Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Gold Could Save Your Life

  by    0   1

Gold is up. Way up.

I’m not talking about in the US. I’m talking about Venezuela. On July 30, an ounce of gold was going for 211 million bolivars. That’s a 3.1 million percent increase from the beginning of the year.

We’ve said before that inflation is good for gold. The hyperinflation in Venezuela demonstrates this truth by offering us a glimpse into the most extreme situation. It teaches another lesson as well.

Gold could save your life.

The IMF projects inflation will hit 1,000,000% in Venezuela by the end of the year. Right now, prices double about every 18 days. President Nicolas Maduro tried to solve the problem by lopping five zeros off the country’s currency. Of course, that won’t fix anything. You don’t undo the impact of socialist policies and government mismanagement with accounting tricks.

Last month, a cup of coffee set you back 2 million bolivars in Caracas. Of course, even if you had that much currency, you would probably have a hard time finding a cup of coffee. Venezuelans have suffered extreme shortages for years. Grocery store shelves are empty. People have had to turn to the black market just to survive.

As Frank Holmes said in an article published by Forbes, at some point, hyperinflation gets so ludicrously out of control that discussing exchange rates becomes pointless, but it underscores a very important truth.

My point in bringing this up is to reinforce the importance of gold’s Fear Trade, which says that demand for the yellow metal rises when inflation threatens to destroy a nation’s currency—as it’s doing right now in Venezuela. A Venezuelan family that had the prudence to store some of its wealth in gold would be in a much better position today to survive or escape President Maduro’s corrupt, far-left regime. In extreme cases like this, gold could literally help save lives.”

Many Vietnamese people who escaped that country in the wake to the Vietnam war can tell you this from experience. People who had the foresight to buy gold managed to get out. An adult could get a seat on one of the boats fleeing Vietnam for between 8 and 10 taels of gold. (A tael is just over one ounce.) A seat for a child went for about 4 to 5 taels. As Holmes put it, gold was the passport out of Vietnam.

Thanks to the precious metal, tens of thousands of Vietnamese ‘boat people,’ as they’re now known, were able to start new lives in the US, Canada, Australia and other developed countries.”

We tend to look at stories like this and think, “That could never happen here.” But I’m pretty sure a lot of Venezuelans would have said the same thing just a couple of decades ago. A recently as 2001, the country was the most prosperous in South America. Remember when American reporters were gushing over the “socialist miracle” in Venezuela?

Lesson: any economy can be wrecked.

While the United States may not face the kind of hyperinflation plaguing Venezuela, there are plenty of signs of trouble in the US economy. As Peter Schiff said in a recent podcast, we may well be heading for a bigger crisis than 2008 and yet the same people who were clueless then are clueless now.

You might never need gold to buy your escape. But it could help you preserve your wealth during the next financial crash. Wouldn’t you rather have gold than a bank account full of rapidly depreciating dollars? And in the most extreme case, gold could serve as your lifeline. Do you have enough?

TaxFreeGold.Banner.1000x285

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

 

Photo by: Diariocritico de Venezuela via Flickr


Related Posts

Peter Schiff: The Economy Needs a Painful Restructuring Thanks to the Fed

Stock markets have been extremely volatile this week, with massive swings in both directions. The markets rallied on Wednesday, primarily due to optimism about progress in the trade war. On the week, the Dow is up around 100 points, but it also put in new lows. In his most recent podcast, Peter Schiff said he […]

READ MORE →

Janet “There Won’t Be Another Financial Crisis in Our Lifetime” Yellen Worried About Another Crisis

Remember back when Janet Yellen was heading up the Federal Reserve and she claimed there won’t be another financial crisis “in our lifetime?” You don’t have to think back too far. It was just about 18 months ago. Tuesday, June 27, 2017, to be precise. But now that Yellen has vacated the Eccles building and taken […]

READ MORE →

Nearly Half of S&P 500 Stocks in Bear Market

US stock markets took another nosedive last week. Analysts blame the selloff on fears that the arrest of a Chinese businesswoman could derail apparent progress in resolving the trade war between the US and China. But during an interview on RT America, Peter Schiff said that while the arrest of Meng Wanzhou might have sparked […]

READ MORE →

Americans Pile on More Debt; Outstanding Consumer Credit Approaching $4 Trillion

Americans continue to bury themselves in debt. US consumer credit rose by the largest amount in 11 months in October, as Americans piled on another $25.4 billion in debt, according to the latest consumer credit report by the Federal Reserve. Total consumer indebtedness is rapidly approaching $4 trillion, with Americans currently $3.96 trillion in the […]

READ MORE →

What Do These Jobs Numbers Really Tell Us Anyway?

Circling jobs in newspaper classifiedsNovember’s jobs numbers came out Friday weaker than expected. Trump’s twitter feed was strangely silent on the jobs report. Generally, he likes to tout unemployment as an accomplishment, even though he poo-pooed the same numbers when he was campaigning against Obama. As Peter Schiff pointed out in his most recent podcast, the official numbers significantly understate […]

READ MORE →

Comments are closed.

Call Now