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Guest Article: Gold – The Good, Bad, and Truly Ugly, by Gary Christenson

THE GOLD STANDARD: Although it may be unrealistically optimistic, I believe my paraphrase of a Churchill quote:

“Central Bankers will eventually do the right thing and return to a gold standard after they have exhausted all other alternatives.”

While central bankers are exhausting all other alternatives, I worry about the collateral damage to 90% of the population who are not first in line on the fiat money gravy train that benefits the financial and political elite.

Clearly, central bankers will return to a gold standard only if forced by a financial implosion, economic collapse or equivalent disaster. Hence, the powers-that-be will do whatever is necessary to conceal the sovereign debt bubble, hide the insolvency of sovereign governments, and extend and pretend regarding the value of bonds, equities, and fiat paper currencies.

THE GOOD: Gold is and has been real money for 5,000 years.

THE BAD: Gold prices will benefit from the following items. (This is a long and incomplete list.)


President Nixon separated gold from the dollar (temporarily) on August 15, 1971. Currency in circulation and debt have subsequently increased exponentially. The purchasing power of fiat currencies has similarly decreased. The exponential price increase is gold mirrors the devaluation of the dollar. See the graph below. I discuss this in my book, “Gold Value and Gold Prices From 1971 – 2021.”

O-gold-40yr [1]


Originally Posted on February 24, 2015 by Gary Christenson on The Deviant Investor [2]