They don’t want you to know this because if you did, their fiat currency would crash and it would be game over for them. They are purposely keeping you in the dark.

Last week, I wrote a couple of articles about the importance of getting your hands on physical gold, and other precious metals. I am convinced, now more than ever on how important this is, and I need to let you in on the secret that no one else is talking about – at least, not here at home.

Before I do that though, earlier this week I wrote about what was really an unprecedented move as the German government demands the U.S return 300 tons of its gold holdings at the New York Federal Reserve. To me this is clear evidence that things are going to be changing drastically in the financial markets in the very near future as the confidence that the world places on the U.S debt solvency is diminished. I also wrote another post on how to buy gold without overpaying an extra dime – because trust me there’s millions of people overpaying for their metals out there and I don’t want you to be one of them.

Definitely go back and read those when you’re done with this post.

Now back to the topic for this article.

I’ll spare you the history lesson and get straight to the point.

The only reason we have the privilege of claiming the reserve currency of the world is because of one thing, and one thing only – dollars used to be tied directly to gold.

There was a time in this country when you could take your hard earned money directly to the banks and redeem them for physical gold. In fact, in those days your money wasn’t referred to as ‘Federal Reserve Notes”. They were called ‘Gold Certificates’ that were payable to the bearer on demand.

But those days are long gone!

Yes, you can still buy gold and other precious metals with the ‘money’ you earn but the dollars themselves have no more ‘real’ value than the paper content on which they are printed. In other words, perceived value for each dollar is not real. It is merely assigned which also means that your dollars can lose value based on market perceived value – how confident the market is that a $100 bill really should be able to buy $100 dollars worth of ‘something’. This happens every time more dollars are printed.

By the way, if you’re read the posts I mentioned above you know that the Federal Reserve is now pumping $85 billion worth of funny money into the market every single month!

All dollars in existence today are fiat, which means they are backed by absolutely no physical assets, and when prices on the things you buy, go up, this is a loss in the confidence of how much that dollar bill is worth.

This is precisely why people buy gold and other metals when there is a fear of high inflation. They want to protect their dollars by buying what has historically been regarded as the only ‘real’ and ‘universal’ money and which has always had counter effects to inflation – when fiat currency loses value to inflation, gold gains value.

Well, you can only imagine what this means when the market starts buying gold in massive quantities. When this happens, hold on to your hats because these are signs of a failure in confidence of a currency.

Buying Gold in Massive Quantities

Some people in the news media, and even some economists, say gold is a relic – a thing of the past.

If that were the case, you would have to ask yourself why the world banks still hold any gold in their vaults and why countries like Russia and China are leading the world in gold consumption.

According to RT News, over the last decade Russia has emerged as the worlds top gold buyer, adding over 570 metric tons of gold to their total holding – that’s about 3 times the weight of the Statue of Liberty.

Additionally, China is not only the 2^nd in Gold Consumer (buying gold), right behind Russia; it is also the world leader in the production of Gold. Today, China mines more gold out of the ground than the U.S and its been noted that China increasing production every single year.

Why the big push for these countries, which haven’t had the best of relationships with the U.S, to massively push to increase their gold consumption and gold production?

As reported by RT News in an article title ‘Asian Tigers Move Away from the Dollar’, on May 13, 2012 top leaders from China, Japan and South Korea – the 2^nd, 3^rd and 15^th largest economies in the world respectively, met to start taking steps to replace the dollar.

Replace the dollar?

This completely undermines the ‘reserve currency’ status of the dollar and means that many countries around the world simply do not see the dollar as being valuable or important.

This is very bad if you work for and hold dollars!

That same article goes on to say that China fears another economic crisis resulting from the current ‘reserve currency’ of the world – the dollar – and many economists have speculated that it is eventually looking to back its own currency in gold!

With all of the debt the U.S holds today it wouldn’t be very hard to attract people to a currency that was actually worth gold!

If this were to happen, we would see the introduction of a new world reserve currency and everyone holding dollars would see a drastic and abrupt loss in their wealth.

Save Yourself While You Can

I find it quite interesting that although there seems to be a widening distrust of the U.S dollar as the reserve currency of the world by many of the largest economies in the world, people here in the States are being kept in the dark.

Of course, the reality of the situation is that the media understands what t he common man does not – that this is the beginning of the fiat currency crash.

When the fiat currency does crash it will be because the market will demand something else. It will want a currency that is in fact valuable, not just by perception, but by something real and tangible.

When the fiat currency crashes it will be because the market will once again demand gold and will end the forty plus years experiment in fiat currency.

You don’t have to wait until your dollars are worth nothing. You can save yourself from the inevitable fiat currency crash now but you have to buy Gold and you have to buy other precious metals like silver, like I do.

And if you’re ready to start buying gold and silver and increase your wealth, not diminish it – I want to show you how to buy gold without paying more than you should!

Mastermind:

What do you think of Russia and China ramping up their precious metals consumption and production? Does this give any clue into their real motives when it comes to future currency options?

As always, please leave me a comment and let me know what you think about this post. I love getting your feedback and overall thoughts on these posts. Also, if you think this post is worth sharing, help me spread the word to your friends on your social networks!