You can find several places online to buy cheap gold. Good prices on gold and silver coins are a necessity when allocating a portion of your nest egg to precious metals.

When you are ready to buy gold then you will certainly want to make sure you check the current gold price. You do not want to pay way of the spot price of gold.

Today’s gold price is $1,135/ounce. That price is likely to swing up and down for a while, but long term the market looks very bullish.

Currently the currencies of the world are fluctuating and it may drive the price up one day then down another. Don’t worry about this though. You are buying gold as a store of wealth and it should be treated as thus.

I’m getting off topic. Where were we at? Oh, where to buy cheap gold.

Well, there is a vast market of gold and silver dealers online, but it takes a little research to compile the best ones.

I can tell you that I’ve bought from only 3 dealers online, and each one had some great products.

Products is not what is important here though. When investing in gold you want the most gold for your money. How can you make sure you are not getting ripped off?

Here’s a tip. Stay AWAY from numismatic coins. You know, these are the coins that were sitting on the ocean floor for 500 years and now they cost $10,000 a piece.

As if the gold content is any different. Gold is gold.

There are some collectors out there who spend big money on these, but it’s not a stable investment by any right.

Picture this scenario: A collector pays $100,000 for an extremely rare gold coin. Let’s say the gold price is $1,100/ounce when he purchases the coin.

Let’s also assume that in this situation the economies of the world are sliding into depression. Sound familiar to today?

If that gold coin had to be sold or exchanged for a good or service during a depression, nobody will have the desire or the money to pay $100,000.

In fact, what would probably happen is that while the dollar is falling in value, the people who bought gold bullion coins are reaping the benefit of a higher ROI.

Meanwhile, the rare coin has dropped in value to the current spot price or maybe a little higher for lack of demand.

Solution: Don’t buy numismatic coins, especially in a down economy. Some people will argue this and maybe they have some merit, but I say why risk it.

Ok. So, back to where to buy cheap gold. Let’s have a look at my three favorite place to buy gold online.

1. Goldline- They are a highly rated company and you will see lots of their advertisement on different financial websites. Glenn Beck from Fox News endorses them. They are worth checking out.
2. Monex- This is also a highly rated company. The thing I like about them is the array of educational videos on their website explaining each metal. Check them out to at least learn more about the metals.
3. Apmex- These guys are my favorite place to buy cheap gold. They have the best prices I have found and they have great packaging. Your order will usually arrive within 5 business days if you pay online.

That’s it for my recommendations on the companies. Sorry I can’t really recommend more but I just haven’t had the opportunity to buy from more places.

Happy investing to you.

For more tips on gold investing check out this gold investing guide.

It will only be time before the gold bull market absolutely explodes. I’m a huge believer in gold because it’s the money that has been used for thousands of years.

What makes me so bullish on the gold price in the future is the fact that people are waking up in masses to what is going on with our money supply.

The dollar has fallen in value by 95% since the Federal Reserve’s inception in 1913. Central banks like the Federal Reserve have never maintained a sound currency over time, and that’s what it was created to do.

It’s no wonder that Thomas Jefferson worked against the First Bank of The United States to even gain its charter. Thomas Jefferson knew from experience that private central banks do one thing, inflate the money supply.

During the Revolutionary war the continental Congress issued a fiat currency to finance the war against the British. The currency was dubbed the “Continental” and it became worthless in a matter of a few years.

The British government made counterfeit “Continentals” and put them into circulation in all of the colonies as a way to try and stifle the resistance. The massive amount of paper money in circulation eventually led to a collapse of the currency.

With all of the money printing going on today it will only lead to the same thing. The people holding gold and silver will be the ones making the decisions when it’s all said and done.

Gold and silver cannot be inflated. Governments can’t increase the supply of gold like they can paper dollars. Eventually people the herds of people will see this, but the rush into gold probably won’t even start until the gold price gets to $2,000/ounce.

That’s the way bull markets work. You have the people who saw the fundamentals a long time ago and got positioned, you have those who are getting in today, and you have the masses who will get in close to the top which is when I will be selling.

