cash4gold liquidation - another greedy strategy
 

I normally do not create threads in economy. Economic systems are disturbing to me. But I felt I had to share this with you, in case you were unaware that there is a website and a television advertisement going around that is asking for jewelry and giving you cash. I am not an affiliate to this program. And this is not spam or an advertisement for this website. Instead, this is a reminder that the rich are taking advantage of the economic turmoil and taking everyone's gold.

The website is www.cash4gold.com. If you haven't heard of it, it is a company that conveniently asks you to put your jewelry into an envelope and mail it off. In return, they send you a check.

Why does this bother me? Because we all know the dollar is worthless and who ever is running this company knows that the public is ignorant of what is really going on. And it is taking all the gold from the people.

Gold is at an all time high. The economic warfare continues.

Peace,
Surial

Re: cash4gold liquidation - another greedy strategy
 

What I find odd is that most people think gold and silver is worth something as well. There is a general flawed premise behind this.

1. Yes, gold has been used as a means of exchange for the last several millennia, but if you noticed during September and October, the price of precious metals was artificially manipulated. There was little if any physical metal to be found yet the price dropped like a rock.

2. Gold jewelry in America is usually 10Kt or 14kt; that is 42% and 58% respectively. Most people don't carry around a scale and a calculator or have access to the spot price readily unless they are near a computer. If they don't wear it or it's broken, let them sell it. Besides, you can almost never make a profit on jewelry selling it for the metal content unless it was bought a long time ago.

3. If the economy crashed substantially to the point that fiat (paper) currency was no longer usable, how long do you think your gold is going to last? How many Maples or Eagles do you have stashed? And if you're going to buy anything, do you really want to lug that all around? The stuff is heavy.

4. If the powers that be want to be really nasty, they can pull a Roosevelt like they did in 1933 and confiscate all the gold before the impending crash. But if they do that, they would have to alter the second amendment so they wouldn't be prying it from the "cold dead fingers" as so many gold bugs like to say.

5. If something drastic happens, how do you know that anyone is going to take it as a means of exchange? I, personally, would rather have a bag of beans or rice than a hoard of gold. You can't eat it remember, nor can you take it with you.

6. It is only worth something because you say it is. Think what would happen if an entire state stopped using the US dollars one day and instead started using buttons. Your paper is now worthless and you have to go out of state to buy things, unless of course you have a stash of buttons for just such an emergency. If everyone decided that the US dollar was no longer what they were willing to trade overnight, it would become worthless. Same scenario is applicable for gold. Once again, you can't eat it and it won't keep you alive.

I can understand where you are coming from, but this seems, whether you wish to acknowledge it or not, one more post half-way based on fear and not on what you want. Remember: life is temporary. Everything you see around you will eventually return to nothingness.

Re: cash4gold liquidation - another greedy strategy
 

Good points TtC, and I was thinking the same thing. Let's say we do get a heavy crash and paper money is useless, I don't see where having gold or silver will do anybody any good. That's why I don't agree with buying either one.

Let's say I'm a farmer who has lots of fruits and vegetables and people come to me in need and they have either gold or silver to trade for food, eventually I trade out all my food for gold and silver, well now I have a pile of metal and no food! I think the only thing that will be worth anything in a severe crash is the ability to barter.

To barter in either trade skills or basic knowledge that another could use will be more valuable than anything. In the beginning, trading gold or silver might work until people catch on to the scheme of things. Like you said, you can't eat gold or silver, and in the end you really only need two things, and that's food and water.

Re: cash4gold liquidation - another greedy strategy
 

when tshtf, i think that you would be further ahead with a stash of tools, shovels, axes and such, than gold or silver. at a barter meet, you could feed your family if you had tools to trade for food.

Re: cash4gold liquidation - another greedy strategy
 

I agree with you TtC. I would rather have food than gold. Most people do not have that much gold anyway. I know I don't.

It will be interesting to see how this all turns out. Globalization may try to introduce a new currency to help alleviate the economic woes. Or more of the same will occur and everything will get taxed. Prices do continue to rise. We are definitely witnessing a huge moment in history.

Thank you for responding. I look forward to more opinions on the economic conditions. How does gold currency relate to our future? Is it something that will be used only through the elite few? Or is this a way to depopulate the Earth by killing our currency (starvation)? I'm sure many of you have more knowledge in economics and I look forward to your responses.

Peace,
Surial - Messenger of Light

Re: cash4gold liquidation - another greedy strategy
 

I have always thought that these sites and companies were nothing but scams intended to take gold and silver from clueless people.

I hate the commercials and the people in them make me sick.

Re: cash4gold liquidation - another greedy strategy
 

Gold and silver will only be of use if/when they start a new currency, then you could cash your gold/silver in for that. Otherwise it will rapidly become worthless.
The ability to produce safe drinkable water is the best thing you can invest in, with out that you'll be dead pretty quickly, we aren't like Africans that can drink from dirty puddles (no offense to them) their bodies can cope with what me or you would die from after a few sips.

