How Gold and Silver prices cause currency systems to crash

[zyby]

Utter bollocks. "A large outflow of gold stock...caused the currency to collapse". Fiat money and fractional Reserve banking are intrinsically fraudulent. In time the scam unravels which is when real money (such as gold) come to the fore as the paper surrogate devalues to its intrinsic worth. Gold leaves because it is threatened by confiscation from bankrupt government BECAUSE the fiat money alternative is collapsing. "Paper money eventually returns to its intrinsic value ---- zero." ~ Voltaire

[swiftysmithuk]

Personally, I only hold on to fiduciary medium to make my day to day transactions, if I wish to store capital (past labour), I do so in a commodity with a globally stable supply - such as gold - this prevents those who try to convince the gullible that printing more paper increases overall wealth, from stealing the value from my store of past labour.

The countries with higher store of past labour become consumers, those with lower become suppliers, this is the natural market process.

[ehswan]

This fellow talked me out of the stock market when the dow was at 11,000. I have slept more peacefully since.

[inkey2]

what i am thinking is that the purchase of PMs (precious metals) is not the cause of colapsing a fiat currency but just a secondary reaction to an already bad financial climate.

[videocruzer]

right off the bat, if he new what he was talking about he would be trying to explain that its not the price going up. its the debasing of the fiat money that makes the price gold appear to be going up.

Did you know that silver heals all infectious diseases?

research the golden drink from pure silver.

[inkey2]

@videocruzer : so silver cures AIDS?

[SurvivalWithBushcraf]

@inkey2 Yes it does. It is called colloidal silver. It is the worlds most potent: antifungal, antibactirial, antiviral and a few others. It is easy to Russian news media is now announcing that boosting the imune system cures aids. that it was all a hoax to sell drugs. This is all true. To the best of all my research and scientific studies. Please check it out.

[SurvivalWithBushcraf]

@videocruzer You are correct. Colloidal Silver. But please don't leave out Colloidal Gold. Both are needed. As trace elements are pulled out of are farmland, people don't think of all the trace metals that we intake. Crops pull out nutrients and trace elements. Then we fertilize it with petrolium based crap. But no one adds all the trace elements back. Zinc, copper, iron, GOLD, SILVER, ect! Thank you for speading the word!

[ehswan]

Silver is indispensable, paper is trash. Take your choice as a store of value!

[russroscoeruss]

Better sound recording and language use necessary if you want to share something

[danny3571]

For goodness sake. I hope you are not a teacher. You cant explain shit..

[909panther]

This is a response to SnowderHeld:

You are a commodity not gold.

Gold? is money and a representation to your labor.

Dollar is currency, and a representation of its relative value to Gold/Silver.

[yjfoo81]

Currency crash is due to oversupply of money. Not gold to currency ratio.

[SunnyDaysRFun]

Hey DUDE, please speak ENGLISH wihtout your slang, ugh, your hard to understand.

[bluehorse888]

What you say about "promises to buy" precious metals is totally correct. Just as a dollar is a promisary note, so to is a metals stock. You must physically own the metals, or the stock that you have is worth only the paper it's written on.

[inkey2]

@bluehorse888 : you are so right. It is useless to buy precious metals stocks.....thats just "paper"......like fiat currency

[SnowderHeld]

Just one sentence to this:correlation is not causation.

Gold is only a commodity, like coffee or steel.

I'm pretty sure one can find correlation to hyperinflation and gold in brettonwoods system, but their are no reasons to think that Gold is still strong relatet zu currency, in the manner of usage in transactions.

[radiatethecorruption]

so if the dollar collapses and you own gold and silver, what will determine the price value of silver and gold?

[poolshark73185]

supply and demand

[GhostInTheShell09]

wow this is awesome, some straightforward information that makes sense and isnt biased. thx for posting intelligent video!

so in another 50 yrs +/- the chinese yuan  may be the world currency?

[nellapegues]

So if silver were more commonly used in everyday exchange the demand would be: A) nonexistent, B) about the same, C) very much higher at the current prices.

[miked7891]

Note that RBC (Royal Bank of Canada) stated that they think silver will hit $20, but then settle to $13.50 because production of silver is now exceeding demand.

This is supported by the GFMS World Silver Survey, written by the silver institute whose members are silver mine companies, who also states that silver supplies now exceed demand.

[Motherbrainzebes]

Silver is already above 20 an ounce. Those spot prices are highly manipulated. No were will you find silver below 20 an ounce.

