Buying Gold Bullion, How To Buy Gold Bullion

Why The Gold Standard Is Not Enough

As an advocate of money backed by something, I see many people who think all we need is the gold standard and most of the economic problems would be a thing of the past. The problem with this thinking is it gives ammunition to the Keynesians, Monetarists or any other Schools of economic thought that studied the Great Depression. I know you’ll say one of the main catalysts for the Roaring Twenties and then the Great Depression was the new fed manipulation of the money supply. I know, you’re preaching to the choir. What I am saying is that we also need to focus on how to take away all the tools the government or any quasi governmental organization has that can manipulate the economy. If you’re reading this and you think an organization or organizations manipulating the economy is a good thing; with the chain of recent events, I believe there is nothing I or anyone for that matter can say to change your mind. Fiat currency is one of four arrows that these organizations have in their quiver. We must not fall for the trap of only focusing on one; we must look at all four of them. That’s what I will attempt to do with this post.

The First Arrow is fiat currency; with fiat currency the purchasing power tends to evaporate over time. In fact history shows no fiat currency has a lifespan for more than one hundred years, they all become worthless in less than that. The Bretton Woods system collapsed in 1971, as for a lot of opponents to gold back money it is not as archaic as you may think. When the purchasing power of a currency tends to evaporate it takes away the incentive for long term savings. It also slowly and painfully wipes away the middle class. This is why it takes two or more working people to equate the lifestyle that one could have provided not too long ago.

The Second Arrow is raising and lowering of taxes. By having a direct tax on labor or anything for that matter; an organization can cause the boom and bust cycle by simply raising and lowering taxes. By doing this the people who determine when to raise and lower will have inside information on when to buy, sell or short, when to invest or not to invest. It gives them an incentive to manipulate the tax rate, its away to invest with little to no risk. In fact if there was a gold standard, no central bank and competing private currencies, but the government had the power to raise and lower taxes at will, we would still have the boom and bust cycle no matter what form of taxation system we had in place.

The Third Arrow is legal tender laws. With legal tender laws an organization can control how much currency is in circulation by allowing a lot or a little of the currency at any given point of time to be printed or minted. This can also cause the boom and bust cycle. As I discuss above if something can give an organization the ability to create a boom or a bust the people in that organization will use it for financial gain. If there was a gold standard, but only the government or any quasi governmental organization’s coins and certificates had legal tender status they would still be able to manipulate the economy for their own benefit.

The Fourth Arrow is central banking. By having an organization control all the banks they can tighten or loosen up the rules to cause the boom and bust cycle. Some ways they can do this is by allowing banks to keep more reserves or not. If banks have to keep more money in reserve they will loan out less, compared to if they don’t have to keep a large reserve. Even if we had a gold standard with no fractional reserve banking, but we had a central bank that controlled interest rates, that central bank still would be able to cause the boom and bust cycle. Some ways they can do this is by setting interest rates high. By setting interest rates high it would cause more people to save and cause less people to invest. Another thing they can do is set interest rates low which would cause the opposite. For a nation to have a truly free economy all four of these arrows must be broken.

In the bottom I have put two amendments that I believe would break all four arrows.

Amendment 28

Every corporation and person with a good or service shall have the right to issue their own currency back by their goods and services. This currency must be valued in silver or gold and must be treated as legal tender by the corporation or person who has issued the currency. Any corporation or person shall have the right to refuse the payment of any currency they have not issued their selves. No government, corporation or person shall have the right to stop a corporation or person from issuing currency once that currency is back by their goods and services and valued in silver or gold. If a corporation or person issues currency and do not have the goods or services to back it, the corporation or person's assets must be seize and given to the holder or holders of the currency until the currency value is fulfilled. If a corporation or person issues currency and do not have the goods or services to back its currency because of natural disaster or fire, that corporation or person shall have thirty years to fulfill the currency. If a person dies or a corporation is disbanded assets from that person or corporation must be given to the holder or holders of the currency until the value of the currency is fulfilled. No government shall tax currency issued by a person or corporation in anyway.

Amendment 29

Any person or corporation can create an entity known as a stockhouse. A stockhouse can be created under contractual law and independent of any government or any organization influence. For an entity to be seen as a stockhouse in a court of law it must fulfill all three criteria. 1. Be a holder of currency, 2. Have full reserve of currency, 3. Have the ability to pay any or everyone the currency they have stored for them within twenty four hours of demand. The third criterion is not broken if a person or a corporation signs a contract with a stockhouse to have the stockhouse hold currency until a maturity date. In cases where a person or a corporation signs a contract with a maturity date, that person or corporation can not demand currency under said contract until maturity date. A stockhouse is exempt from all forms of taxation and does not have to show its books unless it can not fulfill one of the three criteria mention above. If a stockhouse can fulfill the third criterion, then it must be assume that the first and second ones are fulfilled. A stockhouse can set its interest rates if any at any rate the owner or owners see fit. A stockhouse can charge any amount if any for storing currency. If a person or corporation can not pay their fees, the stockhouse can not deny them the full payment of the currency they had stored if demanded. In the case of an outstanding fee it is up to the stockhouse to get the fee from a person or corporation in a court of law. A stockhouse can hold or refuse to hold any kind of currency that they see fit and refuse to hold any person’s currency they see fit.

With a system like this if someone love central banking and fiat currency, they can continue to support that system; People in the other hand that don’t will have more options. If you see any holes in this theory or the amendments above please post your ideas. Also if you see something that I have overlooked or did not take into account your input will be greatly appreciated.

(Buying Gold Coins) The Benefits



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The Price Difference Between Paper Gold and Physical Gold

The spot price of paper gold as of 12/6/08 is 754.30, but if anyone who can do a search on eBay for items sold takes a look and see what 1 ounce gold eagles are selling for will know things have change when buying gold bullion. You are lucky or bless if you can find a 1 ounce gold eagle that sold for fewer than 954.30. Some of these coins have been struck this year so numismatic value is out of the question.

Why the more than 200.00 dollar premium? You ask; it’s because as time passes the spot price of paper gold is becoming more and more irrelevant. A few “powerful” institutions like New York Mercantile Exchange/ COMEX are not more powerful than market forces.

I say this tongue and cheek but if investors start to demand physical delivery of this abundance of cheap paper gold, will COMEX be the next to big to fail institution. Remember that some jokes do have some elements of truth; I pray this is not one of them.

Video of buying gold bars



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Buying gold bullion is a good way to protect your wealth from inflation. Inflation is when a government or a central bank of a nation issues more currency faster than the growth of goods and services. This can cause prices or goods and services to rise. Buying gold coins or buying gold bars can protect your wealth because when prices of goods and services raise the price of your gold will also rise.

Buying gold bullion with the advent of the internet has become easier through out the years. There are many sites you can visit if you are interested in buying gold bars or buying gold coins. It is also easier to find out the spot price of gold. The spot price is how much one troy ounce is selling for at the time you are willing to buy. Buying gold online is a fast and safe way to own gold.

Buying Gold Bullion, How To Buy Gold BullionWhy The Gold Standard Is Not Enough(Buying Gold Coins) The BenefitsThe Price Difference Between Paper Gold and Physical GoldVideo of buying gold bars ~ The Gold Blog