- no state shall make any thing but gold and silver coin a tender payment of debts.
- US Constitution
There's More
There are 7 clauses that the Founders put into the constitution about precious metals. They hated the idea of fiat, but greed, ego and stupidity runs deep in our government leaders. The US Treasury redefines legal tender statutorily as all coins and currency issued by Congress. This envokes the right of "sovereignty" over the nation. It does not have that right as our revolution was to take power from government and to be given to the people.
Why Gold?
There are many reasons, but at Evolution our belief is in the wisdom of the Founders. They feared debt and gold was a natural balance to government spending to curtail debt.
The Federal Reserve is fiat. They are a crooked cabal that banks favor because it gives them access to riches that they have not had to "work" to receive. This is why we never put stock into Goldman Sachs or JP Morgan Chase as they have sold their soul to fiat and the central bank concept. The Fed is also their insurance policy if they screw up like they have repeatedly done. It allows banks to privatize the profits and socialize the losses. We say, "End the Fed!"
There are other, more closer to home reasons to invest in gold. The list is led by the US Dollar. Our debt is approaching unpayable levels. There is serious challenges to its reserve status. In addition, something is afoot. If you recall, President Trump stated that he wanted to inventory the gold supply in Fort Knox. We have heard nothing further. Then, we read about mass shipments of gold from London to the US. We hear that Germany may want its gold that is held in New York vaults to come back to the Motherland. We read that China is backing Shanghai Gold Exchange to be the premier trading center for gold. The challenges to the reserve status of the dollar is two-fold. The BRICS alliance is seeking to replace the dollar in trading. This is slow, but it gains momentum with every mistake by the Fed. The IMF has already developed a replacement for the dollar with its "Special Drawing Rights (SDR)". This is a basket of currencies with the world's top economies. If either transpires, the value of our dollar would shrink. We would feel inflation of about 30%. This screams that you better have some gold because it always holds its value.
Fed Now
Have you heard about the new power that the Federal Reserve has? With Fed Now, the Fed can control all your financial data. By having 900 banks submit to the plan, they have surveillance of you and any transactions you make. This is similar to the Chinese dictatorial control with social credit and digital money. This leads to tyranny. They can freeze your money and assets. If you have gold, you will have a life boat. So, let us look at gold, where it is and going.
Important Price Levels
Gold closed at $3324 last Friday. It just made a new all-time high at $3500. If you recall, we predicted that gold would climb to $3400 when it was just $2400. We see $4000 coming. With that said, it will not be a straight up move. We see a retracement to around $2950. Why, you ask?
Silver. It's last high has not been pierced. Silver fails when it reaches $34. It cannot break $35. Gold cannot go higher without silver breaking to a new high. Keep in mind that silver is the most manipulated metal. There are legally tendered silver notes circulating at 378 to 1. This means that there are 378 chances for a crisis due to supply that does not match the circulating notes. There's more. For the past few years, there has been a shortage of silver needed that is not produced. Because precious metals can be melted to be reused, the recycling has covered the demand. There is a need for 200 million more ounces every year. This is a ticking time bomb along with our dollar. Speaking of which, the dollar closed at 100.34 last Friday. We see a bounce up tp 103 and then, a fall to 98. Remember, a higher dollar is a lid on gold. A lower dollar opens the spigot. One indicator that you can use to relate to the price of gold is GDX. It just popped from a breakout level at $35. This will be support for the next move up after a retracement.
Related
Do you recall the Basel III accord? Well, this July activates the agreement that allows banks to include any gold that they possess as a Tier 1 asset for reserve requirements. There are a few ways to look at this agreement. We see the unbievable point that the anti-gold, fiat bankers had to have an agreement to call and place gold as a top level asset? At least, the deal was made. This will create a floor for gold...Peace.
