Texas has just announced that it is going to build it’s own gold bullion repository (I guess that’s a big plain old fashioned safe to you and me) in which they plan to store up to one billion dollars of gold.
Where will Texas get one billion dollars of gold you may ask?
Well, from the Federal Reserve in New York by all accounts.
It turns out that the state of Texas, for some strange reason, are worried about a currency crisis and in a snub to the Fed they clearly don’t trust anyone else to look after Texas gold other than the state of Texas. They feel this is a good way of staying solvent in the event of a meltdown and want to know exactly where there gold is in the vent of a crisis. Maybe they’ve been reading my newsletter eh?
Why buy gold?
“Why buy gold?” is probably the one question that I get asked the most often. In an age of debit cards and credit cards, even for transactions as low as a few pounds, you can see why this generation struggle to understand the need for anything other than a digital bank account. At the end of the day, I guess it all comes down to trust. Who do you trust to keep your money safe? I maintain that the only person you can really trust is yourself – no one looks after your own money better than you do.
The one thing that stands out is that central banks around the world, the very people who love fiat currency (unsupported paper or digital money systems), are the very same people who are stashing all the gold and silver bullion they can get. Don’t you find that just a little bit odd? You can understand why people like me think gold is safe store of wealth – but when the banks, individual states and even countries like Germany and Holland start getting in on the act it does raise more than a few questions.
Buy gold – while there’s any gold left to buy.
Of course, buying gold over the past three years hasn’t been the most rewarding thing to do. Prices have fallen over the last three years – not gone up. And that in itself raises even more questions. If China is buying as much physical gold as it can lay its hands on, how come prices are falling and not rising?
Well, since the media is full these days of massive fines for manipulation of the markets by our so called trusted banking institutions I don’t think anyone will be surprised if the next scandal is the manipulation of the gold markets do you? In fact some fines for this are already making the headlines.
Texas is a the latest in a long line of people around the world who are all demanding the same thing – give us our gold back so we know exactly where it is in the event of a crisis.
If it’s good enough for them it’s certainly good enough for me. One day soon those gold and silver coins may be the most valuable thing I own.