Moving individual investors into the gold market requires two major shifts in their thinking. Posted by James Randolph on October 19, 2011
Investors take the first big step towards the gold market.
October 19, 2011 – Moving individual investors into the gold market requires two major shifts in their thinking. The first is an understanding that their wealth is no longer safe in Wall Street’s hands.
One might say that should be patently obvious, but Americans want to believe in the hallowed tradition of the stock market. They recall the not so distant days when savvy investments were the means to wealth far beyond what they could hope to accumulate from a lifetime of wages. Wall Street embodies the American dream.
The stock market today, however, bears little resemblance to the free market of it halcyon days. Wall Street has degenerated into a casino where the tables are rigged for the benefit of a few insiders thanks to the government’s stranglehold on free market forces.
Investors, however, aren’t going to be fooled twice. The remarkable volatility of the Dow has caused individual investors to pull out of stock mutual funds to the tune of $60 billion in July and August, and they have staunchly resisted the temptation go back. Still, they have yet to move into the gold market, opting to ride the storm out holding cash instead.
The second shift requires investors to give up another cherished belief, that the dollar is infallible and eternal. That is a much greater obstacle to overcome, an almost indelible illusion kept alive by the Fed’s wanton money printing and credit expanding policies. Although it will take a seismic shock to topple that barrier, one could happen at any moment.
Actually, these two seemingly unshakeable paradigms have existed for only a few generations. They are the cornerstones of one more failed experiment in fiat money based on a belief that wealth can be created out of thin air. As children must leave behind their belief in Santa Claus and move on with their lives, so must society put aside its belief in free money.
We are rapidly approaching a watershed moment in our history, a reawakening to the fundamental tenets of capitalism: a free market and hard money. It will guide us back to a sound economic order where wealth is earned, not invented.
There is but one path to that future, and it runs straight through the gold market.
Senior Staff Writer – Certified Gold Exchange