COMEX Default - Gold IS Money, The dollar is currency!

[Fitrade]

Great video, I like to talk about Silver and Gold on my youtube channel as well.

[KBrizle]

it wont be useless it can neva be gold is like the back up for money but it can neva lose value because it is the common ground for the finanical system as food or water is for the life system. It might be low as hell in value but it can never actually lose value because its so rare and not every1 has it so it can be the base of trade altho u cant say the same for money or any other non scarce material

[lexlaw007]

If you can buy a gram of gold (Credit Suisse for instance) every week or so it will accumulate before you know it. Precious metals will always have a value, and paper money and stocks ZAP are gone. Own them physically --- and not on paper.

[curious220]

Now, buying "Gold & Silver" is a two way street...It goes up and its comes down...!You have to be mindful on when is the best time to invest in Gold or silver bullion, And the best time to trade it off!!It's a really tricky investment but, if you know when to get in and get out, you'll be a rich man!!

[flics85]

The point of this video was not to suggest people try to buy and sell gold or silver to make money. It was intended to show that gold was a "store of value" and that, if you own physical gold, it will always be something of value - it will never be worthless.

[curious220]

So, my final analysis on "Money & Currency"! What "Money" really is is a "Promissory Note"!!"Debt Owed"!!back to the Treasury payable with interest!!So, in actuality, we're all administering "Fake Money"circulating in our "CURRENCY"backed by "DEBT"not "Gold" any more, Nixon cut the Gold standard on our Money!!Now,the money with the government seal w/serial numbers and a John Hancock from your good ole' Secretary of treasurer!! And there you go ,you have yourself Legal(USD)issued out as CURRENCY!

[davincij15]

Just because someone puts a gun to your head and says the sky is pink does not mean it's pink if everyone else is saying it because they have no choice!

The concept of money is not a government decreed item it's an agreed upon item between two free individuals that decide without coercion what they want as money. IF it's paper, shells, food or gold it does not matter, that is true real money.

Fake money is forced on slaves.

[curious220]

Ok, i see what you saying....Without government regulating our way of life monetarily..!! Anything could be traded amongst two individuals thats willing to accept the trade!!That's "EXCHANGE"!! I'll give you this chair for that mirror!! Something like that...! Thats "EXCHANGING" items! It's not money,"Money" is just paper with ink on it specifing its monetary power!You can't go around with a whole lot of "Shells"&"Food"saying you want to buy that car or house"ITS NOT LEGAL""NON-ACCEPTED"....!!!!

[curious220]

The "Free Market"is where businesses get their supply & demand to build their Capital!If you're talking about a "Free Market Item"Thats just one of the items bought by the businesses to distribute to the consumers! 'Free Market" is only a"Theory"!Research it!! NOW, for the money & currency thing, money has to be approved thru the Department of Treasury by that current government to be "Legally Spent" as currency! 500B.C The Knight Templar were the "Bankers"in those days!And Yes, the same method!

[curious220]

Money is Legal Tender used for trading for your Goods & Services! Currency is simply the current legal tender you have to be traded for your Goods & Services!So, the more currency(people that have the legal tenders)in circulation the more the economy engine moves,the less in circulation, the engine slows! To differentiate the two: Money is Tangible & Currency is Systematic!

[davincij15]

Money is not legal tender it's free market item any thing can be money even the paper dollar.

Currency is what is accepted as for exchange of goods and services.

Money and currency existed before governments.

My research shows that governments took over the issuance of money around 500 B.C. and possibly before that as the writer of Ezekiel 7:19 was from that time period and knew they (bankers/government) would debase the money and it would become valueless and cast into the streets.

[DrRobertStadler]

They are finding this to be true right now in Zimbabwe. Did you ever wonder why we call it currency? Maybe because it is only money in the short term, or 'currently'.

[MrMDM2007]

Excellent! I finally get it. I really like the example of taking money or gold into the future and what would be better...GOLD!

Thanks.

MrMDM

[davincij15]

If you don't want to worry about having enough money for retirement buy gold and silver. The value up or down from here will always be relatively the same the basic needs, such as food, energy, rent, clothing and taxes.

For example gas will always be around 1/4 an ounce of silver. It may go to 1/3 or 1/5 but it will stay in that range.

If people go crazy for gold and silver, then it will be come over valued.  This is simple to manage than currency that you must invest to keep up.