Re: cash4gold liquidation - another greedy strategy
 

The points raised do not cover all the reasons why (some) people like to have silver and gold in uncertain times, depending on their situation.

1.Someone I know just retired last year, and got a lump sum payment of $50,000 for his pension. He knows that the paper money is becoming worthless, so he bought some gold a few months to maintain his worth. At this point, he has increased his dollar worth by 30%.

2. He can also buy food, but the most food you can buy before it goes bad is a few years, and even if he did that, he will still has a lot of money left over.

3. If the dollar becomes worthless (which looks likely), the government will introduced a new currency, and this is bound to be backed by gold. The TPTB know that they could not get any credibility by printing money because that's how they got into this mess in the first place. The value of gold (or gold backed currency) is that it stops the politician's from "playing" around; the exact reason why they prefer a fiat currency. A society can not be better than the people that exists in the society. Past history and experience shows that a society eventually gets corrupted. It's because there is an accumulated corruption that gets passed on from generation to generation. You see this in terms of the increasing size of the tax code, the desire of special interest groups to push for their interest. At this point, everyone sees it in the news.

4. Pure silver has value as it kills germs and viruses on contact (probably gold too, but it is too expensive). I want to keep some just to make colloidial silver.

5. As mentioned by someone else on this forum, the government has to find the gold before they can confiscate it.

So, in the end, if you've bought food, tools, all the stuff you'll need for a few years, putting the rest of your worth in gold and silver is a pretty good strategy.

Re: cash4gold liquidation - another greedy strategy
 

1. Gold does not have antimicrobial properties. Silver does, but is does not kill them on contact. It interrupts their ability to divide.

2. There is not enough gold in the world to back all the world's currency, which is what has to happen, if such a thing happens.

3. The government would have no trouble finding the gold. Look up what Roosevelt did. He had agents there when safety deposit boxes were opened and how are you going to cash it in, or do you think you will be bartering with it? Bullion houses would be required by law to report you and the only people allowed access to bullion would be jewelers.

4. Since there are few with gold, they would most likely be singled out and dealt with.

5. All currencies die. Even the Roman empire used gold; it was not fiat but is was gold nonetheless. After the empire expanded, Caesar ordered the coins to be rimmed (made smaller by removing gold from the outer edge) but to keep the same value. Once again, even if it is gold backed, what is to say that they won't tell you they have more than they do and keep running the presses?

6. Metals are a good investment strategy, provided you know how to trade them properly as well as a hedge against inflation, but that, too, was proven in September and October to be an outright lie with the obvious market manipulation.

If something big eventually happens, metals are worthless beyond silver's antimicrobial properties and use in electronics and chemical catalysts. Figure out how to get clean water, grow your own food, and stop worrying about everything and hating it. You just perpetuate the cycle.

Re: cash4gold liquidation - another greedy strategy
 

Once you have prepared yourself, gotten debt free, and organized your life appropriately for what you personally know is coming, then if you have any money left, buy gold and silver. Not before.

A..

Re: cash4gold liquidation - another greedy strategy
 

A thread I've been longing for. Thank you guys and a warm welcome to some of you fresh joiners. ;)

Re: cash4gold liquidation - another greedy strategy
 

What I'm saying is that there is a place to have some gold/ silver. The currency doesn't have to be fully backed by gold/ silver. A percentage would be a lot better than a fiat currency, and stop the politicians from playing around. At this point, it is an academic discussion.

I'm based in Canada, so don't have the confiscation that occurred in the US. In actual fact, it's the older countries that have a history with gold more than the US. No strategy is a hundred percent fail proof. I always find it ironic, that in more primitive times, say a hundred years ago, fresh water and air was free and available almost everywhere, but it was not valued. So now, it is rare enough that we have to pay for it, and only the rich can afford to go to places where the air and land are relatively clean.

We are not on opposite sides, but having read your posts, I can't help feel that you have the energy and impatience of youth. It's easy to talk about the end goal, but planning and making the transition from here to there is the challenge.

I haven't bought any significant amount of gold/silver (a few thousand dollars). I bought 100 acres of land in the mountain 7 years ago, with running streams clear enough to have trout, to build a community for these times. Life is temporary, but what you take with you is your experience.
I just have to grow food, and I'll have what you are talking about, but for many people, it is not easy to make that transition. The people on this forum already represent the leading edge of awareness, yet few communities are being form at this moment.. the transition is the hard part.

Peace & Light,:original:
Wayne

Re: cash4gold liquidation - another greedy strategy
 

Politicians will never stop playing around with the currency and those who actually play with it are usually not politicians either. If it is only a percentage back the rest is still fiat, and the first viewpoint in now overturned. There are ways to fix it, but that is another discussion.

I spend a fair deal of time in Canada as well, but if they really want to confiscate it, do you think a border and another pawn government is going to stop them?