[miked7891]

Spot price is THE method for pricing silver. Spot is currently $17.85US. This is the same for any commodity, which is what silver is. Investors are a minor player in the silver market.

I found three places in five minutes where I can buy silver below $20 The best price was $0.39 above spot.

Now, if you want to buy a single silver eagle, yes, it will cost you over $20. If you buy 20 you can get them for $19.70us.

The more you buy the closer to spot you can buy at.

[danielteale7]

ii we go gold who has the gold? and governments even have the right to take the gold from the people am i right? i got a strange feeling the current financial market is very messed up, with ever increasing debt and constantly seeming self inflicted money crisis with cash being pumped into the economy and so forth and i am sure plenty of other factors causing that decline in value of current currency's. anyone got a real solution how to get out of this problem long term? lack of economy stability

[inkey2]

@danielteale7 My guess is that the US Govt may confiscate gold (in an extreme situation) but not silver. Reason being is that gold is used as debt "settlement" currency from one country to another but I am pretty sure that most countries will not accept silver as debt "settlement" payment..........(but who knows.....that may change)

[Daniel44125]

Commodities are always seen as a safe heaven when governments are printing dollars causing inflation as is ours. Commodities such as gold retain wealth. They are a historical way to keep your savings safe. Gold prices don't cause currency crisis. The price rise is gold is reactionary to the printing of money respectably to the goods and services. The demand for dollars essentially falls. Try looking into Austrian economics.

[jberni1]

I strongly disagree with you on this one. And Austrians would eventually agree with me here, that the collapse of a currency system is due when the alternatives (Gold and Silver) become more attractive

[Daniel44125]

Perhaps precious metals would cause a further collapse of the currency in inevitable decline if central banks around the world trade the currency and treasuries for the precious metals causing an outflow and additional currency in the market that was once stored in reserve at the central banks. Just seems to be an incomplete analysis. It seems to leave out why the gold becomes more attractive in the first place. Its seems to start in the middle for me. I am sorry and don't mean to disagree.

[soundzero]

@jberni1 you are correct. As people flight to safety Gold and Silver becomes ultimate CURRENCY.

[doughtymqan]

@jberni1 You must be stark raving mad to believe this. I don't believe you do believe it.

[chickatawbutt]

@jberni1 The question is; why does gold or silver become more "attractive"? Simple, people lose faith in the phony stuff and move to something that is historically safe. Gold, Silver and commodities. The whole fiat money systems is a scam and it will eventually fail. When it does you want your "money" (purchasing power) in something that maintains its value. For 6000 years that has been in metals. Gold, Silver and copper.

[CliveSinclairZX]

@jberni1 This is not true, it is inflation that causes the currency to devalue then people seek safe havens like gold and silver. This is propaganda and should not be listened too.

[Daniel44125]

Very bad analysis. Gold and Silver prices don't cause currency crisis or hyperinflation. The supply of money in relation to the good and services in an economy is what causes it. Currency is subject to supply and demand just as goods and services are. Gold and Silver should be the form of currency. They aren't as unstable as fiat paper money. The Chinese are buying gold but they are the ones propping the dollar with their treasury purchases. Gold and Silver go up because of dollar value falling

[jberni1]

Daniel, I believe you might be too much entrenched in Austrian economics, in order to get what I exlpain here. Now, I feel sorry if you can not see and take the benefit of my work here.

[Motherbrainzebes]

It is the very lack of Austrian economics that has landed us in the very position we are now. The federal reserve's low interest rates of of the early 2000s is exactly what caused this mess. By trying to inflate themselves out of the dotcom burst in 2001, the FED started the real estate bubble.

Now with the HUGE bailouts we are heading for hyper inflation. These money pumps are the very thing that has destroyed our economy.\

[TheBlitz1]

@Daniel44125 this is true the chinese prop up the dollar with treasury purchases and gold and silver rise due to distrust in the ability for the US to pay its debt - thus the US will default or hyperinflate away its debt

[chapthe]

Gut so. 5 Sterne.

[em0789]

Do you think the massive short positions in Gold and Silver could eventually create huge short squeezes? Particularly with the continuing chinese price pressure, and the vulnerability of the paper gold market?

Or do you think we'll see deflationary pressures coming about first (perhaps because of an equity crash)?

[craigmason84]

Good morning! Keep it up!

[overlordsshadow]

Thanks for the great vid. I like the comparison to a game of chess.

[jessewaugh]

Check out the REAL price of gold: REALSPOTPRICE[dot]COM

[jimbobubbadj]

Close any retirement accounts you may have even if you must pay the penalty. Get what you can now vs getting nothing or next to nothing later. If you wait you will either get less dollars or all of your dollars deflated by a large amount amounting to much less purchasing power. Time is running out to act.

