Posts Tagged ‘gold’

Dollar Crash

August 4, 2014

Here is an e-mail I received recently.

Dear Fellow Citizen,

Ron Paul recently told us that we will soon experience a “Major Crash of the Dollar”. We see signs that it’s coming every day …

But what if Dollar Crash has already begun? Consider …

Value of a $1 Federal Reserve Note in 1913 Dollars

If your retirement savings are exposed:

Thanks to an Extraordinary IRS “Loophole”, now you can legally move your IRA or 401(k) out of a dying dollar and into Gold – it’s what Dr. Paul calls his “insurance against the dollar fiasco.”

While you still can: We have an Information Guide on Gold ready to send you – there is ZERO cost and ZERO obligation to you.

You can Get Your FREE Info Guide Here.

This comprehensive, 16-page guide reveals how gold and silver:

  • Safeguard from a falling dollar,
  • Protect in times of uncertainty, and
  • Offer tremendous growth potential

    ==>

    Click HERE to Get Your Information Guide
    (ZERO cost and ZERO obligation to you)

    Sincerely,
    Birch Gold Group
    The Precious Metal IRA Specialists

As far as I can tell, the Birch Gold Group is some sort of brokerage firm that deals in gold and silver. I have to wonder, if I agree to use their services and have my 401k account transferred into gold, how am I expected to pay for it? Do they take a share of the gold or do I pay them in the rapidly decaying dollar? If the dollar does crash and takes the American economy with it, what makes them think that gold will be worth anything? Will people be paying for things with gold coins? If I retire, will they send me gold instead of depositing money in a bank account? What happens if the price of gold collapses?

I think I will pass on this deal and just continue to use dollars.

 

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Is Gold the New Black? States Look to Bring Gold Standard Back

April 15, 2011

I’m not at all sure this is a good sign.

Starting in May, Utah residents will be able to shop in a currency other than the dollargold, something that hasn’t happened since 1933.

Utah became the first U.S. state last month to recognize gold and silver coins minted by the federal government as legal tender. More than a dozen other states are considering similar measures, and are expected to follow Utah’s example. The move, proponents say, is caused by declining faith in the U.S. monetary system and concern about rising inflation.

It’s not like they going to start carrying around gold coins. Rather the dollar will be backed by gold and can be converted if desired. I may not know enough to be sure, but, by itself, I don’t think this is a bad idea. At present, the dollar, and really no currency, is not backed by anything tangible. A dollar is worth a dollar because the government says so. But, this news is worrisome because it shows that some people are losing faith in the dollar and anticipate higher inflation. Half of economics is psychology, what people think is going to happen, and fears of inflation could become a self-fulfilling prophecy.


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