Gold and Silver Bullion

2010-05-13T19:28:00.001-07:00

Welcome!

This information is intended as a call out to any interested parties and a wake up call for those who may still be in the dark.

Recently I have been interested in buying gold and silver bullion. Although my collection is modest, now is as good a time as ever to get your hands on some physical wealth. But why buy precious metals at all?

The United States, as I'm sure everyone is aware of by now, is the largest consumer, and also the largest holder of debt in the world. President Obama recently signed legislation lifting the existing cap on government debt from $12.4 trillion -- which is close to being exceeded -- to $14.3 trillion to permit more borrowing! The U.S. debt crisis also raises the question of how long the world's leading power can stay in debt and continue its borrowing.

But hey, don't take my word for it. Check out this website; http://www.federalbudget.com/
and see for yourself.

So, where does money come from? Well, an institution known as the Federal Reserve is printing it in the form of Federal Reserve Notes. Federal Reserve Notes are printed by the United States Bureau of Engraving Printing. The paper is made by Dalton & Co. of Dalton, Massachusetts.

Okay, so why does the Federal Reserve get to say "this is money."?

Perhaps its because we elected these individuals to be the authority on what is money?

No.

Well then who, or what gives them the authority to print these notes?

Wikipedia states;

"Federal Reserve Notes "are authorized" by Section 411 of Title 12 of the United States Code. They are issued to the Federal Reserve Banks "at the discretion of the Board of Governors of the Federal Reserve System". The notes are then issued into circulation by the Federal Reserve Banks. When the notes are issued into circulation they become liabilities of the Federal Reserve Banks and "obligations of the United States"."

Wikipedia further states:

"Section 411 of Title 12 of the United States Code provides that Federal Reserve Notes "shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank". Before 1964, some notes were "backed" by silver and before 1933, by gold: that is, the law provided that holders of Federal Reserve notes could exchange them on demand for a fixed amount of metal (although from 1934–1971, only foreign holders of the notes could exchange the notes for gold on demand). These notes stated on their face that they could be converted to gold or silver "on demand" and were "demand notes". Demand notes for silver were also called silver certificates, while demand notes for gold were called gold certificates. Since 1964, Federal Reserve Notes have not been backed by any single specific asset, but are backed by all assets held in collateral by the Federal Reserve, and by the power of the government to collect assets in taxes. While 12 U.S.C. § 411 states that "Federal Reserve Notes. . . shall be redeemed in lawful money on demand" this means U.S. coins. Thus today the notes are backed only by the "full faith and credit of the U.S. government"—the government's ability to levy taxes to pay its debts. In another sense, because the notes are legal tender, they are "backed" by all the goods and services in the U.S. economy; they have value because the public may exchange them for valued goods and services in the U.S. economy."

Source: http://www.wikipedia.com/

Well, that's alot of information. I bolded the most important points just in case you missed it.

So, what or who gives the government the power to call Federal Reserve Notes Money? They simply give themselves the power to do so. The notes are backed by really, nothing. that's it! its that simple.

Huge red flags should be going up in your mind, ideas like "controlling the masses" or "domination of global financial markets", or maybe "monopolizing currency for state purposes." Maybe I will cover these ideas in a future post...

Back to silver and gold bullion. The money in my wallet and in my bank account is nothing more than a symbol of authority. It is as arbitrary as the letters I am typing onto this computer screen. But I would rather have something with real, intrinsic value. Perhaps something hatched from the earth, and not from the minds of greedy people in control of our government.

Silver and gold is a great way to solidify wealth. Silver and gold bullion is not a short term investment strategy however. It is just as volatile as any commodity and it is subject to its own wild fluctuations, but as the dollar declines, the value of precious metals will be sure to remain steady, because it is straight from mother earth, and that is as solid as a rock.

Just in case you still are not convinced of the fact that the U.S.'s current economic situation makes holding precious metals now pay off in the long run, I will leave you with this graph which shows major discoveries of mineral deposits vs. their exploration expense to contemplate.

Respect,

Brando