Where are we in the gold cycle?

Take advantage of these low prices because you are going to look back at $1,100 gold and see how cheap it really was. There is worldwide inflation occurring as I write this and the printing presses still aren’t slowing down.

China is buying gold, India is buying gold, and investors are buying gold. There is maybe 3-5% of people who are actually invested in gold. If the number of people invested in gold jumps to even 10% the gold price will go ballistic.

It’s in your best interest to do more research about the gold market and inform yourself as to why it’s imperative that you position yourself into gold.

Don’t be like the people of Zimbabwe and get stuck with a worthless 100 trillion dollar bill that will only buy a loaf of bread. Don’t think this can happen in America? Think again.

It’s important that you are getting the best price possible when you buy your gold. Shop around and don’t buy from the first company you find. There is a way I’ve found to buy gold at 50% of the spot price. This is the best and cheapest way that I know of to accumulate gold during this gold bull market.

Check out this report explaining how you can buy cheap gold.

Earn FREE Silver -- “Silver Snowball”

Gold has been the king of metals for over 6,000 years, and investor demand has been steady since 2000. But do you think gold shortages and peak gold have arrived?

We have seen peak oil, and most are worried that we will see a massive spike in the price of oil due to lack of new exploration discoveries.

Both oil and gold are similar in that the easy reserves have been exploited and mined.

When hearing the term peak oil or peak gold it strikes fear in the minds of people because it seems we are running out. The term peak oil or peak gold refers to the peak of the easy gold and oil.

There is still plenty of oil on the earth, it will just take more effort to extrude it because oil companies are having to drill deeper to find more reserves. Thus, the price will have to go much higher eventually to justify new exploration.

Gold is in a similar situation. All of the easy gold reserves on earth have essentially been mined up. South Africa used to account for 2/3 of the world’s gold production.

They now produce much less because all of the easy gold veins at the surface have been mined. This is one reason we may be facing gold shortages.

China is now the world’s largest gold producer with the U.S. right behind them. The major concern is that although exploration companies are finding new gold to mine, there have not been any significant finds in a long time.

Gold production has dropped dramatically since the gold bull market began in 2000. In conjunction with falling production numbers, the gold price has steadily risen and will continue to do so until gold producers can keep up with demand.

The world won’t totally run out of gold, but there must be a huge price increase in order to stifle demand and increase supply.

Bob Chapman- 2035 banks in serious danger, FDIC broke

This fits in with the gold bull market scenario very nicely. Since we are in the midst of an inflationary period and investors become more wary of fiat currencies, we will see the gold price go to numbers that will surprise even the most bullish gold bugs.

Bob Chapman of the International Forecaster is predicating gold to go over $6,500/ounce and monetary expert Mike Maloney is predicting gold to go to $15,000/ounce.

These numbers may seem crazy and far fetched, but think about it for a second. Gold is at an all time high nominally, but to meet the 1980 price of $850/ounce you have to adjust for inflation and that puts gold over $2,000/ounce.

What’s important to note is that the world has never seen so many fiat currencies being inflated all at once like we are seeing today. Central banks around the world are using the same Keynesian principles to print their way out of debt.

It doesn’t work and it won’t work. When people finally realize that their paper currencies are getting more worthless by the day, the rush will be on to buy gold and silver.

Gold and silver are a store of wealth and are the anti inflation remedy for those looking to hedge against inflation. It would be smart to start informing yourself of the gold and silver bull market.

 Read this gold investing guide before making a purchase. It will save you time and money.

Earn FREE Silver! -- “Silver Snowball”

If you are looking to buy gold online then you are above and beyond the herd.

I say that because there are so many people out there who are uninformed about the gold bull market. That’s right.

The mass majority of people are clueless as to what is going on in the gold and silver markets right now.

Government spending has cause a huge spike in the currency supply and will result in huge price increases in our near future. Most are familiar with the fact that inflation means prices go up, but that’s about where it stops.

