The Dilemma For Wealth

The Case For Gold

Although this article was written in January 2002, Meyer's points are even more relevant today. The subject of money is rarely discussed by the press or Wall Street, and it is not taught in school. But money – real money – is the most overlooked yet most important issue confronting our welfare.

Investors are obsessed with financial assets and smitten with an almost blind faith in the Federal Reserve, and they ignore the analysis of money, the basis for all their financial assets. This is a fatal flaw, since the foundation of all their financial assets is terminally ill.

The devaluation disease that has been progressively destroying the rest of the world has finally caught up with the US dollar. A look back at the wealth destruction in Japan, Korea, Russia and Latin America offers a glimpse into the future of the US. And it was predictable: in the absence of sound money, all fiduciary assets denominated in fiat currency are eventually destroyed.

Paper money and government bonds are not wealth, and survival for today's wealth is not to be found on Wall Street. With the monetary system in collapse, financial assets will be the "killing fields" for wealth. The US dollar, and all fiat currencies not backed by gold, are instruments of debt, not of value. Honest money – gold, silver – is the necessary foundation for financial assets and their performance.

In order to preserve wealth today, investors must be financially independent of the current monetary system. And that means gold, the most liquid of all real assets.

Read The Dilemma For Wealth – The Case For Gold by John D. Meyer