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Gold and Silver Cannot Evaporate – But Accounts Receivable Can!
By admin | April 30, 2009
Back in 1999, Alan Greenspan told the United States Congress, “Gold is always accepted and is the ultimate means of payment and is perceived to be an element of stability in the currency and in the ultimate value of the currency and that historically has always been the reason why governments hold gold.”
It’s rather a long sentence, but well worth re-reading. Especially if you are concerned about protecting your assets against inflation, devaluation or dollar collapse.
After all, traditional asset protection strategies involve making sure your ex spouse or creditors don’t get at your assets. That’s all very well as far as it goes – but by gradually devaluing fiat currencies like the dollar, the government is taking your money through the ultimate stealth tax. Because your assets can’t just be counted in dollars or pounds or euros. They should be counted in what you can buy with tose dollars, pounds and euros!
Now, getting back to Alan Greenspan’s words, here’s a thought. Water’s boiling point is 99.974 °C or 211.95 °F. Gold’s boiling point is 2,856 °C or 5,173 °F. Silver’s boiling point is 2,162 °C or 3,924 °F. Gold is also extremely resistant to corrosion and can sit at the bottom of the corrosive ocean for centuries and still retain its luster. (That’s why it’s fun to go diving underwater for sunken treasure ships!)
In other words, physical gold like coins and bullion bars cannot evaporate when used as a currency in ordinary daily transactions, nor when hoarded safely in vaults. At all times and in all circumstances gold remains money.
Obligations – or accounts receivable – can, however, mysteriously evaporate. We’ve seen that happen so many times recently. Starting with securitized sub-prime mortgages, then with giant ponzi schemes, not to mention iniquitous civil asset forfeiture orders against bank accounts.
Bear this in mind when you consider how to invest in gold. Do you want “accounts receivable” denominated in gold like gold ETFs or other methods of holding gold in brokerage accounts? Or do you want real, physical gold and silver bullion investments? Over to you.
Interested in Offshore Gold Bullion Investments? Learn more about How to Buy and Hold Gold Bullion Securely Offshore by visiting The Q Wealth Report
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