SOME BASIC ECONOMICS

As you all invest your hard earned dollars, pounds and various other currencies you probably rarely have to consider the number of dollars that are actually in existence. In everyday life it is unimportant and only truely matters in times where the number of units of a particular currency suddenly increases causing inflation.

Inflation is caused by the sudden increase in the amount of a currency, this means the currency is more easy to get ahold of and is therefore less valuable, in other words less loafs of bread can be bought with the same amount of dollars.

If people believe that the amount of a currency around will keep going up they will sell there currency for gold or some other safe currency which adds more of that currency onto the market, this leads to the currency becoming eventualy worthless, this is hyperinflation.

Inflation is usualy controlled by interest rates, high interest rates encourages saving and so removes money from circulation and places it into bank accounts where banks invest it. This however does mean that anyone with a loan or morgage pays more interst upon them and so this can damage business that often operate in debt.

NOW TO THE POINT

Since 1995 the usa money supply (the amount of currency available, M3) has been increasing by about 10% a year due to the usa printing dollars, this has been sustainable only by having people in foreign countries buying dollars and removing them from the US market. However eventually inflation will kick in decreasing the value of the dollar. See the graph below for the numbers.

http://www.321gold.com/editorials/ba...ie041406/3.gif

In a recent paper by a top economist who works at the federal reserve published the document below it describes that the only way to avoid the economic collapse of the dollar due to hyperinflation is to increase retail tax to 33% and variouse other moves which could well lead to rioting on the streets (These measures will probably never be implemented).

http://research.stlouisfed.org/publi.../Kotlikoff.pdf

The collapse of the dollar will lead toa domino effect causing a world wide economic collapse, this will massively devaluemost if not all currencies. However gold if it reacts as it has in the past will rocket in value as people buy it because they know it will always have value and so not suffer inflation, you can't print gold!!!

If you want to protect yourself I would suggest the site below they have the cheapest rates I have been able to find and I personnaly use them as they physically hold the gold themselves.

http://www.bullionvault.com/from/theplater

If you could use my referer link I would be gratefull, I wish you luck with your investing and I hope that you will take my advise (whether you use my link or not) and protect yourself using commodities with a high market elastcity like gold.

This is a great post, and does have some truth in it. As I was dwelling deeper into the post, I started to wonder why you were sharing such great info with a bunch of strangers... until I came to the last sentence

Well, I am in no position to buy gold bullion at the moment, but I'll keep this in mind and hopefully you'll get a referral or two from my rich Totse colleagues.

I was gonna share the info anyway, but at the end of the day I I can make some $$ at no ones loss then why not.

Btw even if the economy doesn't immediatly collapse gold is currently increasing in price. If you adjust for inflation the price is stille very low even tho it is rising.

That's true. I am embarking on a quest to own atleast 250 grams of gold after reading the info on the link your provided. That should be in and around $5000.

What about these custodial charges? How much are they... and how quickly/easily can I liquidate my Gold? What if I want the actual bar, rather than cash... can this website do that for me or is every transaction handled in monetary terms?

They have all there charge info on the site, but the charges are very reasonable.

http://www.bullionvault.com/help/?QuickStart.html

It appears to be a charge of $4 a month for below $40,000, also you seem to be able to withdraw your gold physically but don't take my word get in touch with the company or have a more thorough look using the link above.

Also if you could use my link for signing up I would be very gratefull.

Wow, good link.

I love taking investment advice from people who are trying to sell me something. It makes me feel dangerous

Please note although I am offering my link for you to sign up through I have referenced all my claims with evidence and even a document from the federal reserve.

It's against the rules to post referral links. A moderator will remove it unless you do so yourself.

Gold seems to be doing very well, but I wouldn't fear economic collapse or hyperinflation in the slightest. This type of doomerism borders the realm of conspiracy theories. Deficit spending really doesn't matter that much. You also have misrepresented your source... This 33% tax you cite is what's needed to pay off all of the government's spending (including all of the entitlements).

It's doesn't matter! Gold in a vault is more secure than money in a bank. The guy posted a "bailable" investment mechanism and anybody interested in long term financial security should turn to gold. I am with the OP FTW.

Why should anyone interested in long term financial security turn to gold? If you want long term financial security you should diversify your investments...