What we are living at the present time is an economic system which fashions a mockery of what wealth really looks like. If you are gold and silver holder, then you know what genuine wealth looks and feels like. This monetary system permits demand on real goods to considerably surpass the true amount of real goods. And then there are those who deem themselves rich because they have claims or pieces of paper or tokens demonstrating that they possess real assets, but if everyone was to demand the real goods, we would be at each others throats.
Just think about it for a moment…uncontrolled debt symbolizes the magnitude of which there exists many more claims than original true assets. We have endured a period of debt expansion for about 80 years where most businesses are created to impose themselves upon the scheme. It is quite simple to maximize prosperity given that only petitions on real assets need to be increased rather than tangible assets.
All cycles must finalize and the credit extension one is of no exception. Unfortunately, many businesses are vulnerable because they are contingent upon these extensions and when it overloads, the debt bubble will explode and with it the contingent businesses will also vanish into thin air. As this occurs, there will be almost no prospect of trading the claim on an asset rather than the actual asset, and even fewer probabilities to enlarge the amount of genuine assets. In addition, instead of assessing wealth using denominations of claims on real assets, as we do now, people are more prone to calculate wealth in terms of real assets which is where gold steps in.
Our present day is filled with businesses which are reliant upon the debt-based monetary system especially following an unfailing phase of credit extension. At this point, unfortunately, neither the economy nor the businesses dependent upon it can receive anything favorable from credit extension and we must now prepare ourselves for a colossal destruction in the economy on a global scale.
It is quite transparent already that with the rise in gold prices it is becoming quite arduous to accumulate genuine prosperity which signifies wealth in gold terms. This will only worsen with the economic recession and it will dissolve businesses very reliant on the debt-based monetary system. Financial institutions like banks would be first to go, but others are not exempt from the destruction. The transformation from calculating wealth in terms of paper claims or dollars, and the restricted means to increment gold ounces, will have as its end the metamorphosis of the business and investment world as they will produce a monster charge into those prospects that boost gold ounces. Presently, some countries are exchanging oil for gold which is the commencement of this change.
Some experts believe that silver bullion and gold miners are the most profitable ways to enlarge the amount of real wealth as measured in gold ounces. They are both trading lower or at their 1980 high and also at comparatively historic lows against the yellow precious metal. Currently, silver presents the greatest opening because it renders a reduced risk than shares in gold miners. But, as the gold/silver ratio drops, which is what we are expecting, gold miners will then be deemed profitable as well. At this moment, silver is at the point of progressing past the $50 level. It’s following its gold brother before it cleared its 1980 high. After that, its barrier will be to get out of the flag at about $35. If it persists in the gold pattern, then it will zoom past $50 point. And now you see why gold and silver are real wealth. What you do with this information is up to you but, be wise, and be certain you have real wealth and not some illusory paper that will be worthless when this is all over.