Gold: Is it a good idea yet?

Let’s say you’re a baseball card collector, and you own a Micky Mantle rookie card. A quick google search shows that one recently went for $165k. Each card has a buying power of 165,000 US Dollars. Let’s assume now that Bowman (one of the baseball card companies that made Mickey Mantle cards) opened their vaults, and began to sell their entire stash of original Mickey Mantle rookie cards (lets assume that there were tens of thousands, just for grins). Even though YOUR card is still in mint condition, because of the fact that there are so many more in circulation now, your card that was previously valued at $165k is going to be worth the same as a Kirby Puckett card (about 8 bucks).

However simplistic that example may have been, that’s what’s going on to our dollar right now.
With trillion-dollar bailouts and expensive wars going on, the dollar is being cheapened every day by the printing presses at the Federal Reserve.

How is it that we don’t feel it, you ask? Here’s the short answer: We’re in a depression. People have begun saving again and paying off bills, banks are loaning less and NOT circulating the dollars. So while many, many dollars are being pumped into the system, not a lot of them are being spent.
Just like a bunch of Mickey Mantle cards in storage, no one feels the effects of uncirculated dollars.

This is why an economic recovery is going to be the worst thing imaginable for dollar holders
As the markets thaw out, and consumers start spending again, people are going to realize that there’s a whole lot more paper dollars floating around than before. About a week ago, as rumors started floating around that we were on our way out of this slump, the dollar fell. Coincidence? No way.

This is how Obama is going to cut the federal deficit in half
Loans don’t adjust for inflation (yet). Pres. Obama is going to pay off debts with cheap dollars. The dollar is already at risk of losing its AAA rating, and China, our biggest debt holder, is taking notice.

The important thing is to have something that has value in and of itself. The dollar is worth something because the US Government says it does. That’s no good — this is where gold comes in. It’s real, it doesn’t inflate, it can be stored, sold, bought, melted down and can be transported easily.

Well, the transportability issue isn’t really all that accurate, since we don’t even deal with cash much anymore– we’re used to the digital buying and selling of dollar-backed credits. Fortunately, I found an awesome site called GoldMoney.com. they have their own currency, called GoldGrams, which are 100 percent backed by gold. They function like a bank, allowing you to make payments on things online and transfer from GoldGrams to dollars quickly (for a small fee). The best thing is that the money is independent of the dollar, so the more the dollar tanks, the more buying power you have. Just these last few weeks, one GoldGram went up in value by 3 dollars. The more dollars begin to circulate, the lower they’ll go in value, while gold goes up. Gold is about to hit 1,000 dollars an ounce. The time to get into gold is now.

If you like sensible economics, and good monetary advice, check out Richard Maybury’s free bulletins. Honestly, his books changed how I see the world.