The New Case for Gold

I read Currency Wars, another book written by the author, a while ago. Even though I was impressed by the concept the author presented in that book, I was turned off by his writing style. In that book, the author spent chapters and chapters bragging about himself telling us how great and important he was, perhaps to establish credibility. The reader had to sift through the fluff to get to the gems of wisdom. As you probably already know, that book made the author famous and currency wars is now a widely understood and often quoted concept in mainstream media. This book is very different in that regard. It is concise, to the point, mostly factual and the arguments that the author presents are based on sound economic principles. There is very minimal bragging by the author so hardly any fluff. I was able to finish the book within a weekend reading off an on during the day. I am utterly impressed by the author. He is not only knowledgeable but also a genius who can use his knowledge to visualize the future. His arguments are extremely sound. It is amazing how he explains complex economic concepts in simple language for the regular reader. Most readers will not even realize that he is using Masters or PHD level economic concepts to explain what is happening and what will happen. I have a master's in economics from a top school in the nation so I understand the concepts he is using to arrive at certain conclusions. Another reason I was impressed by this great man is his acknowledgement that he may be wrong. That is the mark of a wise and experienced person because you really never know what will happen in the future. He presents various scenarios on what will unfold in the future without making predictions with certainty. He only suggests that you put 10% of your investible assets in gold. Why? Because he says that even if he is wrong, you will lose minimal amount of money. Even though I have more or less come to the same conclusions as the author and believe that what he is saying is probably right, it is possible that the future may unfold differently. Regardless, read this book! It is worth your time and money. Mr. James Rickards, has done an amazing job this time!

In this latest manifesto and companion volume to his two previous best sellers, Currency Wars and The Death of Money, James Rickards provides cogent arguments for owning gold in any and all economic environments, while demonstrating once again that he is a master storyteller. He begins by debunking the six common reasons that critics cite in making a case against gold as money, taking us through the periodic table of the elements, explaining complex systems, and giving the reader a crash course in economics, discussing nominal and real interest rates, inflation, deflation, and monetary policy. His succinct description of the structure and operations of the Federal Reserve Bank, the Bank for International Settlements, the IMF, the London Bullion Market Association, COMEX, ETF’s and hedge funds, among others, and the historical, current, and future possible manipulation of the price of gold is fascinating, if not terrifying. Rickards has a unique ability to deconstruct and reduce basic arguments and concepts, setting accepted paradigms on their heads while making a case for volatility, chaos and collapse. His characteristic deadpan humor makes this book a pleasure to read (his anthropomorphized water molecules that he uses to explain why old models don’t work is a personal favorite), and I am grateful for his advice on how to be prepared for dire events and the collapse of the international monetary system. His message is clear: while diversification is crucial to any investment strategy, preserving wealth and planning for the oncoming chaos should prompt us all to act—don’t delay, don’t walk, but RUN to your nearest gold dealer.

Rickards does a great job debunking the usual objections to gold. He also reveals the fascinating story of how in 1934 the U.S. government apparently seized over 8,000 tons of gold from the Fed and gave it to the U.S. Treasury, leaving behind "gold certificates" that are still on the Fed's balance sheet to this day. He hypothesizes that this debt of gold is the reason why the Treasury stopped selling gold in 1980. Why won't the U.S. government permit an audit of the supposed 8,000 tons? Rickards maintains that the gold is "safe and sound" and offers a novel excuse for the refusal to audit: allowing an audit would imply that gold is important. "By refusing to do an audit, the government maintains the pretense that gold is trivial." That sounds implausible to me, and I continue to believe that the simplest explanation is most likely to be true: the gold either isn't physically there in the vaults, or if it is there has been leased to bullion banks that have in turn loaned out each ounce a hundred times over and are unlikely to be able to return it to the Treasury. Rickards says gold is going to go to at least $10,000, and worries that conventional brokerage and bank accounts are vulnerable to Putin's team of hackers, but then strangely recommends only a 10% allocation to gold. What are we supposed to do with the other 90% of our savings? He is vague on that point. He recommends fine-art and land, but it seems to me that these are not only unsuitable for average savers, but occupy the same bubble territory as equities and bonds. Would anyone argue that stocks offer a potential 8x upside at this point with little downside as gold does? Rickards also says that he recommends "certain hedge funds and alternative investments …" but offers no details. The book is not a "how to" guide that offers clear step-by-step instructions for acquiring gold. Physical Gold Fund (where Rickards is an adviser) and Sprott are mentioned briefly, as are different vaulting companies. But no details are provided that would help people new to gold get started. The easiest and most economical way to save in gold - the BitGold subsidiary of GoldMoney - is not mentioned, although in Rickards' defense that service is only a year old. In spite of these deficits, though, the book offers a great deal of useful information about gold and definitely succeeds in making the case that everyone should be looking very closely at gold.