You are right, I am younger, but that, too, is subjective. I am, on the other hand, very patient. I just see a lack of forethought in many areas. Transitioning is the greatest challenge, indeed. How much pain are people willing to experience before they say enough and make an actual push instead of lurking in the dark?

I have physical precious metals that I can hold and touch and I trade them on paper as well for short-term day trading and the like. They do have their place, but it takes a bit to do it right.

I also own a ten thousand acre cattle ranch and farm that is both a viable business and a safe haven for people to retreat to. That is one of the primary reasons I came here: to see how open and prepared people really are. But as I said before, talk is cheap and there is a lot of that going on.

If something happened a year from today, are you prepared?

I came along this quite some time ago:

A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects.

-Robert A. Heinlein

I'm going to be very blunt:

How many people can your land support? Have you run the numbers? Is it sustainable beyond five years? Can the buildings and land take a blow from a nearby earthquake or flooding? Is this all talk or are people actually doing things?

Re: cash4gold liquidation - another greedy strategy
 

The purpose of this forum is to help people form communities to transition through the coming changes. If you have a proposal, then it's your choice to propose it. With a 10,000 acre ranch, and a business, then you have a great capacity to make a difference.


My resources are much less, so I cannot start in the same way. But that is not important. We each have our own path, and we only need to be true to that. The land I have is in a good location to survive earthquakes and floods, but the limiting factor really is food production, and the problem I see there is energy, or lack of it (I'm looking at aquaponics). Without some breakthrough in energy production, the number of people that it can support is limited.

It's probably more important that you give your proposal, considering your greater resources; what your expectations are for people to get involved. Do you expect people to be able to do all things? as in the quote by Heilein?

Re: cash4gold liquidation - another greedy strategy
 

I'm going to start a new thread for the proposal as this has gotten off topic.

As for the quote, yes and no:

change a diaper - yes
plan an invasion - no
butcher a hog - yes
conn a ship - no
design a building - maybe
write a sonnet - no
balance accounts - yes
build a wall - yes
set a bone - yes
comfort the dying - yes
take orders - yes
give orders - yes
cooperate - yes
act alone - yes
solve equations - yes, basic ones, not calculus by any means
analyze a new problem - yes
pitch manure - yes
program a computer - yes, within reason, not rebuild windows from scratch
cook a tasty meal - yes
fight efficiently - yes, if it comes to that
die gallantly - yes

Re: cash4gold liquidation - another greedy strategy
 

You're 22 and going to school for your Phd. and you have a 10,000 acre cattle ranch?

Re: cash4gold liquidation - another greedy strategy
 

Well, you have interpreted incorrectly. You have read part of my site, yet you do not know how old I am, nor do you know when that piece was written. Posting dates and modification dates say nothing.

Re: cash4gold liquidation - another greedy strategy
 

That wasn't an accusation, it was a question!, hence the question mark! And back at you, because you sure as hell no nothing about me otherwise you wouldn't have made your little Abraham Lincoln quote.

Re: cash4gold liquidation - another greedy strategy
 

Retracted

No to the first and second, and yes to the third.

Re: cash4gold liquidation - another greedy strategy
 

Same here, I should've worded it differently but was really just being curious! On the other hand you could've said something like "oh I've had that old ranch for years" HaHa, it's all good!

Re: cash4gold liquidation - another greedy strategy
 

Quick resolution on both our parts is a good way to keep the peace. We could have started a war. I'll trade you Tibet for France? :mfr_lol:

Re: cash4gold liquidation - another greedy strategy
 

I need to redirect this forum back to its original topic. The subject is: the importance of gold and how it will affect the future of economics. the cash4gold website triggered this thread. I find it important for people to understand that tensions are high due to the global economic problems we face today. It is always good to learn more about our situation and get a clear view on where gold is going. Because if gold is important to create a system to take people's jewelry, I would want to know a larger truth if it is out there.

This thread is strictly for educational purposes. In my opinion, I feel it is getting quite interesting on how history is progressing within this year. Gold coins have value. And it is also interesting how the Romans went through a similar pattern.

I also notice that the wealthy people are taking quite an interest in this currency. Is there something we need to learn from this?

So far I have received some good answers on this topic. Lets try to be more productive in learning from this situation. Thanks again for your participation.

Peace,
Surial

Re: cash4gold liquidation - another greedy strategy
 

Cash 4 Gold
Posted: 2008-10-27 by Ms. Know Too Much [send email]



Cash 4 Gold is a SCAM CONFIRMED

Complaint Rating:
Company information:
Cash 4 Gold
Pompano Beach, Florida
United States
cash4gold.com

I am a former employee of Cash 4 Gold. I did not know much about the company before being hired. On my first day of being hired, I was taught the "Cash 4 Gold Scam" from beginning to end.

1. The "refiner's pack" that is used for you to put your jewelry is "insured for UP TO 100 dollars, " according to how much they feel your items are worth, NOT appraised at

2. We receive your "Refiner's Pack" within 3-4 days, but we are instructed to tell you that it takes "7-10 business days, for us to receive your pack, ALTHOUGH your package has already arrived.

