Why I Do Not Want Gold And Silver Prices To Soar!
By Patrick A. Heller
Commentary on Precious Metals Prepared for CoinWeek.com …..
By now I think most of you know that I own a company that buys and sells a lot of gold and silver products. You have probably also heard me predict that gold and silver prices have a strong likelihood of a major increase in the coming months and years.
Does the fact that I deal in this merchandise perhaps influence what I say and predict? After all, we have all seen politicians and private people announcing things that they knew to be false at the time they said them. But they went ahead and lied or omitted important information because they had ulterior motives for their own benefit. So, is it just possible that I might slant what I write and say for my own self-interest?
That question should be asked of every person who expresses opinions or makes predictions. But, in my heart of hearts, I don’t think I am being dishonest.
You see, soaring gold and silver prices might temporarily be good for my business, which I would appreciate. However, I don’t want that to happen!
Sharply higher gold and silver prices would not occur in a vacuum. If that happened, the news for the rest of the economy would be really horrible. People buy precious metals as protection against their paper US dollars and other currencies falling in value and possibly becoming worthless. But the economic pain inflicted on people when paper money is failing is devastating to everyone.
The African nation of Zimbabwe gave us a demonstration of this national trauma just a few years ago. Inflation of the money supply was so high that notes of 100 trillion dollars face value were issued just before the currency failed four years ago. With constantly changing currency values, merchants could not obtain inventory because their suppliers would not accept Zimbabwe dollars for payment. Factories, farms, and mines closed because of the inability to obtain raw materials and labor or to sell their output using stable money. People had enormous difficulty coming up with the necessities of life, and more than a few died from hunger or civil unrest.
I don’t want to see this disaster occurring in America, which would cause gold and silver prices to soar as measured in US dollars. Unfortunately, that seems to be exactly the direction that politicians are taking this once great nation. If, somehow, American once again became a nation of liberty and prosperity, and gold and silver became virtually worthless as a result—I would take that deal in a heartbeat.
Patrick A. Heller was honored with the American Numismatic Association 2012 Harry J. Forman Numismatic Dealer of the Year Award. He owns Liberty Coin Service in Lansing, Michigan and writes Liberty’s Outlook, a monthly newsletter on rare coins and precious metals subjects. Past newsletter issues can be viewed at http://www.libertycoinservice.com. Other commentaries are available at Numismaster (under “News & Articles) . His award-winning radio show “Things You ‘Know’ That Just Aren’t So, And Important News You Need To Know” can be heard at 8:45 AM Wednesday and Friday mornings on 1320-AM WILS in Lansing (which streams live and becomes part of the audio and text archives posted at http://www.1320wils.com