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08/19/2005 Archived Entry: "Gold is money"
YOU SHOULD ONLY BUY GOLD with the money you can't afford to lose. This sage advice comes via economist Mark Thornton in The Price of Gold: How High Can it Go? LewRockwell.com is on a roll today, with no less than three articles about gold.
A google search for "gold" at lewrockwelll.com over just the past 3 months finds 806 hits! The connection between gold and freedom has never before been so well documented.
Scholar Thornton is certainly correct about the ultimate dollar price of gold: infinity. More accurately, the value of a dollar will inevitably approach zero, the final value of all fiat currencies everywhere throughout history.
Addison Wiggins, co-author of the highly readable Financial Reckoning Day notes that the approaching end of the Dollar Standard Era will complete one more terrible cycle of "going on the gold standard, moving to fiat money, experiencing a debasement, and then returning to the gold standard. " A Modern Dilemma is an essay from his soon-to-be-released new book, The Demise of the Dollar... and Why It's Great For Your Investments. It sounds like a good book, but all of my investments will be in gold. Well, maybe I'll take some of the money I can afford to lose and see if Mr. Wiggins can help me multiply it.
Over at 321gold.com Ronald Watson predicts $10,000 Gold and $700 Silver by 2034 based on Kondratyev wave analysis. Kondratyev believed that generational shifts in preferences for hard money versus paper debt drives long-term oscillations in the value of various markets. While the notion is appealing, and the 12% per year returns implicit in a rise from $450 today to $10,000 in 2034 very appealing, accurate predictions are difficult. Especially about the future. What is going to happen is clear, when is not.
Paul Hein suggests a more active approach in Doing Something. He has a retiree's proper focus on questions of why and how property taxes are apportioned, and raises some fundamental questions about the problems inherent in stating value in units (dollars) that have no value.
His most important point is his last: "Is it written somewhere that tyranny can only be opposed by a single method?" Certainly not. Claire has written about 179 in The Freedom Outlaw's Handbook. The incomparable Mogambo Guru reminds us in his latest rant Oil. Gold. Silver. Ommmm. that the entire immoral system comes crashing down when people decide to stop taking on more debt, no matter how attractive the terms.
Dollars are debt. Gold is money. Buy gold and you not only protect yourself, you withdraw support from an inherently evil system of control and theft, and hasten the day when that system collapses. Ommmm.
Posted by Silver @ 05:34 AM CST