Martians Are Wrong About Gold

So Is Warren Buffett [The Daily Reckoning] June 27, 2024 [WEBSITE]( | [UNSUBSCRIBE]( Martians Are Wrong About Gold Annapolis, Maryland [Brian Maher] BRIAN MAHER Dear Reader, A Martian gazing down from his red perch — Mr. Warren Buffett once razzed — would marvel that Earthlings dig gold from the ground… merely to re-entomb it in vaults. That is, the business is senseless. It is pointless. It is juiceless. At first blush, our space man is justly puzzled. Why indeed would humans shovel up hunks of metal merely to lock them away, idle? Yet the Martian — and the Nebraskan — jump past a fundamental truth of human nature. Men act with purpose. They do not squander their time, energies or resources on senseless, pointless and juiceless pursuits. The question then arises: Why would men expend time, energies and resources to haul up gold… and risk their lives deep in dangerous mines to seize it… if they lacked compelling reasons? Indeed: Why do men — to this day — toil extravagantly to wrest gold metal from stingy earth? The Gold Standard of Money Perhaps men continue plucking up gold for this reason: Thousands of years of history demonstrate that gold is worth plucking up. [We hazard one select gold investment will go skyshooting as the unfolding commodities “supercycle” we described yesterday enters effect. [Go here]( to learn about the mining company that could potentially return 5,000% — that’s correct, 5,000% — within 6-9 months.] Gold is perhaps the ideal money — if you will forgive the expression — the gold standard of money. Money must be rare. Rocks cannot be money — for example. Simply consider the quantity of rocks lodged within the skull of a single United States senator. Multiply it by 100 skulls and you have a near infinity of rocks. Multiply it by all the skulls in Washington and you have your infinity. This vast abundance discredits rocks as a form of money. Nor can sand meet the monetary standard — and for the identical reason. [Revealed: THE ULTIMATE GOLD TRADE]( [click here for more...]( While gold has hit record highs this year… Gold stocks are still trading as a MASSIVE discount. This is setting up what we call “The Ultimate Gold Trade.” It all has to do with a little-known gold miner trading for less than $10 per share… That stands to return 5,000% over the next 6-9 months to investors who make the right trade. Our top resource analysts NEVER recommends trades like this. But in his own words: “This is too big to ignore.” [Discover The Ultimate Gold Trade Here]( Yet there must be enough money to “go around.” Gold is rare, it is true. Yet its quantity is adequate for its purposes. Gold is likewise durable. Gold mined thousands of years ago lives yet, fresh as a sprig, no wrinkles, no sags. And unlike gems or diamonds, gold is divisible. It can be fashioned into bars or coins as needs require. Meantime, money must be a store of value. Well friends, gold has maintained its value across centuries, across millenia. Hence it meets money’s strict conditions. “No Central Banks [Provide] That Kind of Price Stability” Explains author Edward Griffin in The Creature from Jekyll Island: In ancient Rome, the cost of a finely made toga, belt and pair of sandals was one ounce of gold. That is almost exactly the same cost today, 2,000 years later, for a hand-crafted suit, belt, and a pair of dress shoes at Barneys in New York. There are no central banks or other human institutions which could even come close to providing that kind of price stability. Can paper money approach this flatlining stability? Consider the dollar of the United States… This debased currency has shed some 98% of its value since the Federal Reserve’s 1913 demon birth. The greatest plummets came after 1971 — when Old Nixon scissored the dollar’s last chain link to gold. One 2024 dollar purchases under 15% of the 1971 dollar. That is, the 1971 dollar did the duty of seven-plus 2024 dollars. Is this monetary stability? If this is monetary stability then schizophrenia is psychiatric stability. Sound Money Is Honest Money We stand in defense of gold because it is sound money. Sound money is honest money. And sound money equals sound government. It chains government down in impossible fetters. Explains the titanic “Austrian” economist, Ludwig von Mises: It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically it belongs in the same class with political constitutions and bills of rights. [The] postulate of sound money was first brought up as a response to the princely practice of debasing the coinage. Label what you will the money of the United States. You cannot label it “sound.” And we trust its issuer no more than we would trust a dog with our dinner. The thing is less money than an instrument of credit. That is, an instrument of debt. [“I traveled over 1,000 miles to show you this strange device…”]( [click here for more...]