What do Madoff, cash for gold, and payday loan businesses all have in common? They're crooks. As many Americans are living paycheck to paycheck such businesses prey on hard-luck situations or plain out consumer ignorance. Cash for gold businesses offer up their solution touting, "No problem. Just sell us your used (or scrap) gold and we'll give you CASH!!!" By the way, what exactly is "used" gold? Intrinsically, there is no such thing. Nowhere in the foreseeable future will precious metals (or stones) have and ever will be dispensable or more importantly depreciate. It's like taking candy from a baby as cash for gold consumers are perpetually had for the actual valuable - the gold.
Sorry, but I could not resist pointing out the blaring irony of this particular Cash 4 Gold ad. I have nothing against MC Hammer but inherently therein lies the punchline: "Nouveau~riche rap star infamous for his poor financial acumen promotes Cash 4 Gold!" It's almost poetic.
Wake up America!
The joke is on us! In fact, the U.S. dollar is fiat, affectionately known as "play doe" and holds no actual value. The million dollar question is: Where is all this "used" gold going or rather, to whom or what? Seemingly, it is not headed to the Federal Reserve Bank as the USD is no longer federally insured by physical commodities such as gold, silver, platinum, etc. However, the Federal Reserve Bank frivolously prints money to compensate the national debt, fund wars and other affairs - a cataclysmic solution that only worsens inflation as the U.S. dollar is already stretched to the max. These factors coupled with an alleged fascist effort to systematically position the United States into a one world government (e.g. proposed North American Union and its Amero) has rendered U.S currency valuable in the free market ONLY because the U.S. government says so. In other words, our liquid assets ain't worth shit overseas (excuse my French).
Paper or Plastic?
The real mccoy sort of speak are precious metals, gold bonds and wait for it...as you might have imagined; the buck stops at computer chips such as with everything else. Notably, proposals have been made to implant RFID computer chips into humans. These chips will contain all of the individuals' respective information from finances to health records. And of course, be mindful that your VISA Debit Card has more juice than your cash-in-hand ATM withdrawal could ever dream of. Why? Because the plastic is credit backed by U.S. gold bonds which is backed by a precious metal. Cash alone is just monopoly paper. Yet, its intrinsic market value was once more than the notion it has been deduced to today. Notably, coins are cut down to base metal(s) as inflation causes the value of precious metals to increase. This is a prime example of Gresham's Law. According to Wikipedia (not an academic source but whatever):"Coins may be minted that have fiat values lower than the value of their component metals, but this is never done intentionally and initially for circulation coins, and happens only in due course later in the history of coin production due to inflation, as market values for the metal overtake the fiat declared face value of the coin. Examples of this phenomenon include the pre-1965 US dime, quarter, half dollar, and dollar,US nickel, and pre-1982 US penny. As a result of the increase in the value of copper, the United States greatly reduced the amount of copper in each penny. Since mid-1982, United States pennies are made of 97.5% zinc, coated with 2.5% copper. Extreme differences between fiat values and metal values of coins causes coins to be removed from circulation by illicit smelters interested in the value of their metal content."
Personally, I find all of this intriguing and disconcerting all at the same time which is why I thought to post a brief about the harsh reality behind cash for gold commercials. America is neck deep in a national debt crisis with no plausible way out. I'm a realist. Citizens must be smart and proactive. Interested in doing your own research? I recommend starting with the National Inflation Association, "an organization that is dedicated to preparing Americans for hyperinflation and helping Americans not only survive, but prosper in the upcoming hyper-inflationary crisis." My only caveat is that the rhetoric provided by NIA, though highly informative is at times bias. In other words, discretion (common sense) as with all matters is advised. However, NIA does uphold a compelling argument predicated on historical economic patterns coupled with current events affecting today's U.S economy. Bottom line, the organization's agenda is well-intended and overall their message is keen and fairly substantiated.
