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Why the Banksters Don’t Care About Your Gold

bankstersI regularly hear how important it is to hold silver and gold and how dangerous the central banks and their banksters (a combination of bankers and gangsters) really are. I’m sympathetic, of course, since I don’t like central banks and I do like silver and gold.

But these folks have a problem: Their plans never seem to bear any fruit. Mostly, they are waiting for the banksters to lose control, for the financial system to fall down, and for their silver and gold to save them from an apocalypse.

But it has been a lot of years now, and the banksters seem to have no concern about precious metals in the hands of average folks. In short, they don’t fear your silver and gold at all, and I think it’s important to examine why.

The Obvious Reasons

There are several obvious reasons why the banksters don’t fear metals in private hands, and then there’s a much bigger reason. Let’s start with the easy ones:

  1. The banksters already hold most the world’s silver and gold and control its pricing. The ‘official’ price of gold is set every day by a group of bankers in London.
  2. They lease it to each other and their friends.
  3. The largest bankers more or less control the gold futures markets. At last count, the big commodities market had 102 times more gold under contract than they had physical gold. Since this “paper gold” passes for real gold, manipulations can abound.
  4. Governments are very good at stealing gold from a populace. The US government did precisely that in 1933, and there’s no reason to think they wouldn’t try again when they want. Taking money is what governments do.

The Big Reason

All the reasons above are significant, of course, but there remains a vast amount of gold and silver in private hands. And this could present a serious problem to the banking monopolies, except for one thing:

The people who hold these metals never use them.

I regularly hear people asking, “How do we destroy the banks?” And the answer is obvious: Stop using their products.

That, of course, is where the inquiry usually ends.

The “gold bug” crowd already has the tool of victory in their hands – but they don’t use it. There is more than enough gold, silver, and copper in free circulation to conduct a great deal of commerce. And if they were serious about ending the reign of central banks, that would be the way to do it. (Bitcoin would more than suffice for international transactions.)

But they almost never use their metals. Rather, they hold them in safes, in drawers, and on shelves, treating them like little idols. Every so often they pull out their stacks, dust them off, appreciate them for a moment, then put them back into storage. Then they wait for the apocalypse to come, when they’ll finally do something with them.

Again, I like silver and gold; I think they are honest money and a good store of wealth. But if you want to great rid of central banking tyranny, you’ll have to USE your silver and gold. That’s the choice: Treat it like an idol or treat it like money.

As long as your coins remain static, they remain powerless. If you use them like money, big things can happen.

The Bitcoin Kids Have It Right

A lot of silver and gold people hate Bitcoin. But regardless of Bitcoin’s features or flaws, the Bitcoin community is doing one thing very well: They are using their currency, rather than merely admiring it.

This is why the banksters and governments are freaked out about Bitcoin and not about silver and gold. By using their currency, the Bitcoin kids are chipping away at the banksters. If left unmolested, these young people would seriously weaken the banksters and eventually render them obsolete.

  • The banksters fear Bitcoin, because people are using it in daily commerce.
  • The banksters don’t fear precious metals, because they are not used in daily commerce.

Silver and gold will start chipping away at the banksters when people pull their metals off their shelves and use them… and not before.

Paul Rosenberg
FreemansPerspective.com

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  • JdL

    Rather, they hold them in safes, in drawers, and on shelves, treating them like little idols. Every so often they pull out their stacks, dust them off, appreciate them for a moment, then put them back into storage.

    I laughed when I read this, ’cause it’s so true!

    As long as your coins remain static, they remain powerless. If you use them like money, big things can happen.

    This I don’t understand. What “big things” will happen if I use metals (or promises to deliver metals on demand, or other instruments derived from and based upon metals) in everyday trading?

    FRN’s are gradually growing worthless, but I get paid in FRN’s, and it’s convenient to purchase things using them. For long-term savings, for all the well known reasons, I prefer metal. There may or may not be an apocalypse before I sell some; the road ahead has many forks, and I don’t pretend to see them all.

    As for manipulation of metal prices, I don’t doubt that it’s happening, but such control cannot be maintained forever.

    As for confiscation, there is nothing that I own, including my life, that is free of the possibility that the government might confiscate it some day, using force so overwhelming that I have no hope of prevailing. Therefore what? I must live my life as I please just the same, take such precautions as seem reasonable and necessary, and plan for the worst while I hope for the best.

    • Keith

      I laughed at that first paragraph, too. That being said, the fact that people use their greenbacks to purchase and hold metals is a way of fighting the banks. They are denying then the deposits they need to create more and more magic money. So it may not be a sexy way of fighting the system, but in a small way it is, like producing some of your own goods and engaging in bartering.

      • Paul Rosenberg

        I certainly have no problem with exchanging fiat for metals, I just think it’s far more useful to use them too.

