imagesGold and silver are NOT going up in value. An ounce or gold or an ounce of silver is still the same ounce. It is the imaginary “value” of the fiat you hold that is being debased and is relentlessly dropping. It is a subtle, but necessary change in “belief” one must always recognize, [and there are many who do, just not enough]. Instead of 250 or 900 units of fiat, it now takes 1650 units of fiat to purchase the SAME ounce of gold, and 30 units of fiat, instead of 5 or 20 units to purchase the same ounce of silver.

Make no mistake about it, it is the central bankers that are leading governments around by the nose, and by proxy, governments leading
people around by the nose, and that “nose” is inhaling “lines” of fiat.  Unless cured, all addictions end badly, and the only “cure” central bankers have for ever-increasing fiat is, ever-increasing it more. 

Silver Bullet Silver Shield Slave Queen Collection  at!!

Slave Queen 2

Submitted by Michael Noonan:


If you collect the money, you disperse the people;
If you disperse the money, you collect the people.
-Chinese Proverb

Nobody understood that better than the moneychangers, today known as
central banks.  It is the Rothschild creed that has worked for centuries.
Remember the “other” Golden Rule:  “He that owns the Gold, Rules.”

It is indisputable that for centuries, gold has always been considered a store
of value.  It preserves one’s wealth against fiat currencies, and during times
of fiat upheavals, it also creates wealth.  With wealth, one has independence.
With independence, one need not rely upon government.  While governments
can control people, the Rothschild clan chose to control governments, with
control over people a handy by-product…a Cliff Notes version of the New
World Order.

When you take away the gold from anyone, you take away their independence.
“I hereby declare, by Executive Order, that every US citizen turn in his gold or
suffer fines up to $10,000, or be sentenced to 10 years in prison”
Socialist-extraodinaire, Franklin Delano Roosevelt.

What did all these people get in return for their gold?  Paper currency, then and
still issued by a private corporation called the Federal Reserve.  That Congress
had abdicated its Constitutional obligation to “coin money,” [Article I, section 8],
was no longer important, for the organic Constitution had been replaced by a
corporate federal version, deceitfully designed to look like the original, but that
is another story, and the moneychangers control the corporate form of government.

[Let us leave it at the fact that this country was formed as a Republic, NOT a
democracy.  In a Republic, the Right of an individual is protected against the will
of a majority.  In a democracy, an individual, even small groups, have NO protection
against the UNLIMITED power of the majority, now usually ruled by one, as in
Executive Order.  Google the difference between a Republic and a democracy
and maybe learn something.  The Founding Fathers EXPRESSLY CHOSE a Republican
form of government over a democracy, for a reason.]

What happened to the price of gold AFTER people turned it in?  [People received
$20.67 the ounce for their gold, by the way.]  Roosevelt increased the official
price to $35/oz!  Did the value of the paper currency people were holding also
increase by 70%?  [Only one guess.]

“All the perplexities, confusions and distresses in America arise not from
defects in the Constitution or confederation, not from want of honor or virtue,
as much as from downright IGNORANCE OF THE NATURE of coin, credit,
and circulation.”     -John Adams

Now, [with no gold, ergo no wealth] almost half the American population
receives food stamps from the government, and the elderly are dependent
upon Social Security, Medicare, etc, all largesse from the corporate
federal government teat.  Most all Americans are also drowning in debt,
foisted upon them, as planned by the moneychangers, keeping them all
credit-addicted and unable to accumulate any real wealth, aka independence.

As Chuck Colson, Special Counsel henchman to “Tricky Dick” Nixon, heartlessly
reiterated:  “When you got them by the [financial]balls, their hearts and minds
will follow.”

This brings us back to the second line of the Chinese proverb:  “If you disperse
the money, you collect the people.”

The corporate federal government is in the business of collecting people.
Serfdom is alive and well in the USA.

Yes, there is a point to this.  What are the controlling influences for ANY market?
Supply and demand.  Who determines and controls the supply of fiat?  The
central banks.  Who determines the demand side?  You!  A collective “You,” to
be sure, but the collective is composed of individuals, and you have a choice.

