Lost in the fog of fear over the War on Cash is the obvious alternative: gold and silver coins.
Worried about the elimination of $100 bills because it makes it harder to accumulate and safekeep meaningful amounts of cash? An ounce of gold stores a lot more wealth than a $100 bill.
Currently one roll of silver eagles is worth more than three $100 bills.
Whatever measures the Government takes to implement capital controls and increasingly exert more control over your life can be offset if you move as much cash as possible out of the system now and into precious metals.
Submitted by PM Fund Manager Dave Kranzler, Investment Research Dynamics:
The fear porn headlines are beginning to flood the alternative media blogs. Everyone is warning about the growing “war on cash” and negative interest rates. Yes, it’s inevitable and all the reasons why Governments prefer a digital currency to cash are obvious. First foremost is that it is the bridesmaid to the Totalitarian creep engulfing our system.
But lost in this fog of fear is the obvious alternative: gold and silver. Worried about the elimination of $100 bills because it makes it harder to accumulate and safekeep meaningful amounts of cash? An ounce of gold stores a lot more wealth than a $100 bill. Currently one roll of silver eagles is worth more than three $100 bills.
Negative interest rates? Big deal. Over long periods of time the relative value of gold accelerates vs. all other currencies when real rates are negative. When the Fed takes nominal rates negative the price of gold/silver will begin to go parabolic. Will that happen immediately? Of course not. The Fed will try to cap the price movement of gold with B-52 payloads full of paper gold. When this happens, take as much cash out of the banking system as possible and convert it into physical gold and silver bullion coins.
Will the Government try to confiscate gold and silver? The promoters of this hypothesis have glaringly failed to study the facts. Yes, the Government decreed it to be illegal to use gold bullion coins as currency but it never embarked on an effort to “confiscate” private gold holdings. In fact, other than a few idiots who took their gold to the bank and turned it in for cash, the only gold the Government “confiscated” was gold that had been found in abandoned safe deposit boxes.
FURTHERMORE, the possession and use of silver as a currency was never outlawed. Please study the facts on what happened before you promote or buy into highly misleading or false tales about gold “confiscation.”
Whether or not the Government ever revives a moratorium on the use of gold as a currency or on its outright ownership is, quite frankly, irrelevant. There will ALWAYS be a private market in which gold will freely exchange hands for like value. Gold and silver have endured over 5,000 years as legitimate currencies. The United States has been in existence for roughly 240 years. I think I know which of the two has a better probability of surviving the economic and geopolitical hurricane that is approaching.
The rampant proliferation of “war on cash / negative interest rate” warnings are little more than the childish rants of alternative media propaganda artists. It’s like a repetitive announcement that the earth is round and circles the sun. Yes, we know that the Government is going to digitize the currency system and take interest rates negative in an attempt to channel bank balances into consumption or the stock market or Treasury bonds.
But whatever measures the Government takes to implement capital controls and increasingly exert more control over your life can be offset if you move as much cash as possible out of the system now and into precious metals.