Picture this: A widow is sifting through her late husbands’ safe, and realizes he has provided well for her, in the form of silver and gold. As maybe millions of others, who have come across gold and silver, which they did not buy, and who are not economically ‘well versed,’ and to be kind, they are amazed. “Look at all this gold and silver he left me, I’m going to sell it and get some money.”
You already know the answer I am certain, but I write this for the benefit of those who may inherit gold and silver, left to them by a deceased person, and who is well off, but finds these treasures, and all they can instantly think of is, ‘sell and get some money.’ DO NOT DO IT, unless you actually need decreasing value dollars, or saying it another way, ‘prices are going up.’ I heard this morning on NPR, that Powell, the head of the Federal Reserve, is not happy with the results of his raising interest rates eight times. He will undoubtedly do it again. If the car is out of gas, running the battery down, trying to get it started, will prove fruitless. If something doesn’t work, isn’t it smart to find out why? ‘When everything else fails, try reading the directions,’ is the old saying. Powell, 99% of Congress, and most presidents are ignoramuses, about even basic economics.
Stott’s Law: “The more of anything there is, the less they will be worth,” and this includes dollars.
The dictionary says inflation (prices going up), is caused by “an increase in the money supply.” Six words, which perfectly describe inflation, in 100% of the cases, in all nations in history. It has happened here already, ever since America was founded, and will continue as long as we survive. During the revolution, the ‘Continental,’ was printed to pay for costs, and so many were printed, that their value became zero. The expression, “Not worth a continental,” came from that inflation 240 years ago. During the Civil War, both the North and South printed, until they both became worthless. During WW II, the dollar was printed so much, that it lost half of its value or purchasing power, in just three and a half years. Korea and Vietnam were also paid with printing press dollars, which cut their purchasing power by close to half. Example? Before WW II, a new Ford cost about $700, and after the war, they cost more than twice that, with the same body style and mechanical components! My Dad bought a new Plymouth in 1940 for $650, and a new Ford in 1949 for $1900. The inflation progress has continued, and now a new, basic Ford pickup can run well over $50,000 and a deluxe one $75,000.
THE DOLLAR BILL, HASN’T BASICALLY CHANGED ITS APPEARANCE OVER THE PAST HUNDRED YEARS. IT JUST CONTINUOUSLY LOSES ITS PURCHASING POWER, BECAUSE TRILLIONS OF THEM HAVE BEEN INSERTED INTO THE MONETARY BASE. THEY LOOK VIRTUALLY THE SAME, BUT ARE BECOMING MORE AND MORE WORTHLESS. Storing them under a mattress or in a bank won’t stop their degradation.
A bucket with a small hole in it, will lose its water. The buck is a bucket with a hole in it, so don’t sell real, historic money, for paper promises in the form of dollars. Use your surplus dollars for gold and silver, like you have food stored in cans for future use. Here’s what we are doing. As we buy canned goods, we put the date and price on each one. A couple of years later, you’d be amazed at the increased prices! Same cans, same food, and same dollars.
As a kid, a dollar bill would buy a hundred Hershey bars, or five gallons of gasoline. Today? You know the answer. It’s the same Hershey bars and gasoline. The difference is not the product, but what we purchase them with…dollars.
Selling the discovered gold and silver, undoubtedly at a huge profit over what was paid for them, if the recipient has that information, is a ‘profit,’ so does it make sense to sell them at a ‘profit?’ Stop and think! You’d be selling real money, so you could buy some fake money. ‘Fake,’ because it is backed by nothing, and decreases in purchasing power, almost daily. Why does this happen? Because, as the dictionary says, it (inflation) is caused by, “An increase in the money supply.” Consult my column on December 27th, of last year, and find that in 1920, there was $55 in paper dollars in circulation, for every citizen, and now it is $37,321. A huge increase in the money (dollar) supply. Gold and silver, which requires a huge amount of capital, discovery, work, machinery, and distribution costs to exist, vs. the cost to produce dollars, which are merely cutting down a few trees, making some paper and turning on the presses. Selling true money for fake money, is ‘let’s sell some of this stuff and get some money.’
Hey Mr. Powell, want to stop inflation? Get rid of the excess federal spending, such as the myriad bureaucracies, all of which are unconstitutional, other than the post office and basic Constitutional agencies, such as Treasury, State, etc. How about stopping last year’s five million illegals invading America at the behest of Biden and his cronies? It’s now 2023. Stop it, and seal the border, which the UK has just done. The Brits will no longer tolerate any non-citizens invading them, but will send them back instantly. We give the illegals cell phones, medical care, schooling and handouts, far more than we give to our own senior citizens. Hey seniors, why not start a petition to get for yourselves, what illegals get on a pretty platter?
Throughout all of mankind’s history, devices have been used and needed to facilitate trading, and they have always been called ‘money.’ Also, throughout history, the various ‘monies,’ have always ended up being worthless. Our U.S. dollar, has already lost about 98% of its purchasing power! As the dollar has gone down, and prices gone up, the prices of gold and siler have gone up as a partnership with consumer goods. Dollars go down, and consumer goods, gold and silver go up. Both in dollars. Keep the gold and silver till you need it, and if you never need it, leave it to your kids and grandkids, hoping they will act wisely as I hope you are going to do.
-Don Stott, don@coloradogold.com