What happens when demand wanes vs an ever-increasing supply?  The “value”
of the supply collapses.  Of course, keep in mind fiat has NO VALUE!  It is
purely imaginary.  Take a minute to absorb that thought.  IT IS PURELY
IMAGINARY.  If you imagine something has value, it does, by virtue of your

A belief is NOT reality.  It is merely  a thought maintained ABOUT reality,
but not necessarily the reality itself.  Change the belief and you change the
reality.  Stop believing fiat has any value, and your reality about fiat changes,
as well.  “The Emperor is wearing no clothes!”

Gold and silver are NOT going up in value.  An ounce or gold or an ounce of
silver is still the same ounce.  It is the imaginary “value” of the fiat you hold
that is being debased and is relentlessly dropping.   It is a subtle, but
necessary change in “belief” one must always recognize, [and there are
many who do, just not enough].  Instead of 250 or 900 units of fiat, it now
takes 1650 units of fiat to purchase the SAME ounce of gold, and 30 units of
fiat, instead of  5 or 20 units to purchase the same ounce of silver.

Make no mistake about it, it is the central bankers that are leading
governments around by the nose, and by proxy, governments leading
people around by the nose, and that “nose” is inhaling “lines” of fiat.
Unless cured, all addictions end badly, and the only “cure” central
bankers have for ever-increasing fiat is, ever-increasing it more.

Despite the above circumstances, very few Americans actually own
physical gold and silver.  The numbers are greater through participation
of paper holdings of gold and silver.  A mantra everyone needs to learn,
if you have not yet is, “If you do not hold it, you do not own it.”  Just ask
Germany if it still “owns” all its gold held outside of its country, like in
London and New York.  Usually, there is some degree of loyalty among
thieves…apparently not, when it comes to gold.  Rich irony.

Think MF Global… Peregrine…  Where do you want your gold and silver
to be when the elephants start stampeding?  There is already a rumbling in
the distance.  You have a choice.

Back to our last point.  Not enough Americans own and hold the actual
physical.  The numbers are growing…a record 50,000 oz of gold Eagles
were sold in January, but what are ounces when compared to  tons?
Remember the supply/demand factor.  Do you want to make your “vote”
count?  Demand less of the valueless fiat, and keep, and grow your wealth
by buying and accumulating real value: physical gold and silver.  Anything
less, and you are still dealing in the imaginary world that is failing.

Let the fiat fall where it may, and it will fall, with or without you.  Better
that it falls without you.  There will come a time, and we keep getting
closer to that still unknown time when gold and  silver will rise as many
imagine possible, and most will not believe.  You have a choice.
[At least for now]

For the first time, we are not going to include any charts for gold or silver.
In the larger scheme of things, they do not seem as important.   [There is
no reason to be long futures, yet]  We have said repeatedly, buy the physical
NOW, while the buying is good.  Back in 1933, by government decree,
[central banker dictated], people turned in their gold at $20.67…a Gordon
Brown moment.  Today, gold is $1,650.

Get thee to a dealer’ry; why wouldst thou be  a breeder of fiat!

Who [what] do you trust?

SD Bullion

  1. Very good article for new comers.  Most people have never seen a bullion gold or silver coin.  It will be excellent when Americans become as saavy as Indians are when it comes to money and saving.  I don’t think it will be long before Americans realize that they have been duped into accepting fiat currency and rejecting gold and silver.  

    • Agree, PK, but that is unlikely to happen until Americans experience a fiat money collapse, as many Indians surely have.  They have been educated as to what happens to all fiat currencies while we have not; as a nation, anyway.  Most of us on here have educated ourselves into knowing better and are grateful to the Internet web sites, such as this one, responsible for that education.
      US money contains the phrase “In God We Trust”.  Glance at that quickly and you may see “In Gold We Trust” instead.  😉

  2. “What happened to the price of gold AFTER people turned it in?  [People received
    $20.67 the ounce for their gold, by the way.]  Roosevelt increased the official
    price to $35/oz! “……
    This was FDR’s version of QE. 
    In the 1930’s we were on a gold standard.  The Fed could not just print money. It had to be backed by gold.  If FDR wanted to increase the money supply, those dollars had to come from somewhere.  FDR needed gold.  He didn’t confiscate gold contrary to popular opinion.  He paid people a bit more than the going rate for their personal gold.   The genius was then revaluing that gold at a higher price allowing him to print more dollars to be used as stimulus.  His version of QE.  The smart move FDR made was using stimulus money for infrastructure projects.  In the end we got something for our money.

