What is the best investment a citizen could have made during the last five years to protect his family from galloping inflation? Not common stocks. Not government bonds. Not city real estate. Certainly not life insurance, or annuities, or dollars.
The answer is gold or stock in gold mines. According to Lipper Analytical Services, the best performer among all the mutual funds was International Investors, which has concentrated in gold stocks for the last five years. During these five years, the free-market price of gold has increased from $35 perounce to about $175 — a gain of 400 percent. The price of gold is fluctuating from day to day.
Why has our Government made it illegal for American citizens to own gold bullion and American gold coins? Simply because citizen ownership of gold restrains printing-press Inflation.
Let’s review how our Government has robbed us of sound money. In 1933, President Roosevelt ordered American citizens to turn over to the Treasury all their gold money. After this was done, the dollar was devalued 75 percent. While Americans were forbidden to exchange our dollars for gold, foreigners could, through their central. banks, exchange their U.S. paper dollars for U.S. Treasury gold at the rate of $35 per ounce.
The “Foreigners First” claque sold President Kennedy on the curious notion that letting only foreigners turn in their dollars for gold was good for the American dollar. In 1963, President Kennedy announced that he would continue to sell our precious gold supply for 35 paper dollars per ounce. European banks took full advantage of this policy.
This “Foreigners First” gold policy continued until August 15, 1971 when the flight from the U.S. dollar reached panic proportions. Because our paper dollars had nothing behind them, President Nixon was twice forced to devalue.
Meanwhile, our Government has taken away our last hard-money safeguards, such as pure silver dollars, silver half-dollars and quarters, and silver certificates which are dollar bills redeemable in silver. First, half the silver was removed from our silver coins, and then finally allofit.
The rich and the smart can put their money in gold stocks or Swiss bank accounts, and profit from devaluation. But most people’s assets are locked into their homes, life insurance, social security, and pensions. They are cheated again and again by the soak-the-little fellow money policies of our Government.
When prices go up, it is not the fault of the unions, or the farmers, or industry. It is because the Federal Government has taken away our gold and robbed us of sound money.
