Physical Gold and Silver Are Not Investment Instruments, They Store Wealth

9 Nov 2017

by Rory Hall, The Daily Coin:

I love it when the mainstream media creates these hit pieces designed to push people in one direction or the other. These articles are usually filled with emotional triggers with the intent of keeping the reader off balance, and avoiding any thought, while simply reacting to the words on the screen. The latest piece from nasdaq.com article titled “Gold Versus Bitcoin: Which should you buy?” is no different. We will now dismantle this piece stone by stone.

The title of the article is actually 100% wrong. Any real investor should know that gold is not “bought” it is acquired. Gold is not an investment, it is money and protection of wealth. Bitcoin is a digital illusion and is currently acting more like a stock or bond than a currency or money.

What makes more sense, gold or bitcoin? Just a few short years ago, this question would have elicited howls of laughter from 99% of investors.

The opening paragraph sets the tone and right from the beginning is appealing to the emotions of the reader instead of their intellect.

The article then moves on to offer up more emotional triggers disguised as investment advice.

Even today, in the midst of what is one of the most fantastic bull runs of all time in any investment, bitcoin and the other cryptocurrencies are nowhere near mainstream acceptance. Many investors doubt bitcoin’s worth, even wondering if it has any true value at all.

What they are describing as a “fantastic bull run” is nothing more than hyperinflation finding a place to hide. With more and more people coming to the realization their worthless fiat currency, produced by any privately owned central bank around the world, is in fact worthless and becoming even more worthless as the days go by, they are searching for anything to retain value.

People, primarily individuals and not investment houses, that have awakened to the theft known as taxation and inflation, are looking for any shelter from the storm. These people have decided that hiding in plain sight works for them and cryptocurrencies, while not the easiest situation to navigate, is a better gamble than allowing governments and banksters to steal what little wealth they have attained.

The article then moves in for the pumping of cryptocurrencies and the bashing of gold. Remember, the globalist/elite/establishment/oligarchs what ever you choose to call the owners, want people to stay away from gold and silver, especially in physical form. The owners understand these are money and stores of wealth – always have been, always will be.

I do not doubt that digital currencies and their blockchain backbone are the future of global commerce. In fact, it’s apparent that the entire economic system is being forever altered by this technology. Investors who understand the changes taking place have already made fortunes, and there is still tremendous upside to come!

Still appealing to the readers emotions more so than their intellect the pumping of cryptocurrencies – “still tremendous upside to come”.

Then the author makes it crystal clear the intent is to push bitcoin, digital “currency”,  and steer people away from gold when they proclaim – “7 Reasons Bitcoin Is A Better Investment Than Gold”

Well, let’s start with the word “investment”. Gold, as we continually remind people, is not an investment “Gold is money and everything else is credit and when you understand this you will never be poor again.”

1. The overwhelming trend from physical to digital solutions and processes is the philosophical underpinning supports the rise of cryptocurrencies. Data has taken over every industrial group, from financial markets to agriculture. It just makes sense that data-based currencies are the logical step away from gold as a store of value.

WOW! A digital blip on a screen is a “store of value”? Explain that to the people in Puerto Rico who have been without electricity for the past several weeks and most will be without electricity for several more weeks. There is zero value to anything that one can not acquire or use. Unobtainium is called unobtainium for a reason – it’s un-obtainable!!

What about the internet being all but shutdown, let’s see, on November 6, 2017 – you know, the day before this article was published, and the internet was unavailable to some of the largest, most densely populated areas of the country. The Daily Coin was knocked offline for 4 hours but we couldn’t see the site was knocked offline, even through our service provider, because it was at the next level higher. According to our service provider “everything is working perfectly” and it was.  Read this to learn more about what happened yesterday and the massive impact across the country. All of this had ZERO impact on my ability to use gold and a handshake to conduct business.

Here’s a visual of the outage.

Notice anything about the big red spots? They just happen to cover some of the largest cities in the country where most of the people in this country live and work.

So, this idea that a digital blip on a screen is somehow going to protect my family from the ravages of a totalitarian government is so far removed from reality that it is laughable.

The next line in this farce has to do with my phone. If I had my way I would go back to a rotary dial phone without voicemail.

In the developed world, most everyone has or wants a smartphone.

This is probably true, but it is once again appealing to emotion instead of investing or protecting ones wealth. “everyone has or wants a smartphone” is telling people there is probably something wrong with them if they don’t have one of these digital tracking devices that just happens to make phone calls. These devices also allow the government and banksters to track 100% of everyones activity, conversations and “every breath you take“.