The fact is that when massive amounts of money is printed, it devalues our currency. So those paper dollars that you are holding are falling in value each day. You are able to buy less and less as time goes on.

What a crying shame that is considering how hard you work for your money. Inflation, in real terms is a hidden tax on the people. Governments have been knowingly inflating the money for hundreds of years when they need to finance their operations.

The fall of the Roman empire was attributed to the Roman government mixing base metals with gold to make coins. That is a form of inflation since it devalues the money.

When governments need funding the first step is taxation. The second step is usually issuing debt (Treasury Bills). And the third is through the hidden tax called inflation.

The Federal Reserve simply creates however much money they need. The problem is there is not a relative increase in goods and services. This results in inflation, but with the amount of money that is being produced it will most likely lead to hyperinflation.

Mike Maloney- Gold Should reach $15,000/ounce

Hyperinflation is simply an extreme ballooning of the money supply. In the 1910’s Weimar, Germany was hit with a hyperinflation so bad that people carried their money in wheel barrels just to buy a loaf of bread. The only people who prospered during the hyperinflation were the ones holding gold and silver.

The Reichsmark as it was known was so devalued that people resorted to burning it to stay warm. Many believe this is on our horizon in the U.S., and the only way to get prepared for it is to buy gold and silver.

Gold and silver maintain their wealth because it is money that cannot be created out of thin air by some government. Experts like Bob Chapman, Mike Maloney, and Ted Butler are expecting gold to go well over $5,000 and even $10,000 per ounce. They are expecting and even more dramatic price increase for silver.

If you are looking to buy gold online, I highly recommend Apmex, Goldline, or Monex. They all carry gold coins, gold bars, silver coins, silver bars, American gold eagles, and American silver eagles.

Read this gold investing guide before making a purchase. It’s a simple way to save you time and money.

Earn FREE Silver! -- “Silver Snowball”

Earn FREE Silver! – “Silver Snowball”

The gold bull market has been talked about and talked about by experts on tv and in journals, but when is this thing going to take off?

Many people are waiting for a price explosion, but it seems like the metal is just going up and down like a ship at sea.

There are many factors contributing to the price volatility. Much of the gold price volatility is caused from currency speculators. As long as people are still playing with cash in the speculatory markets, gold will not get the run up we are hoping for.

How long can this go on? In order to get the yellow metal to start moving, currencies will have to prove too unstable for most people to risk keeping their wealth in them. This is happening right now with central banks printing tons of money, but it takes time for all of this to trickle down through the system before we start seeing hyperinflation.

Once the bailouts finally do stop, and money stops going into the markets because people don’t want to hold money, then we will see the metals really take off. This is just one of those markets where you will have to keep dollar cost averaging in and don’t worry about the rest.

The explosion in the gold price is coming, just be patient. For those people who were smart enough to start investing in gold about ten years ago, they saw a 400% increase in price. That’s a nice little ROI.

Investors all over the world are growing weary of fiat currencies. People are tired of having their wealth stripped away from them through the hidden tax called inflation. The game is up for governments printing excessive amounts of money. 4XRGMVSVKY55

I remember reading something about the amount of gold actually available in the world would fit inside a tennis court and be about 30 feet high. That’s not enough gold to go around at current prices, so gold must go much higher.

Economist Mike Maloney of goldsilver.com thinks that gold can go to $15,000 over the next 5 years. That would be absolutely amazing to see. It would also make some people extremely rich.

We will see much higher gold prices, but we must be patient and do our parts to get the word out about the gold bull market. Thanks for reading.

For some great tips read this gold investing guide.

Earn FREE Silver! – “Silver Snowball”

Earn FREE Silver! – “Silver Snowball”

Silver is such a fascinating white metal that I often get very excited and probably a little annoying when I talk about it. I absolutely love silver because silver has so many useful properties about it.

For one, silver is the best conductor of electricity. It is used in things such as solar panels and cells phone because it has an electric conductivity efficiency of 100%. It would be used in power distribution like power lines if it was affordable to do so.