[jRmullet]

I totally agree with you. I would like to add that another good reason to to invest in gold and silver is because its the only legal tender that the constitution allows the government to use. The founding fathers understood this all to well. When the shit hits the fan (and it will) we can always refer back to the constitution to get back on the right track and gold and silver is clearly protected by the constitution.

[readbastiat]

Keep fighting the good fight, my friend. The struggle with the "money changers" has been going on for a long, long time. One thing regarding your 1913 to now comparison: The price of gold is manipulated by central banks "leasing" gold, as well as short-selling it to other central banks. Many economists say that given paper money inflation and global gold supply and demand, gold should be about $6000 / oz. right now, not hovering just under $1000 as it is currently.

[Thaner14]

Gold is a scarce commodity, not money. Money implies that it can be exchanged for goods. In the US it is currently illegal to price goods in gold. Yes, it's a good inflation hedge because supply is fairly constant. Gold is not a good investment, just a good hedge. Silver is a better investment, because you have decreasing supply and increasing demand.

[potterword]

Thanks once again re: gold valuation and dollar. of course i knew the answer would not be simple. but i appreciate u and always looking everyday to see if u have something on youtube. keep doing your thing.

[potterword]

Thanks for the quick come back. Also, do you know the calculation method of inflation. in other words, how do we compute today's actual dollar value of ~ $850 or whatever it is. there has to be a way; a formula of some sort. with that in mind, also, is it the same method the dollar value was computed back in 1913 to value gold?

[davincij15]

In 1913 $20 is one oz of gold and one oz of gold was $20 until 1934. The method for calculating inflation was not the increase in money supply but a Consumer Price Index. Meaning the prices of stuff. So the CPI was a measurement of prices of a basket of goods from month to month.

Today it no longer represents a simple price of milk one month and the price of milk the other. Instead if milk goes up it is substituted for another item.

I could go on but you should read some books on the topic.

[davincij15]

Message me and I will find you some links on how fraudulent the CPI is. The government does not hide the scam you can see for yourself on the bls(dot)gov(slash)CPI there you will see how they change the formula form month to month if they don't like the numbers.

[potterword]

The question would be: How is gold actually given a value against the dollar, as it is up against inflation and anything else that would be used in the valuation of gold?..ie($20 dollars bought 1 gold coin in 1913, now ~$850 dollars will buy that 1 gold coin. Therefore, why does it now take more dollars to purchase that 1 gold coin?)Please help to understand.

[davincij15]

That's a very good question. Most people that watch my videos have forgot'n that there was a time when they did not know the correct answer to that question.

Anyway before 1913 gold stayed around $20 for 200 years, and prices of everything else did not increase or decrease to much.

After 1913 the Federal Reserve was given the power to print more paper dollars than they had gold, thus the more dollars out their the higher prices got.

If you have any questions please do not hesitate to ask.

[RonRepublican]

"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

[davincij15]

Yes, I think the key word is "restored to the people, to whom it properly belongs" money is a product that truly free people must choose. It is a product that can not be decreed by government any more that what a person can eat.

It is this lack of freedom is the cause of our problems today.

[wizkid2000]

Gold is money, currency(medium for exchange) and a valuable commodity.

Dollars(Federal Reserve Notes) is an IOU, a promise to pay in more IOUs.

[davincij15]

Yep, however your comment is completely understood by me just not others that do not see what is going on.

[prepare2008]

Yep Gold certainly is money but dont forget silver is money too, the original meaning of the word silver is Money, the UK pound means a pound of silver not these phoney fiat paper notes we use

Also the dollar is a unit of measurement like an ounce or an inch etc the public have been duped

check out the book:

Gold the once and future money

by the way nice maple the kruggers are cool too

[TadRapidly]

well, here we are in late December and no default yet (at least not blatant). What's next?

[dojufitz]

If this mess is gonna play out for 10 years - how long do you think Silver and Gold will hold their overvalued status?

They have to go up alot more from here...

I hope it isn't a spike like in 1980 that didn't last long....this time it seems a little diff?

[davincij15]

Silver should head well over $20 and never come back.

[FactionKustomPaint]

Thanks!! :)

I also like when you point to the links you have posted. You actually point in the correct direction. lol

Great work! :)

[farhadcoyote]

you can buy gold coins that weigh about one- 10th of an ounce for about $90 to $99 these days. so I took one of them with me to walmart and did my grocery shopping which was about $89. I also printed price of gold from about 5 different websites as evidence of value. I showed the coin to the cashier who was expecting " cash or credit" she said she could not accept it. So I asked for the manager Can you guess hat happened afterwards?

