Sunday , 14 April 2024

Is Owning Gold A Crazy Notion? I Think Not! Here’s Why

Why do more and more countries want to repatriate their gold from foreign vaults? Because their governmentshow-to-value-and-invest-in-gold no longer trust the global, fiat monetary system…[Neither] should you. Let me explain further.

The above comments are edited excerpts from an article* by Jeff D. Opdyke, Executive Editor of The Sovereign Investor ( entitled The Rule of Gold.

The following article is presented courtesy of Lorimer Wilson, editor of (Your Key to Making Money!) (A site for sore eyes and inquisitive minds) and the FREE Market Intelligence Report newsletter (register here; sample here) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.

Opdyke goes on to say in further edited excerpts:

Finland, Germany, Switzerland, Venezuela, Ecuador, Mexico, Romania and Poland: They’re all either talking about repatriating national gold or they’ve already done so. Some are clearly countries run by leaders with a populist agenda – to wit, Venezuela and Ecuador. Others are run by sober governments making sober decisions about national wealth.

These countries want their gold back because they’ve lost trust in the U.S. and the U.K. banking authorities. Better to have local gold in local banks than exposed to the shady finances of the world’s greatest Ponzi scheme. Taking back their own gold is, effectively, a vote of no confidence in the monetary policies pursued by the U.S., in particular.

When you consider the state of the global union who can blame them?

  • The West has accumulated so much debt that the International Monetary Fund now says that meaningfully large, one-off levies that tax every Westerner’s wealth are the only way to save the world from financial calamity.
  • Politicians in too many Western nations – except maybe the Germans – have reached the point that French political philosopher Alexis de Tocqueville predicted in the middle of the 19th century – namely that democracy will survive only to the point that lawmakers discover they can bribe the public with the public’s own money.
    • We have reached that point in much of Western society, most ominously in America. Politicians no longer press for any semblance of fiscal prudence, only for the preservation of personal power by spending ever larger sums of public money on various forms of welfare and regulation that hurt one class over another.

This will not end well for those of us with any degree of wealth to protect.

That so many nations are now seeking to repatriate gold is that trite canary in that proverbial coalmine. The end might not come today – it might not come tomorrow or even next year – but it will come. It always does – and it will come in my lifetime (I am 48, for those who want a reference point.)

Will You Be on the Wrong Side of History?

To anyone who has sold their gold in recent months, I say this: Big, big mistake.

Why is it that central banks the world over refuse to sell their gold reserves? Why is it that many continue to add to their holdings – officially Russia, Turkey, Kazakhstan and Indonesia, and, unofficially, China?

The wrongheaded nincompoops on Wall Street, inside the Fed, and wandering around looking for a Dairy Queen and a Coke in Omaha, Nebraska, would have you believe that gold has no intrinsic value.

All over the world, however, central banks in countries giant and small:

  • cling to their gold,
  • are adding to their gold reserves and
  • are increasingly demanding that their gold be returned to national treasuries.

No country has sold a meaningful amount of its gold reserves [and] those that have parted with any have sold off just the tiniest fractions of what they own – although I am betting that the U.S. has sold a very large sum of gold from Fort Knox that, to date, has gone unreported by the Federal Reserve, but which will come to light soon enough.

Is owning gold such a crazy notion that:

  • central bankers in 100 countries are all delusional or is it that
  • gold really is of value as the ultimate insurance policy against the destruction of fiat money that is now necessary to help the West manage a half-century’s worth of excesses?…

This is a game where, ultimately, you have to pick sides. Do you side with U.S. officials who talk down gold as a quaint tradition out of step with modernity – or do you side with 100 central banks around the world that are increasingly putting their reserves in gold rather than fiat currency?

I absolutely know what side I’m on which means I know my wealth is protected on that day a fiat currency crisis erupts.

Until next time, keep a global view.

Jeff D. Opdyke
Executive Editor, The Sovereign Investor

P.S. A revelation about the status of U.S. gold is on the horizon and I think it has the potential to change America forever. If you’d like to learn about the little-known government document that holds clues to one of America’s biggest deceptions, click here.

Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.

* (©The Sovereign Investor Daily®, Copyright 2014.)

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One comment

  1. The one problem is going to be when the man in the white house makes it illegal to own it ! Just like Roosevelt did during the last depression . You won’t be able to buy anything with it or pay any bills with it . You might as well throw it away .