STAFF NEWS & ANALYSIS
As Central Banks Make Matters Worse, the Rational Choice Is Gold and Silver
By Daily Bell Staff - August 11, 2016

Central banks are printing money as though the global economy is in freefall … Central banks around the world are now spending $200 billion a month on emergency economic stimulus measures, pumping this money into their economies by buying bonds. The current pace of purchases is higher than ever before, even during the depths of the financial crisis in 2009. –Quartz

From Quartz we learn that central banks are desperate to salvage the world economy.

This is a terrific dominant social theme – elite propaganda – and as such we have trouble with the entire narrative.

We’re supposed to believe after over a century of central banking that those “running the show” aren’t entirely sure of what to do and how to do it.

We are also supposed to believe they are trying very hard and doing their best.

In the case of chairmen like Ben Bernanke, we’re supposed to give them credit for being imaginative and creative.

Faced with the implosion of 2008, Bernanke did the only thing he could. He began printing with abandon.

Supposedly he sent trillions of dollars around the world, which is illegal because the Fed is responsible for US monetary operations and is not supposed to be funding financial institutions outside of the US.

But if Bernanke did do that – and it seems obvious he did – then we’re supposed to give him credit for his imagination and boldness.

When he decided to buy bonds directly in the marketplace to provide a semblance of demand, Bernanke was praised again.

We didn’t think any of it was especially praiseworthy and said so at the time.

But a theme was in operation. People were supposed to think well of central bankers because they were trying so hard.

That hasn’t changed. More:

 Alberto Gallo, a fund manager at Algebris Investments, says we are in a state of “QE infinity” with persistently low growth, low interest rates, and central bank policies that don’t fix things.

“They won’t ever say they’re out of ammunition, but central bankers are starting to look like naked emperors,” Gallo wrote in an article for the World Economic Forum.

The criticism central banks face for enacting these policies—that many argue increases inequality—is getting more heated.

Again the emphasis here is on central bank dysfunction rather than the probable reality, which is that current global depression is part of a necessary dialectic.

Those running the world want to globalize it. Of that, there’s no  doubt. And globalization necessarily demands what we can characterize as chaos.

And out of chaos a new order. A world order.

One can bother with all of this or one can do the easier thing, which is simply to take clear, certain steps to securing one’s safety and prosperity.

Part of this involves an investment in gold and silver, the world’s historical money metals with value that has been affirmed over millennia.

Here at DB, we have brought on a silver sponsor, our first ever, and have regularly been presenting the opportunity to readers.

The firm is Golden Arrow, a Vancouver-based explorer focused on identifying, acquiring and advancing precious and base metal discoveries with the goal of defining world class deposits.

Golden Arrow’s current focus is on advancing its flagship Chinchillas Silver Project located in Jujuy moving rapidly towards production with partner Silver Standard.

Golden Arrow holds a 100% interest in the Chinchillas project which hosts a resource of 100 million ounces of silver/155 million ounces silver equivalent (AgEq) in the Measured & Indicated categories and 44 million ounces silver /90 million ounces (AgEq) in the Inferred category.

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  • Jo Jo

    (Almost) nobody knows how much gold there is in the world. Remember the story about the Philippines and Indonesia?

    Maybe the alchemists were right that it is indeed possible to create gold.

    There is no garantuee that the (manipulated) gold price will go up (long-term).

    • Jo Jo

      no guarantee

      • James Clander

        I don’t need a Guarantee – I know the price of paper !

        • Jo Jo

          It’s a risk.
          Except for unknown quantities, the risk of confiscation and the paper gold market and the price manipulation, the Gold Price is in Dollars. If the $ is worth nothing, then maybe gold can be used for barter. If nobody wants your gold, you can make beautiful ornements to impress some people.

          There are more options. Land, food, products, etc.

          • Jo Jo

            I forgot to mention. If the $ will lose its reserve status, gold maybe used to back the new currency ‘SDR’ (or the Bancor or the Phoenix) together with other commodities.

            This means that the gold price will be fixed. The price will be low and maybe only countries are allowed to own gold (above a certain quantity).