[davincij15]

Like most currencies you have to convert it first to the local currency before you use it.

The difference between gold and dollars is that one is money that holds value and the other does not.

Very soon gold and silver will become overvalued and you will be able to buy more but it will not last, like houses it will fall after it becomes grossly overvalued.

[farhadcoyote]

You are an intelligent man. What needs to happen for you to decide (in the future) that gold has reached its highest value (or close to it)? And when you make that decision, you will cash it in... what currency will you cash the gold in?

[alpertdon]

Thanks for sharing .

don, sydney australia

[JRCrowley]

Keep up the pace i.e. keep buying gold and silver. The jumps we have seen lately are like little raindrops before the monsoon. Gold and silver are going up, up, up... get some. Good luck to all.

[davincij15]

Physical only Madoff scam is an example of why you should not let others hold your gold.

[sscam2001]

Of course gold is money, the US Constitution says so, Art. 1 Sec 10.

And we all know what the US Constitution says is golden...too bad the US government doesn't use it anymore...

[mouljran7]

gold is finally showing some moves 855 and going higher...

by the way, now everyone in your neighbourhood knows you have some gold and money in that room...watch out :)

[davincij15]

Yes because everyone watches my videos. My neighbors don't care about gold they think it's a useless item that has no real value.

Their education is slow going.

[TomLandrysHat]

I think people have undergone many, many years of conditioning to believe that gold has little value. And is worthless as a medium of exchange.

During the next decade, due to fiat vaporization, they will come to realize its true power as a store of wealth... Unfortunately far too late for the majority to do anything about it.

[davincij15]

No it's not to late for them to do anything about it. It's to late for them to take the time and understand it. As it takes a long time for a person to see what is right in front of them. That is paper is nothing gold is something.

[farhadcoyote]

Question: If I took one of hose gold coins that you just showed to a bank in USA and asked for $700 (or $750) in return would the teller honor my request? How about Walmart? Can I get $700 - $750 worth of groceries with hat coin? How about a car dealer could I buy a used car for a few of those coins?

[davincij15]

I have to smile and say yes but it's up to each of them to refuse. That is called freedom. ;)

[jwsphilippinesgold]

You would get $870 today

[bgilliam83]

From his earlier posts given one metal to choose, I believe Davinci would buy silver!! The ratio is like 80 to 1.

[davincij15]

Silver is a good buy.

[TadRapidly]

you probably get this question a lot BUT, silver or gold? Any practical difference to the investor? Either one going to outperform the other when the dollar crashes? Your opinion is greatly appreciated.

[davincij15]

Gold will maintain and increase wealth but silver may go nuts and become the next mania.

[TadRapidly]

Thanks for your timely responses and also for your continuing dedication to helping me and others understand money and, to hopefully, prosper in the coming tough times. You and others like you are the new clergy!

[bgilliam83]

I am not a violent person but I respectfully disagree with you. How many people have died due to starvation the last 200 years? The Rothschild's fortune could feed, cloth, and shelter EVERY human being on earth. They are murderers, plain and simple. If history is any indication they should pay with their heads!!

[davincij15]

I would prefer they lived and loose all of there wealth and start over. It would be the best punishment that would have lasting effect.

[bgilliam83]

We started a revolution over a damn sugar tax and stamp act. The world wide banking ponzi scheme makes my blood boil. Time to start a revolution, crush the fed reserve (wiping out half US national debt in the process) and high time EVERY Rothschild descendant beheaded. No other way out now!!

[davincij15]

BTW: As good as it may sound, killing people always ends up bad. No we need to point out their evil and shun anyone that supports them. Evil is evil no two ways about that.

But we need control over the media as most people do not see the monetary Ponzi scheme and who created it.

[Rockin2Long]

"stock" below refers to securiturized gold.

[Rockin2Long]

He is correct. If you own gold stock, it's considered cash for the purposes of accounting, wth the value expressed in currency,

[4rcane]

Could anyone answer this question. If central bank decides to bring the interest rate to 20%. This will greatly strengthen the US dollars. Wouldn't this pretty much stop inflation and cause gold price to fall?

[davincij15]

Not right away because in order for them to do that there has to be an inflation "expectation".

What does that mean?

It means that most people have to believe that money supply is growing and causing prices to increase in the future. Most people think inflation is rising prices thus will assume prices will go up in the future and buy things on credit now to offset the rising prices.

