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The Safe Haven Bid is Bogus
Courtesy of the StealthFlation Blog
It’s not about the current Dollar & Treasury market safe haven bid, it’s about tomorrow’s confidence in our monetary system.
Are you confident?
Have you asked yourself why Gold remains by far the best performing asset class of the entire new millennium. It’s an undisputable categorical fact, and there clearly is a well established and completely understood reason for this. Monumentally excessive irreversible debt loads can no longer be discharged without necessitating the devaluation of the currency. Due to this certitude, throughout this millennium we have experienced an extended period of extraordinary monetary accommodation which is unprecedented in the modern central banking era.
These remarkably irregular measures have allowed governments to issue debt at artificially low, synthetically engineered rates of interest. The crucial and essential time value of money has been aborted, utterly eviscerated. A deliberately lowered nominal interest rate reduces debt servicing costs, while negative real interest rates actually erode the principal value of the government debt. This is the very essence of financial repression, it liquidates debts when accompanied by inflation and can be considered a form of taxation, or alternatively a form of debasement. The bottom line; your hard earned cash is trashed.
This explicit trend is systemic in nature and will invariably continue, as all other remedies to satisfy the insurmountable debt obligations are no longer within reach nor achievable. We quite simply can not grow our way out from under this mushrooming pile of toxic debt. Currency devaluation is the only applicable and singularly available path forward to liquidate the imposing outstanding debt owed.
Make no mistake, the most esteemed of economic thinkers are well aware of this ominous predicament. On the other side of the coin, the mainstream financial industry protagonists and pundits have a paramount vested interest in denying this self-evident truth.
“Money is stored labor. Labor is part of life. To control money is to control life… When the state declares the exclusive right of the issuance of money, freedom is impossible.” – Hugh A. Thomas.
Notably, current policy makers lack actual substantiated evidence to validate the stated and intended objectives of the extreme policy measures they have initiated, nor can they accurately ascertain the unintended consequences of the distorting market interventions they have performed. These are known unknowns. Physical Gold, a long standing historically proven store of value which provides wealth protection with unencumbered counterparty risk, is clearly a judicious and prudent hedge for all investors facing these macro economic realities and policy measure uncertainties.
Precious Metals are inherently the most viable asset class which outperforms all other assets against currency debasement and the ensuing inflation that invariably follows periods of excessive monetary accommodation. Moreover, you can be assured that the deliberate debasement will most certainly bring with it higher interest rates, as all creditors will surely soon demand higher returns to compensate for the programmed systematic debasement of their holdings.
I know, I know, you will all point to today’s 10 year treasury yield below 2% and recent dollar strength to precariously make your case that we are on sound footing. However, In my view, the knee jerk reaction, seemingly at the speed of light, of massive capital flows desperately seeking a suspect flight to safety in the most indebted country of all time, actually highlights the acute distortion and inherent instability of global finance today. Liquidity simply for the sake of liquidity has no intrinsic value in it of itself.
Furthermore, a 70% consumption based economy which routinely and heedlessly runs massive trade deficits will pay dearly for the inevitable devaluation of its means of exchange. You can only print and party for so long before others catch on.
Sound money will always flow to real veritable value. It’s simply a matter of time now, and the trigger that sets off monetary cataclysms is always a function of the perceived confidence in the financial authorities and their monetary system. Deep down inside, are you confident in what they have done?
Gold is the currency without a country. Gold is wealth in itself and needs no nation or counterparty to guarantee its value. Unlike fiat currencies, gold does not need to pay interest. Nothing compares with gold as a safe asset.
Definitive evidence throughout 5,000 years of mankind’s monetary history overwhelmingly confirms that once the cost of excessive debt burdens outpace the gains from productive growth, currency debasement inevitably ensues. Same as it ever was. Got Gold?
Serious about wealth preservation?
