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July
08
2020

How to Squash this Stealthy Attack On Your Wealth
E.B. Tucker

(A note from your Editor: One of the most important aspects of your financial survival concerns your understanding of the nature of money. If you believe that precious metals do not constitute "money", you may have been misled. If you have been misled, who misled you? Why? And "What's wrong with this picture"?

What is money? The whole point of money is suppose to be the provision of a convenient and liquid medium that can be exchanged for less liquid value. It is a go between. One strives to accumulate money so it can be exchanged for something else.

In our illustrious history, we humans have tried everything from salt to sardines as a medium of exchange, but nothing has seemed to work as well as gold and silver. A person bringing a relatively illiquid item to market could swap it for gold or silver, secure in the knowledge that the metal would retain its value for as long as he chose to hold it and would be accepted as payment for anything he wanted when he chose to spend it.

The condition that your gold and silver will retain its value for as long as you chose to hold it is the most valuable characteristic of the "barbarous relics", and provides the fodder for me to champion the cause of precious metals ownership, and for my ensuing attack on the debasement of the American dollar. -JSB)

You’re losing the war against your wealth.

In 1935, the official price of one gold ounce was $20.67. Today it’s around $1,770.

Price of gold 1935 vs. 2020

What happened?

The ounce of gold didn’t change. One troy ounce of gold still weighs one troy ounce.

One ounce in 1935 is still one ounce in 2020

What changed is the number of dollars it takes to buy one gold ounce. That stack on the left might look big compared to the paltry $20.67 on the right. It’s going to get a lot bigger.

The chart below shows the price of gold going back to early last century. The tiny blip in 1935 was a 69% increase in price at the time. It’s barely noticeable today.

Likewise, a $100 move in the price of gold will someday look like a tiny blip. Don’t let an endless stream of media panics distract you from what’s really going on. That stack of dollars can grow infinitely.

As the stack of cash grows, gold stays the same. Double the number of dollars needed to buy an ounce of gold and the ounce stays the same. It’s the dollar that’s worth less.

Consider this. $1,000 was a lot of money in the early 1900s. If an ancestor of yours had put $1,000 worth of cash away for you, today, it would barely pay for one month of rent at a downmarket apartment. Back then, it was a large sum of money.

However, if your ancestor had put $1,000 worth of gold into an envelope for you, it’s worth more than $80,000 today.

There’s a war against your wealth. The dollars you use to measure the wealth haven’t held up over time. Gold has.

With the U.S. government set to run a record deficit of $3.7 trillion in 2020, according its own CBO (Congressional Budget Office), it may soon take even more dollars to buy the one gold ounce.

The views and opinions expressed in this article are those of the author and do not necessarily reflect those of Birch Gold Group.

 

 

E.B. Tucker is the author of Why Gold? Why Now? The War Against Your Wealth and How to Win It available on Amazon.com.

He serves on the board of directors at Metalla Royalty & Streaming, a precious metal royalty company.

He wrote several investment advisories serving as editor of Doug Casey’s Casey Report, analyst at The Bill Bonner Letter, and Stansberry’s Investment Advisory.

He was a founding partner of KSIR Capital Management, a precious metals equity firm.

 

 

 

www.birchgold.com