[4rcane]

One ounce of gold in 1912 is still one ounce of gold in 2008. You're not making money, you're just storing your value in a different form. Its just the dollar value keeps shrinking, so it takes more dollars to buy that ounce of gold

[davincij15]

You got it Pontiac. :)

I just dated myself with that comment.

[chena3]

gonna go buy me some

gold mining gophers..

[d53briggs]

Davinci.... Hello, I enjoy hearing what you have to say... you mention anyone can tell a real gold piece...hmmm I alway worry about getting scammed - whether on silver coins or gold coins. Silver coins I weigh and do the chime test. How can you tell if you have a counterfeit gold coin that someone has just gold plated? Thanks D.

[davincij15]

bite test is the common used test for all of history, you will be able to bite it and crush gold. If there is plating underneath you will not be able to crush it and the gold may slid off it.

[davincij15]

I have never done the bite test however I just buy from a reputable place and you can't do it with a Gold Eagle as it is not pure gold for strength while circulated.

[JimNy2012]

Let me ask you something. I saw you holding Euros and i had to laugh because i was contemplating switch some of my US Dollars into Euros in the event that the US Dollar did crash completely. I have Gold put away, but you still need some kind of valid currency to barter with in the event that the US Dollar does crash. The Euro is a valid currency and seems to be what the world wants to trade in. Did you buy Euros yourself as a hedge?

[JimNy2012]

Spending your Gold will leave you in a position where you're giving up your real wealth. If you have Euros, then technically you still have a valid currency that might be accepted by merchants in the event the US dollar does drop to Zero Value. Its not a bad strategy.

[davincij15]

The USD can not drop to zero as it will be need to pay debt.

Those were not Euros they were Canadian dollars because I am Canadian.

The USD can and will loose a lot of value and most likely not go into hyperinflation. So prepare for that possibility by finding out when to sell 90% of you gold.

[hayyouman11]

The price of gold relative to the depreciation of paper money is around $760.Gold does not lost value Paper money doesSo every dollar above 760 is fear every dollar below is calm. My question is with all the new money printed in the past month how can one (joe blow guy without a economics degree) properly value the depreciation of paper in relation to Gold?How do really know how much paper money is printed?Numbers are boggling.Hence,delivered gold is being sold for such a premium lots of FEAR.

[davincij15]

The fair price of gold biased on all paper money printed is $1200USD. It is over priced after that.

[SAHARA1155]

Davinci - I read recently, closer to $6700, how did you come up with that number?

[davincij15]

That is the number where backwardation would stop. The price I came up with is the price people are willing to sell there gold coins on the black market. That is a true market away from the CRIMEX and since gold is available at banks here and some most dealers it is clear to me that a free market price would be 1200 USD

However if the price was let free it would be the only asset that did not lose value and would be piled on running it up to 6700.

[davincij15]

Also this is based on the amount of gold to assets available. The price of gold is a reflection of the price of other assets. Beyond that it's over priced if we still have a fiat money system. If we don't, and have to back all currency with gold it will be ugly.

[davincij15]

Also if you use the inflation calculator on shadowstats (subscription needed) it states that golds true value is at $1238 in today's money. If you use government inflation numbers it's $437. Silver's real value is $61 and government has it at $21.88. Thus using the government numbers only silver is 50% undervalued.

[ltse]

I prefer the term "Intrinsic" value versus "automatic". One could then technically argue "paper" has intrinsic value, but remember, rarity is the key to value.

[thomasw78]

Not just rarity but also Marginal Utility which is the margin at which if you had 1 more of something you wouldn't necessarily want it or pay for it. That's where the price is set... "at the margin". Most goods have diminishing marginal utility. The more you have, the less you want. Money, however, theoretically has constant marginal utility and if you think of gold as money then it too would have constant marginal utility. This means just because you have a lot doesn't mean you don't want more.

[jonald77]

I have a question about the mining industry. I have heard that it costs between 14-17 dollars per ounce to get silver out of the ground. At current paper prices, how do miners stay in business? And how does their hedging process work? Hedging recoups some of their losses?

[davincij15]

On the futures market you can sell a promise to pay silver in the future and get paid right way. This is how the miners are managing but right now they are selling direct as they get more dollars.

[jonald77]

But why would they sell more on the futures market at a loss? just to get some cash in hand? I would think that they would just quit selling unless it doesn't really cost $14-17 per ounce to get it out of the ground. I'm sure they are cutting costs right now with layoffs though.