[mikeiswylde]

Dude you are the man

[gearthmon]

Commented and rated.

[jetztisfeierabend]

schöne Münze

[hardassets2012]

Get out of the dollar by Oct 25th. Dow will fall from 9500 to 4750 very quickly. Dollar based on the basket of currencies is currently at 70. It will drop to 40 late Oct into Nov.

Call me and save your wealth while you can. You'll regret it if you don't buy silver NOW!!!!

5 weeks left!!!!!!

[RICIN75]

Schoen Morgen und Herzliche Glueckwunsch.

Kraft ist Freiheit. Gold und Silber sind die Noetgeld...

[ozziindaus]

Market statistics suggest that when a high enough majority are convinced of something, the exact opposite occurs. I would not be shorting the dollar right now. I also think it's a good idea to go long on gold and silver even if the dollar rallys. They can rise togehter you know. Just look at the period between Oct 08 and Mar 09. The catalyst for this situation is of course a market crash which forces safe haven securities to rally. USD's are the largest known safe haven securities, not SDR's.

[visionvictory]

5* and favorited :)

[CelticReject]

I am constantly searching for information regarding the UK and what the future holds for us here. There are a few posters from the UK, and they are very informed people who give a lot of international information, but rarely mention what they think may happen in the UK over the next few years. Could anyone recommend a channel, or post your gut instincts regarding the near/mid term future in the UK (inflation, unemployment etc). Thank you.

[zeropointpower]

Hi Celtic:

My parents are from the UK so I say this with concern. You just watched jberni1 video so you already know currency crises are coming. UK had one of the most massive real estate bubbles in the world. UK barely produces anything = balance of payment problems, China just repatriated gold from UK which means they also think UK is in trouble. Get out of the pound. Unemployment will skyrocket since UK economy is largely based on phony finance capitalism which just unraveled.

[CelticReject]

Thank you for your reply. I have been taking measures all year to transfer my savings in to PM's, fearing that things could get rough here. I'd like to put all my money in to PM's, but this makes me a little nervous. It's strange but NONE of this is being reported on the Main Stream Media.

[ackerrj]

I dont think this was one of your better videos. It did not seem coherent or well organized. If there was a message you were trying to deliver, it was not clear.

Please, review and perhaps re shoot. What you are trying to say is important. Suggest you work up an outline and work from that.

Thanks!

BA

[LysSpooner]

thank you again. I always look forward to your fine vids

[Jbreed2011]

That car you drew looked to be of shoddy workmanship and questionable quality, it only made sense that you would say it was a chinese vehicle and not a german one.

It is interesting to see the dollar dropping like a rock, the dollar index is down to 76.50ish... it just seems eerie to have gold hit 1000 the dollar drop like a rock and still there is a silence on tv when it comes to the dollar.

[jberni1]

You might want to check FORBES article on the Dollar collapsing

[bubonick23]

Love all your videos, thanks.

[nsprphg]

Thank you once again for another great video. I am learning so much even if I don't understand everthing.

[nage4614]

answer my own question.

30 yr rally? geithner on cnbc this evening.

enough said?

[bjmccullough]

awsome. just going down to buy 40 kilos of silver 2-day.

[RamboAmbo]

I guess you don't follow the dollar-cost-average plan of acquisition :-)

[Bobo294]

That silver coin is huge, what is it?

[jberni1]

1 Kg of Kookabora

[nichaeloz]

The coin is indded beautiful. I had 2 delivered just this week. They are made at the Perth mint in Western Australia. They are real Aussie money but not in circulation.

[LysSpooner]

my llama would sit down after loading up a sack of those

[Cneumann22]

The big question is: how much gold and silver to have on hand and what portion should be currency. A guessing game at this point. Love the videos.

[frenchy137]

20-30% in Gold and silver

up to

50% depending on the level of trust you have in the currency your holding

[jberni1]

That is something which derives from a strategic plan.

The difference between G&S is that Silver is an industrial metal

[nage4614]

please, a comment on u.s. 30 yr bond buys

today. Is this the u.s. buying its own paper,

why anyone would want to put their investment

in 30 yr u.s. dollar quoted bonds--is

preposderous. I don't believe it and i don't

think any bank, investment, other country,

would want this paper.

[modelmark]

This guy (Ted Butler) says in this video

OSrIAFJkJiY

that the chinese are holding the big short position on gold and silver and threatened to default on these derivative contracts, leaving the short position exposed. Do you have any idea if there is truth in that claim?