We finally come upon the words that show how a great propaganda piece reads. Probably the only words of truth written in this article. Of course, it begins with grooming of the reader to keep them on the track the author wishes for them to be.

3. The move to digital currencies is one of the final steps in the evolution of economics. Commerce began with the bartering of physical goods. Next, the world relied on gold, silver, and other commodities to store value and trade with others. Paper money and coins backed by gold allowed the acceleration of global business and made the trading of labor for needs and wants much more accessible for all strata of the economic system. In the last century, the gold standard was dropped entirely, with currencies supported by nothing but faith in governments.

The author is making assumptions and is presenting this only through the eyes of western people. Eastern people, like the vast majority of Indians, still live in very rural areas and could care less about digital currencies. We recently reported a small country, 6 million in total population, were in fact still trading cows as major form of currency. The National Bank Governor, from Kyrgyzstan, Tolkunbek Abdygulov is not promoting digital currencies he simply wants the citizens to have 100 grams of physical gold as a store of wealth. Abdygulov also believes this will stimulate more commerce and help Kyrgyzstan to grow economically.

My guess is, as with the climate change lunacy, they need a vast majority of us older people to die off to fully enact a lot of these changes. While this article doesn’t say anything like this, it eludes to the fact that younger people will be the ones demanding digital everything.

4. Our interactions have been forever changed by data. A classic example is Uber. When the internet was first popularized, it was impossible to trust others online — there was simply no system of accountability in place. It was also considered extremely dangerous to get into a stranger’s automobile.

Fast forward to today, and it is quite common to get into a stranger’s car that was requested from the internet! The sea change shift of perception of what is known as the “sharing economy” is what will ignite the fire under digital assets.

5. The sharing economy must be built on more than just trust. Digital asset transactions are overseen by the nearly immutable truth of the blockchain.

While I don’t disagree with this thought entirely, not everyone, even young people, want to be part of the “sharing economy”. Not everyone sees this as being healthy. I am not arguing for “centralized” anything, nor am I saying that free market capitalism is “bad” – quiet the contrary. I am just pointing out there may be solutions coming down the pike that will take these current ideas to another level or that may revert to something completely offline and localized as it has been for thousands of years. See the mention of cows above.

6. Blockchain technology will become universal. Gold and physical commodities can just be used for a few things like storing wealth, industrial uses, and jewelry. Blockchain-based currencies, however, are part of a much larger shift in technology. Some pundits even go as far as to state that the blockchain will forever change contract law, governments, and the global order.

Once again not dismissing this outright, my main concern has been and will continue to be situations like Catalonia. What does Catalonia have to do with gold vs bitcoin? Good question – Catalonia has everything to do with this argument.

The Constitution of Spain allows for a region of people to secede. Meanwhile, the Spanish government has issued arrest warrants for the people heading the secession movement.

While the US Constitution does not spell out the right to secede it has been argued before the Supreme Court on several occasions.

Totalitarian governments are everywhere. Government employees, like Congressmen, Presidents and the like bow before their owners, the banksters, instead of their constituency – we the people. The banksters bow before their owners – the oligarchs. These tiny groups of people all derive their power and control from the issuance of fiat currencies like the Federal Reserve Note, US dollar, the Japanese yen, Chinese renminbi and Euro. All these currencies allow for the “powers that be” to remain in power. Having a digital competitor may not work out well. Not saying that bitcoin or any of the cryptocurrencies will “go to zero” but the money masters currently running the show have it abundantly clear their intentions of crushing cryptocurrencies over the next few years.

7. JP Morgan CEO Jamie Dimon and other entrenched financial leaders have come out vehemently against bitcoin. While the public may see this as a bearish signal, professional investors understand that it is extremely bullish over the long run. They can see that behind these harsh public statements is simple fear. Large banks are afraid that there may be a mass acceptance of cryptocurrencies, which would damage their profits. In financial lingo, Jamie Dimon is talking his “book” and has a clear agenda in speaking out against bitcoin.

Jamie Dimon is a criminal, maybe even a treasonous criminal. JP Morgan banking institution is a criminal operation that should be investigated, or shut down immediately, for drug money laundering, market rigging and funding of terrorist organizations.

While all this happening physical gold and silver sit quietly in a vault. They do not argue, they simply do what they have done for thousands of years – store wealth. The digital groupies can argue all they wish and say that I’m “behind the times” or “look at the horse vs cars argument” or whatever they wish to say. Digital blips on a screen may allow people to store wealth in the future, but it will also allow for that wealth to become unobtainium or stolen out right. Who controls your internet and who controls your wealth, in my opinion, is not a debate. We simply can not come to terms with having wealth stored on the internet. For us, there is “Gold versus Bitcoin”.

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