Reply to Stephen. http://tergeist.wordpress.com/2011/07/15/precious-metal-run-up/#comment-694

From Stephen:

You need some perspective about civilization and mankind to understand what is happening here. If you do any research about the origins of man and ancient advanced civilizations you will probably discover that there exists two common themes that still exist even today: slavery and gold mining. Keep this in mind.

Yes, you are correct that gold and silver are relatively scarce and there is not enough to go around, let alone to be divided up equally among 7B+ people globally. But that is not how the world works. We do not all drive BMW’s and Mercedes. The wealth of the world is controlled by only a handful of powerful individuals or families that is likely comprised of less than 5% of total population. You need to awaken and realize that you and I are really “modern” slaves in a “reality game” with systems and rules in place in which we are expected to abide by as outlined by the wealthy ruling elite. There is no end game in mind to make the rest of the world wealthy and free everyone as working slaves. Why would you want such an outcome when you are at the top of the pyramid? They already suckered the entire world to become investors in paper products and they will pull the plug on it in due time, just like they have done many times before, to create panics and crashes that eradicate all paper wealth. They already have all of the gold and they will proceed on what appears on surface to be a path of reckless and utter destruction that will end with the result of a new “currency” or some new type of medium of exchange (maybe electronic?) that will be linked to precious metals again. The new link will be done at a very high price (i.e. north of $35) and it will not be done for the benefit of 95% of the world population. It will also not involve exchanging physical metal for commerce like you currently think in that new age.

And the current price of gold and silver is merely an illusion to everyone’s eye. The price was created by the invention of a paper futures market for regulator control, manipulation, and ultimately price suppression. The goal is to trick the public into believing these metals are mere commodities just like your regular base metals that go up and down in volatile fashion in order to create investor disinterest and to hide its true value. This game can only go on for so long until it implodes when the public realizes that there is not enough physical to back all of those paper IOU’s.

I also am not going to run out to buy gold tomorrow because I have bought some already and keen to buy more given future opportunities. There will come a time in the near future where either you are no longer legally allowed to purchase gold or no physical gold will be offered for sale to the public. Keep in mind that even a “crazy” $5000 price is merely a price based on what will ultimately be a failed USA fiat currency perspective and is still not reflective of the true value of gold.

****************************************************************

Reply:

I have stated it here and elsewhere. There is not enough money in the world to cover all the debts and that wealth cannot be created with printing presses or with precious metal. The debt will begin to go unpaid until it ALL goes unpaid – because the underlying assets are marked-to-a dream world. When they are marked-to market, all the debt – and most of the wealth will evaporate. It only exists on paper.

It costs less to make a Lexus than a Prius. The difference is marketing. But people without Mercedes find transportation anyway. The point is that transportation exists in some form – just as trade must exist in some form in order for everyone to eat. Some societies still exist without money as hunter-gatherers.

My kuleana WAS to get people away from the concept that they are dependent on someone else for their lives, but no one was interested in doing that and now it’s too late. It could be done. I did it. I chose to leave the rat-race and simplify my life. I moved to a remote island and established a self-sufficient farm. I collect my own water and deal with sanitation. I do not live on a county road, or have any county services. I did that by choice. It doesn’t get too hot or too cold and we have a 12 month growing season. I am associated with people who can feed themselves and barter with others for what they need. It is very like the Ozark mountains in Arkansas was like, even into the 1960s.

I agree that I don’t have a need or desire to accumulate wealth and most people do – that makes me eccentric at best – but I have everything I need and this was a typical lifestyle for much of the country even until WWII.

I don’t care whether the economy implodes or whether gold sells for $300 or $3,000. Neither affects me. Because I don’t care, and because I live in what can be a cashless society here instantly, I am free to look at the world as an observer, not a prisoner. What I see is very different that what people see who are prisoners of something and are either unable or, more likely, simply afraid to walk away.

If people choose to live in terror – and choose to remain prisoners – and choose to insist they are trapped in a situation from which they cannot escape, they are merely fulfilling the prophecy and living in the prison they have created for themselves.

You just stated your belief that at some point in the near future, individuals will not be allowed to purchase gold. If individuals cannot buy it, it is immediately obvious that individuals cannot sell it either- since it is illegal to buy, who will buy it? That won’t happen, because individuals traditionally wear jewelry and there won’t be tax men walking the streets grabbing gold from people. That entire concept is ridiculous. Because some one makes a law does not mean it can be enforced and the world is coming very close to the tipping point when citizens will demand that the laws which apply to them also apply to their governments.

The concept is simpler than who gets to own silver or gold. It is ultimately a matter of who can feed and clothe themselves in a failed world economy. I can do that and I have offered to provide that stability for people who have too much money and need stability and a touch of reality. I was going to buy a hundred acres and put up twenty five-acre farms with nice homes each completely self-sufficient. I wanted $300k for a completely operational farm with a very nice custom home – all turn-key, in the most beautiful place in the world and I was called crazy.

Maybe I am. But I have the farms and a home, all paid for – and because it’s a farm and I’m a senior, the taxes are a couple hundred dollars a year. I could still put it all together, but I tried to get people to save themselves and no one wanted to.

Now I just write and watch clouds and listen to birds. And farm a couple hours a day. I have the peace and the fresh, organic food that most of the world doesn’t. I own one silver dollar, no bank accounts and no investments. I’m good with it. But that’s just me. I don’t think I’m missing any historical perspective and I don't have any reason to care about the value of silver or gold.