Alert 23-3

Let me begin by explaining what I mean here. The “goldⁱstandard” is a monetary system in which the standard economic unit of account is a fixed weight of gold or silver.

While the probability of the enactment of a legal gold standardⁱ in our country is remote, gold and silver can nonetheless be used as a standard for your own economic transactions today. In today’s message, I’ll show you how. Doing so requires no act of Congress, no court decision, no new law of any kind.

The need to protect you and your family against the dollar’s devaluation should be obvious. Despite all of the assurances out of Washington that inflation is not a problem, your own purchases contradict this. Rising costs for gas, food, medicine, and much more are obvious to us all. You do not need a PhD in economics to know the cost of living is going up faster than our incomes.

Internationally, many experts believe the dollar is in serious danger of losing its status as the world’s reserve currencyⁱ. If this were to happen, the “good faith and credit” standard currently backing the dollar would be severely limited if not destroyed.

Many experts believe the collapse of the dollar is a matter of when, not if. Either way, it is a safe bet that our future standard of living is going to be greatly affected. Many economists insist that the only way the U.S. is going to survive economically is to eliminate the deficit and balance the budget.

While this does not appear likely in the immediate future, let me point out that the gold standard forced us to do both things until 1971, when President Nixon closed the gold window. Suffice it to say, balancing the budget will not be pretty or easy.

Many countries throughout the world returned to the gold standard after previously abandoning it. Caesar accomplished it in Rome. Napoleon did the same thing for France. Even Stalin did it in Russia. U.S. authorities required Japan to do it after World War II.

So returning to the gold standard is possible. But it takes a very strong leader to accomplish it. Rather than wait for the day when that happens in the U.S., what I’m proposing today is that we individually return to our own personal gold standard. Let me show you how.

If you want to use gold as your preferred store of wealth, it’s easy. Just take a portion of your paper assets and convert them into physical gold. I’m talking here about actual metal, not paper proxies such as stocks or ETFs.

This gold should be in your personal possession or easily accessed. This is very easy to do, yet a surprisingly small percentage of Americans own any gold at all, except for jewelry.

Another advantage of adopting your own gold standard is that it forces you to live within your means. Admittedly, this may be more difficult than the paper/debt system most of us live under today. You need to establish a budget and stick to it – something we wish our national government would do.

So how does one begin? Start by making sure you have your “core holdings” or emergency funds set aside in the form of junk silver coins, 1 oz silver eagles and 1 oz gold coins. These funds should be enough to tide you over for six months, should you face some sort of emergency or financial collapse. At a minimum, have two to three months of expenses covered.

Keep in mind that the cost of goods and services will be higher in a financial crisis, so you may want to err on the high side. The precious metals you choose should be very liquid and stored close at hand for easy access.

Next, set aside enough gold and silver to cover your monthly expenses. This can be done using easily liquidated physical precious metals. Another more convenient solution is to purchase precious metals online, through such platforms as GoldMoney. GoldMoney allows you to use dollars (or other currencies) to purchase gold, silver, platinum or palladium in small increments. You hold your metals in an account that can be used to pay your monthly expenses.

A huge plus of such a plan is that, as the value of your metals goes up, your purchasing power rises accordingly. Such programs are a great way to accumulate more gold and silver. And having such an account facilitates easy, safe and secure transactions.

GoldMoney also allows you to pay expenses from your account in other currencies, if you wish. It is as close to a gold-backed currency system as you can find. Some people choose to keep their precious metals close at hand and liquidate as needed, through ASI or a local coin dealer. No matter which way you choose to go, the most important things to remember are (1) convert enough dollars into gold to make it work. And then (2), stick to your budget.

Once you have enough gold and silver set aside for your emergency funds and monthly expenses, the next step is to come up with a long-term plan for purchasing and storing precious metals. For many reasons, we recommend that these metals be stored offshore. International diversification is a key to protecting your assets when faced with financial troubles at home. Being able to easily liquidate your assets as needed is equally important.

We recommend the Perth Mintⁱ Certificate Program (PMCP) for the mid- and long-term storage of your precious metals. Safe, secure, cost effective and flexible, the PMCP storage program is the only government-guaranteed program of its kind in the world. With the ability to place Perth Mint Certificates under the umbrella of your IRA, maintaining your own personal gold standard throughout your retirement is easy to accomplish. For further protection, the PMCP can also be held in an LLC or trust.

With threats looming from inflation, hyper-inflation, deflation or even a complete financial collapse, it has never been more important to have your finances backed by gold and silver. Many experts believe that if the U.S. were still on the gold standard today, our country would not be in the financial predicament confronting us all.

Don’t depend on the government to return to the gold standard. Instead, depend on your ability to manage your own finances and protect your family by establishing a personal gold standard. Your future may depend on it.

And don’t procrastinate. As our cofounder Glen O. Kirsch was fond of saying, “Better do today what you may not be able to do tomorrow.”

Kevin Drost

Manager, Preferred Client Relations

When you are ready to establish your own personal gold standard, please call us at 1-800-831-0007, or email us and tell us the best time to call you. We are ready to assist you in making sure your golden years are truly golden.

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