Tax & Financial Consulting Services
Gold and Economic Freedom
Dear G&G Readers,
A column I read in the Financial Times, quoted an essay written by Former Fed Chairman Alan Greenspan in the 1960s called "Gold and Economic Freedom." Greenspan wrote "under a gold standard, the amount of credit that an economy can support is determined by the economy's tangible assets...[but] in the absence of the gold standard...there is no safe store of value."
Since we left the gold standard in 1971, credit creation by central banks has spiraled out of control. Greenspan goes on to state, "Deficit spending is simply a SCHEME for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights."
Greenspan obviously changed his views after taking over at the Fed and overseeing the creation of one of the largest asset bubbles of all time. And what was the major contributor to the current economic situation? The incredible amount of leverage enabled by unprecedented money supply creation by central banks.
If Greenspan only would have stuck to his previous views on deficits, this current economic disaster could have been avoided.
I realize that the return to a gold standard won't happen anytime soon. Current administrations, as well as comsumers, are too dependant on deficit spending. But the discussion does illustrate why gold will likely continue to be sought after by investors.
Fiat currencies are nothing but paper, while gold and silver is a physical asset that will ALWAYS have value. And as inflation heats up, which I expect to happen toward the end of this year and into 2010, gold and silver will serve as a hedge against this expected inflation spike.
Gold, which has been hovering just below $900 for most of this month, should begin to move back toward $1000 as investors look for shelter from the coming storm.
For those of you who are still pondering whether I should or shoudln't invest in Gold & Silver or keep throwing a good portion of your savings down the drain into paper assets.
Start purchasing physical Gold & Silver coins at 25-35% off the US Mints published price right away, click the link below or goto G&G Associates website and click on the "Precious Metals" tab to start purchasing "REAL" money now instead of paper promises backed by nothing. You can purchase as little as 1 coin at a time to as much as you can afford. Start today...stop waiting.
If you have any questions, don't hesitate to contact me.
Tax & Financial Consultant, RFC
866-361-3872 toll free fax
"A Prudent man foresees the difficulties ahead and prepares for them; the simpleton goes on blindly and suffers the consequences."
Proverbs 22:3 -- Living Proverbs
LEGAL NOTICE: This work is based on SEC filings, current events, interviews, corporate press releases and what I've learned as a financial consultant. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility. G&G Associates gets paid a commission from a membership purchase at www.publicgold.com/gngpreciousmetals.