          • Guy Christopher

            Who will do that “allowing” I wonder. The beauty of gold and silver is that it is private wealth, not government decreed wealth (fiat). The dollar IS LOSING its reserve status right now. And it will not get that status back. A matter of time.

            As for ‘fixed price,” gold and silver are best seen as savings that protect the wealth you have at this moment, and not as investments that are seen in paper money terms. That’s not an easy thing to visualize, because we are all accustomed to seeing dollar terms, not ounce and gram terms. It’s not an ounce of metal that changes. It’s the dollar/euro/yuan that changes in relation to gold.

          • Jo Jo

            You still don’t get the ‘quantity part’ and the manipulation of the gold price, don’t you?

            You have the illusion that gold is private wealth. You are mistaken. There is no such thing as private wealth. It’s all an illusion.

            It’s not bad to have some gold, just in case.
            Just as it may be wise to have other products and an emergency kit as a means to survive.

          • Nobleharbor

            And you still do not get that gold and silver are NOT manipulated. Paper money is. The comex consists almost entirely of paper/electronic “gold”. Try holding a note or a data file in your hand. Then try trading that to someone with the food you want. Anywhere in the world people know the value of gold. Paper/electronic is a moving (down) target.
            Anyway, not really trying to convince you, but just in case… I and my friends will NOT be accepting paper/electronic money as currency, when the time comes.
            Just so we’re clear about this…

          • Jo Jo

            It’s not a matter of choosing between the paper/electronic money and gold. Both are controlled by the elite.

            If you believe that gold is not controlled, you are fooling yourself.

            In the near future all human beings will be forced to use the new digital money. if you refuse, you cannot play the econ./fin/ games.

            You cannot use gold either.
            Maybe you are prepared to live on the fringes of society, trying to survive without the digital money, issued and controlled by the elie.

          • mavenah

            Has anyone read Revelation 13:16 17 Rev 14:9 11 Rev 15:2 Rev 16:2 Rev 19:20 and Rev 20:4 which speaks of The Mark of The Beast of which no man can buy or sell without this Mark which will be instituted in the latter days by one world leader, the Anti Christ who is referred to as the Beast. This mark is probably in the form of a RFID chip to be inserted under the skin which is already in existence today and being used Those who refuse the mark or refuse to worship this Beast will be killed. This is in the bible written thousands of years ago and seems to be coming to fruition NOW….

          • Jo Jo

            The bible could be some kind of blueprint/script.
            Although religion is part of the problem (system), it’s interesting to see how things will develop.

          • Steven Hotho

            Who are the “elites” and how are they going to control me? How did they control Robespierre and Lenin?

          • Jo Jo

            The elite families who own the big banks and big corporations.

            They issue money. You can use it to play economical/financial games if you pay them a fee (interest).
            They also exploit you if you are working. The game is especially about ‘who is best capable to manipulate and exploit’.

            The elite are very good at playing these games. If you play their games, they control you more than you can control them.
            If you are lucky you can also get something out of it.

          • James

            I happen to believe that *they* create the appearance of chaos in the gold and silver markets in order to trick people into not seeing that, over time, the value of the dollar has been going down. I think so because I’m always running in to people who tell me that the price of gold has crashed and it’s a dumb “investment.” It’s like they are incapable of smoothing out the long term graphical curvatures to see that the trend is always down for the dollar and up for gold and silver.

          • Jo Jo

            Everyone knows that the dollar is losing its value. A pack of cigarettes cost 15 $cents (for a brand) in 1920.

            Gold behaves a bit like that, but gold is a commodity like oil is.
            All commodity markets are rigged.
            Like oil, the price of gold goes up and goes down (see charts in the past especially after 1971).

            Gold can be used in the future to back the new (digital) currency. The price of gold will be fixed. It will be a low price if that happens.

            Yes, gold is an interesting product, but nevertheless the (manipulated) price can go up and go down. It is a gamble for you.