    • No, he did not confiscate the gold from the people so much as he did from the banks.  The banks were hoarding the gold which removed it from circulation.  This is part of the boom / bust cycle that the banksters have been using for a long time to grab assets owned by others.  Stoke the economic fires until as many as possible are over-extended and believing that the economy will do nothing but rise (ala roaring 1920s).  Then, pull in the gold, reduce credit, shrink the economy, and capture all of the wealth from those who are over-extended and cannot make their loan payments.  After a time, reverse this process to reinflate the economy.  Allow this to continue long enough to become “normal”.  They hit’em again!  Works every time.  Rinse and repeat as needed to suck the wealth out of the economy and into the banks.  Sounding familiar?  These days, we “save” and “reliquify” the banks when they are in trouble due to their own financial incompetence.  They know that this will work because those in government are either stupid or in league with them in this theft.  Either way, wealth flows from those who have earned it and ends up in the pockets of those who have not.
      Those brave Americans who did not turn in their gold when “ordered” to do so and threatened with jail time and fines if they did not comply reaped a nice 70% gain on their money.  Gold was not revalued.  The US Dollar was DEVALUED.  Of course, it was not politically acceptable to put it this way, so they spoke of revalued gold.

    • Confiscation vs expropriation…..Expropriation means seizure of private property by the government after paying compensation. Confiscation is similar to expropriation, but confiscation does not involve such payments.

      Somewhere, somehow the entire PM community began misusing the term ‘confiscation’ years ago. FDR paid people(and banks) for their gold. The gov’t expropriated the private gold.

      It’s important to get this correct because there is the common belief that the gov’t is going to “confiscate” gold again. It will never happen, because Fed is in a totally fiat system now and does not need a higher gold price to issue more money.

    • Wasn’t splitting the hairs that finely but probably should have.  IMHO, anytime someone forces me to sell something that I do not wish to sell and gives me payment in something that I do not want, I feel perfectly free to call it what it is… THEFT.  No need to use a $0.50 word when this one will do nicely.  😉

  3. Interesting that the last collectivist a**hole expropriated the people’s gold.  Now the latest version of collectivist a**hole wants to expropriate weapons, or as I call them, lead futures, cuz they assure my future.   Whether the gummint comes for my gold or lead, it ain’t goona happen on my watch, no matter what they offer–FIAT or prison—it’s just one form of prison or the other.
    PS If that scumbag Colson thinks that since he ‘found Jesus’ he can save his soul, that ain’t a happening thing He was a key part of the human demolition derby called the presidency of the ghoul Nixon. I think he died rrecently One less piece of work walks this earth. And before anyone starts on about his prison ministries, I don’t think that was enough. He had much more to remove from his soul to find salvation. Like making whole the people his practices harmed while he walked the earth.

    • “lead futures”…now that’s funny.  The thing with Colson is he is just like the rest of us.  None of us deserve the eternal salvation we receive through faith in Jesus Christ.  It’s a free gift from God.  And even the most despicable can receive it, even guys like Colson.  Pretty awesome.

    • I think we are headed to a showdown in the next 4-6 months over guns. Obama is going for a ban on semi autos and I for one will not comply. My lead supply increased by 880 rounds today so a good day all around.

    • I sympathize with your comments, AG, but at the same time and reassured that none of us gets to make the decisions about who deserves and gets what.  That is some heavy duty stuff, man, and I, for one, am nowhere near up to making such decisions.  I suppose that if I was God, I would reincarnate every SOB on Earth as their victims and only after living through the crap that they caused would they have ANY chance of achieving Heaven.  Just imagine how long it takes for someone like Hitler, Mao, or Stalin to work off a debt like that!  But then, maybe that’s just me.  I am sure that whatever is in store for people who prey on their fellows will be very well conceived and much deserved, whatever it may be.

