of-the box questions that need out-of-the box answers, and smart investors need these answers to practice good risk management principles. Whether for themselves or clients one must have some idea where all of this is headed. If you don't prepare for a collapse you could lose all and end up being at the bottom of a heap in a new society of elites with you eating their crumbs, and nobody likes that.
Back to gold, that seems to be hoarded by all these days, even the smart guys. What I find interesting is these smart people stockpiling gold, actual gold bullion bars, in their basement vaults or bank safe-deposit boxes actually think they'll be "styling" when the currency crash finally comes.
But, I have a message for all who think those bars of gold will protect you when the crash comes.
The end game seems to be that when everything fails among countries with their burdensome mounting debts, gold will be pegged at somewhere around $50,000 USD an ounce and all will be well with this new gold-backed currency.
It all sounds wonderful if you're holding tons of gold bars in your attic, but what if, what if, what if?
What if the United States decides to work with the G-8 or even the G-30 to coordinate a global gold policy? Remember, at one time it was illegal to hold gold other than jewelry in America. Could that happen again? You bet it could and it could be enforced globally!
This is my scenario if I were running the G-30 and forming a new global currency pegged on a gold price of $50,000 an once.
1. Make it illegal for private citizens globally to own gold other than jewelry. This would be a global law that would be enforced by the United Nations's member states and NATO through treaties.
2. There would be one global currency, no longer the USD.
3. Nationalize all goldmines globally under the authority of the United Nations.
4.Citizens that hold gold prior to a given date would have time to turn in their gold at a given price (not $50,000 per once) far below the current price of $1,600 per once, thus causing a collapse of the "privately held" gold market.
5. Since computers and GPS are now an important factor, generally speaking, most gold and ownership of gold can be tracked and monitored for a more thorough consolidation of gold inventory by the industrial nations of the world.
6. One last very important point that shouldn't be overlooked. Last month the head of the Federal Reserve Ben Bernanke, sent the world a secret message. If you weren't listening, he said, "Gold isn't money" and he was right.
As you can see this is not farfetched since it plays into the massive spending of most G-8 members over the past years for social welfare programs. It also reinforces the theory of a one world government and currency controlled by a central authoritative power made up of G-8 member states.
Like I said, these are ideas and thoughts that ten years ago were considered nut-case scenarios but are now staring us in the face.
So, if you think you're smart and you have all this gold stockpiled in a box buried in your backyard, you could wake some morning facing the cold reality that your $1,600 per once gold is now worth $35 an once and you are required to turn it in within thirty days or go to jail.
Farfetched, don't think so!!!!