Monday, October 4, 2010

Is Gold (and Silver) Real Money?

I am in the school of thought that says Gold and Silver are "real money".  Article 1 Section 10 of the United States Constitution says no state shall coin money other than Gold and Silver.  United States Code Title 12 Chapter 3 subsection 411 says to redeem your Federal Reserve notes into "lawful money".  Why can't I find any current definitions in the USC of what "lawful money" is.  I'd say it's because of a little "temporary suspension" in 1971 by former US President Nixon.

It doesn't take much for me to put the puzzle together and figure out that Gold and Silver are the lawful money that those Federal Reserve Notes are supposed to be redeemed for.  

Gold stores wealth and maintains purchasing power over time.  The fiat currency in the fractional reserve banking system is designed to go to zero.  Fail.  Then there's a reset.  A transfer of wealth.  You know the golden rule?  He who has the gold makes the rules.  This time, more people have access to the wealth transfer.  What side of the fence do you want to be on?

If you haven't noticed, the value or the purchasing power of your notes are going down.  Start being lawful and redeem your notes for Gold and Silver.

In the side bar of this blog there are many links to get info about Gold and Silver as well as other great financial sources of information.

I'd like to make special recognition to Mike Maloney's book How to Invest in Gold and Silver.  It's actually a book more about monetary history but its recurring theme, proven throughout history is that all the fiat currencies that have come before have reset and valued back to Gold.  I highly recommend reading this book.
Thank you for reading.  Please comment and share.
"Building Wealth One Friend at a Time"


  1. I can not believe that the US is in that much debt! Wow, that is so crazy....actually I do believe it but it is a shame. I will definitely have to check out that book you recommend on buying silver and gold. My mother is doing this already and has given me a few silver coins here and there! Thanks for the info. Some are even saying that we should be investing food that stay "fresh" for long periods of time.

    You really have an interesting blog here!

  2. Thank you Miss Kno It All. Gold and Silver is the way to preserve your purchasing power as a hedge against the looming hyperinflation.

    Storing food is very important too!

    These are interesting times we are coming into.