Gold Prices & InvestingThe #1 reason gold is rising
U.S. dollar's decline; first of six major forces driving gold higher
Excerpt from "A Rare Opportunity: GOLD 101" DVD ~ Watch it!
The first major force driving gold and coin prices higher is the falling dollar.
The dollar has now declined over 40% in buying power since 2001 and an amazing 97% since the 1930s! Sad but true. Yet few Americans really understand why.
Historically our U.S. dollar was defined by its content of gold or silver. A real U.S. dollar is defined as 1/20 an ounce of gold, or about an ounce of silver.
But starting in 1913, the U.S. Treasury and Federal Reserve began a slow process of redefining the dollar -- from representing a weight measurement of pure gold or silver -- to instead represent the public's confidence in the U.S. government.
The result: today's dollar retains a mere 3 cents of its original buying power in relation to gold. Stated another way, 1/20 of an ounce of gold (at $800/oz.) will cost about $40, instead of just $1, as it did 75 years ago.
One major reason for the dollars systematic decline is our snowballing debts and deficits. Today the U.S. borrows $2.5b a day from other nations! Devaluing the dollar is one of the ways the financial markets correct our rising U.S. debt and deficits.
America's own head accountant David Walker has traveled the nation with his "Wake Up Call" tour -- warning Americans that we're facing, a growing fiscal cancer, a tsunami of spending. Walker hopes to gain public support in order to force politicians to do something now, because he says, our present system is unsustainable.
Central banks around the world are beginning to divest dollars because the world's confidence in America's ability to manage our trillions of dollars in debt is fading fast.
Money is either the builder or destroyer of society. An honest money system, as we once had, brings prosperity to all citizens who are willing to work. A dishonest money system, as we have today, enriches a few at the expense of everyone else, regardless of how hard they work.
Gold is sometimes referred to as the anti-dollar because it is the perfect hedge against a falling dollar. Smart investors are diversifying out of dollars and into gold -- a trend experts expect will continue for many years to come.
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