Can Gold Make you Rich?

Gold Report

It is true that gold can make you rich so read on because I have a story for you:

1.  This is not a get rich list and the only person who becomes rich from “how to get rich” schemes is the guy who writes the book; if you want to make money then it is a lot of work.

2.  Gold can be boring at times and this is no hyperbole; if you want fast money then try bitcoin, block chain, cannabis, tech, or anything else that is new and not widely understood.

3.  Gold should always be held because it is money. It can be traded but it is always recommend to hold some for yourself and for posterity.

4.  Econ Circus proposes the 1% challenge: start with putting 1% of your net worth into the yellow metal and see how you much you like it.

5.  The weekly report will also support silver, other precious metals and the accumulation of hard assets. Silver is a personal favourite and compliments rather than competes with gold.

6.  Holding gold won’t make you rich (or poor) as quickly as investing in the junior mining (micro/penny) stocks will.

7.  Penny stocks are not for the faint of heart, they are prone to “pump and dumps,” stock promotions, rumours, speculation and outright frauds, however there is real money to be made in this space. If you are going to speculate on stocks then you must do so with a strong stomach and be ready to sell at any time.

7.  Understand: Junior mining stocks are burning matches so you can never hold them for the long term.

8.  On a weekly basis, the report will discuss a variety of topics related to the metals, stock market speculation, investing and a variety of other topics related to wealth.

10.  If you wish to get in touch with me, please me visit the contact page or find me on Twitter, Facebook, LinkedIn, YouTube or leave a comment below.

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Gold is often vilified in the mainstream media and by economists for reasons unknown to the public.  We know that it’s not “good,” but we are not clearly told why.  Please challenge yourself and consider a few questions:

  • What do you know about gold?
  • Have you ever read a book about gold or Austrian economics?
  • Has anyone ever sat down to talk to you about gold?
  • Have you ever held any precious metals in your hands?
  • Do you know of any “rich” people, and do you think they own any of it?
  • Why are stocks, bonds and real estate so loved, but gold is so hated?
  • If I told you that you can make millions off of micro/ penny stocks as opposed to buying popular blue chip stocks, would you be a little more interested?
  • Would it be a bad idea if you bought silver coins for your children, nieces or nephews for special occasions throughout their whole childhood?
  • And why are western countries selling metals while eastern countries are buying them?

The reason why so few understand gold is because mainstream economists and the general public do not understand what money is.

Just over 100 years ago in The Theory of Money and Credit, Ludwig von Mises detailed everything the world needed to know about money, but this was ignored and now only a small minority of people understand what he wrote.  Mises opens the treatise noting that money is a medium of exchange and that this is all that is required to meet the definition of money.  When you look in a dictionary you’ll find this same definition still exists.  He further mentions that people give more features to money than required to meet the definition, noting that it may be acceptable, but it is unnecessary.  The Fed for example notes that money has three functions, being 1) Store of Value 2) Unit of Account and 3) Medium of Exchange, then goes on to say that it has characteristics of “durability, portability, divisibility, uniformity, limited supply, and acceptability,”[i] but they are missing the point.  The Fed’s own definition of money is problematic when you realize that the US Dollar cannot be considered a “store of value.”  When you compare the US Dollar to gold over 100 years you’ll see that the US Dollar has not maintained its purchasing power at all; to call the dollar a “store of value” does not seem appropriate.

Whether it’s bitcoin or cowry shells, if a good or service is exchanged for something then that “something” functions as money.  What people mean to say when they ascribe other functions or traits of money is the notion that some forms of money are better than others.  For thousands of year’s gold (and silver) became the preferred money because of favourable characteristics, but the point remains: money is a medium of exchange and that is all.  Gold meets the definition of money, but it may also be considered the best money.  Many do not realize but when the US Dollar was on the gold standard, they were literally trading gold as represented by the US Dollar.

In a world absence of money, individuals would either have to barter for everything or the State would have to own the means of production and then decide how to allocate resources.  Money is required under a system where the individuals own the means of production.  Therefore there is nothing wrong with money, however the problem arises when it is created out of thin air.  In the field of economics, everything I have said is only understood by Austrian economists while all other economic schools believe that money should be created out of thin air.

There is one more thing readers are urged to understand:

Mostly everything you hear from the mainstream about gold is false.  Its price has very little to do with interest rates, political unrest or a “fear trade.” If you run the correlation between gold and the interest rate or can quantify “fear,” you will realize that theses notions are entirely absurd.  The truth is that there is one thing only that determines the price of gold, and that is the bullion banks and their dealings at the Comex.

Next week Econ Circus will show you how to read the Commitment of Trader (COT) data report and you’ll forever be one step ahead of the crowd!


[i] https://www.stlouisfed.org/education/economic-lowdown-podcast-series/episode-9-functions-of-money.

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