[jberni1]

It would make sense if it is not only on oil but also on silver, but I believe its on Oil

[1mealperday]

zero hedge is very informative. good luck

also kitco has articles by butler and others.

[modelmark]

Isn't is it strange that the Chinese gvt officials advise their subjects to do something that is detrimental to their large dollar debt holdings? So far they confiscated wealth of their citizens by swapping the dollars these citizens earned in the export markets for freshly printed Yuan. This kept the Yuan cheap, the chinese poor and the gvt officals in control of over a trillion $ of dollar assets they have not worked for. Do they suddenly feel remorse?

[Eraser7622]

Well, duh! That is called communism.. that is exactly how it works. So, theoretically, the Chinese are now trying to protect their Nation's wealth... not the individual's wealth like we did in the US with our bailouts, but the larger nation's wealth. Thus, as they see this wealth diminishing in value, they suggest their citizenry buy silver now, priced appropriately in Yaun, of course. They may know this will create the wealthiest nation and people on earth and that is good for control.

[modelmark]

I dont believe any rulers care for any other wealth than their own, either in China, the USA Kazakstan. The chinese gvt sit on a trillion of $ and could follow their own advise instantly. This is not wealth of 'the public' because they can not demand control of it. Like 'your' income is not yours, since the US gvt takes it at gunpoint to give to those who supported their campaign. Yet these chinese rulers tell their subjects to do what they apparently do not do themselves.That makes me wonder.

[Eraser7622]

Let me be clear, I agree with you entirely. I was simply drawing the contrast if what you were trying to do is berate the Chinese for what they are doing when the US is doing it identically, albeit through different mechanisms. One point I will make though is that the Chinese ARE doing what they're suggesting to their citizenry. China has been hording gold, silver and a whole host of other raw materials by selling off their forex.. mostly using their current account surplus. still wonder?

[modelmark]

I thought you claimed the chinese gvt care about the 'nation' wealth', but I must have misunderstood.

so you are disagreeing with the statement made by Ted Butler that the chinese gvt is on the hook for a large short position in precious metal as described in video OSrIAFJkJiY ?

Maybe the citizens purchases and maybe a subsequent confiscation a way to cover this position? But that is just pure speculation.

[modelmark]

Communism is just stealing subjects money in name of the community, in the usa the rulers steal it to protect the subjects 'freedom' in europe they steal it for the subjects own good..

[MotaMouse]

in 1980 gold was 850 fiat dollars an oz in 2009 it was 850 fiat dollars an ounce , since 1980 there has been an expansion of roughly 1000 trillion dollars in the system.

So much for the mantra "gold is a store of value" bullshit, not if you bought it in 1980 it aint.

[Eraser7622]

What you're seeing as "value" is the problem. Like you said, the money is FIAT. This means, of course, it has no intrinsic value. Who cares if gold is the same price it was in 1980? That price is in DOLLARS which are fiat with no basis. Gold, on the other hand, would have bought you "x" number of goods in a basket and will, today, buy you a very similar number of goods as "x". That is called a store of value. If you're looking for interest, sorry but that's a fiat thing. ROI? Sure.

[RamboAmbo]

Sounds like you won't be buying any gold or silver then :-P

For those that are interested gold was at $850 in 1980 for 4 hours only. Since 1980 gold did drop in price but unlike Enron shares, foreclosed properties, Politicians promises - unlike any of those gold never ever became worthless.

Whilst we're cherry picking dates the compound return on gold since 2000 is 16% - Compare that with your 401k

[cowboycarl04]

another way to say it. Stocks and 401k returns for the decade are down or near 0%.

Gold is up 300%. Silver is up 400%. The people that bash the PMs are funny. There are good and bad times to invest in various parts of the economy. IMO, the past 10 years, and the next 10 years, will be glorius for those holding PMs. If we don't collapse in the US, we'll have another stock market run later on, but now now.

Love the point you made Rambo.

[RamboAmbo]

Another way to look at the $850 in the 80's is to see the potential. The gold haters point to it and say "if you bought then you'd lost a shed loads of money".

Truth be told $850 was the peak of the last Gold Bull. Do your own math and see where this Bull is headed.

Personally I think that if you don't believe in Gold or Silver as an investment then DON'T invest in it. That belief would have saved lots of investors serious money in avoiding derivitives (I still don't understand 'em)

[whiskerchild]

That explained a few things.

[moremost]

Hoffentlich bald auch auf Deutsch :-) Habe zwar fast alles verstanden, aber nur fast.