3.Your jewlery gets appraised by hand/magnifying glasses/
a small weight pad, and a bottle of mystery fluid, which your items are then give a value for. Not million dollar equipment or specially trained jewelry experts.

4. Although the payment (check) for your item is dated within 24 hrs of testing your jewelry, we sometimes DO NOT actually send out the check until up to 3-4 days later.

5. We claim a 100% Satisfaction Guarantee or your jewelry returned, BUT THE CATCH IS, that the guarantee is contacting us within 10 DAYS from when your check is DATED. (This begins with the time it takes for the accounts payables dept. to issue the check and also including the transit time for you to receive your check in the mail. **** NOTATE THE COMMERCIALS THAT STATE U GET YOUR CHECK IN 24 HRS.***

5. IF you are lucky you will receive your check around the "7th-10th" bus iness day, AND more then 97% of the time Customers are outraged when they lay eyes on the amount of the check. Some Customer's even receive a check for 0.01 cents. (TRUTH) Thats including items of great value (Diamonds, Platinum/ Gold and Sterling)

6. They sometimes even receive your valuables and like them so much THAT we CLAIM to not have received the items just so the "TOP" people or even "FAVORED" people can get first dibs on your items. From which point we issued an INSURANCE CLAIM for UP TO 100 dollars. GOD FORBID your items are worth more then a 100 dollars, and when you call in to check on the status of your items, we tell you " YOU SHOULD"VE ADDED EXTRA INSURANCE ON YOUR ITEMS." We do not have an actual Insurance company, they use customer service reps as the claim department agents.

7. For those who receive there check within the 10 day frame, GOOD LUCK with trying to get in touch with a cust. srvc. rep before your 10 days are up. Which after your 10 days, your items are "ALREADY MELTED" or NO LONGER AVAILABLE FOR RETURN."

8. For the "LUCKY" people who do get in touch with us within the alloted time frame, we already know what you are calling about. Customers want their items returned, because there
check amount is so insultingly LOW. The first thing a Rep will ask you is "HOW MUCH WERE YOU EXPECTING TO GET BACK?" This way we can know how much to "BONUS" you.

Definition of a BONUS: We issue low checks just to have you call us back if you are smart enough to realized that you just got scammed. For the smart one's we are paid to offer u a bonus up to 3x the original amount of your check and you accept. For ex: Sally Smith receives a check for $27.86 for a rolex watch(which we dont issue value for), a class ring, a ring with diamond chips, a pair of earrings with emeralds, as well as a few sterling silver pieces, and maybe a few items that were really of no value.

Now Sally Smith calls the cust srvc dept, where she speaks to a rep who seems so concerned and will see if she can do better with the amount by speaking to a "SUPERVISOR". We then place the caller on Mute, and speak to our neighbors or doodle on a sheet, or twiddle with our hair for about 45 seconds, while we are supposedly speaking to our supervisor about Ms. Smith's complaint. We then come back with an offer to "BUMP UP YOUR MELT DATE or any other lies the cust srvc reps can think of, and offer you a total amount of $53.20 which is a little under double the amount of your original check. In which case if you accept, the cust srvc rep makes a 15.00 bonus off of your transaction.

If the cust srvc rep offers you under triple the amount of your orig check, she makes 10.oo in bonuses.
9. If you accept the offer, the deal is done, and you are told that the call is recorded(which most of the time, the record button does not work.)Just a way to make your feel binded by a verbal contract. IF you do not accept the deal, you have to return your check, and it takes sometimes up to a month to receive your items back after we receive the check.

10. If you only want the items that we do not find of any value back, you have to pay a 10.00 shipping and handling fee to have your own items returned, which varies depending on sales for that week. IF sales are good, there is no fee, when we are slow, you must pay.

Cash 4 Gold is definitely not a trustworthy or credible company to do business with. You are almost better off taking your items to a local pawn shop or shopping around for other companies. With the economony the way it is, Cash 4 Gold seems to be a way out of financial stress for some, but in actuality becomes a stress of its own. I would advice you to think twice before sending in valuables or items inherited and of sentimental value. Its not worth it. I am not doing this as a way of Bashing their money making process :) but more so to warn everyone.


http://www.complaintsboard.com/compl...d-c115287.html

Re: cash4gold liquidation - another greedy strategy
 

Whatreallyhappened.com: The PRE-PLANNED Financial/Economic 911 of 2008

(and we now know how they plan to get your GOLD!)


GOLD STANDARD RETURNS!!!!--Indiana State Senator Files Gold Money Bill!

CONSUMER ALERT! Selling Gold? Read this First.

Panicked investors send gold demand up 56%

Banker Manipulation Of Gold And Silver Prices Further Exposed

Gold Climbs in N.Y. as Investors Seek Haven From Falling Shares

Gullible Consumers May Get Gored on Gold Price: Sellers Beware

Why Gold Is Dropping When It Should Be Rising


What's a Numismatic Coin ...and Why You Should NOT Buy Them!

