5/3/09 Why The Government Hates Gold

Precious Metals Market Analysis, By Michael Pennington (Copyright 2010 Pennco Coins)

Gold acts as a burglar alarm. It sounds off loudly when politicians are spending more than they take in. As the dollar continues to shrink, people start reconsidering holding dollars in the bank. So it is definitely in the best interests of the banking and political establishment to keep a lid on the price of gold. They make gold savers out to be the lunatic fringe and refer to them as ‘gold bugs’, a disparaging term, characterizing them as people acting in desperation. Well, today those ‘gold bugs’ would have to include the China Central Bank, Warren Buffett, and some of the United States’ largest hedge funds.
Recent reports confirm that the China Central Bank has been secretly stockpiling gold since 2003, and now holds over 1,054 tons. Warren Buffett’s Berkshire Hathaway purchased the two largest gold manufacturing companies in the U.S. in 2007.
Central banks hold gold in their vaults and use it to settle final accounts. Why? Because they know that paper money is easy to print from nothing and therefore can easily be devalued. So why would people move into a market that seems to be clearly manipulated? Because they would prefer to hold real wealth over paper wealth. and because the power of the establishment to mold people’s opinions about gold and manipulate the market itself is weakening. People today are becoming their own ‘central bank’, backing up their own dollars. They are waking up to the fraudulent nature of our fiat currency, and the unstable nature of holding unsound dollars in unsound banks.


About Pennco Coins

Pennco Coins
This entry was posted in Buffalo, Bullion, Coin, Dollar, Eagle, Federal Reserve, Gold, Gold to Silver Ratio, Government, Investment, Maple, Mint, Palladium, Peso, Philharmonic, Platinum, Silver, Tax and tagged , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s