[davincij15]

If you seen my other video banks are the only business that is selling silver in the futures market right now. Well they account for 98.7%. The rest are speculators.

So to answer you question directly they are not hedging with futures contracts.

[jonald77]

Thanks bro, I appreciate it. I am loading the boat with silver. I ordered about 2000 rounds through a local coin dealer about a month and a half ago. At the time delivery was about 12 weeks. If the comex defaults, do you suppose mints will stop supplying dealers and/or I would get delivery of my metal in the late January timeframe? Thanks

[strannick32]

hey. i have heard that if comex defaults, then potentially the contracts will be settled at the dollar value. Ive been considering putting in an order with a long delivery time, and was wondering what would happen. Im hypothesizing perhaps that they would settle outstanding orders in the same manner.

[davincij15]

NYMEX can change the rules to whatever they chose.

[davincij15]

Yes to everything you said.

[jonald77]

my real question is how would a comex default affect the mints? Do most of them get their supplies from the miners directly or buy through the comex?

[davincij15]

If no one sells you gold how will you create coins?

[videosofthekids]

I just found you today, and I appreciate what you're doing.

Let's everyone remember that when archeologists open up pyramids and old tombs and find stored-away treasures ... it's NOT paper, or papyrus, that they find ... they find GOLD! Gold beads, gold statues, etc.

Gold has been valued since its discovery thousands of years ago, and will be valued far into the future.

Not even the Roman Empire's monetary system (i.e. coins) held there value, other than pneumismatic. Just check Ebay!

[davincij15]

Yep people do not understand it and I understand why they don't. It's hard to let go of the fantasy and face reality that you have been hood winked all your life.

[cheapblackglasses]

Our currencies do not hold value over time because we use a fiat currency in a fractional banking system.

Gold is not fiat and not fractional. So, gold maintains a purchasing power relative to the fiat currency.

The worlds currencies move around one another based on the parameters (and supply) set by banking systems & govts.

Gold is the anchor. These Currencies move around it...not the inverse as we like to believe. This is why the currency relationship of gold continues to change.

[evolution077]

Great explaination.

So sad not everybody seems to get it.

Probably to brainwashed & lack of common sense.

[donaldsonb]

TD sales gold?

[davincij15]

Yep. Most of the time the bank teller knows nothing about it but yes, they do and they buy it as well. Giving us in Canada instant liquidity.

[donaldsonb]

I am in Toronto and use a locate coin dealer now up in Richmond hill. I use to go to Scotia bank.

[davincij15]

I live in Mississauga and go to TD bank.

[Naughtyjug]

Edward G. Griffin uses a similar analogy where he imagines a man walking through a market in B.C. Rome. For a single gold piece he buys a tailor-made toga, a pair of hand-crafted sandals, a superb leather belt etc...basically he outfits himself quite handsomely with his gold coin...the same man today can cash in his gold coin buy a tailored suit, a patent leather belt, hand-crafted shoes etc.. In essence the purchasing power of that gold coin hasn't changed in more than 2000 years.

[drcloak]

Like in Zimbabwe? Hyper-inflation, they are paying 500 billion for a couple of eggs because their fiat currency is over-printed and essentially worthless. If you introduced an ounce of gold on their black market, you could buy much, much more food.

[yetzoz]

the definition for money is: "common medium of exchange" so gold isn't money per se.

i agree gold should be money, i agree gold holds value far better than fiat money, i agree gold could be a fantastic commodity money etc. etc.

i'm currently reading "the theory of money and credit" by ludwig von mises. it's got a lot of insights in it.

you can get a PDF at mises(dot)org.

[davincij15]

The definition of currency is "common medium of exchange". The definition of money requires it to hold its value over long periods of time.

Currency fails to do that.

[KhmerD0g]

subscribe to "Heavyload1957" he has many good videos about the current economic conditions and trench including peter schiff, gerald celente, etc. also search for "max keiser".

forget going to the future or the past, just go to ANY places on earth and see if they willing to take US dollar or any other currency.

in wars (almost all wars) the US military requires to give gold coins to soldiers doing special ops just in case they need to use it to barter something from the locals.