          • James

            I love to bet, but I do not like to gamble, so I’m betting that my silver will tend to retain its value over the next 20 years better than dollars or other dollar dependent financial investments. And, as you say, just like oil, the dollar price of gold goes up and down, but, you’re ignoring the fact that over the long term, just like oil, the price of gold tends to go more up than down because over the same period the value of dollars goes down. Oil used to be $3/barrel, and gold was $20/oz. Then oil reached around $120/barrel and gold got to $1900/oz. Now oil is back down to $40/barrel or so and gold has sunk to $1350/oz. Up and down, but always inexorably higher than before. Since 1971 the average appreciation of gold has been 8%. Lots of ups and downs but if you smooth them out the trend is undeniable. Unless you’re huckster and a con man, then, you can deny it and many ignorant and stupid people will believe you.

          • Steven Hotho

            Illusion? When you have the silver in hand and the farmer says, ok, you can have my potatoes for that shiny thing.

          • Jo Jo

            That’s not value. Then it is used to exchange ‘energy units’.
            Other products can be used as well, a shovel, a pack of cigarettes if you are lucky that the farmer wants what you have to offer.

          • James

            What the hell do you think “value” is, Jo Jo? Money has value as money if it is accepted in exchange for other things that are perceived to have “value.” Don’t you know that what makes money money is that the farmer can take the money and then go out and exchange that money for the cigarettes and whiskey and wild wild women that he actually preferred in the first place? Sorry to sound like I’m insulting you, but, you do not know the first thing about economics.

          • Guy Christopher

            I don’t worry about confiscation, and you shouldn’t either…… https://www.moneymetals.com/news/2015/09/15/gold-confiscation-000765

      • Guy Christopher

        Markets are more powerful than governments, over a longer period, Jo Jo. Right now in Asia, gold is money, used everyday, alongside silver, and trusted more than paper. That’s half the globe. The Fed and Co. are losing control of monetary markets. No, there’s no guarantee gold goes up in dollar terms, but there is a historical guarantee all paper money goes to zero. At that point, there will be no dollar price of gold. Dollar prices will become reference points, not values. There will be only gold and silver and other barter items. Those who hold gold and silver will survive and even thrive. https://www.moneymetals.com/news/2014/11/19/the-secret-advantage-you-have-with-gold-and-silver-000632

        In Venezuela, it is reported one ounce of silver will buy 6 months of groceries. That is true value of precious metals.
        https://srsroccoreport.com/srsrocco-precious-metals-webinar-big-events-coming-1-oz-silver-buys-6-months-of-food-in-venezuela/

        Can’t say the death of the dollar will happen this year or next, and can’t say it won’t happen Monday morning. PS. Gold has been created in the lab, at a cost of many thousands of dollars per gram.

        • mathia

          When Zimbabwe’s currency crashed they bartered with gold too. Gold has been money for thousands of years, it is the ultimate non-sovereign currency.

          • Guy Christopher

            Thank you ~~ Zimbabwe is just one recent example. History is littered with the rotting carcasses of failed currencies, and in each case, gold and silver prevailed.

          • Jo Jo

            This is the case when there is inflation in a small country.

            When we are talking about the world and the usa, it’s a different story.

          • Guy Christopher

            Remember the former Soviet Union–the world’s other superpower? Bankrupt. The British Empire once ruled the world. No more. Portugal was once the world’s greatest power, as was Holland. No more. Don’t think it cannot happen to the US. History says otherwise.

          • Jo Jo

            We are talking about the New World Order now.

            When the USA collapses, the whole world will collapse.
            The old world economy will go and be replaced by a New Order. The gold price will collapse or play a different role.

          • Steven Hotho

            Maybe the old world disorder will arise.

          • Jo Jo

            It is possible that the elite fails. Let’s see.
            Keep in mind that most people are playing the same manipulative games.
            The elite are just very good at it. They control the games more than who ever is playing.
            In the end it is destructive. So, that’s also imo why the elite wants to have control. They hope they can put a limit to the desires of the common people.

            In the long run, everything will be destroyed. Nothing will be lost.

          • Col. Edward H. R. Green

            A New World Order that will be about as adamantine as The Thousand Year Reich, no doubt.

          • Nobleharbor

            Same story as always…
            Only bigger.