( He traveled 1,000 miles away from home… To show you this strange device on a farm in rural Virginia. You won’t know by looking at it, but a secret company behind this strange device could hold the potential to make you rich over the coming years. [Click Here To Find Out How]( Before the 20th century, debt was a cultural taboo — a scarlet “D” emblazoned upon the bosom. Credit for households was virtually unknown. And only the poorest households resorted to debt-financed consumption. But along came the 20th century with its wars… its world-improvers… and its cranks. Gold was in their way. “Gold Has the Public Spirit of a Cat” Gold proceeds at its own leisurely pace. The greater good is beyond its care. The milk of human kindness? You will not find it in gold. Gold — instead — embodies the civic spirit of a cat. Meantime, gold turns from the roar of cannons. “You go over there,” gold tells its fiat counterpart. “I’ll stay here.” As wrote our co-founders Bill Bonner and Addison Wiggin in Empire of Debt: The trouble with gold is that it turns its back on world improvers, empire builders and do-gooders. The nice thing about gold is that it is so unresponsive. It neither laughs nor applauds. That is precisely why gold could not endure… Debt-Based Money Is Ideal for Public Service Only a debt-backed system of paper money could finance the great wars, the social improvements and the fevered dreams of the 20th century. This money is ideal for public service. It is civic-minded. It has a heart. It follows orders. Whatever war, whatever boondoggle, whatever swindle it is ordered to stand behind… it will stand behind. Fiat money willingly sacrifices its value for the greater good. Gold, meantime, is jealous of its value. It guards its virtue. Thus we speak our piece for gold. Multiple millennia of history attest to its enduring value. Those same millennia attest to the unenduring value of paper monies. They have all ended in history’s hellbox. As the United States dollar one day will… Regards, [Brian Maher] Brian Maher Managing Editor, The Daily Reckoning [feedback@dailyreckoning.com.](mailto:feedback@dailyreckoning.com) Editor’s note: Jim Rickards just released his [latest video]( at Paradigm’s YouTube channel… [click here for more...]( Jim discusses tonight’s presidential debate, Trump’s VP pick, the latest Murthy v. Missouri Supreme Court ruling… as well as who will be the debate’s winner. [Click here]( to watch before Thursday night’s debate. P.P.S. The gold market is setting up for a big move. [And Jim Rickards believes it could make gold INVESTORS wildly rich.]( Right now, gold mining stocks are trading at their BIGGEST discounts to gold since the turn of the century. It’s been DECADES since they were this undervalued. And the right trade on one particular gold stock could potentially return 5,000% over the next six–nine months. This is easily one of the biggest trading setups we’ve seen in decades. Once gold makes its next big move, it’ll be too late to act! This is huge. [Click here to discover “The Ultimate Gold Trade” right now.]( Thank you for reading The Daily Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:feedback@dailyreckoning.com) [Brian Maher] [Brian Maher]( is the Daily Reckoning's Managing Editor. Before signing on to Agora Financial, he was an independent researcher and writer who covered economics, politics and international affairs. His work has appeared in the Asia Times and other news outlets around the world. He holds a Master's degree in Defense & Strategic Studies. [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2024 Paradigm Press, LLC. 1001 Cathedral Street, Baltimore, MD 21201. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your The Daily Reckoning e-mail subscription and associated external offers sent from The Daily Reckoning, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@dailyreckoning.com. This address is for feedback only. For questions about your account or to speak with customer service, [contact us here]( or call (844)-731-0984. 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