      • Joch C.

        The only way to deny them magic is to stop taking bank loans.
        When you store gold, the money you used to purchase the gold is still in circulation.
        Gold bug gold is only doing 1 thing, assurers you can purchase the same amount of goods and services in 20 years as you could have today. After the mandatory 28% tax rate on gold profits, I am not even sure it keep its purchasing power over time?
        Start trading gold for goods and services.

  • http://anarchoaggregator.com/ Adam Hoisington

    Well, I think there is a fundamental difference. I think people are not spending their metals because it is way less convenient than using fiat currencies or crypto-currencies. Both of those items are traded digitally quite easily. There are very few ways that metals can be traded like that.

    • Keith

      I think it has more to do with conditioning. We are just trained to use paper, or now electronics and paper. Think about a silver or gold coin, easy enough to carry around and trade for something, but find a store to accept them. The subtleties of convenience are probably the most dangerous thing, and it plays into the banks hands. Using a credit card or electronic transfer keeps everything within the banks and allow them to track everything. Using old fashioned paper pulls you out a little. Using precious metals brings you out more, but again we hit our conditioning. Hell, the other day I deposited $1000 in a bank to make a payment. It felt almost criminal to be carrying that much cash around- making me having been trained by the banks, too.

  • http://7thpillar.wordpress.com/ 7th Pillar

    I buy my gold and silver (US coinage) at auction, and use it as currency, but first I sell all the collectible pieces at a premium that benefits both the collector and myself, then I use the junk silver for purchases.

    It works.

    The Boot-Strap Expat
    http://thebootstrapexpat.com/

  • Paul Les

    Sorry Paul I disagree with your article” Why the banksters don’t care about your gold” The gold bug community has it right, You break the corrupted system through non-participation in a corrupt system and that is what your non actions accomplish when you store precious metals. Perhaps with the Phoenix rising we can again have transparency and open and honest markets.

    • Paul Rosenberg

      Hi Paul,

      Non-participation is precisely what I was suggesting. By using metals, the gold bugs (and I mean that in no derogatory way) would be moving their economic activity out of the fiat system, rather than continuing to churn dollars through it.

  • alohajim

    Ummmm, there are at least two good reasons for people to not spend or use their gold and silver. The first is the punitive tax rate of 33% on any ‘gains’ your PM’s might have enjoyed from their purchase date. Secondly, Grishem’s (Griffin’s?, sorry. . .) law – bad money drives out good. Why would anyone pay for anything with a silver coin when everybody accepts fiat currency. Especially now with PM’s ridiculously low ‘price’. Because of this distorted price the best possible thing to do is to trade all the fiat you don’t need for everyday expenses for PM’s. Rather than dis horde your PM’s to try and hasten the end of the banking system, simply use cash as much as possible, get out and stay out of debt and trade as much worthless banker credit (fiat) for PM’s as you can.

  • AK

    First and foremost people need to get out of the traditional banking system. Don’t hold any liquid assets inside the banking system, except for those funds needed to pay your bills every month. The fewer assets you hold in our corrupt financial institutions the fewer assets you will have to relinquish when the bail-ins become part of the new reality.

  • Gil G

    And while you’re at it: why be beholden to the Big Supermarket and grow and eat your food? Why be beholden to Big Oil and travel by horse and buggy.

  • nickspm

    We are still in the early part of the 21st century, and the US has already been overshadowed economically by China.

    All you need to understand about gold is that the Chinese people and government value physical gold above paper money, especially the US dollar. They don’t want US dollars, and they don’t want US Treasuries.

    We’ve all seen the way Americans line up for plasma TVs at Walmart on Black Friday. The Chinese line up like that for gold several times a year. They do this because they know that gold is real money, while paper currency is nothing more than a paper promise.

    Of course Federal Reserve notes, any types of paper IOUs, are probably more convenient for purchasing groceries than physical gold. Still collecting paper IOUs from a banking cartel that can’t or won’t pay you back with anything other than more depreciating paper (that the rest of the world no longer wants) presents its own set of challenges over the long-term for preserving wealth.

    Of course tyrannical government will make laws to discourage and punish any type of behavior that stacks the deck in your favor in regard to you and your family’s survival. When they cut off your drinking water and start taxing the air, will you turn in those around you that resist the rules—and will you comply with their wishes for you to dig your own graves for you and yourfamily? The choice is yours.

  • Ron Helwig

    This is where my Shire Silver cards can be a big help. They are credit card sized but contain the actual silver and gold in easy to use units. At 1/20th of a gram, I make the world’s smallest physical gold trade unit – it goes for $4. My smallest silver unit is the equivalent to $1. These cards are easy to keep in your wallet so when you do have the opportunity to use them, you can.

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