China considering dropping U.S. Treasuries and Buying Gold Instead

During a financially troubling time as was the case with the Great Depression, the last thing you want to do is let go of something that has monetary value. Gold is and always has been the basis of all finance, commerce and society. What many of the companies that give cash for your gold don't tell you, is they know the value of gold is increasing almost daily. Not only that, but you don't get retail (or even wholesale) value for your gold, no...you get 'scrap' value instead of it's actual worth.
Instead of trading your precious gold for fiat money that will very soon have little or no value, hang on to it! History will show that this troubled economy is only going to get worse, rising gas and food prices will lead to hoarding, riots and price gouging. You can avoid the pitfall of society by retaining one thing that will never lose value...GOLD! Don't fall for one of these Cash for Gold Scams!

So remember this one thing.... HOLD ONTO YOUR GOLD!


http://www.cashforgoldscams.com/

Re: cash4gold liquidation - another greedy strategy
 

Gold may be important because, in my opinion, besides that fact that nearly every currency in the world is fiat, all of the spending of the USA for firstly, the "Bailout" and secondly, all of the social programs Obama wants to implement will seriously devalue the dollar making gold a hedge against inflation.

Look at it this way:

The Bailout has taken so far about five trillion dollars after including some of the previous things added like Freddie Mac, etc. The implementation of Obama's "plans" will likely cost another three to five trillion, provided he keeps those promises, which is doubtful.

Where did all this money come from? Nowhere; it was created out of nothing. You just devalued the US dollar by at least fifty percent in less than two years. They are adding zeros to the governmental bank accounts and running the printing presses 24/7.

If you trade currency or look at the charts on a regular basis, you will notice that the US dollar compared to say, the Euro, GBP, CDN, CHF, is moving within a somewhat moderate range of support and resistance. Essentially it is moving sideways. The reason the US dollar is still relatively high is because foreigners are buying US dollars to pay off US debts, because they see huge liability in the American market, which is correct. The same is happening with the Yen. The Japanese want their money back, thereby driving up the price.

If you look at the other, more stable currencies, such as the CDN, GBP, and the CHF and compare them on charts, you will notice that they are relatively stagnant, but not absolutely unmoving, compared to the USD. I will say that the CDN is a commodity based currency mostly, and the CHF is actually partially backed by gold, but you have to allow for some leeway when it comes to trading and spot prices.

Another thing that must be understood is that most people who trade are not professionals, most of them are actually computers that are programs to by and sell based on current pricing. A lot of real people who trade will sell at a loss in order to be out of the market, skewing the actual curve.

To make a long story short, the US dollar will most likely go to hell, and in order to preserve such wealth, a lot people are fleeing to gold and silver. But as I said before, the metal markets are subject to manipulation as well.

I still see no reason to be overly concerned about people selling their old and broken jewelry for cash because if something happens, it is hard to refine it without some sophisticated equipment and risk mercury or chlorine poisoning.

I don't think it is a ploy from the powers that be to steal people's gold. I think it is someone taking advantage of the market, and the lack of physical metal so they can make a profit.

Re: cash4gold liquidation - another greedy strategy
 

Ttc:

Let me start by saying that I respect your opinions and have read your posts & that what I'm about to say is not meant to disregard your thoughts or insult your intelligence. This said:

Be careful when stating opinions that you don't dress them up as fact. There are many, myself included, who would disagree strongly with virtually all of your rational on the intrinsic value of gold/silver. While it is true that you can not eat gold, the example you gave about its use in trade is not very compelling. If farmer Joe grows corn and wheat and rancher Sam raises pigs and chickens and I approach them with whatever goods or skills I possess seeking to trade, but neither Joe or Sam have use or need for those goods or skills, there is a need for a trade medium, or currency. Without this trade medium all parties lose because Joe and Sam, while they possess valuable goods, can not survive on those goods alone, nor can they count on another person walking up behind me who happen to possess whatever it is they are in need of. The reason gold/silver, etc possess value in a different way than fiat currency is the same reason anything has value; scarcity. Your button example is misguided as buttons are easily attainable and in no short supply. Gold/Silver has been used historically as currency because it can not be created at will as can paper "money".

Next, I suggest you understand the history of events you reference to make your points. Such is the case with gold confiscation and the seizing of safe deposit boxes both in terms of what actually transpired and the stated reasons for why it occurred. I trust in your ability to find this information on your own and will save my fingers the additional keystrokes, but suffice it to say private gold ownership is very different today than it was in the 30's and it is not only entirely impractical for door to door collection of said gold, but would be met with resistance that would make it far too costly and time intensive. Even in the 30's one could have easily retained their gold, and many, many did just that. Plus, the ratio of gold to silver as well as the ratio of silver to fiat currency prevents any worry that there would be silver confiscation, not to mention its uses beyond currency.

