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Why is the Price of Gold Exploding While Your Paycheck is Crashing?

August 15, 2011 | 40,660 views

Here's some information I first ran in this newsletter more than FIVE years ago. The numbers have been updated, but the overall situation remains practically unchanged.

Have you always wondered why the price of gold has more than doubled recently (now about $1,600 per ounce), silver has tripled (now $40 per ounce) and your paycheck isn't going as far as you need it to?

Inflation is rising! In case you didn't realize it, there has been a 300 percent increase in inflation since the 1970s. If you have been curious about these issues, you will really enjoy watching the two videos above.

One is a short animation arguing for re-introduction of gold as money because of its independence. The other is a 45-minute video tutorial from one of my favorite economic teachers -- the Ludwig von Mises Institute -- that explains how the fractional reserve banking is debased. It also discusses the central bank and how the U.S. government transitioned into the Federal Reserve System that scrapped the gold standard in 1933 and established a global inflationary system.

In 1970, the price of gold was $37 an ounce. Now, 41 years later, it is setting records regularly and is over $1,700 an ounce. Nearly all of the over two dozen experts I follow in this area are universal in gold surpassing $2,000 sometime by the end of this year or close to it and with potential to rise to $5,000 to $10,000 per ounce. That is not as high as you might think, as it has already increased by 50X since 1970. That is less than five times increase. Silver is far more volatile and may actually increase ten times its current value or more.

Once you view the video, you will see the Federal Reserve System is actually the cause of inflation and one of the primary reasons why your financial future is uncertain.

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