Foster Publishing, Coin & Stamp
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Physical Metal Is Better Than Paper Contracts
Silver Investor's David Morgan published an interesting comment from Richard Russell about the possibility of a freeze on trading gold and silver, and why it is better to hold physical metal than paper contracts.
"Question – Russell, would you talk a bit more about your preference for gold coins in one's possession vs. GLD, which you term "paper gold" and SLV, which you call "paper silver."
“Richard Russell’s Answer – Yes, as I see it, the authorities are doing whatever they want. I'm more inclined to hold actual gold coins. The SEC now disallows shorting in 799 financial equities, an amazing turn of events. Now with central banks all over the world releasing vast quantities of fiat money, it's entirely possible that gold will embark on a major rise. If this happens, it will throw suspicion on all fiat currency, which is the last thing the central banks want. Under these conditions, it would not surprise me for the Fed and the SEC to halt all trading in gold, and the easiest place to monitor such an edict would be GLD. In 1933 the government ordered in all gold held by the US population. I can't see that happening, but I can see all trading halted. This would throw gold into the black market and make it very difficult to price or sell your gold. In France, people are forbidden to take any gold out of the country. Remember, gold is the enemy of fiat paper, and in that, there is a story. Rising gold throws suspicion on ALL fiat and central bank issued currency.
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