  4. In essence, I agree with the Doc–In our current economic environment, where the FED has devalued our currency by 95-98%, the value of PMs remains relatively constant while the cost of PMs rises dramatically. But this is not the natural state of things.
    In the “natural state”, that is one where currencies are not manipulated by central banks, long-term deflation is the rule; therefore gold and silver actual INCREASE in value as time wears on. You can imagine a relatively fixed quantity of PMs chasing goods where productivity gains, over time, cause them to cost less and less. The classic definition of deflation–a decrease in the general price level of goods and services. Without the artificial currency inflation, the deflation is easier to see (and much more positive for consumers).
    Even in today’s manipulated environment, the value of PMs CAN (and should) go up, even when denominated in fiat. By simply increasing the demand, the value of the metals will increase faster than the monetary inflation. Ergo the value will increase. FWIW

    • Agreed, but what TPTB are doing is creating unlimited paper gold and silver through the futures market.  They depend on people, banks, gov’ts being lazy and not taking delivery.  If everyone would simply take delivery it would be game over for the boyz and gold and silver would have to shift to being priced in a cash market(like a gallon of milk is today).  Then the price of gold and silver would reflect true market dynamics. 

    • UglyDog. That’s what I was ineptly trying to say. Buying paper won’t increase relevant demand. Only physical demand can bring this game to a halt. I wonder if we are really going to like it when the game ends. There will be a LOT of suffering; and not all of it will be deserved.

    • “Agreed, but what TPTB are doing is creating unlimited paper gold and silver through the futures market.”
      Now that I think of it, U-Dog, TPTB are treating PMs exactly as they treat money.  They are attempting to create more of it out of thin air, essentially using the very same fractional reserve tactics as they use in banking to create more money.  Unfortunately for them, however, they have a problem with this and that is the fact that there is no alternative to paper money in the current business system, so their plan works… for the moment.  In PMs, though, there IS an alternative to their paper and that is physical metal!  It WILL be their undoing at some point but who knows when that will be.  It is a helluva show for now, though.
      What I am wondering here is whether or not the cartels can maintain their current 100:1 paper to phyzz ratio or do they even care whether it is 100:1 or 1000:1 or any other number.  Does it even matter?  Probably not… UNTIL… enough futures buyers stand for delivery and they do not have the physical metal to pay what they owe.  Maybe that is when they tip over the card table, shoot out the light, and run off to the Cayman Islands for a while.  Oops.  Someone else is already doing that.  I keep hoping that Corzine will be eaten by something big, nasty, and with a large mouth full of razor sharp teeth but Blythe doesn’t seem to be anywhere in the vicinity of George Town.

  5. This squib is interesting, but this key paragraph is false:
    Gold and silver are NOT going up in value.  An ounce or gold or an ounce of
    silver is still the same ounce.  It is the imaginary “value” of the fiat you hold
    that is being debased and is relentlessly dropping.   It is a subtle, but
    necessary change in “belief” one must always recognize, [and there are
    many who do, just not enough].  Instead of 250 or 900 units of fiat, it now
    takes 1650 units of fiat to purchase the SAME ounce of gold, and 30 units of
    fiat, instead of  5 or 20 units to purchase the same ounce of silver.
    That is patently false.  I’ve written about this at length on TF’s site.  It’s false because he says, matter of factly, that NONE of the price appreciation is actual appreciation in real value terms, but that it’s ALL due to inflation.
    Hate to get all Dwight Schrute on this gent, but: “Fact, an oz of gold in 2000 only bought 1/45th of a share of the Dow Jones.  Now it buys 1/8 of a share.
    Fact: In 2002 it took 830 ounces of gold to purchase the median sized family house.  Now it takes only 160.  An 80% gain against a real asset, not a paper one.

    Those are just a few examples of asset classes that gold has appreciated against in REAL TERMS, the dollar aside…but the really interesting thing is this comparison becomes even MORE apparent in silver.
    Fact: in 2002 it took 53,000ounces of silver to buy the median family home.  Now it takes about 8,000.  Kinda makes you sick in your stomach as a home owner, doesn’t it?

