Every American investor should, in my opinion, have precious metals in his/her portfolio, as protection against the big, stupid, irresponsible, out-of-control federal government (which the Democrats hope to expand without discernible limit).
“Boomers” will remember when American dimes, quarters and fifty-cent pieces had 90% silver content. Those coins were rapidly driven out of circulation by a new debased coinage.
The value of these coins fluctuates with the market price of silver, but the Mercury dimes in this photo are generally worth at least $2 each. The quarters are worth at least $3 each. The "halves" are worth about $7 each.
Boomers may remember when American paper currency said “Silver Certificate.” A bearer could, in theory, exchange the bill for silver. Those silver certificates were also driven out of circulation by unbacked paper.
Some Boomers may have seen and even handled an American $20 gold coin designed by St. Gaudens. It is stunningly impressive. It makes today's coinage seem like crap by comparison. How can a $20 coin be worth about $3,000 today? The "magic" of paper currency debasement.
Today, it costs more than one cent to manufacture a penny. Today’s paper currency is arguably nothing more than special ink slapped on fancy paper, backed by nothing.
Throughout history, big, stupid, irresponsible governments have made paper money worthless.
Here is a photo of Venezuelan currency, made worthless by the socialist government, and discarded in the street. This represents legalized theft by government.
There is no government on earth big, stupid, and irresponsible enough to make precious metals such as gold, silver, and platinum, worthless.
Thanks in large part to irresponsible presidents like maobama, and irresponsible Congresses, it is now impossible for the United States to pay its obscene national debt. It is almost a foregone conclusion that the federal government will at some point be forced to “solve” this problem by monetizing the debt, i.e., creating $trillions out of thin air, which is what the Federal Reserve Bank insidiously does today.
Debasing a currency is a great way to debase and collapse a civil society.
Imagine a President with sufficient integrity to boldly propose that America return to a gold standard.
That would be President Trump.