I'll end this here and simply say that I am sure you are preparing in the way you see best and I applaud your enthusiasm and contributions to this forum. I will agree with you that anybody who is preparing only through gold/silver acquisition is bound for a rude awakening as food, clean water and other supplies will be critically important. However, there is an equally convincing argument to be made for anybody preparing entirely without securing a globally recognized trade medium as no individual could possibly hope to survive independent of others solely on the resources they have/can acquire on their own. Food runs out, crops fail, weather changes, disasters occur, filters exhaust, animals die, resources dwindle, fuel gets spent. All I'm trying to say is keep an open mind and be careful promulgating but a single way through what lies ahead.

Thanks again for your posts.

Re: cash4gold liquidation - another greedy strategy
 

Dollar Backed by Gold


http://goldprice.org/buying-gold/upl...old-721489.jpgWhen people buy gold, many seem to have the misconception that the US dollar is backed by gold. Well ... it used to be. The US currency, like many other currencies at the time, was backed by physical gold kept in Fort Knox and other places.

In 1933 the US abandoned the Gold standard along with many other nations, such as Italy in '34, Belgium in '35 and others during the 1930s. Switzerland was one of the last countries to drop the gold standard and this was done in 1999 by the approval of a new constitution that eliminated the traditional requirement for the country's currency to be backed by gold.

The gold standard monetary system is a system in which the standard economic unit of account is a fixed weight of gold. Under such a gold standard, currency issuers guaranteed to redeem notes, upon demand, for that amount of gold. Also governments that employed such a fixed unit of account, were able to redeem their notes to other governments in gold and share a fixed-currency relationship.

However, these days, the gold standard is not currently used by any government or central bank, having been replaced completely by fiat currency. Money is NOT, therefore backed by gold, or any other precious metal but, instead, is backed by faith. The money is, in other words, as good as people believe it is good. People are generally educated to regard money as a precious commodity in itself by virtue of the amount needed to purchase desirable and needed items.

By controlling the interest rate and the amount of money in circulation together with the use of a tax monitoring system, makes it easier to manipulate the economy.

Since the abandonment of the gold standard, economies around the globe have shown the apparency of a healthy economy, but in reality what has happened is that there has been little or no check on inflation resulting in a decreasing value of the currency, such as the US dollar so that it now requires many more dollars to purchase the same items as it did many years ago.

The value of gold has remain the same however with one ounce of gold still purchasing the same as it did 20 or 50 years ago.

What we use today is a system of fiat money. One glossary defines money as "money that is intrinsically useless; and suitable only as a medium of exchange. A more accurate definition perhaps is that money is, "an idea backed by confidence."

The main benefit of a gold standard is that it insures a relatively low level of inflation. In articles such as "What is the Demand for Money?" , we see that inflation is caused by a combination of four factors:

1. The supply of money goes up.
2. The supply of goods goes down.
3. Demand for money goes down.
4. Demand for goods goes up.

So long as the supply of gold does not change too quickly, then the supply of money will stay relatively stable. The gold standard prevents a country from printing too much money. If the supply of money rises too fast, then people will exchange money (which has become less scarce) for gold (which has not). If this goes on too long, then the treasury will eventually run out of gold.

A gold standard restricts the Federal Reserve from enacting policies which significantly alter the growth of the money supply which in turn limits the inflation rate of a country. This may give an inkling of the reasoning behind the removal of the gold standard.

So it would appear that the major benefit to the gold standard is that it can prevent long-term inflation in a country. However, as Brad DeLong points out, "if you do not trust a central bank to keep inflation low, why should you trust it to remain on the gold standard for generations?" It does not look like the gold standard will make a return to the United States anytime in the foreseeable future with the dollar being back by gold.

None of this should make any difference when it comes to buying gold of course. In fact, to buy gold is probably a better idea than to buy currency!



References:
http://economics.about.com/cs/money/a/money_demand.htm

http://www.j-bradford-delong.net/Pol...dstandard.html

http://eh.net/encyclopedia/article/o....gold.standard

http://www.j-bradford-delong.net/Pol...dstandard.html

http://en.wikipedia.org/wiki/Gold_standard




http://goldprice.org/buying-gold/200...d-by-gold.html

Re: cash4gold liquidation - another greedy strategy
 

I think something needs to be straighten out first as I worked in the jewelry industry for twelve years.

Firstly, appraisal prices are a fraud. There are about six different types of appraisals depending on the situation.

Secondly, when you are doing cash4gold, you are selling your jewelry at scrap prices, meaning below spot.

Here's some math:

If you have a ring that is 14Kt gold and weights five pennyweights (1 pennyweight = 1.55517384 grams, so that is 7.78 grams) and want to sell it for scrap it goes like this:

They will firstly take the bid price, which is 987.10 as of right now, and divide it by 20 because there are 20 pennyweights in a troy oz, which is how gold is weighed.