Silver also has antibacterial uses. Silver has been used for thousands of years as far back as the egyptyians to purify drinking water and keep liquids and food from spoilage. Silver vessels have been recovered that were used to store liquids in.

Pioneers who were heading out west in to the frontier used to place silver dollars in their milk jugs to kill off any bacteria that might grow. Today, silver is used in water filters, medical equipment, military equipment, and medicine to kill bacteria.

Silver actually disables bacteria from forming by breaking the cell wall of any bacteria. So, the popularity of silver in hospitals in growing rapidly.

All of these uses are putting a huge demand on silver, and many experts agree that silver will be all used up quickly if something is not done. Even the USGS stated that silver would be the first element to go extinct by 2020.

This is extremely bullish news for investors looking to make a profit. In fact, silver is thought of by many to be worth more than gold because there is 5 time more gold available than silver.

The fundamentals look good for the silver price to explode from its current price of $16/ounce to over $100/ounce. Don’t beleive that? That’s what many economists like Bob Chapman, Ted Butler, and Mike Maloney are saying.

It’s a great time to be in the silver market, and I would like to encourage you to at least research the market a little more closely. You might actually see what so many others are starting to see about the white metal.

Check out my post on silver investing. Thanks for reading!

Earn FREE Silver! – “Silver Snowball”

Earn FREE Silver! -- “Silver Snowball”

The silver bull market is underway, read on to find out why silver is way undervalued. When it comes to investing in precious metals, you have several different options to choose from.

You have the long time players like gold, silver, and platinum. You also have the other not so mainstream metals like palladium and rhodium.

All of these metals have one thing in common; they are priced for their rarity. Both palladium and rhodium are interesting metals in themselves.

At one point palladium was $60/ounce until a shortage from Russian producers drove the price to $1,000/ounce. The Ford Motor Company purchased huge amounts of palladium at its high fearing a shortage would disrupt their production of catalytic converters.  

Rhodium has a seemingly more dramatic story. Rhodium was once priced at around $300/ounce and the price briefly rose to $10,000/ounce in 2008. These sharp price rises in these metals is simple proof that it has happened before, and as I will explain will happen again. 

Gold has its place in the precious metals arena. Gold is considered by most to be the king of all precious metals. For thousands of years people have used gold as money because gold is rare, fungible, easily stored, and easily exchanged for goods.

Silver is the little brother to gold, but as you will find out silver is about to be gold’s BIG daddy. Both gold and silver have performed well since the most recent precious metals bull market began in 2000. Gold has gone from $250/ounce to highs of $1225/ounce recently.

Silver has made impressive moves as well. Silver was trading at about $3.50/ounce in 2000 and has recently gone to about $19/ounce. Increased demand has caused a lot of investor interests to take notice of both gold and silver.

But what makes the silver market so monumental? Why are so many people yelling to buy silver? Why has billionaire Robert Kiyosaki stated that silver is the number one investment today?

It’s simple, but it’s shocking how many investors have not even heard about silver much less think it’s a decent investment.

Now, I will be honest with you. I’m a huge silver bull, so that obviously is going to make me a little bias about telling others which metal I think is the best. I am not anti gold. I do own some gold, but the bulk of my investment is in silver bullion, silver coins, silver bars and American Silver Eagles.

I decided a while back that I was going to go 100% into silver after listening to precious metals expert Mike Maloney talk about the bullish factors for silver. When he stated that in the not so distant future you will be able to buy a house for 500 ounces of silver, I was sold on silver.

Industrial Demand

The factors for silver are many. Firstly, silver is an industrial metal. It’s used for all sorts of things including most electronic devices, solar panels, batteries, medical equipment, water filters, and antibacterial applications. The rise in electronics over the past 20 years has all but depleted above ground silver inventories.

In fact, each year industry consumes 50 million more ounces than is mined. The rest of the silver comes from scrap silver and recycled silver. Silver mines are consuming 1/10^th of the world’s silver each year. Silver is disappearing so quickly that the USGS stated it would be the first periodic element to go extinct.

