GOLD WILL SAVE US
Someone asked me what the world is going to do with all the gold being mined. There’s approximately 5½ billion ounces of gold known to exist, worth $7 trillion. Each year 100 million ounces are added to this total from mining. As you know gold is too expensive to be used industrially, so most of the gold that’s ever been mined still exists. Could gold become a glut on the market?
I don’t think so. It’s too highly prized for jewelry and private hoarding. Gold has always been cherished and sought after by mankind. That’s a good thing. We’re lucky to have so much gold because someday it’s going to fill a crucially important role. It’s going to be money again.
Governments the world over are printing money like never before. The Japanese are suggesting that no limit should exist on money creation. That’s a surefire formula for runaway inflation. If the U.S., China, and Europe follow Japan’s lead, the destruction of paper money is inevitable. Up to a century ago, gold was always money. It backed our currency until politicians and left-wing economists engineered a divorce. That enabled voters to put politicians into office who spent wildly. Then the central bankers printed up new money to pay the bills. This allowed the government to spend far more than the revenues it brought in. It’s a process that worsens by the year.
Gold has one redeeming quality as money. It cannot be created out of thin air as can paper money. You can’t press a computer key and get more gold. You cannot create a billion dollars of gold overnight. History has proven and will soon prove again that paper money doesn’t work. Over time, the government destroys its purchasing power. Gold will have to be money again, but only after the devastation of worldwide hyperinflation. Thank goodness for so much gold, it’s the only thing that can stabilize the aftermath of the financial chaos and economic collapse that’s ahead.