    The data is here if you don’t believe me.
    A 99 cent value burrito from Taco Bell in 2000 isn’t now priced at $6 or the McDonald’s double cheeseburger, priced at 99 cents in 2000, isn’t now valued at $6 either(it’s about $2).
    I could go on and on, but I won’t:  the point is, there are always TWO components to ANY asset’s price fluctuations: 1)currency values, and the second(the one that he misses), is 2) supply and demand.
    China was NOT buying 800 metric tonnes of gold on an annual basis in 2000.  Now it is.  U.S. mint sales figures have all gone up by factors of 500% to 1000% on both bullion coins.
    My point is: if only the currency factor(which he brings up) were involved, he’d be right.  The reason he’s wrong, is that currency weakness begets HIGHER DEMAND, which forces miners, suppliers, and minters to charge more for a scarce product.  It is this hyper-scarcity that results from currency debasement, that causes the % gains in gold and silver to FAR outpace that currency’s rate of destruction.
    Think about it: if all we did was keep the same amount of purchasing in buying both gold and silver, we’d all LOSE.  Because there is a 28.5% tax on gold and silver gains.  Which means, after the bull market’s end, and we sold it….after tax, we’d only have “succeeded” in walking away with 72 cents of our original dollars.
    Yeah um, where do I sign?  Sounds great right?

    ALWAYS factor in both dollar depreciation AND the increased exponential rates of demand growth.  Without it, you’ll be clueless as to why you can suddenly purchase 20 times as many stocks with the “same valued” metal, or 10 times as many homes…

    • Yes, because of price suppression and manipulation of precious metals by the central bankers, the relative purchasing power (ie, value) of physical Silver and Gold has been going up in the present bull market, and thus the transfer of wealth that so many have written about.  Especially with Silver, due to its present distorted price ratio of 55:1 relative to Gold, where historically this ratio has been much closer to 16:1, and presently the natural availability from the earth’s crust is closer to 10:1 or less.  That is why there are those who proclaim that Silver is the most undervalued hard asset in the history of the world at this very moment in time.  Eric Sprott has said Silver will be the investment of this decade.  In truth, Silver might just be the investment of a lifetime.

    • An illuminating series of comments for sure.  
      I have been looking at this for some time now and had concluded that silver IS rising in value.  I admit that my proof is limited but this is what I offer:  in 1960 a gallon of gasoline cost about $0.25.  That silver quarter contained 0.1808 oz. of silver.  At $31 an oz., that silver quarter is valued today at $5.60.  Gas hereabouts is $3.20 a gallon now or only 57% of what it was worth 53 years ago.  At today’s silver price, the gas costs about 0.1032 Troy oz. of silver, so silver collectors are at the very least gaining on petroleum products.  Other products could well be different.  Note that while this does not include taxes or indexing for inflation, it does compare one real asset to another.

    • Plebian….Agreed.  However the “transfer of wealth that so many mention” is not referencing the rising gold price.  What the writers are referring to are two other things.  One being the shipping of our means of production to China.  And two being the transfer of Western bank gold to Eastern bank vaults.

    • Ed, your example perfectly illustrates my post above. Over time economies of scale and production improvements drive the price of products downward. When priced in fiat (make-believe money), the price of gasoline has increased markedly (almost 13 times, using your numbers). However, valued against real money, the price of gas has gone down (near 43% again using your numbers); and this is in spite of thousands of new  governmental rules and regulations that have been imposed since 1960. 
      One more thing, I remember my parents owned an old beat up Lincoln Continental when I was growing up. Mom once pulled into a gas station and asked for a dollars’ worth of gas and IT WASN’T A JOKE! That was enough to cart us kids around for about half a week in that great big, gas-guzzling land-yacht. Today if you put a dollars’ worth of gas in a little rice burner, it would almost be enough to get you out of the gas station.

    • BPIU… there are a lot of numbers that can be used in such calcs, so I just used some that I knew from way back when plus the ones we have locally at the moment.  Other numbers from other times and locations will be valid else-where and when.  
      Know what you mean about the Lincoln, for sure.  My Dad had a baby blue 1964 Lincoln with the 460 V8, suicide doors, and a dark blue vinyl top & interior.  It was definitely a land yacht!  The surprising part was that it wasn’t as bad on gas as one would think.  Very little pollution control on that engine, so it was getting 15-16 mpg in mixed town / country driving.  That same engine all tarted up for the EPA in a 6,000 lb. car would probably get about 6 mpg these days, if it would run at all.

