As collectors our collections benefit and we are KEENLY interested when precious metal prices surge but in the end will we be winners or losers because of it ?

Let me start by saying I enjoy the updates I read here , especially from W.K.F . concerning his thoughts on the price of precious metals . I too share many of his thoughts on the subject and appreciate him sharing his . However the one thing that interests me more than the upward price inclination we have seen are the WHYS and WHEREFORES .

I read an interesting article a couple days ago that has been widely reported now about the how the Federal Reserve has agreed to purchase $ 600 Billion in US Treasury Debt to help support the economy over the next year .

The stock market took this news very positively as evidenced by large broadbased gains today . Understanding myself that the Federal Reserve is first and foremost a central bank ( like any other really and most every country has one ) it's primary purpose is as follows : to support the ability of the host government to spend more money than it has the willingness or capacity to tax it's citizens for " .

That's it folks . Add any other bunch of adjectives and/ or descriptions you want but this simple and short explanation gives you the bottom line reason that gold and silver and other precious metals are on the move and headed much much higher still .

There is tremendous global anxiety that the US Government and the Federal Reserve will run out of options sooner rather than later as government obligations run up on a hockey stick shaped curve and out of control and the Federal Reserve goes from helping purchase public debt to being the buyer of the last resort and then the ONLY buyer .

When W.K.F. implores you to BUY BUY BUY this is the bottom line

WHY of what he's saying to DO .

Any time in history that a monetary system has suffered crisis and then failed it has had far reaching and painful effects on the entire society . Thats everyone including those we love and care for .

For this reason I fear that if gold rises for the reasons I state that in the end perhaps we will all lose....something .

Hopefully if things get to that point the folks in power won't be casting their blame on GOLD for monetary ills ( as has happened sometimes in the past ) as GOLD has never been the cause of monetary ills .....the LACK OF REAL MONEY IS ALWAYS AT THE CORE OF ANY MONETARY CRISIS . THE LACK OF CONFIDENCE IN THE FIAT CURRENCY IS ALWAYS THE PRECURSOR TO CRISIS .

So I suppose to summarize....put alittle gold or silver aside for you and your family . Learn to live with a little less .

Enjoy your collecting a little more....perhaps it will help you feed yourself and your loved ones one day not too far distant . In the short term it's worth more practically every single day !!

Just my humble opinion here folks , none of us should look forward to the monetary ills ahead ( assuming what I say is true and imminent ), but we can plan and prepare and utilize our collections and collecting skills towards that end .

Can't afford gold ? No problem buy silver . Can't afford silver because you are spending so much on numismatic material for your Registry Sets ? No problem . Just include silver or gold coins in your sets .

Starting from scratch ? Almost everyone has a little gold and or silver around now in jewelry or coins passed down from parents . Start with that and build a little just-in-case nest egg .

Happy Collecting !!!

To see old comments for this Journal entry, click here. New comments can be added below.