The Tipping Point

4 Is the Dollar Facing a Tipping Point? They control a LOT of gold between them. Official Gold Reserves 5-6 • Russia 2300 tonnes • China 2100 tonnes • India 800 tonnes • Brazil 130 tonnes • South Africa 125 tonnes They also have a lot of gold still in the ground. Russia has an estimated 5,300 tonnes of unmined gold and South Africa has 3,200 tonnes. That’s huge potential! If the price of gold rises enough to make it profitable to extract, it will be extracted. And if gold again takes its place in backing currency, he who owns the gold will call the tune, as they say. Reserve Currency Privilege We Americans benefit greatly from the dollar’s status in ways we don’t always appreciate. One of the great privileges of controlling and printing a global reserve currency is the ability to export one’s inflation to the rest of the globe. If every country on the planet needs our currency to transact, there is insatiable demand for it. This means there is no pressing reason for us citizens to hold our politicians’ feet to the fire on spending. They can spend as much as they like and the rest of the world absorbs most of the inflationary hit. The observed pattern of history is that reserve currency owners eventually decrease their production of manufactured or agricultural goods and instead transition to allowing other countries to provide all that for them in exchange for the currency they need. It works out pretty well for them, for a time. And if other countries abandon the dollar, what will they use instead? Another currency of another government that has even worse fiscal discipline? The truth is there may be no other viable fiat alternatives in the currency world. But non-fiat alternatives are emerging and the world is turning (and returning) to them. Emerging technologies have shown different ways to transact, and gold is still gold. Gold has been used as money for thousands of years of human history and has the unmatched benefit of relatively stable value. No one particular country mines or controls all the gold. Gold doesn’t care about your politics. Gold has no agenda. The efforts towards de-dollarization value these things highly. Gold is one very obvious answer. What does that mean for you - if you’re left holding the dollar bag? Inflation could hit you hard, right in the grocery store aisles. Many experts anticipate further efforts to de-dollarize could be very positive for precious metals, making them an excellent investment and store of value today. Gold and silver ownership, in our opinion, is one of the best defensive moves you can make against these coming inflationary forces. Call us when you’re ready to lock in your price on gold and silver. Questions? Speak to a specialist at (800) 428-1493.