  6. I disagree somewhat with the premise of this article.  Yes, at this point, you are simply seeing devaluation of the currency reflected in an increased fiat money price for gold and silver.
    But I do not expect that to remain the case in the terminal stages.  IF there is a price suppresion mechanism for silver in play here (jury is out, but I frankly think there IS), when that breaks down, you will most definitely see an increase in silver prices totally disproportionate with currency devaluation.  In fact, you could see that even before then because silver is a very small relatively illiquid market where a small influx in investment holdings could produce a disproportionate increase in prices.  When a coiled spring is finally let loose, you may see an overcorrection or even a mania that is totally irrational in the opposite direction.  In current dollars, silver would have to go to something like $110/oz just to get to where it was in the Hunt Brothers days.
    Situation for gold isn’t as clear cut.  I’d say, gold functions more like a true “money” in the sense that it will more likely move in a proportionate fashion with currency debasement.  But even there, with worldwide currency debasement you could & probably will to some extent see it increase in price even relative to the currency debasement as we get a herd mentality from around the world piling in.

  7. Whatever has happened to Commissioner Bart Chilton’s proclamation that the CFTC’s investigation into Silver price manipulation would be concluded by fall or winter of 2012?  Will this be the 5th year of the never-ending Silver investigation?
    It would be interesting if the Doc could find out more from Mr Chilton first hand…

    • Plebian.  Mr Chilton might be a nice man.  I don’t know.  But don’t expect a favorable resolution with this silver manipulation investigation.  I am sure it bothers Mr Chilton that there is nothing he can do about this.  Maybe he is a moral man.  His hands, just like his co-horts are tied in this matter.  Most likely they have been instructed to stay on the down low and keep the results of the investigation on the back burner permanently.  The Federal government is behind this manipulation.  The Presidents Working Group on Financial Markets, funded by the Exchange Stablization Fund are behind this and they are doing it under the auspices of managing and protecting our financial markets.  Holding down or stablizing the price of gold and silver is part of this strategy and most likely what they are doing is legal.  Although immoral.  It is part of the currency war.  As far as the Federal gov is concerned we are in a war for survival and if a few gold bugs are stepped on it is just an insignificant casualty of war.  I finally arrived.  The acceptance stage.  We have to accept this and move on.  Eventually they will lose the currency war.  

    • Gold bugs who are truly able to afford Gold might be few and far between, but Silver bugs–that is another matter.  The whole world could soon catch the Silver bug, and, unlike Gold, the Silver bugs can afford to feast on physical Silver still…
      Silver was de-monetized by the governments–and it will be the People who will re-monetize it.

    • Pollokeeper…Well stated.  You totally understand.  The real power is the Treasury not the Fed.  The Treasury Dept controls the Exchange Stabilization Fund and the ESF answers to no one, not the President, not the Congress, no one. Tells the Fed what to do. The ESF was funded by FDR when he expropriated and then revalued gold.  Gov’t paid $20.67 and then revalued gold to $35.  That $14.33 profit became the ESF.

    • UglyDog.  Are we the only ones that understand this?  GATA can expose the truth possibly but they cannot stop what the government is doing.  The government feels that what they are doing is in the best interest of our economy.  A matter of national security.  I also believe that the government knows that manipulation cannot succeed forever.  They are just doing the best they can for as long as they can.  After all, the metals markets are a global market.  Eventually the Comex will be largely ignored and a different, market, the phyzz market will take the center stage.  This is all we need to know.  Its anyones guess when metals will have their heyday.

  8. Yeah, you’re probably right about that.  Colson may have done more good than bad.  I promised myself I wouldn’t interfere with a person’s path to heaven.   I’ve been in a cranky mood all day. 

  9. AGXIIX, I read this site daily but have little time to post, just want to say how much i enjoy your (& Pat Fields) insights!  They have helped me tremendously & usually make me chuckle. Learn laugh live! Stack on!!! thx again

  10. my arguement here has always been about silver being a store of wealth not an investment looking for capital growth … an ounce of silver will buy 15 loaves of bread its my belief that when silver hits $150 an ounce it will be still worth 15 loaves of bread

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