987.10/20= $49.36 per pennyweight of 24kt pure gold. Remember, your ring is 14Kt. The percentage of gold is 14/24 which is 0.583. This is the actual gold content. Take the following:

49.36 x 0.583 = $28.79 per pennyweight of 14Kt gold.

They won't give you full market price because that won't cover refining costs so dock 10%. We now have $25.91/dwt.

Your ring is 5 dwt (pennyweights), so 5 x 25.91 = $129.57

Take the 129.57 and they will then remove another 10% from the 129.57 for labor and shipping costs.

Your ring, which if bought new the day before would have cost about $475 new, now gets you $117.

Like I said before, there is no way to make a profit on this as a consumer, BUT for those with broken jewelry, you might as well.

As for the diamonds and whatnot, if they were smart enough to take them out of the jewelry before they sent them off, they could only sell them to a jeweler willing to buy and they would only pay out less than what they can buy them for new from a wholesaler.

The markup on jewelry is usually three times, but don't blame them, your clothing has a markup of ten times. Jewelers only get targeted because you can sell it for scrap and people get mad. They have to make a living, too.

It is your choice what you do with your gold, but take responsibility for your actions.

Re: cash4gold liquidation - another greedy strategy
 

eraser2012:

I agree totally with your first paragraph, but I was making a point by using such an obscure example.

Your second paragraph on the other hand is only so solid. Yes, the US government confiscated gold and they royally screwed over the American public in the process because they were paying out paper money below value in order to pay off US debt, or at least that's what the history books say. BUT the point I am trying to make that it seems no one is taking notice of is if they really want to take your gold they will and will do so by force. I doubt this would happen, but it is a possibility.

I would also like to note that money that is not gold or silver is illegal in the USA and only congress has the right to print currency, not the fed.

The last thing I would like to say is why do you need a means of exchange at all? If the level of consciousness reaches a higher level why cannot all things be free? In the current situation, this is not possible, but it seams, as we have seen, people need their money.

And Keynesian economics as well as Austrian economics do not work as we can see by reading the daily paper.

Re: cash4gold liquidation - another greedy strategy
 

I don't know if I'm going to network with anyone here but I do have a friend or two who are aware as I am. I don't know how good it'll do me but I choose not to worry and just go with the flow. If I have to leave my possessions behind, so be it.

Re: cash4gold liquidation - another greedy strategy
 

As a sidekick: Can we even be guaranteed that gold can't be reproduced? With whatever else is fluttering around this forum I'm weary to accept such as a fact. To me the only scarce thing on earth is the sum of hep, love and assistance. Do the market maths on what happens when that becomes abundant.

I know it's far out to measure something like human service against a loaf of bread, but those basic needs seem to be the only real currency that can probably always be exchanged. The only problem there is longevity but maybe that is a good element to keep the trade rolling at all times?
I know next to nothing of the market so I'm just talking into the blue here.

Re: cash4gold liquidation - another greedy strategy
 

And if the Amero is introduced as a strategy to save us in the U.S., Canada, and Mexico, will this gold be used for that currency? Maybe we need a heads up on what will happen.

But then how do you make those amounts go digital into a computer or bank account? Do you see the contradiction there?

By the way, great answers so far. You have turned this thread into a good source of information. Thanks for the information on cash4gold dantheman - I knew my hunch was right and you confirmed it.

Re: cash4gold liquidation - another greedy strategy
 

There has been Amero coins and paper currency shown on this forum. If this is any indication, what people will use will not be any different than the paper that you are using now. The only question is if the government will claim that it is backed by gold to any degree. Also, the financial problem at this time is global, so the TPTB may use this as an opening to introduce a world currency as an alternative, if they can pull it off. A NWO has to eventually have a world currency.

As far as gold being artificially produced, there is no foreseeable way that we can transmute elements in a cost effective way. We would need to manipulate elements at an atomic level to do this. You have to remember that the more advanced x-terrestials from Planet X supposedly came here to mine gold, so they could not do it any better.

Re: cash4gold liquidation - another greedy strategy
 

gold / silver & copper have value
as, if you take them internally -- they turn on brain synapses
which are like contacts, that open up your third eye / and, open the door
to the 4th eye

anyway...
change a diaper - no

plan an invasion - yes, i once had to visit revenue canada in person LOL
and, needed a game plan :mfr_lol:

butcher a hog - no, i don't like killing things - however, i know how to harvest things, and, when you pull a plant from the ground, in essence
you are killing it

conn a ship - i can handle a 72 foot sail boat at sea - does that count ?
(AND, i am good in a canoe or kayak) thankfully, i once went overboard
in november, and, treaded water for 1 hr 12 minutes

design a building - yes, helped my dad to do that when we built a cottage/house

write a sonnet - i can write

balance accounts - yes

build a wall - yes - & i have put up 3 roof trusses alone

set a bone - yes

comfort the dying - yes

take orders - yes, but NOT i don't think i am army material :mfr_lol:

give orders - yes, but only when all people are part of a team, and, everyone of them, is just as important, as the next one

