Gold prices dropping

Originally Posted by NobleMetalWorks

I'm sorry, I still have to disagree with you.



Not only do I go out of my way, regardless if I am spending cash or spending a precious metal, to do business with the small business owner rather than corporations, if I am able. I don't support the corporate mentality that is only morally obligated to their stock holders, and not humans.

All through history, the only thing that has ever been readily accepted as a means of trading value, has been precious metals. It was first commodities like olive oil for example, and animals, but as people started to travel longer distances they needed to be able to exchange their commodities into a different commodity that was recognized and readily accepted by other people they wished to trade with regardless of where in the world they were located, what language they spoke, etc. It has been the longest standing and most stable form of monetary exchange the world has ever known, ever.

I also would debate what you base the dollars value on. If you follow what our economy is based on, it boils down to oil, we are an oil based economy period. Oil is what affects prices, oil determines the cost of trade, it's oil more than anything else that our monetary system is built on. If we were to take a country like Brazil, their economy is based on food production, which while being different is just as volatile. Considering we have already achieved peak oil, meaning we have plenty of oil in the ground by cannot pump it out of the ground fast enough to supply the demand, where do you think the value of the dollar is going to go? We hit a wall where we cannot produce anymore oil than we already are, no growth, which is exactly what our form of economy relies on for it's continued healthy existence.

In dealing in international trade, I came to realize regardless of what people may think, that commodities and goods are exchanged for not only the all mighty dollar, but also the Euro, and the HK Dollar as it's called as well as other currencies. But it really doesn't matter, it's all electronically transferred and really just amounts to numbers in a database on a computer system somewhere.

So if the world goes to crap tomorrow, everyone will still know what gold is, and recognize it as having an intrinsic value, and will deal with you based on their ability to in turn trade it for what they need, after all that's the entire point of any currency.

And what makes you think the Government cannot grab your money? What leads you to believe that the numbers you have saved in the bank are safe from the Government? Literally, each time you sign a signature card, or anytime you have signed for a loan, a credit card, anything to do with any banking institution like a home loan, car, etc, if you read the fine print what it states is that you are agreeing to pay back our national debt. This is called "Federal Tax", in fact the way the Federal Government is able to circumvent laws that were put into place to prevent exactly this situation. Since the Federal Reserve, which is owned by private entities, loans money to the US Government so it can operate, and since it also "federally" insures money on deposit at banks, you really have no say. So let me enlighten you to a scenario I have given a lot of thought to, and which bothers me a great deal. If our Government defaults paying interest to the Federal Reserve, that "we the people" owe due to our signing for a loan or bank account, the Federal Reserve could potentially confiscate funds in bank accounts to cover our governments debt. Just exactly the way gold was confiscated in 1933, and can replace the value of that money with whatever they desire. In 1933 it was paper money, with no real value. There is no law that exists that specifically prevents an action like this taking place.

But if our government doesn't know I have gold, or where I have it, I can take my gold, silver or whatever other precious metals, and leave this country before it's taken away from me and establish a life elsewhere. Try to do that with American Dollars.

You do business with corporations all the time even if you use a local middle man to do it. The house you own, car you drive, etc all came from large scale manufacturers. Its like saying you didn't support Walmart when you buy shirts because you paid Jimmy down the street for that shirt he purchased at Walmart.

People through history have used all kinds of things as cash besides metals. There are coins made of stone, leather goods, salt, spices, etc (anything convenient to transport that has a major use). You assume people still look at gold as currency when in the US most people under 50 don't even wear gold jewelry anymore. Perceptions change.

All large transactions today are done electronically, yet back in 1996 (first link I hit to Federal Reserve bulletins) stated that $200-250B out of $350B US circulating currency was overseas (more then half). So while banks deal with electronic funds the little guys outside of the US still deal in US banknotes. Before electronics transfers we used to print $100,000 banknotes (and other sizes) just to make inter banking transfers easier.

http://www.federalreserve.gov/pubs/b...6/1096lead.pdf

The government confiscated gold because it is a commodity, they can again if they want to. During WW2 470,000,000 ounces of silver (which backed silver certificates at the time) was melted into bars and used in the Manhatten Project (Atomic bomb) and wasn't remelted into bars until 1954.

http://www.roadtoroota.com/public/135.cfm

Try taking gold worth over $10K to any airport in the US on a flight going outside the country, you will be searched and detained until the local IRS agents come. I can paypal funds to anybody in the world under $10K a shot and nobody will even notice.

"In practice, if you're a US Citizen taking your own bullion OUT of the US, and its current value is more than $10k, expect to be detained at the airport and heavily questioned (and threatened) by the IRS... and don't be surprised if they audit you for the next 10 years. Under new US tax laws/IRS regulations, taking ANY assets out of the country is considered prima-facie evidence of tax-evasion."

You can put your money into anything that makes you happy, just don't cry when that nestegg shrinks down the road or you have a hard time cashing it out.