This reputable firm offers unparalleled asset protection: GoldMoney.com
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bullionvault.com google it. "better than the best guys in the business". Why don't you get interested in your own insight? How much physical is available? Why are you asking a question like that? Last week I watched a metric tonne change hands as a unit on an exchange in Europe; the offer came from Zurich and the Bid was hit in about three seconds from London. I assume you don't want more than a Metric Tonne?
Incorrect, that's a fractional physical exchange, GMY is the real deal; allocated, segregated, and registered directly in your name.
False. It's not fractional in any meaningful sense of the word; and you can have your allocated bar if you have that kind of money to put in. Basically, now you've descended to llying to promote your product, which is not good. Have you even read the web site at bullionvault.com ? you either don't know anything about it or you';re just lying.
These guys are the best in the business: www.GoldMoney.com
You punted. And the info is outdated and not pertinent.
10% my friend
The most secure platform for PM investment that has no counterparty risk is cold, hard metal in your fucking hand. Everything else....EVERYTHING....is way, way too easily susceptible to fraud and trickery. You'll get zero basis points from anyone truly concerned with "genuine asset protection".
Under the most adverse conditions in your hand could be out of your hand in a flash..........
Privately held in state of the art high security vaults is more advisable, and I assure that is precisely what the big boys do my friend.
I let Sprout hold mine. Eric is good folk. Any concerns with Sprout?
Well, my friend, you best make sure that's Eric Sprott, and not Sprout who's holding your Gold;-)
Yes Sprott. PHYS Thanks for your kind replies
well done
Presicsely, which is why GMY offers LBMA certified Gold bars allocated, segregated and registered diectly in your name, vaulted strictly outside the banking system eliminating virtually all counter party risk.
Bullionvault.com google it and read the website. it's better than GMY.
Incorrect, that's a fractional physical exchange, GMY is the real deal; allocated, segregated, and registered directly in your name.
Oh, okay, you're just going to keep lying; I don't care, I can read. I guess you're depending on people being too lazy to read the website at bullionvault.com.
?
One is fractional ownership through an exchange, the other is direct ownership, take your pick my friend.
I'm not your "friend". and as I said, you're lying. You're their competitor; if you are actually doing what you say you're doing, they're doing exactly the same thing. Once again, I'll advise people on ZeroHedge to read for yourselves and find out what the facts are. alll this about out of the banking system vaults and so on and so forth, is exactly what bullionvault.com does. I don't who Bruno de Landevoisin is when he's at home, but I have spent time with the owner/founder of bullionvault.com; I don't get paid anything for trying to help people here on zero hedge; Bruno here has got a product to sell. You can't allocate anything but a serial numbered bar. which bullionvault.com will be glad to do for you; if you're in that category of purchaser. What Bruno is allocating I don't know and I don't have time time waste reading more advertising copy on his website. if they're going to allocate little bars, then the scam is that you're going to be paying stupid premiums. the guy who started bullionvault.com did it so he would have a way to own gold bullion, and they have since diversified into silver bullion, and to have something to do. What you're going to find out is that not only does bullionvault.com do exactly what Bruno is advertising they are far and away the cheapest way for you to participate. And they would never, never, stoop to this caliber, (small caliber), of advertising and lying to suck in customers. Bruno is competing with them but they have the more honest and transparent business model and he's playing catch up. Read all about it and make up your own mind.
When I buy phyzzz; I get phyzzz. Have it in a safe-deposit box. When it's too heavy to pull out of the wall, then I'll be finished buying.
Safe deposit box is not a very secure place for gold. What happens if the bank goes broke? What happens if your deposit box is deemed "abandonned" (which can happen in periods as short as 1 year in some jurisdictions).
No. Safest place is in a hidden, secure vaulted location on your own property that you have told nobody about.
Nice piece. Can't get too many reminders that PMs are THE safehaven. For me, it's phyzzzz AG.
Thats right baby.
TabakLover bring back old avatar on Slope or get a better one..Thanks in Advance..you can guess who this is..:}