Chen Cheng

The dollar is at 32% devaluation, falling from 4.3 to 6.3. Imported goods will cost more. Inflation will go up, gas, oil, food. Jobs are getting scarce again, since the recent legislation to bring in workers from India. Our cost of living goes up, wages stay down.

With currency devaluation, a gold IRA rollover is good protection to have, SmartMoney coverage for estate taxes is gold for your IRA. There are a few choices for Gold IRA companies and Goldline reviews (BBB & more) can help sort it out.  Usually the competition drives real wages back up and balance can be restored. Average wages fall, while the rate of exchange doesn’t change or if wages decrease to reflect the status of devaluation. Whichever way returns the back to a normal living level.

Normally, the big banks have been the guardians, as they have seen themselves) and traditionally preferred the fall without a change in exchange rate. They are not talking about it, but with the rising price in gold, someone is listening.

One theory is that ongoing monetary stimulus will devalue currencies and make precious metals, like gold, more attractive to the savvy investor.

Domestically, the Federal Reserve has extended its Operation Twist program. In addition, the Federal Reserve has promised to purchase $40 billion in mortgage-backed securities every month.

In Europe, the European Central Bank announced a purchase of “unlimited” quantities of eurobonds to put a floor under the region’s financial crisis. Despite that action, fiscal problems abound, especially in Spain where banks refuse to roll out austerity measures.

In Asia, the Bank of Japan has just launched yet another round of monetary stimulus to help prop up its flagging economy.

Taken together, the signs point to world currencies being devalued and gold rising in value. Form your precious metals investment plan while you can.

Go boys, go! The Republican Party has proposed returning to the gold standard. It’s being debated this week down in Tampa! They’re actually studying the feasibility of returning to a fixed value currency, most likely gold, which is great news for folks like you and me who were smart enough to invest in it in the first place.

Now this might never happen—it’s extremely controversial and might be too disruptive to pull off—but something’s got to be done about the ways the alternative, fiat currency, always seems to lead to boom and bust cycles which wreak havoc on the average investor.

Gold has intrinsic value. It’s a physical quantity, not just numbers on a spreadsheet. Its supply can be controlled publicly. It must be mined and minted. Everyone wants it, and it appreciates in value for those who hold it. I say, let’s seriously consider returning to the gold standard. I say, go boys, go!

The big question in my mind is, “Will gold production always be low enough to maintain the value of my gold holdings so that the inflated prices they fetch when I sell them offset inflation”? How do you even start to put numbers to that? Inflation is no longer reported straightforwardly. If the official numbers are low but the cost of living is obviously increasing, then my gold should be in great demand. But will buyers know that? It makes my head hurt.