cooperate - yes

act alone - yes

solve equations - yes, difficult ones, my dad made sure we knew math
analyze a new problem - yes

pitch manure - yes

program a computer - yup, in the old days - our school had a computer the size of a room /a gift from ibm,
and, same with, at one of my jobs - we had to write programs for
a similiar type of computer, albeit, i am NOT a computer programmer,
i do have some experience at that

cook a tasty meal - yes

fight efficiently - yes, if it comes to that

die gallantly - yes & i have already commanded/and, demanded
where i go, and, what i will do, should i drop my physical body
unexpectedly -- i think that, keeps you walking safely ;)

on top of that

i think you need to caring, kind and thoughtful

and, anything shared, is never halved, but doubled in value

and, i think, also, you need to learn, the power to still the mind
so, you can listen to higher guidance

and, i think, also, you give more than you take, in any particular exchange

sometimes, you need to be in moments, that might be considered
to be, beneath you,
in order, to bring, added value to the moment, that is occurirng
& in doing so, you teach to learn, you learn to teach

it is an interesting world all of us, are in right now

the value of any particular thing, can change in an instant

whatever it is, that you consider to be your eXchange of this day,
it could be that

in tibet -- believe it or NOT some people utilse yak turds to exchange with

so, as long as your YAK is eating / it is eliminating something of value ;)

Re: cash4gold liquidation - another greedy strategy
 

TtC: Do me the favor of reading the post here: http://www.augustreview.com/issues/g...?_20081209107/ I think this overview is SPOT on in terms of how gold is the cornerstone of our financial collapse. I highly recommend this reading to everybody interested in this subject.

As far as your comment about consciousness reaching a higher level making "money" unnecessary, YES, I could not agree more with you. I couldn't give a damn about money, honestly, and look forward to the day when all sentient beings rise above such needs. I only make the argument because there are many people truly in denial of such possibilities who are on the verge of becoming victims of the elite's plan to destroy their financial lives and drive them ever further into the reality trap which enslaves us all. Those unaware that they are already slaves need some solid advice on how to protect themselves to allow them to continue their spiritual journeys without being side tracked into the coming plans. Is money the answer? Absolutely not, but this time in our history is so important that I would rather see people properly prepared to resist the atrocities that are surely planned. I hope that make sense.

Re: cash4gold liquidation - another greedy strategy
 

I just wish we lived in a world where you could do anything you want and be anything that you wanted to be without having to fork over a fortune for it. I want to brew beer but the cost of schooling for it is out of my range and it makes me mad to think that I'm being limited by a bunch of paper.

Re: cash4gold liquidation - another greedy strategy
 

If you listen to Cliff High, George Green, St Clair, Henry Deacon, hell, just about anyone, including me [!] they'll tell you that time is short for getting the metals in.
No, you can't eat them [well, actually you can drink colloidal gold and silver], but as the ineffable Cliff says;

"if you can make Pie, then you can trade.
If you can't make Pie and you have metals, you can buy Pie."


I wish I had a massive farm though!
Thing is, there's gonna be plenty of empty farms and other buildings soon-ish, so I guess I'll wait for one of them.

Re: cash4gold liquidation - another greedy strategy
 

PS
I wanna brew beer too, and I reckon you could get quite a lot of Pie for Beer...
Well, you could off people like me who love beer almost as much as Pie.
I'm watching a load of brewing stuff on eBay right now....

so...... get the demijohns in!
Stock up on yeast!
You'll be a new Paradigm Business Success Story!

And just think what the new Business Angels might be like! lol.....

Re: cash4gold liquidation - another greedy strategy
 

I actually know how to brew already. I am just lacking in time to hone my skills and improve upon what I already know.

As for stocking up on yeast, you can ferment beer with wild yeast. The only downside is that the beer will be sour due to the strain of brett (short for brettanomyces) yeast that ferments the beer. This is why many "farmhouse ales" smell like a barn. Still quite good.

I guess my destiny is to grab whatever the hell I can find and start over. I have no desire to prepare to the gills like everyone else because what if my "stash" of survival stuff was destroyed? I'd have to start over anyway. When the time comes, I will be prepared in a different way.

Re: cash4gold liquidation - another greedy strategy
 

The cash4gold is a form of pawn shop w/the convenience of not leaving your home. As we all know, convenience costs more.

That said, to me, investing in metals is merely an effort to preserve some of your monetary wealth. But just as important, if not more, is investing in tangibles, tools & other hardware for gardening, building, clean water, animal husbandry, etc. which I'm doing.

It just makes sense that while I'm living in an environment away from any large city, to use the land for food production, stocking the pond, creating backup energy and such.

And to the yes/no list of skills... mine are the same as yours Ttc except for the last one, dieing < I'm not so sure I will do that well.

Another item to add to the list: Are you a good neighbor? Can you be trusted w/ & cows? I thank Norval for that one. My answer to this is a big Yes as well.