Silver as an investment

Payback Time

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

321gold.com / By Richard Russell / March 28, 2013

I’ve written about this before, but I want to emphasize this again. I’ve been asked to name one future situation of which I’m most certain. My answer is this – I believe the surest situation (change) in America’s future is a decline, even a drastic decline, in our standard of living. We’ve spent it; we’ve spent what we didn’t have. And somewhere ahead, probably much sooner than we think, will come payback time. And it won’t be pretty.

Why do I warn about payback time? My answer is that there is no free lunch or no free dinner. Really? But Americans have been stuffing themselves with free lunches and free dinners ever since World War II. How could they do that? Here in the US we have been able to keep our standard of living high because of one reason. The fact is that we have been spending more than we have taken in ever since 1946. And in doing so, we have built up huge deficits and debts. How was it possible to do this? It’s been possible because we possess one “magical” advantage. The US possesses the world’s reserve currency. For years the US dollar was considered “as good as gold.” Consequently, the world accepted our dollars by the multi-billions. Happily the US dollar has been the world’s reserve currency for decades. The reason our standard of living has been as high as it has — is that we have been able to buy any amount of food and merchandise with our dollars. The secret of our exalted standard of living is that our creditors have been accepting our dollars all along — until now.

The reason I have predicted that our standard of living is headed for a great fall is because the world is starting to back away from the US dollar. The dollar has not been holding its purchasing power, and the world knows it.

The central banks of the world and many nations including China (our biggest creditor) are now in the process of cutting down on their dollar exposure. To do that they are now buying (instead of selling) gold. For 12 years I have been begging my subscribers to do the same thing — buy gold. More recently I have been urging my subscribers to buy gold in physical form — in the form of one-ounce bullion coins.

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Thanks to BrotherJohnF