Gold: Monetary Insurance Against Fiat Currency Debasement
In this report I look at how gold and silver act as insurance agains mismanagement of the affairs of State. I look at how gold also acts as a revealer of false paper or debt based asset prices.
"A Pocketbook of Gold": https://www.amazon.co.uk/Pocketbook-Gold-Survival-Manual-Monetary/dp/0984471200
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Good overview. A quick point on mining profits though. If gold goes from $1000 to $2000 then profits much more than double. I'm sure you are already aware but for other readers.
If a mining company mines gold at a cost of $500 (that's a low cost mining company, some mine at around $800 and oz).
Gold at $1000 = $500 for each oz mined.
Gold at $2000 = $1500 for each oz mined.
That's a trebling of profit, or 300%.
For a junior with an all in cost of $800 the profit would look like this:
Gold at $1000 - Profit $200
Gold at $2000 - Profit $1200
or 6 times profit or 600%
That's what makes mining companies so attractive when the gold price rises.
As a further note, mining companies have never been so undervalued relative to the stock market. If gold starts to rise and the general market turns down it will be a mighty exciting time for gold miners. Particularly in light of last years underperformance.
@unclehermit Thanks for the thorough explanation. I don't think I explained it as well as you have.
Gold and silver has and always will be money.
It amazes me how all the countries and banks are buying it up<,China Russia, India yet people don't see the value?
People buying "paper" silver and gold have no Silver or Gold.
Unless its in your possession, you don't own it.
Great post /video my friend.
Thanks @buster544
Thank you for such a undervalued post. Your info is really good very informative.
@harrybloger Thanks for your support and feedback.
Good video as usual maneco64. Gold and silver have been used as money for thousands of years. I believe that is why gold is “managed” because it’s a canary in the coal mine.