          • Jo Jo

            Not at all. We are talking about taking full control of the earth now.
            If you can issue and control the money the whole world is using, you have control over the world. That’s at stake!

        • Jo Jo

          Markets are rigged.
          At the moment Gold seems to shine in spite of the price manipulation.

          If comes out that the quantities of gold are much more, the price will collapse.

          And what will happen when the $ will lose it reserve status?

          Gold may be used to back the new currency ‘SDR’ (or the Bancor or the Phoenix) together with other commodities.

          This means that the gold price will be fixed. The price will be low and maybe only countries are allowed to own gold (above a certain quantity).

          Maybe you can make some money just before that happens.

          • Guy Christopher

            You may have missed the point, which is gold and silver separate you from government….they separate your fortunes from those government intends to allow you.

            I love your enthusiasm. Truly do. You have found the right continent, but you’re still using old maps and traveling bad roads.

          • Jo Jo

            Gold is used by the elite as an instrument for control.

            I’m talking about quantities of gold and gold being used to back the new currency when the $ loses its reserve status.

          • Jo Jo

            It’s for a reason the Russia, Saudi Arabia, Japan and China are buying so much gold. It’s their governments that is doing that.

            Gold does not separate you from governments and banks.

          • Guy Christopher

            My best to you, Jo Jo.

          • Nobleharbor

            Tell that to the Chinese people.

    • robertsgt40

      All fiat currencies have a shelf life. How will you measure the value of PMs with a dead currency?

      • Jo Jo

        There ain’t no such thing as value. It’s made up.

        To keep the illusion of ‘value’, the dead current currency will be replaced by a new digital currency.

        • robertsgt40

          Enjoy your digital currency. Who will value it for you? Who’s holding it for you and what happens when there’s another “glitch” or a hack? So sorry. All gone. LMFAO

          • Jo Jo

            Why would i enjoy digital currency? It’s not mine and I don’t need it. I’m just describing the situation and what will happen in the near future.

            The elite will value and control it. It’s the ultimate instrument to exploit human beings (who are exploiting each other as well) and other life forms and to control life on earth (by limiting the desires).

          • robertsgt40

            Exactly. Gold/silver have stood the test of time for 1000s of years. Fiat has always reverted to its original value. Zero. Every bit as important PMs(physically held) have no counter party risk. Anything you don’t hold, you don’t own. When asked if the dollar was a store of value, Janet Yellen said “No”. She finally spoke the truth. 😉

          • Jo Jo

            Not this time.

            Exactly, the dollar and all other currencies are not a store of value. They are used to exchange ‘energy units’.

            The current fiat money used today will be replaced by the new digital currency, issued and controlled by the elite.

            Gold is also controlled by the elite.
            Very probably there is much more gold available than people think and probably gold will be used to back the new currency (together with other commodities). The price will be fixed and low.

          • robertsgt40

            Correct. That’s why I have phyzz. Anything in a bank or markets “valued” in paper can/will vanish in a blink. BTW I’m not a big gold fan. Silver has real value since most of it that is mined is used in industry. One thing we certainly agree on, someone really trying to screw us thru manupulation.

          • Jo Jo

            It’s not bad to have some gold, but don’t believe that it is a store of value. The price is manipulated. It could go up a bit in the near future, but there is a good chance that the price will collapse and that a fixed priced will be the end result.

            Real value doesn’t exist. That’s an illusion. The same that store of value is an illusion. All products can be used as an exchange of energy units.
            Silver too can be used as an exchange of energy units. It’s the same as a pack of cigarettes or a barrel of oil.
            It’s a gamble. The price can go up or the price can go down.

            All markets are rigged. You cannot influence the market and the price. It’s a gamble for you.

          • robertsgt40

            Anything but paper for me. Tangible assets.

          • Jo Jo

            No debt. Some gold, some silver, some other products, an emergency kit and some land if you can afford it (at a low price).
            Good luck!

          • robertsgt40

            Same to ya. I’m long in the tooth Vietnam vet just trying to get to finish line. Got some silver, food stores. Have friend with 100 acres with water and game. Honoring the 2nd amendment. Expecting the worst. Praying for the best.

