Current Gold and Silver Prices Prove That They Are the Commodities of the Kings

Gold and silver prices are the perfect indicators of the current value of currency. Central banks will never cease to devalue currency. This serves the leisure class of citizens and the government in different ways. It benefits governments by reducing the actual value of the national debt. It serves to enrich those of the leisure class who happen to be invested in the right corporations such as banks and other favored corporations. Fiat currency is a trick played on the working class of citizens who are convinced that gold and silver are poor investment choices.

Money is printed by central banks, such as the Federal Reserve, with many colorful reasons being presented. A remedy for deflation, to alleviate the debt of the central government, and to stimulate the economy by forcing interest rates down are a few of the reasons they tend to use. There are two true, main reasons no matter what reasons are presented.

The first real reason is that it devalues the currency. This is how the central bank convinces the government that it should be permitted to print more money. It is similar to the trick of watering down whiskey. When water is mixed with whiskey, the volume increases and the potency decreases. It takes more to get the job done.

The second is that the money printed must be spent into the economy by some entity. Central banks are completely separate from governments. They are organized in the form of corporations, and corporations are focused on profit generation. They invest in anything that will make the stockholders the most profit including other corporations. These corporations can gain an edge over others in the same industry with more access to cash. This is a wonderful incentive for a corporate central bank to lend money to those corporations in which they are invested.

This new money is the same as counterfeit money, but it is expected to be paid back with interest to the central bank, eventually. The central bank can consider the money that is repaid plus the interest as pure profit. It can be considered the fee for printing the money. That which is beyond the price of printing the money is pure profit.

A result of all of this is that the prices of goods and services rise. Silver prices are reflective of the devaluation. Not only does the silver spot price rise along with the other goods and services in the marketplace, it benefits from the fact that those that are making the profit from the printing operation keep their wealth in precious metals. This means that as they receive the money, they get rid of it by investing in silver and gold, which increases demand, thereby increasing the spot price even more.

Gold and silver prices reflect the current value of the currency better than anything else does. It is a component of the schemes of central bankers and governments. They all know that fiat currency is a trick and laugh at those that stake their futures on it. It will always have a dominant trend of falling value. There is but one way to conserve wealth and that is to invest in commodities, and the kings of the commodities are gold and silver.

Source by G. D. Hanson

Current Gold and Silver Prices Prove That They Are the Commodities of the Kings