The value of your Dollars continue to decline. Retailers are repackaging their products into smaller sizes or contents and charge the same amount for less. That equates to inflation.
Gold is money. Dollars are “notes” or derivatives of money. Gold holds value and preserves purchasing power whereas Dollars are not retaining value. Central planners know this and they continue their attempts to manipulate the price of gold using the paper market, a derivative market of hard assets.
When the price of gold rises, it is a warning sign to the market. Planners know this and continue their intervention to moderate the rise of gold in terms of Dollars. When the broad market finally responds to the manipulation and intervention, the price of gold will shoot up quickly. Will it happen in 2013, 2014, 2015…? Only Our Heavenly Father knows.
Wealth is being created in Asia and thus gold is moving in the direction of wealth creation. The Netherlands and Austria are now talking about bringing back their gold. People want the physical asset, not just a claim. This demand will continue to grow and accelerate as the debt of nations becomes larger and unsustainable.
The Bank of Japan has joined in to the notion of depreciating their fiat currency. This is increasing “counterparty” risk of fiat currency. Japan’s aging economy has been in negative territory for some time and they want to reinvigorate it. Printing more money seems to be the easiest way to appear prosperous. This is just another aspect of the currency war now in full swing. Who can depreciate their currency faster? They are doing this at great risk.
Given the fact that the average person cannot assess the risk of paper investments, gold appears to be the best protection against the coming volatility.