[heuteheiuteheute]

Listen, the 50,000 in 1913 would have been in a bank getting interest rates up until now, and at a 5% interest rate 50k becomes 5m today. So what is your point?

thanks

[KhmerD0g]

what bank gives 5% interest rate? i know most banks give just a hair below or above the rate of inflation. u could loose money through inflation sitting in the bank. and do u trust the banks with your money? what if they declare "bank holiday" or the bank just go bankrupt? u should keep your gold in your house somewhere save or invest some of your gold in something that gives u more than 5% return.

gold is money is the point

[heuteheiuteheute]

I you invest your gold in something that should yield more than 5% return you might as well invest your cash, makes no difference.

As to your first point, the fact that gold has appreciated in value since 1913 does not mean it will continue to appreciate.. Why should it?

[davincij15]

heuteheiuteheute: You do not understand and it saddens me.

Gold did not appreciate, paper dollar depreciated.

Gold is not an investment it's money it maintains wealth it does not grow it (unless it gets over valued).

[radiospirit]

I thought we agreed that gold is an investment in the short-term... :/

[davincij15]

Yes I agree in the short term it can be used as an investment like trading the Canadian dollar or the Euro. But that does not mean it is a buy and hold investment that increases wealth over time because of its productive capacity.

A good investment earns you wealth as you hold it. A bad investment earns you nothing except speculative appreciation.

[radiospirit]

Yes, but speculative appreciation can be great in the short term.

Does anybody think that there will be a long-term for the human race?

[davincij15]

Keep in mind putting money in the bank at an interest rate is investing. Keeping gold is maintaining wealth. The difference is increasing wealth at a risk and the other is maintaining it with no risk.

Also the tax man will send you a bill for your investments.

[kkalayaan]

UNDENIABLE LOGIC

[He101A]

If you had the paper money in the bank at 6% interest per year, it would be better than keeping gold. If you put $50,000 in the bank at 6% interest for 100 years, your money would have appreciated to $12,500,000. If you bought $50,000 in gold in 1900, and kept it for 100 years, the value of that gold would be $2,050,000. Compound interest is the strongest force in the universe!

[snakecharmer133]

gold is a limited resource, money is not. Your 6% anual return may have been defaulted during the depression since banks went belly up at that time.

Gold is not used as an investment but as a security.

[He101A]

Not all banks went bust. Anyways, I must agree gold is a very good investment in the next 10 years. I think gold can go up to $8000/ounce-$10000/ounce. Silver will rise with gold, and go up to $200/ounce-$250/ounce.

[snakecharmer133]

to be honest the dollar was a gold standard ~1908 and was pegged to gold until the 70's... so gold was pretty much the same as dollars.

BTW: A dollar is a unit of silver with specified weigh and purity =)

[He101A]

If you have enough gold and silver, you can become very rich. That is if you can hold it for 5 years.

[davincij15]

Yes and then it's over valued, meaning you can buy more stuff with your gold than normal. You should dump it until it comes back down.

IF someone offered you a house for 1 dollar would keep the dollar? That's the point. Gold is money but, it can get overvalued.

Also note that investing is different than storage of wealth. One increase wealth the other maintains it. ;)

[chuxtuff]

Besides the shorts about giving up and the dollar index going down, which seems to be happening now, James Conrad wrote a great article over at Seeking Alpha titled The Manipulation of Gold Prices published on December 4th, where he describes why the FED needs gold to go up and why most likely it will. I hope you've read this article because if there's a default at the COMEX, the price of gold and silver will go up. As it is the only real money you describe, it can't do anything else....

[davincij15]

Physical will go up paper will go down. There is more paper gold than there is gold.

If you buy a Gold Certificate you purchased a derivative not gold.

[EZlearningVBdotNet]

People who travel would understand that you can bring USD with you and just exchange for local currency here in Asia as required. If your budget for that day is $100 then just change that for local currency. I believe this will be a the way of the future with Gold. You will exchange your gold for the rate of paper when you go shopping. You don't want to hold too much paper because the paper will depreciate before you go shopping next time.

[davincij15]

That is possible today banks in any other country will accept gold coins and bars for currency.

[hugolp]

There is a easy way to explain why gold is better money than paper, and why paper should only be currency (unlike now):

For a material to be good money, it should:

- Be percieved as valuable by everybody. Gold does this naturally, paper money does it through the cohercion of the state.

- Easy to store and to mantain (gold and paper money are good in this)

- Not easy to replicate. And this one is the key, because its true with gold but false with paper money. People now dont realize that

[hugolp]

(cont) ... that gold is scarce and hard to duplicate and thats why it retains its value. Instead, paper money can be duplicated easily and at almost 0 cost by the Goverment or the Central Bank, and by replicating money steal value from the rest of the paper money. In easy words, the value of gold can not be stealed. The value of the paper money can, and thats why it is horrible money.

