Gold and silver represent honest money. It puts value in the hands of the person who generates the value the money represents. In the current electronic system, money is stored by a system that can manipulate its value. This lends itself to dishonesty. If you work hard and save your money, you want your savings to represent the productivity of your labor. In the current electronic system, the value of your savings is diluted by the excess printing of money. Inflation eats away at your savings and the productivity it represents is transferred out of your control into the hands of the central bankers. In turn, they enrich selected banks, government programs, and others who have found favor with them, all at your expense. This system becomes dishonest as they encourage the transfer of wealth. We are to love thy neighbor as ourselves. Can anyone honestly say that this transfer of wealth is an act of Love?
By eliminating gold and silver as money, the central bankers have taken control of the monetary system. Can they really know what is best for me? Do they really care about my future, my retirement, or the inheritance I want to leave my loved ones? They coin the term “greater good” to justify their actions. Often it means for their own “greater good”.
Gold and silver place value in the hands of the people and decentralizes control of value. This is a good thing. It allows individuals to make decisions in their own best interest without any interference from those who know nothing about their situation. What happens if the central bank makes a mistake in the handling of the monetary system? If individuals have their value in their own pockets, they are protected from human error.
Honest money eliminates exchange rate issue with other countries. In a recent trip to Australia, I was in sticker shock of the cost of a meal. In terms of U.S. Dollars, an Aussie lunch was roughly 30% higher than its American equivalent. With honest money, sticker shock would be a thing of the past. Once ounce of silver has the same value around the world.
Banks would become depositories of gold and silver and could act as settlement facilities or clearinghouses for trade. A transaction fee could be developed to cover the cost of acting as a depository for excess gold and silver beyond the working capital needed for day to day exchange.
Honest money will reemerge once the current system has collapsed. Obviously I would prefer an orderly conversion from the current system to a bimetallic system. I just don’t think the current debt-ridden system can sustain itself much longer. Its days are numbered. Only Our Heavenly Father knows when the inflection point will occur. Until then, stay liquid, stay out of debt, and stay in prayer for guidance.