GP Academy Letter 250911: A Rare Opportunity...

In the beginning, money is gold and silver which comes out of the ground in limited supply and cannot be printed into existence. This is real money that is no one’s liability. And it’s private.

Then the money becomes paper “dollars”. But it’s no longer money, it’s credit that is lent—not spent—into existence. But at least you still have privacy.

Then paper money goes electronic. Now your bank and investment accounts are measured in electrons stored on hard drives and the government knows where it is.

Then the credit turns digital and its issuers have you fenced in like a farm animal. No where to go, and no privacy. This last phase is coming shortly.

When an economy is based on real money, you have real production. When an economy is based on credit you have borrowing as the intermediary to production. And if the credit system breaks, production stops.

A century ago you would pay a dairy farmer in coin and he would hand you a quart of milk. Today you go to the grocery store for your milk and pay with a plastic card.

Today the dairy farmer is in debt on his home, his farm, his land and his milking machinery. The trucking company that delivers the milk to the store is leveraged with small business loans to keep their fleet operating. And the grocery store buys its “just-in-time” inventory on a line of credit to keep the shelves stocked.

If just a single one of these credit “pinch points” defaults, there will be no milk on the shelf.

It’s clear to anyone paying attention that the current financial system is rapidly coming to an end. There will likely be a reset so complete and so earthshaking as to be unimaginable today.

And it will probably be brought about as the “solution” to an economic emergency that has already been planned using supercomputers that can “war game” any imaginable scenario far into the future.

When money is no longer real and credit, not cash, is king—it’s time for the wise to take action. But the problem is that the average person can’t begin to believe that the dollar, and therefore their investments, are headed for a debt supernova.

We’ve all heard of the Stockholm Syndrome, where hijacked hostages came to bond with their captors.

Today’s version of this “mental capture” syndrome sees us in a parallel situation where educated people (many with college degrees) hold 100% of their savings and investments denominated in an imperiled and already dangerously depreciating asset class—the dollar—and do absolutely nothing about it.

As one writer put it, these are the people who will be speed dialing their broker or queuing up outside the banks one day, hoping to get some of their money.

What is the answer? Real assets. Things you can drop on your foot. Antiques, fine art, historical documents, rare stamps, raw land and precious metals.

And in particular, rare coins which have never been confiscated by any western government, even in a financial crisis.

And here again we face a problem. One fine day you won’t be able to buy any rare coins. Why not? Because values will be skyrocketing and no one will be selling.

Feeling adventurous? Go ahead… buy a rare coin. It doesn’t have to be a large purchase. Just enough to get your toe into the tub.

You’ll be excited when you receive it—a thing of beauty, a piece of real history and a solidly appreciating asset that becomes increasingly rare with each passing year.

I’ll leave you with this. In 1980, when all precious metals backing of the dollar had been removed, the prices of gold and silver spiked then settled back down for the next 23 years under intense selling manipulation by market insiders.

However, rare coins ignored the sagging price action of gold and silver and went up 900% over the following decade.

Highly graded rare coins are heading up strongly again today. Why? Because—once again—the smart money… the establishment money… the “old money”… sees what’s coming.

Not sure where to get started with your first rare coin? Get in touch.

Cheers,

Gordon