In fact inflation was a big issue before and now they even say its good. They are stealing using paper money.

[davincij15]

Yes and calling it "deflation". lol

[Voidka]

Excellent video.

Also, many people who seem to be in the know on the value of gold are buying physical gold in case of an economic collapse. The only preparation they are doing is converting a chunk of their wealth into gold. This is a good idea, but at the same time is a bad idea if thats the only preparation. If an economic collapse happened, no amount of gold would be able to buy food. They should invest in seeds on top of gold.

Anyways, more videos please.

[davincij15]

Seeds are not something that is hard to get so you will find someone willing to trade you seeds for gold. I already have some seeds and if someone wants to part with there rare gold for seeds please let me know.

Ultimately what has real value is knowledge and skill to plant and grow those food and live stock.

Just remember in the great depression if you had gold or dollars you were fine. The problem was there wasn't any.

[Voidka]

Definitely, survival skills are critical, which most lack.

The thing is, there are huge differences from a potential modern economic collapse and the Great Depression of the past. Back then, we actually had a decent manufacturing base. Also, there wasn't a food and energy shortage. On top of this, people were spread out and usually had a decent chunk of land to actually grow a sustainable amount of food on.

It would not be like the Great Depression. It would be 30x worse.

[davincij15]

Yes I agree with you 100% everything the government is doing is making things worse down the line.

But let Peter argue that point, let people like us do what is needed to protect ourselves from the fallout. That is our responsibility.

[aslomski]

Great video!

[marcosxag]

Funny how the ancient greeks from miletos and ancient lydians in asia minor had it right in the first place 2600 years ago making the worlds first coins in electrum, gold and silver and we still havent learned but are paying the price now.

[nextdimensions]

gold is your own portable banking system, controlled by you and whoever you want to interact with

[prepare2008]

excellent!!

[batgirl791]

thanks for the video. I always look for your videos.

[chooboohoo]

what should these 4 poeple below do then?

the american has 40,000 in his bank account

the german has 30,000 marks in his bank account

the italian has 25,000 euros in his bank account

the australian has 35,000 in his bank acccount

What should they do with this money in their bank account according to your view?

[davincij15]

It would depend.

If the American has a lot of debt he should pay it off (or buy silver wait a few months then pay it off)

If the German is saving for a house he should buy gold.

If the Italian is planning to upgrade his home he should do it now things are cheaper.

If the Australian wants to chill for a year he should buy 20% silver and cash the silver in as needed.

It depends what you need the currency for and when.

[Nicksuno]

Ok. I subscribing. If you don't get why Gold is real money-keep trying! Eventualy you will get it and it is incredibly empowering.

By the way I could hear your dryer in backgound. Sounds like some change-hopefuly siver fell out of your jeans.

In Liberty.

[davincij15]

Good one I did not think people would hear it. lol

[BigDanWoT]

I think something that would help people who don't "get it" is how currency (i.e. printed money) always revalues itself vs gold and silver...

[PlatinumGordon]

Most sheople still don't understand that Gold is real money. A fiat currency is just a piece of paper backed by a corrupt goverment.

[boots920]

Paper Money works except:

When the government makes too much available (bailouts, stimulus ). Or: If the nice hamster like people in charge of the money supply are corrupt. Looks like its going to be hyper-inflation for us all.

[PlatinumGordon]

Hey, i was just writing the exact same thing as you mate. lol. I was 3 seconds after you.

[davincij15]

Paper money can never work because we are people and we are greedy by nature. If we can make gold we will one way or another even with regulation.

[PlatinumGordon]

Watch the movie Bravo two Zero. The soldiers that go behind enemy lines carried gold in their belts to bribe the enemy. Funny they didn't carry Brittish notes.

[carlfinkle]

It just goes to show how complete the illusion is when people don't understand that paper money is just paper and think printing money is a good idea.

Gold is worth just as much today as it was in Ancient Rome. If I could travel back in time I would go back to 1868 to a place in Australia called Dunolly to the spot where the welcome stranger nugget was found in 1869, 2316 troy ounces.

[joediesel187]

gold and silver is god's money and it well last forever.paper currency is man made money,it well not last forever.

