In countries like China, India and Turkey – and throughout the Middle East – they trust in gold.
Here in the West we trust in our banks and investment companies.
Who do you think is smarter?
I wrote about this in my last post, but it is worth digging a little deeper.
Here in the West our capitalist system depends on individuals putting their money into banks and investments. This makes our money available to the banking and investment system and allows them to leverage those dollars. If we are lucky, as individuals, we also see a return on that money.
In other words, we are in the habit of placing our own money into the larger system. Billions of dollars are spend on advertising to persuade us to do just that. Make more deposits, make more investments.
The trouble is, as the recession of 2008 taught us, our money is not safe. It isn’t a given that it will grow. In fact, we can lose big chunks of it, or even all of it.
Put simply, we have all been brainwashed into thinking that the best thing we can do with our money is to place it into the hands of banks and investment companies.
It’s worth considering this quote from Charles Makay:
“Men…think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one.”
As we recover our senses, and begin to think for ourselves, it becomes apparent that banks and investment companies are not the best or safest places for our hard-earned money. They are certainly not safe.
Outside of the West, in other cultures and societies, people don’t assume their money should be placed in the hands of others. Instead, particularly during times of economic uncertainty, they buy and take physical possession of gold jewelry, gold coins and gold bars.
I have written posts about how the people of China are now buying a lot more gold, and how the people of India are also buying more.
Now try to guess which gold bullion coin is the world’s biggest seller.
The American Gold Eagle, maybe? Wrong.
The Turkish State Mint has issued 134 million “Meskuk and Ziynet” gold bullion coins (13 million ounces equals about 405 metric tonnes), making them the world’s best-selling gold bullion coins over past decade. The coins were sold mainly in Turkey and in the Middle East.
By comparison, the United States Mint issued only 9.8 million Eagle and Buffalo gold bullion coins (6.8 million ozs. = 212 tonnes) in the same period.
So why are people in China, India and the Middle East buying so much more gold than we are?
Because they know their money is safe in the form of gold. Gold IS money…real money, that you possess.
Don’t fall into the trap of thinking that here in the West we are somehow smarter or more advanced than people are in other parts of the world.
On the contrary, most of us are still part of the “herd”…handing our money over to the banks and investment companies, simply because that’s what everyone else does, and what we are told to.
If you pause – recover your senses – and think for yourself, you’ll realize that right now it is a lot safer and a lot smarter to spend your money on gold.
Further reading…