          • NARF

            OK…I get your point…so if YOU had $1 million US to invest TODAY….where would you put it?

      • Silver Savior

        The PMs become the money of choice directly.

    • James

      For 400 years the value of a Spanish dollar was pegged at 20 per ounce of gold. Then the Federal Reserve Bank was created and since then the value of the dollar has plunged relative to gold. Even just since 1971 the value of the dollar has collapsed from $42/oz to over $1300/oz or so in 2016. The pattern is set and there’s no reason to suppose that it will not continue. Brainwashing people to be blind to what is happening right in front of their eyes is an essential part of the plan. You don’t know if the price of gold will go up? Why not look at it the other way around; do you have any doubt what so ever that the value of the dollar will continue to sink the way it has for the last 100 years?

      • Jo Jo

        The dollar is losing its value.
        A pack of cigarettes cost 15 $cents in 1920.
        Did you buy a few then and are you ready to sell now or in the near future?

        Most products went up in price. So did gold.

        The thing is that the gold market is rigged, just like the oil market.

        The thing is that we don’t know the real quantities of gold in the world.

        We don’t know exactly what the plans are, but very probably a new (digital) currency will be issued by the elite (they control the money) when the $ dies.
        It probably will be backed by gold (and other commodities). Then, the price of gold will be fixed. It will be a low price.

        So, gold behaves a bit like a pack of cigarettes does (the price is going up), but the difference is that gold does not rot.
        Gold however is a commodity. All commodity markets are rigged.

        Gold probably plays a special role in the future when the $ dies.

        To make money, gold needs a price, just like other products. It has no net asset value, but can be used just like other products to exchange ‘energy units’. The (manipulated) price can go up and can go down, just like a barrel of oil.
        It’s a gamble for you.

        • James

          There is always risk, but in my estimation gold and silver are amongst the least over-valued things in the universe at the moment. The only things less over-valued would probably be guns and ammo and stuff like that. I put it in those terms because the way the fed blows bubbles it seems everything is way over-valued.

          • Jo Jo

            I agree, everything is overvalued. The bottom line however is that value is an illusion.
            All products/labour are linked to fiat currencies. So, they all are used to exchange ‘energy units’.

            As many new dollars and euros are created, most prices of products are rising.

            Because there are many people like you who buy gold as they believe that gold is a store of value (an illusion) and is ‘under-valued’, you would expect that the price of gold will go up too.

            Until now it didn’t really happen. Why not?
            The gold market is rigged. The price is manipulatedl.

            What will happen in the future?
            There are many uncertainties:

            – the real quantities of gold in the world
            – the rigged gold market/price
            – amount of people that keep believing in gold
            – the use of gold in industries
            – governments that are buying gold (Russia, India, China, etc).
            – the plans to create a new currency when the dollar dies.
            – the role of gold in the future (backing the new currency)
            – etc.

            It’s a gamble for you (and me).

          • NARF

            ok…so EVERYTHING is a gamble…..but we HAVE to have our money SOMEWHERE…right>? I think I`d rather “gamble” on gold and silver as they have, and will, continue to stand the test of time!

          • Silver Savior

            Yep I am willing to take that gamble *cough* I mean certainty

      • Silver Savior

        Yep 100% certain the paper currency will keep going down.

    • Silver Savior

      Gold was made from exploding stars. There is no way to make it bud.

  • Bernard

    Monday, August 15th is the 45th anniversary of Nixon closing the gold window.
    It was a seminal event. The central banks were free to create unlimited currency and
    credit. Alan Greenspan had it correct when he said:

    “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. . . . The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves. This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth.”

    If every person on this planet purchased one ounce of gold-the entire charade of
    the banking system, war machine, asset inflation scheme would implode.

    Gold has been suppressed by the futures market for decades but it is a paper market which is on borrowed time as much of the east still buys “physical” gold. As the price of gold moves from COMEX/LBMA centric to the physical markets the price will move much higher. What is true for gold is twice as true for silver.

    If you want to do something for mankind, buy some real gold or silver.