This is a huge opportunity for silver investors because silver is dirt cheap right now. It is practically being given away. So, just like when rhodium and palladium exploded, so too will silver. It’s just a matter of time before it happens. The triggering event will be when industry finally experiences a shortage in silver.

At that point, all businesses relying on silver for their operations will go on a buying panic. It will be such a panic that these companies will be willing to pay whatever price for silver in order to remain in business.

Investor Demand

Since we talked about the industrial demand, now I would like to talk about investor demand. Investors have been buying silver like crazy. Even the U.S. mint had to put orders on hold and in 2008 most dealers were cleaned out of inventory and there were 4 month waits just to get some silver.

Investors have gone crazy over the metals, and the rush to silver is just in its infancy. The size of the silver market is just tiny. This makes it an awesome place to be when the big money does finally start to flow into the silver market.

I’m not positive, but it would take something on the scale of .001% of the investment money to go into silver to buy up the entire physical market. It would take just one billionaire to buy into silver to send the price to the moon.

Big manipulators in the market have suppressed the silver price by short selling silver contracts on the COMEX. This manipulation will be overwhelmed eventually by the physical demand we are seeing. That’s why it’s just a matter of time before we see the silver price really take off.

The ETF (exchange traded funds) offer paper silver. It is simply a derivative of silver since all you get is the price exposure of silver. Most experts agree that the silver ETFs do not have the physical bullion they claim to have. This is mostly because the SLV will not allow a third party audit of the supposed silver in their vaults.

Inflation is eating away at our dollars, and this is a major reason that investment demand has been so high. Gold and silver are a flight to quality when worthless paper currencies become even more worthless. Gold and silver are real money. Cash is trash. Fiat paper currencies are going to fall all over the world relative to silver and gold.

Whether you decide to buy gold or silver, I hope you check out my other posts to learn more about the gold and silver markets. Simply click a category in the sidebar. Thanks for reading.

When you are ready to purchase, read these tips on gold and silver investing first. It will save you time and money.

Earn FREE Silver! -- “Silver Snowball”

American Gold Eagles 1 oz
Canadian Gold Maple Leaf
U.S. Silver Eagle 1 oz
10 oz Silver Bar

If you are even the least bit informed about what is going on in the world, you probably know that we are on the verge of a worldwide economic collapse in 2010.

This collapse came about by many factors, but what it boils down to is greed and government mismanagement.

There is a revolving door between Wall Street and Washington that has resulted in cronyism on a massive scale. These guys have been robbing the American people blind.

Whether it’s from Goldman Sachs fraudulent mortgage backed securities scandal, or the front running going on in the stock market, one thing is certain. People are fighting mad.

Our government has taken from us what is rightfully ours as human beings. Our freedoms are being squashed, and it’s time to voice our opinions. I want to address what I think is the root cause of all this mess. So, let’s begin.

There is no doubt that our monetary system is flawed. There is also no doubt that our monetary system is intentionally set up to serve a few. There was a time when money was money. Gold and silver were used to transact business. These commodities have been valued by people for over 6,000 years. People have died for them.

Gold and silver are the only money in the world. You could argue that a barter system could be used, but the flaw with that is the inefficiencies of bartering. That is why gold and silver took the place of bartering. They could easily be transacted, but most importantly they were rare.

When people needed a safe place to keep their gold and silver, they would simply take it to the goldsmith to keep for a fee. A receipt of deposit would be given, and could be redeemed for their gold at any time.

The problem with our monetary system today is that you can not take your receipts (a.k.a. dollars) and redeem them for gold. They are just paper. There is no value in paper. Since we no longer have the gold and silver on deposit, the system makes no sense. People blindly think that paper has value just because there is official ink printed on it.

Since banks (The Federal Reserve) no longer have to balance the receipts with the amount of gold on deposit, they can simply print as much as they need. What is the consequence of this? Inflation, and possibly hyperinflation.

