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August 6, 2018 | Iranians Discover Gold As Hedge!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian: http://kingdomecon.wordpress.com.

The price of 1 oz. of gold has reached 121 million rials. $1 now equals 101,000 rials (according to today’s WSJ). Iranians are discovering that their digital and paper rial is losing its comparative value rapidly. The rial was at 43,000 to $1 seven months prior. As it loses it’s credibility investors are discovering that a gold coin can maintain its purchasing power better that the imaginary rial. Will other investors discern this situation?

 

What we need to understand is that all fiat/digital currencies are units of nothing when push comes to shove. There is no substance to a digital rial, a digital yuan, a digital dollar, or a digital anything. Digital units are imaginary and they vanish as the economy crashes. The current value of the Bolivar is now near 200,000 for $1 in Venezuela. One ounce of gold would cost some 2.4 million Bolivars. What does all this imply?

 

Digital currencies will lose all their credibility and their value as events get more dire. How can a unit with NO substance or materiality survive? The dollar may be the last digital currency to become worthless. This is because our digital $ is the reserve currency for the planet. Gold and silver are now being suppressed in terms of our digital $. But Iranians are discerning that their digital rial can not survive whereas gold and silver (in physical form) does survive. Why? Gold and Silver are physical and these items have substance!

 

Investors need to wake-up to the realities of what is happening globally. Digital money is fleeting and these units will all vanish back into our consciousness as economic events transpire. Money, to last, must be physical. Digital money is non-physical. It resides within our inner self (also called the human mind). Mental abstractions (mere numbers in cyberspace) are what these digital currencies consist of. They will vanish as emotions turn negative. This is now happening in Iran and Venezuela.

 

Even paper notes (denominated in rials and bolivars) lose their value and credibility as people shed these currencies for dollars or euros. Comparative exchange rates reveal the changing subjective values of all these currencies. All currencies are now fiat…and paper notes are being replaced with digital numbers in cyberspace. All this is changing our perception of money and value going forward. Think of digital money and value as subjective and imaginary!

 

Those with some wisdom will buy physical silver and gold for the coming great transition period. The GREAT TRANSITION is starting now. It will continue for many years. Protect yourself with physical items which you can barter within our various marketplaces. Silver and gold coins (owned and possessed) have historical credibility. I have some for insurance purposes. You may also want some. Think for yourself on these issues.

 

The buy of the century is now a silver coin with a spot price of $15.36 (today). Silver trades at near 80 to 1 with respect to gold. This is ludicrous. The suppression of silver provides you with a bargain of a lifetime. Buy for purposes of insurance as our digital money becomes worthless and vanishes into our collective consciousness. Our elites who suppress these prices are providing us this buy of a lifetime. Enjoy!

I am: https://kingdomecon.wordpress.com

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August 6th, 2018

Posted In: Kingdom Economics

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