    Enough said.

    • bmckinney

      Excellent comment. Statism, be it by Republicans, Democrats or other means is only enabled and maintained by the ever increasing creation of fiat currency,

      Without credit expansion slows the economy will implode. All globalist policies are directed at massive monetary spending via debt.

      We may now be reaching the limits of debt creation as we know it.
      This why we have trial balloons such as helicopter money and a basic living wage (as supplied by your central bank to your checking account) now being floated. The people are broke-they cannot spend more. The tax base is which all of this debt is created against is eroding. Those lines will cross and I expect a very difficult time ahead.

    • Silver Savior

      I myself am doing quite a bit for mankind 🙂

  • robertsgt40

    Fiat currency is the means to confiscate real wealth. In 1933, when ownership of gold was outlawed(and punishable by a $10k fine and imprisonment), gold was valued at $20.64oz. Shortly thereafter(after confiscation), it was revalued to $35oz, which meant a 40% devaluation in the dollar. Nice screw job. My question is this: If you had buried two coffee cans in 1933, one with $20.64 in it and the other with an ounce of gold, which would you rather have today? That is the price for inflation.

  • Steven Hotho

    Your current investment choice du jour does seem more promising than marijuana.

  • georgesilver

    Gold has been money and a store of value for centuries. It stays quiet. It stays the same value. Gold is not valued in anything but what it can be exchange for in ‘items’ of REAL value. These ‘items’ tend to get cheaper when valued by Gold as man’s ingenuity makes producing the ‘items’ cheaper.

    FIAT currency is a confidence trick that people have been hypnotised and trained into thinking it has value. The fact is Gold has been in a bull market against fiat currency ever since Gold was first used as money. Gurus talk about Gold being ‘oversold’ and due for a ‘correction’ when all that is really happening is the the holders of paper fiat currency feel more confident in their ability to con people that their worthless paper has a little more value then yesterday. A troy ounce of Gold is still a troy ounce of Gold whatever toilet paper fiat currencies do. After all of the technical graphs have been printed and forgotten, no matter how many ups and downs they show, Gold will continue to be the only money standing.(not forgetting Silver)

    • _aleph+

      I recently was in a forum where a poster said something about gold being a store of value. Another poster jumped him, saying that gold fluctuated in the extreme in the last few years. Poor, deluded fool. It was his fiat dollars that fluctuated. The ounce of gold was what it had always been – an ounce of gold.

      • Silver Savior

        An ounce of gold or silver is a solid investment.

    • Silver Savior

      I agree completely. Both metals have their place.

  • nv_pogonip

    What KIND of gold/silver should i buy? newly minted coins or oldies? (would prefer coin to bullion). Besides not knowing WHAT to buy, from whom? Have few numismatic coins from one of “those” advertised dealers….BIG commissions. Suggestions, please. thank you.

    • You don’t need to buy old coins at a premium. Just buy silver coins if you can get them. And if you want to speculate, call Golden Arrow or other juniors – as you choose – about taking a modest position that may accrue significantly if silver keeps climbing. (This is not an endorsement or advice, just information.)

      • nv_pogonip

        thank you!

    • Silver Savior

      I buy both. Both have their place but I don’t buy the 40% or 35% silver war nickels. I do like the new minted coins like eagles maple leafs etc. Just make sure you buy from a known dealer. Apmex, provident, modern coin Mart, jm bullion, SD bullion etc.

      I would stay away from slabbed coins and focus on bullion. I also went for a Scottsdale 10 ounce bar from The Scottsdale Mint.

  • mhyke

    Is this an ad? Gold fluctuates in value like everything else. Over last 5 years gold has declined precipitously. Why is this a good investment?

    • But you are comfortable with the fiat dollar and the Fed’s “management” of it? The Fed is monopoly facility that has egregiously mismanaged every part of the US currency. The Fed’s main practice is price fixing, and price fixing never works. Thus, every article or report that assesses the Fed’s performance without noting that it is involved with the dysfunctional practice of price-fixing is essentially nothing more than public relations for the system. Or in your parlance, an “advertisement.”

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