How do you protect yourself from this? By buying gold and silver, because as we see, they are the only real money. For those of you who are seeing what is going on and haven’t acted to protect yourself, act now. I’m saying this with urgency because the dollar could collapse at any time.

We are on the verge of something monumental in its scope. Never before have so many countries inflated their currencies at the same time. Never before in history have there been so many fiat currencies in existence. If our economy does collapse, the ones holding gold and silver will make the rules.

God Bless.

Earn FREE Silver! -- “Silver Snowball”

Can you imagine what our world would look like if our monetary system was backed by a hard currency like gold or silver? In our not too distant past that was the case, but with the advent of central banking and the ability of governments to print money at will, our money supply has been massively devalued.

The Federal Reserve, Bank of England, and many other central banks around the world have been busy trying to bail out dying and insolvent companies by printing trillions of dollars. Just what is a central bank anyways and why are they allowed to bail out companies? We’ll look at the Federal Reserve first.

The Federal Reserve has been bailing out companies to prevent an entire collapse of our economy. The problem with that is that it’s highly inflationary and undermines our capitalist system. It should be that if your business fails, then it fails, and a stronger and smarter business takes its place.

The Federal Reserve was created after several bank runs happened in the early 20th century and the banks were unable to pay out the deposits of customers. So, the Federal Reserve was created under the guise that there needed to be a lender of last resort in case a bank run ensued and all of the people wanted their money out at once.

Jim Sinclair on Gold

The Federal Reserve was also created to “control inflation” by manipulating the money supply via interest rates. What most people don’t know is that our dollar has lost 95% of its value since 1913 when the Federal Reserve was created. The Federal Reserve was not the only central bank in the U.S.’s history. There were two prior central banks in the U.S. during the 18th and 19th century, and both were shutdown due to shady business practices.

The Continental was the first paper money created in the U.S., and it earned the phrase “not worth a Continental” because the U.S. government printed so much of it that it became worthless. Our founding fathers and writers of the Constitution tried to make sure that there would never be another central bank allowed to print as much money as they would like.

The writers of the constitution knew that paper money was a fraud, so they made sure that only gold and silver could be coined by our government as a tender in payment of debt.

Article I Section 10 of the U.S. Constitution stated that “No State shall make any thing but gold and silver coin a tender in payment of debts.”

The Federal Reserve is not a government entity. It’s a private bank owned by private investors who lend money to the U.S. government with interest charged. Guess who pays the interest on the loans from the private Federal Reserve. We do. The real reason the Federal Reserve was established was to make money for a few elite bankers and businessmen.

Why is this wrong and criminal? It’s wrong because it goes against our brilliant Constitution which says that the Treasury should issue our money in gold and silver.

Why gold and silver? Gold and silver are real money. Paper is not. Gold and silver can not be mass produced at will. Paper can be produced in whatever massive amounts the government deems necessary. This is what is called inflation. To inflate a balloon all you have to do is fill it with air. To inflate a currency, all you have to do is print more of the paper money.

Rising prices are the result of having more dollars chasing the same amount of goods and services. When governments can no longer tax the citizenry, they use the hidden tax called inflation. It is a hidden tax because most people don’t know their money is losing value.

Gold and silver never lose their value. They might fluctuate in price, but the value remains the same for the most part. You could buy a nice suit in 1930 for a 1 ounce $20 face value gold coin. Today you can still buy a nice suit for 1 ounce of gold. Try to take your $20 bill and buy a nice suit.

This is what our government is doing to our money supply, and only those holding gold coins, silver coins, gold bars, silver bars, American Gold Eagles, and American Silver Eagles will maintain their wealth. There will be billions lost in the coming years for those who choose to stay in dollar denominated assets. I hope you prepare your financial future.

Read this gold investing guide before making a purchase. It will save you time and money in the long run.

Earn FREE Silver -- “Silver Snowball”

Earn FREE Silver! – “Silver Snowball”

I would like to give readers some information on the best reasons to own gold. If you are like many smart investors then you already know that your money needs to be in hard assets right now.