[Mruiz201]

That was a great point... Im trying to show my boys the truth but its hard convincing people. I'll use that "Go any where in time" scenerio though. Thanks dude

[davincij15]

FYI: I was thinking about the price of $20 liberties that sell at $1200, really if you just had pure gold from 1913 with no numismatic value you would have just under $2 million.

If you had the coins it would be $3 million.

[stshell]

JP Morgan said, "Gold is money and nothing else."

if you don't know who JP Morgan is then please google it and learn. he is relevant to this day.

[dojufitz]

This is something i have discuss with people i work with.

Alot of people don't understand value versus price and how Gold and Silver are money.

But gee...once the penny drops (no pun intended) - you are much wiser.

[JRCrowley]

Thanks for the video, davincij15. Excellent! $3 million??? Where do I sign! lol!

[davincij15]

Messed up I was thinking about $20 liberty coins and how you can sell them now for over $1200 (real fair value of gold). At 750 you would have under $2 million.

[JRCrowley]

$2 million? Okay! Where do I sign!

[chena3]

my friend

have been passing your link around ..

solid info... in an understandable format

thanx ... your links rock ...

this alaskan has been buying gold from local miners

nolan creek 93 % pure paying 10% less than spot

loading up.. might drop short term ...but

in long term is the place to be ...

take care ..gold is truth

[shouldlistentoronpau]

I was wondering, is it not in the best interest for the U.S. Government to desire inflation because if the dollar becomes worth let's just say, half of what it's worth today then by simple arithmetic have they not just cut the deficit in half???

So if as a nation we owe about 10 Trillion dollars, we can just devalue our currency and pay back the loan with dollars that we have purposely sabotaged to be worth much less.

[boots920]

I believe the US government wants chaos so they get the people to beg for a police state. The war on terror is to keep you good people off what's going on. The US dollar is going to 0 value, the rest of the world's currency will be going to 0 as well. Jesus Christ saw it 2000 years ago, Ron Paul saw it 40 years ago, I only caught on last year. The insane inbreds want chaos, and they want the majority of good people a faint memory. These guys running the show are truly evil and insane.

[aarythmic]

Yes, shouldlistentorp..., borrowers love high monetary inflation because it robs lenders when they are paid back in dollars that are worth less than the ones borrowed. IOW, let's say I borrow $100 from you, and I pay you back $200 over ten years, ($100 interest). But during that ten years the currency has devalued to 25% of its original worth due to monetary inflation. So, you only got back half of the value owed. In America today, the taxpayers are the lenders, and the banks are the borrowers.

[aktlc123]

LOL set em straight davinci. Anybody who doesnt understand after this video isn't even worth explaining to.

[davincij15]

Remember it took me a long time to get it, and I also did not agree with Ron Paul until after I did a lot of reading.

If yo want gold to rise faster you will need to be patient and take the time to teach those that do not understand. If you do over time you will learn a valuable skill, that is to help people understand what is obvious faster.

Now I understand how hard it was to get people to understand the world is round not flat.

[lessgovtnow]

It took me while to figure it out too. The sad part is I went to school for economics.

I've got one for you. Can you make sense of this:

"WWI caused massive trade disruptions. Countries could no longer convert their currencies into gold[?], and the gold standard collapsed.

Despite attempts to revive it in the interwar period, the worldwide depression, beginning in '29, led to its permanent demise".

The Economics of $, Banking & Financial Mkts (Frederic Mishkin)

[davincij15]

You need to understand that someone wrote that text book, and just maybe he might be, I don't know... WRONG. Always take what you are reading with a grain of salt even what I just said. Validate cross ref the data before accepting it as truth. Even then stay open minded to other possibilities if the evidence presents it's self.

Example: Peek oil may be a hoax but I'm not convinced it is yet.

[zappos49]

Assuming we do have very bad inflation in the next few years as expected or even hyperinflation my question is this.  Is owning gold going to just keep our purchasing power up with the rate of inflation or actually increase it?

[LondonCrusader]

At the very least, Gold will at least maintain its purchasing power. Its not like the gold will massively increase to reduce its own relative value.

Perhaps, try to keep a the gold equivilent in reserve, that would fund your bills/expenses for 1-2 years. Is that possible? Not easy, but imagine having that kind of personal insurance, knowing you'll be able to manage a lot easier.

[psbyowner]

no matter where ya land...gold is good. currency? who really knows!

[qwertydj2003]

Thanks for your videos!

[odin422]

Great title