Who wants Gold?

We’re almost never encouraged to buy gold by our financial advisers, banks, or mainstream media and we are never taught about real finance and inflation or how banks create currency, and we’re never taught about protecting our wealth or savings with gold.

Gold is portrayed as an ancient relic or jewellery, something that is nice to look at and wear on a special occasion, but never that it is money. It’s almost as if the subject is avoided so we are left in the dark and never think about it, and this is exactly what happens. If you were to ask 100 people in the street if they know about the history of money and gold, or the price of an ounce of gold, you’d probably see a lot of puzzled faces.

Do you not find it strange that we are encouraged at least once every single day to take on more debt? (they refer to it as credit as it sounds better). Gone are the days when you would haggle with a car dealer to get a reduced price for cash, now when you buy a car, sofa, TV and pretty much anything else, they would rather you to take out finance (debt) because they earn commission and charge fees on the finance which is paid by the banks, who can create more currency from the debt you just got yourself in to, which is now an asset on their balance sheet. They can now charge interest on all this new currency that didn’t exist until you borrowed it.

Unfortunately, our education system and what is taught in schools from a young age is controlled by the government, just like most things, and a governments main concern is to get re-elected and say in work, so may be swayed by ‘donations’ from very wealthy financial institutions which may possibly encourage this lack of financial education as a means to prevent the young school leavers and the next generation of earning adults from being aware of the horrendous consequences of getting in to too much debt. 

Who’s to say if this is the case or not but whatever the reason for leaving people financially ignorant, the process works and too many people get in to unsustainable debt which can and does, quite easily and quickly ruin lives.

We have been tracking the average UK property sold prices from 2005 – 2020, as you can see below. You can see quite clearly how the price of property has greatly increased when priced in the depreciating fiat £, but when priced in gold which holds its value over the long term, property has fallen in value due to the difference in purchasing power of currency compared to money.

Who wants gold?

The banks do, and they buy it by the tonne. Banks currently hold approx. 33,000 tons of gold valued at approx. $2 trillion. Banks hold gold for a few reasons, 1) liquidity – used as collateral for borrowing. 2) As a safe haven asset. 3) A hedge against inflation. 4) Lack of counterparty risk. 5) To maintain a diversified portfolio. If those reasons are good enough for banks, government and the ultra wealthy, surely they are good enough for you.

Bank of England Gold vault is home to approx 400,000 bars of gold, 310 tonnes owned by the UK the rest is held for other countries and governments. Only the Federal Reserve holds more gold than the Bank of England.

As you can see, banks, governments, countries and the wealthy, all know that gold is safe and they know that it is money, or why would they place so much importance on it? That is why they convert their own currencies in to gold, even though they don’t encourage us to do the same. If these are the financial experts, maybe it’s time to do what they do, and have been doing for hundreds of years.