This is an excerpt from a Full-Blown Economic Collapse: chapter from a book that just fell out of said book. 
The question is raised about how rare is gold? It has been stated that if you could get all the gold ever mined in history including all gold owned by all governments, individuals, investors in every single form.
This would include all bullion coins, bars, jewelry, art and even gold used in tooth fillings.
So now we are talking about all the gold ever mined in history or recorded history to be exact. If you were to take all of this gold and melt it down:
You would have a giant block the precious metal gold that would weigh about 91,000 tons and be about the size of a single house.
Which is less than the amount of steel made around the world in every hour.
Pierre Lassonde is quoted as saying,” Bullion doesn’t pay interest or dividends, nor does it grow or expand by itself. That’s the price you pay for tranquility.”
Unfortunately we cannot possibly foresee the future especially if it’s something that we don’t want to happen. This makes it unlikely that will be ready for an economic shock. And although, the United States has been through a number of economic shocks recently. I believe that we are now in a false sense of security and complacency.
Throughout economic history of the world no nations economy or paper money has completely escaped the pitiless, failures, depressions, devaluations, hyperinflation’s and bankruptcies that have remorselessly wiped out the gullible citizenry.
For over 30 years, wise men had issued warnings of a frightful economic collapse. So far they been mostly wrong, unless you count the recent credit crisis and housing debacle not to mention the ballooning federal deficit.
Through the Federal Reserve, the actual day of reckoning has been postponed and it is this postponement which will serve to compound the problem.
The United States emphasizes consuming over savings. We are the grasshoppers fiddling away the summer will elsewhere the ants save and invest. This policy of eating the seed corn was promoted by liberal economists. Other more noteworthy economists refer to such policies as a prescription for national disaster.
The gargantuan US current account deficit of some $1.5 trillion, that’s a complete guess. Only stands to increase and as we print more money we export our consumer inflation and run down the dollar. The rest of the world has let us get by with this but it is the policy that cannot last. Most likely, the dollar faces a disastrous devaluation.
I don’t know if gold or silver will ever be confiscated, if it does we will know for sure that we have truly fallen on hard times.
In the meantime, we have seen these two precious metals, along with platinum, palladium and even copper become desirable to hard asset investors. Gold has reached an all-time high hovering around $1700 and Silver middling at 35 or so. This isn’t a much different ratio, then what we saw three or four years ago. Gold was around $1000 per ounce and Silver was between $13 and $20 per ounce.
I feel like myself included and a lot of other people don’t want to buy silver at this price. While some people who have a lot of wealth are buying silver at an alarming rate. I wonder if they might have inside information. Regardless, if the debt and deficit as well as our trade deficit continues to increase in the Federal Reserve prints money at will which undoubtedly they will do. Barring a Ron Paul type conservative election, I think we’ll continue to see inflation, stagnation, and overall separation of classes.
So what should the typical person do? My guess is that if you’re reading this blog you probably don’t have significant wealth. You might have a decent income and probably some money set aside… While I don’t like to make recommendations.
Glancing at the above numbers, continues to show me without a doubt that silver is affordable for most people and can be kept quietly in small amounts at various secure locations. Gold on the other hand is quite expensive but doesn’t take up much space. If you can afford gold, I suggest getting at least a little bit. Copper, is difficult to purchase in bullion form because the price is a little overinflated. I do like to save my copper pennies however. Oh, don’t forget the Nickles! They are 75% copper.
I don’t think we need to get carried away and go all doomsday and crap on ourselves. A nice consistent accumulation of silver in small quantities and even those copper pennies and nickels may come in real handy someday.
What are you doing to preserve your income and/or your wealth?
Please comment below.
