Getting Your Head Around Paper Money to See the Gold

If I say to you, a $1.00 bill and a $100.00 bill have no difference except for the way the ink is printed on them, you might think I've a math problem. But hey, it costs them same amount of money to have each of them printed up and when it comes down to it, because they are mass produced, each individual note costs practically nothing.

However, a %.50 cent piece made in the late 1800s and made from 90% silver, had value in its own composition. The $1.00 coin from back then with twice as much silver, was worth by itself, twice as much as the $.50 cent piece. The silver content within them made up their value.

Can you see what I am saying? No? Well, today, one of those $.50 cents coins with the 90% silver content is worth $5.00. How can that be? I hear you say. Well, they hold there value and always will, inflation will make sure of that. As the Dollar gets less and less, silver & gold will rise and rise. If you buy it now, you can be sure it will rise within in a few years time and keep on gong for years to come.

Three silver dimes in 1964, would have bought you a gallon of gas; gas cost roughly $.27 cents. Those silver dimes today are worth a $1.25 each; those three silver dimes would nearly buy you a gallon of gas plus about $.25 cents in todays value. That is three dimes from 1964.

So what is happening is this, the price of gas hasn't gone up, it's the value of the paper Dollar that is going down. Inflation is causing deflation to the paper Dollar. Why? Because the government is printing more and more paper money from their own printing press we call the Federal Reserve, which in turn devalues your Dollar every time they do this.

Its like this, if you have 10oz of gold and 100oz of gold exists in the whole known world, well then you own 10% of the worlds gold. Let us say that 10% gold you have is worth $100.00 and that is the world recognised value for 10oz of gold. Now let us say a huge amount of gold was discovered equalling to the same amount already in existence. That influx of that gold would slash your 10oz value in half. The more you have of something, the less worth it becomes. There is only so much gold in the world that has been found, this is why it is called a precious metal. In fact, such a small amount of gold is in known existence that you could fill a space of 20x20x20 yards when its all melted together into a cube.

This is exactly what is happening to your Dollar. The Federal Reserve has a licence to print money whenever the government needs debt paid off and so dumps more paper money onto the market and devaluing yours. Only 5% of the money created is in physical paper money, the rest is in digital format. It could not be any easier, clicking a few buttons actualizes millions, if not, billions of Dollars.

This method of creating money whenever we feel like it is unsustainable. Eventually the Dollar will go to zero; it is on an uncontrollable inflation course straight into the ground. To protect yourself I will tell you this, go and buy gold and silver bullion. It doesn't have to be in coins and you don't have to store it a your home or business, you can buy online and have the gold never leave the vault where you buy it from, they can store it for you and I guarantee you this, gold is an investment product that can not just be created out of thin air like paper money can, it will hold its value in times of uncertainty and it will be worth more and more as time goes on.

Why settle for paper when you can have gold.

By Gavin Conway