Who wants Gold?

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

Gold is portrayed as an ancient relic or piece of jewellery, something that is nice to look at and wear on a special occasion, but never as 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 knew 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, or pretty much anything else, they would rather you 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 into, 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.

As soon as you turn 18, you are bombarded by companies offering credit cards or loans. You’re encouraged to get a mortgage and a car on finance, pay later on everything, and track your credit score so you’re always in the best position to get into more debt. It doesn’t matter how hard you try, you will not be able to avoid being subjected to continual pressure to get into debt.

Unfortunately, our education system and what is taught in schools from a young age are controlled by the government, just like most things, and a government’s main concern is to get re-elected and say in work, so it 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 into too much debt.

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

We have been tracking the average UK property sold price from 2005 to 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 approximately 33,000 tonnes of gold valued at approximately $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, the 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. Why would they place so much importance on it? That is why they convert their own currencies into gold, even though they don’t encourage us to do the same.

If these are the financial experts, maybe it’s time for you to do what they do, and have been doing for hundreds of years.