Is Your Gold/Silver Worthless?

Is Your Gold/Silver Worthless?

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Many people have been riding the precious metals wave for the past couple years and have been making some pretty good gains, but could YOUR gold/silver be worthless? Let’s take a look.

If you purchased gold at $400 an ounce and it is now $1,400 an ounce, there is no doubt that if you sold it, you would make a handsome profit. However, if you are not jumping off this wave to pocket cash made from the rise in price, and are instead stocking up on gold and silver as an “emergency currency” what happens when that economic catastrophe actually arrives?

Let’s break it down into a real life, practical example:

Bobby and Johnny are playing when Bobby’s mom gives the boys ten chips and ten pretzels. Bobby eats 7 of his chips right away, leaving him with 3. He then trades two of those chips to Johnny for ten pretzels (5:1 exchange rate). Now, Bobby has ten pretzels and one chip. Johnny doesn’t really like having so little, so he tells Bobby that he wants to trade one chip back in and get 5 pretzels.  Bobby is greedy and controls the vast majority of the available assets, giving him power to manipulate. He tells Johnny that it now takes two chips to buy one pretzel. This turns Johnny’s chip, which was once the most valuable asset on the playground, into something that is worthless because Bobby inflated the pretzel’s value 1,000%!

That same thing can happen to your gold. Fear of hyper-inflation is what is driving this modern day gold rush. Let’s say your gold is currently worth $1,400 in today’s value, and that is enough for you to pay rent for one month. Tomorrow hyper-inflation hits and a loaf of bread is now $40, ground chuck is $200 and your asset that could once pay rent, now can’t even make a trip to the grocery store for you! Don’t think it can happen? Hyper-inflation is very real. It has happened in the past, it will happen again, and it is primed to happen to the western world!

“But Josh,” you say, “that wouldn’t happen because wouldn’t gold also go up in accordance? That’s the whole reason we are buying it, right?” NO! Here is why, because there are little kids running our currency and these same little kids also happen to own most of the world’s known gold reserves. Just like Bobby holding all the assets and having the ability to determine both assets’ value! These kids go by a different name, The Federal Reserve.  Now, if the legislative branch of our government was in control of our currency, then yes, your gold would be a great asset and you would look like a genius to everyone who wasn’t smart enough to buy some for themselves.  However, that is not who controls our currency, so what we are left with is evil to its very core.

The FED sells some of its gold reserves and manipulates global currencies (since most other nations’ currencies are not controlled by their governments either) and gets governments and the public to invest billions into the gold market, putting the paper money, that they are happy to print so freely, back into their vault. Then they create a hyper-inflation crash (similar to what they did in the 20’s and 30’s). Now the paper is worthless because they said so AND you gave yours to them anyway in exchange for the gold. You need to sell the gold since they have made sure bartering is illegal (or at least very hard to do without penalty) and you get to exchange your chip, I mean gold, back into the very people who determined what you would pay and what you would be paid.

Now, what if they take it a step further and pass emergency legislation which limits the value the gold can rise because they “think” it will prevent a total collapse if they still retain some intrinsic value of the gold? They can do this, it’s called price fixing, or exchange regulation.  Or worse yet, what if they make owning gold illegal AGAIN like they did in the past when they crashed the dollar, but this time they include the coins as listed contraband? This is just like little Bobby from our example; exchange the chips for pretzels, change the exchange rate which made Johnny’s chips (once prized currency) turn into something of little value, and then tells Johnny that chips are no longer allowed on the playground.  This gives all the wealth to Bobby, leaving Johnny with less than nothing, and all the while Johnny thought he was taking part in fair trade and making sound investments.

In order for gold to be a smart “emergency currency” investment for the average citizen The Federal Reserve needs to cease to exist. They are nothing more than money changers, the very people who have been destroying freedom and free enterprise for thousands of years. Matter of fact, they are of the same lot as the money changers Jesus took a whip to (and will again someday).  Until control of the money returns to the people through their elected representatives I would put very little into gold/silver as “emergency currency.” Matter of fact, there are much better items to which you could barter with in a total economic collapse anyway. Now, if you are just jumping on, jumping off, and jumping on again to make some quick profits from the exchange game BEFORE there is an economic collapse…Surfs Up!

The smartest investment to hedge against total economic collapse (in addition to food, salt, ammo, seeds, cloth, etc) is investing in and promoting information, as well as promoting politicians who want to eliminate the FED, implement a fair/flat tax, and return ownership of your life back to you. The most valuable thing you can turn to is The Truth. The Truth shall set you free and you shall be free indeed.

Josh Tolley is a business and behavioral strategist.  His latest book, “Quit Your Job or Die: Discover the Importance of Self-Employment” has been a top ten best seller for over 16 weeks. He has been seen on NBC, CBS, on over 100 stations nationwide and he has been heard from coast to coast on the radio.  His teachings have been implemented by hundreds of people and dozens of businesses around the globe. He is ranked as one of the top 100 business and personal growth trainers in the world and is the developer of many human interaction technologies and strategies. Josh does take on a VERY limited number of personal clients, to discuss this or to book Josh for a seminar in your area, contact Mike with The Annex Project at 626-893-4917 or  You can also find out more about what Josh is up to at


3 thoughts on “Is Your Gold/Silver Worthless?

  1. Dear God. Your conslusion on gold is brillant. Wish I had come to your logical conclusion before my husand and I began investing in precious metals. So, want to buy any gold eagles? I suppose that this also applies to the silver we own. Gosh, I feel like a rat following the evil pied piper Fed, driven forward by the media telling us about Soros and China putting all their money in gold. Yeah, right; silly, silly me.

  2. What if we’re not talking about a “total economic collapse”, but a local Katrina-scale disaster? If something like an earthquake or tsunami wipes out your home, having some silver or gold in a safe location would give you the resources for a few essentials.

  3. Today’s date is June5 2011…. and the cost of mining and refining an ounce of silver is between $4.50 and $7.00, depending on the location of the silver mines, on top of that, worthless fiat paper currency is being accepted as payment by the mine owners.
    The point is, if silver was really in short supply, surely it would cost much more than an average of $5.75 to mine and refine an ounce.

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