Gold Is Performing Its Role Well In TEOTMSAWKI

[The following post is by TDV Chief Editor, Jeff Berwick]

As we enter into the final stages of The End Of The Monetary System As We Know It (TEOTMSAWKI) gold is playing its role very well.

Due to gold hitting an all-time high of $1,921.50 on September 6th, 2011 and now currently trading near $1,200 there has been a lot of negativity about gold.  If you watch mainstream media in the US (which no one does anymore… CNBC just hit all-time record low ratings at the end of 2014) you get the impression that gold is not only dead but going much lower.

However, in every other currency, other than the US dollar, gold advanced in 2014.

If you live in Russia and have most of your assets tied to the Ruble gold performed its role perfectly in helping to preserve wealth in a time of monetary crisis.  The same can be said for Argentina, Japan and the Eurozone who are also going through varying levels of monetary and financial crises.  Even in places that are not yet into crisis levels, like Australia and Canada, gold performed well in 2014 in terms of their currencies.

Even compared to global stock markets gold performed well.  The only two stock markets we could find that gold didn’t outperform were the US and Canadian markets… and just barely versus the Canadian markets. 

In US dollar terms gold ended 2013 at $1,244.30 and ended 2014 at $1,204.06 for a small 3% loss on the year.

The main reason the US dollar and the US stock markets performed well in 2014 were due to Federal Reserve money printing (which hovered near 10% for most of 2014) and due to a “flight to safety” of people thinking that the US is a safe place to park their assets.

While it was for 2014 this will not continue much longer for a variety of reasons.

US debt continues to soar and there appears to be no end in sight.  On the last day of 2014, alone, total US debt soared by $98 billion ending 2014 with a new all time high total of $18.141 trillion in Federal debt – an increase of $136 billion in the month of December and $790 billion for all of 2014.

As can be seen, US federal government debt has more than doubled since 2007!  In other words, total debt in the last seven years has grown more than the previous 231 years combined.  Over $31,000 for every man, woman and child in the US has been borrowed since 2007.  A family of four, in just the last seven years has had $125,000 placed over their heads with them as collateral.

In many places, like India and China, your average person stores their savings in gold.  Meanwhile, in the US, your average person has not only never even seen a gold coin but won’t even accept an offer to buy one for $50.

The coming years will see an incredible amount of volatility and insanity in the monetary and financial markets including in the US.  And eventually, the US will be ground zero for the collapse.

As can be seen with the Russian Ruble and the price of oil recently, markets can collapse without warning and very quickly.  Gold has been an excellent stalwart for retaining your wealth for centuries through these panics and collapses.

As the US collapses, however, it may be a very dangerous place to hold your gold.  The US government confiscated all gold in 1933 and didn’t even allow private individuals to own it until 1973 and there is no reason that won’t happen again.  In fact, compared to the 30s and 70s the systemic problems in the US and levels of debt are much, much worse.

For this reason we wrote “Getting Your Gold Out Of Dodge” which gives you information on how to internationalize your gold.  It’s also free to TDV subscribers.

Gold has performed very well since 2000 and has been a safehaven for many worldwide, even in 2014.  The real issue for many in the US will be not only in owning gold during TEOTMSAWKI but also retaining it during the collapse as governments look to seize as many assets as they can from “the rich” (a person who has some assets is now considered rich in the debt-based US).

Even in a year, like 2014, where gold is mostly disliked amongst the general investment community it still performed very well.  Our expectation is that it will continue to do so and as TEOTMSAWKI continues it will wildly outperform fiat currencies and stock markets globally.

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The Dollar Vigilante is a free-market financial newsletter focused on covering all aspects of the ongoing financial collapse. The newsletter has news, information and analysis on investments for safety and for profit during the collapse including investments in gold, silver, energy and agriculture commodities and publicly traded stocks. As well, the newsletter covers other aspects including expatriation, both financially and physically and news and info on health, safety and other ways to survive the coming collapse of the US Dollar safely and comfortably. You can sign up to receive our FREE monthly newsletter, our Basic Newsletter ($15/month) or our Full Newsletter ($25/month) with specific stock recommendations and updates at our Subscriptions page on our website at DollarVigilante.com.