[realrasher]

Thank you for sharing your perspective! It makes perfect sense.

"We are observing a very interesting game at this moment."

--Great quote!

[NibiruMagick2012]

thank you

[fishingthewatershed]

Ausgezeichnete Arbeit, sehr Fachmann.

[LastReplaySC]

chinese have 4000 years kapitalist history the US is a 200 year young puppet, just a flash in the pan.

stick to commodities: Gold silver energy and dont get too greedy and your wealth is safe

[machinenation]

I hope I'm not asking a stupid question but ... why would the Chginese attack the Dollar when they have two trillion of them? Aren't they devaluing their own reserves?

[doobsta]

because the writting is on the wall...

The fix is in, the banksters are taking down the US in this final coup for consolidation of power.

Quite simple really...2 trillion is alot of dough...if you knew you werent going to get paid...wouldnt you try to at least collect something?

in the end...paper will be just that...paper...

no one will trust it, no one will want it....

Seek REAL Value!

[nextdimensions]

great explanations and information, thanks again!

[acetylslicylsyra]

I'd like to own some silver, or well more than curiosity silver I got atm. But atm the VAT is holding me back. Investment gold however is tax exempt, for some mysterious reason ;)

[LastReplaySC]

+58,43% XC0009653103 silver fuck the VAT its not even worth a thought

[fox20012]

I think silver the silver price is crazy cheap just based on the fact that....

I worked ONLY three years and I now own 70kg of the stuff

[markukkerd]

1:28

[kdcruz75]

how do u store it?

its not on paper is it ?

[fox20012]

a safety deposit box, not a banks, had it in a bank but moved it

[0urGaia]

excellent information, thank you.

[sfmain]

Thank you Sir! I every time you talk!

[mouljran7]

than you so much for your videos. your way of simplifying things is amazing.. please make more videos more often..

[magichandpuppet]

You silly round eye so gurrible... you farr for anything. You let ya federar reserve mastah's print funny fiat paper that we make worthress one day while we buy all da gold up... Then you wirr be ahh debt sraves... ha ha ha

[chapthe]

Bravo. Gutes Video. Kauft Silber!

[66scjohnston]

I appreciate your videos!

[fal2grace]

Thank you so much for this video! In simple terms, is it a good idea for US citizens to hold physical gold and silver? I have a little of each because I feel the dollar is becoming of less and less value. Just want to be sure I understand what you're saying.

[hugolp]

Yes, gold and silver is a very good medium and long term investment, specially if you are in the USA, because the dollar is going to go only in one direction (down).

But, in the short term, who knows. I expect another deflationary crash, though smaller than the 2008 one, wich will give a temporal push to the dollar. It may or may not happen.

But you can be sure that medium and long term (2 years) gold and silver are going up, and the dollar is going down big time.

[jberni1]

Well, if the price is good, why not?

The issue with G&S is you can not make cigarrets from the paper...

[fal2grace]

lol... but I have some dollars for that:) thank you much.

[medulalumosa9]

Thank you so much for your insightful work!

[MrPatatrack]

so you say: gold is fixed; juste the money-value changes over the time?

lets say a Ford T-Modell was 400 USD - that where about 400g gold at that time - this is the equvalent of about 13.000 USD today....thats also the value of a new car today...

"gold ist the best way to storage work"..i love this phrase

[jberni1]

Yes, that is what I mean. The goldprice is fixed (pegged) to a currency. As the currency is artificially inflated using the printing press and the economic argumentation, Gold becomes undervalued in currency terms...

[dakusahab]

that's because gold is mined and that requires oil aka energy. so what you should really say is that "real" energy prices have been fairly steady for 100 years or so and that is true, but now that we reached peak oil in 2005, you cannot say that, now the price of any raw material will skyrocket. so in the future it may cost 10 grams of gold for a car etc etc etc.

[galikazoid]

thanks for the analysis

i look forward to more

[StandUp555]

Has China actually banned ( or is taxing ) the export of Gold and Silver ?

... yet ?

[jberni1]

They have stopped the export of certain commodities.

Right now, they don´t need to be worryied about outflows, as the chinese yuan is not fully convertable (exportable)

[waldentree]

But what about citizens holding Yen, Euros etc ? If they end up holding only Yuan or PMs they may be trapped, unable to convert to foreign currencies or leave the country. Planned?

[stellaconcepts]

damn here i am trying to made video after video trying to explain things and this sums up my 100 odd videos :)

well done - nice vid...

[Howlongdowehave]

Thanks, good to see you back.