Too short but it was written by somebody who is not a fund manager with an independent view about gold. It’s a pity, and at some point regrettable, his left oriented opinion about Economy

Jim Rickards at his best. Great insight, brilliant exposure, huge back up of facts. Don't miss it, gives you what you need know in these dire straights!

The author gives hint of politics played by big players to keep general people out of holding Gold. It's very rightly said in Hindu scriptures and others that Gold and silver our God's money.

Um sich als Geld zu qualifizieren,muss das jeweilige Medium, klar definierte Ansprüche erfüllen. So muss Geld eine - Zahlungsfunktion - Wertmaßstab - Werterhaltungsfunktion besitzen. Unterzieht man das heute gängige "Fiat money", welches aus dem Nichts geschöpft werde kann, obigen Kriterien, ist zumindest die Werterhaltungsfunktion nicht gegeben. Durch Inflation, verliert ein numerischer Betrag Papiergeld, stetig an Wert. Gold hingegen hat seinen Wert über Jahrtausende nicht eingebüßt. So konnte in der Antike eine Toga für 1 Unze Gold erstanden werden. Auch heute bekommt man für die gleiche Menge Gold eine edlen Herrenanzug. Somit sollte Gold als der feststehende Wermaßstab, gleich einer "Goldenen Konstante" betrachtet werden, um welche die Währungskurse schwanken. Dennoch, oder gerade deshalb, ist Gold als natürlicher Gegner grenzenlos vermehrbaren Papiergeldes, dauernden Anfeindungen ausgesetzt. So wird es als barbarisches Relikt, ohne intrinsichen Wert, welches die große Depression 1929 verursacht haben soll, bezeichnet. Zinslos im Charakter und mengenmäßig nicht ausreichend um Finanzen und Handel zu betreiben. Sämtliche Totschlagargumente entwertet der Autor und arbeitet heraus, dass Gold als Zahlungsmittel eine Währung darstellt, welche, in Anbetracht des fehlenden Gegenparteienrisikos, kein zinstragendes Investment, sondern eine Währung und global akzeptiertes Zahlungsmittel ist. Doch scheint das reine Papiergeldsystem, durch die exponentielle Aufzinsung der Verschuldung, an seine Grenzen gelangt zu sein. Finanzielle Instabilität, unerträgliche Schuldenstände und die stete Vergrößerung der Vermögensunterschiede, sind logische und unabwendbare Konsequenzen, welche mit dem Betreiben eines ungedeckten Geldsystems einhergehen. Umso mehr ist die Politik bestrebt, den natürlichen Marktkräften, welche eine Bereinigung der Fehlallokationen durch Deflation anstreben, zu widerstehen und Gold als sicheren Hafen nicht in die Aufmerksamtkeit der breiten Masse zu rücken. So wird der Goldpreis, seit der Aufkündigung des Goldstandards durch Präsident Nixon im Jahr 1971, "gemanagt" Dies auch vor dem Hintergrund, dass Schwellenländer, allen voran, China, als Nettokäufer, ihre Goldbestände auf ein Niveau anheben können, welches sie befähigt, bei einer anstehenden Neuausrichtung des Finanzsystems, eine Absicherung ihrer Staatsanleihenbestände zu besitzen und andererseits auch gleibhberechtigter Partner bei derartigen Verhandlungen zu sein. Der breiten Bevölkerungsmasse werden Gold und Bargeld, als nicht mehr zeitgemäßes Relikt präsentiert und langsam, durch die Implementierung bargeldloser Zahlungsmethoden, in den vollkommen digitalisierten Zahlungsverkehr geführt. Dieser liefert die Bürger der Willkür des Staates aus, welcher damit uneigeschränkten Zugriff auf das Vermögen besitzt. Es ist dies ein schleichender Prozess, welcher bereits vor ca. 100 Jahren mit der Abschaffung von Goldmünzen, zu goldbesichertem Papiergeld, über ungedecktes Papiergeld, hin zur rein digitalen Zahlungsform, und damit der Abschaffung des Bargelds, reicht. Gold in physischem, privaten Besitz, bietet eine Werterhaltungsfunktion, bei der, wie auch immer sich präsentierenden Neuausrichtung des Finanzsystems und schützt vor direktem staatlichen Zugriff, auf diesen Teil des Vermögens. Allerdings, so lehrt die Geschichte, legte der Staat auch regelmäßig die Hand auf den privaten Goldbesitz. So war dieser in den USA von 1933 bis 1973 verboten. Insgesamt ein sehr lehreiches, kompaktes Buch, von einem Insider der Materie, welches neue Ein- und Ausblicke auf die Entwicklung des Finanzsystems bietet und welche Maßnahmen der Einzelene, zu Vorbereitung auf die kommenden Ereignisse, ergreifen sollte.

Great read as usual from Jim Rickards