Writers Torgny Persson, Koos Jansen
& Hong Kang See
Gold or Fiat? That is the question...
Tuesday the 14th of April 2015
What happens when you deposit money at the bank?
Most people don't think much about it. The bank probably safekeeps the money in their vault. Then I can come to the bank to withdraw my money any time. Right?
When you deposit money at the bank, you immediately relinquish your ownership to that money.
The bank will not only loan out "your" money, they will use it as as reserves to loan out even more than what you deposited in the first place. The justification for this is simply that you probably won't claim "your" money back any time soon anyways. If you were to claim it back together with only a few percent of the other depositors, the bank would go bankrupt.
When you deposit money at the bank, you give up the ownership of it and instead get a claim on the same amount. The bank vice versa has a liability.
This is called fractional reserve banking, the banking system practiced worldwide today.
Safekeeping Your Money?
If you rent a safe deposit box, you have to pay rent. If you however engage the service of a bank depositing money, they are supposed to pay you interest.
Think about it like this. If a bank deposit was for safekeeping only, how can it pay interest?
The only reason a deposit pays interest is that the claim is inherently worthless. You are paid interest as compensation for the risk of giving up the ownership of your money in return for a claim.
By paying you interest, the bank is telling you that your money is inherently worthless. Fiat's only value stems from it serving as medium of exchange and that's not worth much.
1) If you deposit money at the bank, you lose ownership of the money and only hold a claim.
2) If you try to get smart and withdraw your money and you're lucky enough for the bank to have any currency to hand to you, you get inherently worthless paper money.
= You're screwed either way.
Negative Interest Rates
As we all know... Continue Reading
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Buy Gold Singapore
There are a number of reasons to buy gold in Singapore. Some people buy gold as investment whereas some people buy because they view gold as money. This text gives you an overview of the characteristics of gold and why it is sensible to buy gold.
When you buy gold in times of economic uncertainty you obtain an insurance against the crumbling financial system. When you buy gold in good economic times, you get an asset that withstands inflation and that has been retaining its value for thousands of years.
When you buy gold, you buy an asset that has an intrinsic value because of its useful qualities. Our current fiat money has lost 98 % in merely 100 years. Our monetary system is more fragile than ever. If you instead buy gold, you get an asset that has been retaining its value for thousands of years.
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Some of the advantages of buying gold from BullionStar in Singapore include:
Buy Silver Singapore
Thinking about gold? Buy silver in Singapore! Silver has similar characteristics as gold but has even greater upside potential. But is it really a good idea to buy silver when the price of silver has increased significantly over the last years?
Even though the price of silver has increased, it is likely that we have only seen the beginning of the surge. When you own silver, you own a metal with similar characteristics as gold. The argument for buying silver rather than buying gold is that the supply of silver is very limited while at the same time, the demand is high and rising.
There has been a physical shortage of silver several times during the last years. When silver shortages have appeared, physical silver has been valued higher than the official market price of silver. The reason for this is that silver can be bought in different forms, either as certificates or in physical form.
When you buy silver certificates, you can never be sure that the physical silver exists. There are more silver certificates on the market than there is physical silver. It is therefore essential that you demand physical delivery when you buy silver.
Some of the advantages of buying silver from BullionStar in Singapore include:
- You choose whether to pick up the silver you have bought in our shop at 45 New Bridge Road, Singapore 059398, store your silver securely in "My Vault Storage®" or ship your silver to your delivery address.
The demand for silver is growing exponentially. Silver is already used in tens of thousands industrial applications such as mobile phones, computers, iPads and solar panels. When you buy silver, you buy a metal with excellent industrial characteristics. A few examples of this are that silver conducts electricity and heat very well.
The silver market is very small compared to most other asset markets and has been a forgotten market for many decades. If you buy silver, you will get an asset with superior potential but with limited risk.
Buy silver in Singapore to get a safe asset with perhaps even more potential than gold. Read this article for more information about silver as investment.
How to Order from BullionStar
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