Hard assets can be a range of things from commodities to land, but gold and silver are the ultimate hard asset during times of economic uncertainty.

Why is that? To put it in simple terms, it’s because gold and silver have been money for over 6,000 years.

When people realize that paper currency is just paper, they transfer that paper for real wealth (i.e. gold and silver). People have done this for centuries, but why is it so important to do that today? It’s because never before in history has the entire worlds money supply been fiat paper currency. A fiat currency, like our dollar, just means that there is nothing backing the paper.

Well, all of the worlds currencies are fiat currencies. The only currency that is not considered fiat is the Euro, and it only has a 7% gold backing. Back in 1971, president Nixon took the U.S. off of the gold standard thereby making it impossible for foreign creditors to exchange their dollars for gold. In 1930 the price of gold was set at $20/ounce, which meant that a $1 bill was worth 1/20th the price of gold.

You could have taken a $20 bill to the bank and exchanged it for a one ounce gold coin. That is in fact how the worlds monetary system worked for hundreds of years until the creation of central banking. Gold and silver rose as a currency out of necessity, and has remained as the worlds only recognizable money for 6,000 years.

When a chicken could not be traded for a hat because the hat maker did not desire having a chicken for payment, another system of trade had to come about. Gold and silver fit that bill because it is rare, easily traded, fungible, durable, and has inherent value. When people wanted their gold and silver to be safe from thieves or whatever else could take their wealth, they would store their gold with a goldsmith for a small storage fee.

The goldsmith would simply give the depositor a paper certificate that was proof of deposit and could be redeemed for gold at any time. Over time the goldsmith realized that he had large amounts of depositor’s gold and not everyone ever came to pull out all of their gold at the same time. So, the goldsmith lent out a small portion of the gold on reserve in exchange for interest.

Over time the goldsmith realized he could lend up to 90% of the gold in his vault and collect interest on the loans. After all, there were never huge amounts of people coming to withdraw their holdings at one time, so the goldsmith could get away with it.

Once people finally caught on to the goldsmiths act, people panicked and went to redeem their paper receipts for their gold. The only problem was that there were now many more receipts in circulation than there was gold.

This is how the first run on the bank took place and also the beginning of what is known today as fractional reserve banking. It’s called fractional reserve because banks today are only required to keep a “fraction” of the customer’s reserves’ on deposit.

Out of every $100 on deposit at most banks, $90 can be lent out to customers. Just like there were runs on the banks in the great depression and other times throughout history, there will be more runs on the banks in our near future.

The banking industry is a very secretive practice, and not many people really understand the practices of our banks. It is meant to be confusing and secretive because if people understood the banking industry, they would be so outraged and disgusted that the banks would not be around for very long.

Since goldsmiths did have actual gold in their vaults and therefore real value, people who got to the banks early could get their gold coins. What is disturbing is that today if you tried to take a $20 bill to the bank and exchange it for gold they would laugh at you because dollars are not exchangeable for gold at the bank anymore.

That means that your dollar has no backing of any sort. The only thing giving your paper money value is the faith that you place in it.

It is also important to note that gold can not be inflated like dollars. If a bank decided to open and they only kept gold and silver on deposit and did not loan money against your gold and silver on deposit, then our money would be a true and sound money.

The Lakota nation bank is the only bank in the world who has done this. Since our dollars are just paper with no backing, the Federal Reserve can print as much as they want.

Since the Federal Reserve has been printing dollars like crazy, you are going to see the value of your savings and everything else denominated in dollars go down. That is why gold and silver are so important right now. Gold and silver are true money and will rise in price as an indicator of a falling dollar.

I hope you are smart enough to take the advice I am giving and buy some gold and silver to protect your wealth and hedge against inflation. The best reasons to own gold now are truly good reasons.

If you are still doing your due diligence, then let me refer you to an excellent gold investing guide with information you need to know before investing in gold and silver.

Earn FREE Silver! – “Silver Snowball”