A View of Gold & Silver

Gold & silver are not for speculation.  They are for storing and saving value.  Right now, a great leveling of currency value is expected in 2016.  The Chinese would have you believe they are weak but their intent is to express weakness as they grow in strength.  This is a classic strategy expressed in the writing “The Art of War”.

As the US Dollar moves lower, the need for a bail-in will increase.  A bail-in is where your bank account is accessed by the government to prop up the bank’s capital structure.  Is the money in the bank yours?  You are an unsecured creditor.  They are not holding your cash but instead are using the funds to invest and lend.  They keep a reserve for withdrawals.  They use statistical history to determine how much cash they need to retain.  They do not account for a “Black Swan” event to occur.  In the end, a major cash requirement of the bank must be met by liquidating assets, borrowing from the Federal Reserve, issuing stock or more debt instruments, or exercising the right to withhold funds from being withdrawn for a certain period of time, as a part of the signature card/contract you signed.  The bail-in alternative would convert your funds to a different class of liability and probably unavailable to you to be converted to cash.

The derivative crisis that nearly brought down the banking system in 2008 has not been resolved.  The level of derivatives has grown to be even a greater risk today.

What is an alternative ?  To place your funds in another store of value.  Land is an option but not too liquid.  In the past, gold and silver have functioned in this capacity.  When you buy an ounce of silver, you vote against the current fiat system and remove value from that system.

Each of us must be led the Spirit in determining what actions to take to retain purchasing power.  The fragility of the current system would suggest some kind of action be taken.  No man knows the entire picture and thus cannot provide perfect financial counsel.  Our Our Heavenly Father understands the full complexity of the current environment.  This is why you must place your focus on hearing HIM.

Comments are closed.