Gold is on the Rise

Gold is on the rise. Is Karatbars ahead of the game?

There is nothing like watching the value of your savings diminish even as you work to increase the amount in the vault. What can a person do about that. You work. You earn. You are taxed. You spend. Possibly you tithe. What is left? Whatever it is, THAT is what you might save. Unless you are wiser than the average working person.

Prosperity Practice: Pay God and yourself first. All others come later in the line-up.

If there is anything to be learned from reading it is wisdom. 

One of the wisest ideas I have ever come across in all of my reading is the directive found in "The Richest Man in Babylon" by George Samuel Clason. The directive is this:

"" 'A part of all you earn is yours to keep. It should be not less than a tenth no matter how little you earn. It can be as much more as you can afford. Pay yourself first. Do not buy from the clothes-maker and the sandal-maker more than you can pay out of the rest and still have enough for food and charity and penance to the gods. 

" 'Wealth, like a tree, grows from a tiny seed. The first copper you save is the seed from which your tree of wealth shall grow. The sooner you plant that seed the sooner shall the tree grow. And the more faithfully you nourish and water that  tree with consistent savings, the sooner may you bask in contentment beneath its shade.' "

This is a wisdom that cannot easily be countered. The only argument against it is, to my mind, the argument of inflation. Those who have experienced it in the last couple decades in Yugoslavia and Argentina and Zimbabwe, for example, found that the first thing they needed to do before anything was to take their pay to the grocery store to buy their sustenance needs before the prices rose any further that day. What, with inflation on the rise as it was, a loaf of bread would rise from $1,200 (speaking in USD terms) to $1,800 or more during the course of the day, and that would happen daily. No joke. Certainly you have seen these pictures:

Big bill. Big amount. Very little buying power.

Handful of bills for sale. Price for the wad? $5 US or a T-shirt.

As you can see, paper currency will become worth exactly what it is - paper with ink on it.



When such inflation becomes rampant the paper is disposed of as rapidly as possible, exchanged for something of real, useable value such as stale bread or a used T-shirt, anything.
What will the wise person do with paper currency before such a time happens? S/he will do exactly what a wise person does WHEN such inflation occurs.
My question is: what will you do now? I have a suggestion: convert ALL your savings into commodities you use on a daily basis. That includes fuel, extra needed clothes that wear out or otherwise need to be replaced regularly such as stockings, underwear, work clothes. Also, long keeping food stuffs and condiments and properly stored cooking oil. Remember the cooking oil and condiments. Plain grains, beans and rice becomes a tiresome meal without seasonings.
Also remember to store canned or dried meats and cheeses. I would not recommend Spam, personally, although I do remember enjoying fried Spam for breakfast when I was a boy. There are canned hams, corned beef and other meats available that keep for years in a cool storage place. Also there are rounds of cheese preserved in wax that will keep for long periods, even a couple of years. These do need to be rotated.

I must go but will give some other suggestions tomorrow plus I'll give you the names of 21 nations that experienced economy collapsing inflation within just the last 25 years! That was a shock when I learned this little tidbit.
I'll keep you posted.
Cameron

Putting Money into Gold -- Now is a good time.

I am told that less than 1% of the world population puts money, substantial money, into gold. Most of the world is still living under the government edict that gold cannot be used for legal tender, only government issue notes can be used to settle debts and business transactions.

Gold was made illegal for general currency in the United States by government edict in the early 1930's when the New Deal was brought into effect under President Franklin D. Roosevelt and the government decided that it needed more control over the money supply. They determined that people who were "hoarding gold" were keeping the economy from growing (this was in the low point of the Great Depression) and therefore on April 5, 1933 the president issued Executive Order 6102, ""forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States". The order criminalized the possession of monetary gold by any individual, partnership, association or corporation in the USA.

People were forced by this Kingly Edict, that preceded the Gold Reserve Act by a full ten months, to turn all their gold, including gold certificates, in to the banks in exchange for Federal Reserve Notes or face stiff fines and jail time. This was supposed to free up the  money supply, to "liquify" the gold, so to speak, and put the cash into circulation, thus strengthening the economy.  It didn't really work, though. The Great Depression dragged on for another 8 years and didn't really come to an end until America was forced into massive production due to World War II. Only then did money begin to flow because of the huge government contracts for ships, armaments, airplanes, infantry and personnel equipment, etc.

The conversion of gold currency into paper debt currency did not kick the economy into action. Peoplel hoarded their FED notes just as they hoarded their gold (a Federal Reserve "note" was at the time a form of  promissory note that, at that time, often declared that they could be traded back for either gold or silver upon demand).  Even with the fact that the gold, which market value was $20/oz, was traded in at a value of $35 per oz, thereby giving the "gold hoarders" a 75% increase for their bank account, the money was not always put in the banks. The memories of bank runs and closures of 1929-1933 were very fresh and painful in the minds of most adult Americans. They did not trust the banks, not even the Federal reserve system which people even now mistaken to be a government, or Federal, controlled bank.

The people simply did not trust what they could not control, i.e. the economy, the banks, the "system". This holds true today. People today do not save money because of many reasons, one of which is the distrust toward a system they cannot control. People realize the value of their money  is depreciating so fast due to inflation, and there is no value gained by keeping their money in the banks, they might as well spend the money in order to get some benefit from what is purchased. Unfortunately this leaves the people always at the beginning line. So, why gold?

Gold has for almost as long as written history been the trusted medium of exchange. Those who had gold had power. They could, and still can, purchase everything from false loyalty to real estate upon which the troops were housed. People, land, houses, and gold. Even with land and houses, people were still mostly impoverished without gold even when their land gave them enough to eat. The gold is the tool that brings wealth and power to get things and to get things done.

"Who has the gold makes the rules" is the golden rule of the world, and it holds true in most cases. It may not be the spiritual rule of love (which rule I fully agree with and seek to adhere to) but it is definitely a rule that applies in many or most situations in which we find ourselves.

I'll go into greater depth in my next posting. In the meanwhile, God Bless and good luck.
Cameron Sevy