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Over the past five years gold has succeeded to outperform the S&P by a long shot. The biggest reason for S&P's decline in value, measured by it's worth in currency or dollars is because the green back itself is not real money.

It's important to note, smart people have been collecting gold. Regardless if these people have collected gold for the long-term or are just now starting. These investors all have the same philosophy. Hang on to your gold, keep collecting it and do not sell an ounce. Because at some point gold's value will exceed rising inflation and save you. What the government has done of course in its attempts to shore up falling home prices within American is actually destroying the dollar and increasing gold's value…

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All of the gold held by central banks throughout the west, originally, was owned by the people. Slowly this gold has been siphoned away from the people by the central bankers through inflation. However now, even these giant banks in the west are losing their gold as it slowly is being transferred to the east.

The gold stored in these central banks was at one time used to back all western currencies. However the sole purpose for gold being held in western banks today is for repayment of debt. History shows us that approximately every 30 to 40 years the world creates a new monetary system. Previous monetary systems continually have failed due to poor fiscal policy, planning and manipulations. Before WWI most countries kept a specific amount of gold in their treasuries. The treasuries would then issue out currency notes into circulation in amounts that equaled the equivalent value of…

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It is highly anticipated that China will become the world’s largest net buyer of gold this year surpassing that of India, who has been the largest gold consumer until now. China’s gold purchases for 2012 have already risen ten percent according to ICBC a leading Chinese bank. Why are they so eager to buy?

China has held the world's largest amount of US debt, larger than any other nation. However things are drastically changing. China has changed its investment strategies, including moving out of a majority stake in dollar dominated assets and converting those assets into gold. It clearly doesn't take a financial genius to figure out the logic behind China's dollar exit strategy.

While the American dollar may still be king over an uncertain euro today, what will happen once the US is reminded that its debts levels in comparison exceed that of Greece? While still the largest owner of foreign dollar reserves China is clearly conscious about how over exposed their holding are, putting their nations reserves into a slump. Currently US Treasuries are inside the largest market bubble in history.

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The US dollar being the world’s reserve currency where other central banks have taken comfort for decades, now is fundamentally broke. The world’s reserve currency is now broke because of the accumulated American debt that can no longer be controlled.

These days the politicians elected into government and tasked with responsible policy making, don't have the political will do right thing. They refuse to turn things around, to stop the slow train wreck that's approaching. Some believe this slow train wreck will arrive sometime around 2015. This train has been built upon the tracks of circumstance, with decisions that were created re-actively, thus now it's running out of control…

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The economy within the United States today is nothing more than a hyperinflationary house of cards just waiting to completely fall apart. America has been down this path before, however today things are quite different than say during the late1970’s through the early 1980’s. Today just one small fragile mistake will allow this house of cards to collapse, taking America right into hyperinflation.
Hyperinflation is defined as a very high rate of inflation or inflation that has gone out of control. There are several definitions, on the low end it’s defined as a consecutive accumulation of inflation over a three year period averaging 26 percent annually reaching 100 percent by the end of the third year. While on the high side, inflation can exceed 50 percent per month. Even lower degrees of inflation will still wipe out savings and purchasing power within a short duration of time…

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World-wide monetary systems have been built upon the model of the United States dollar. While currently the dollar is still the world’s reserve currency its status as such, could be held into question over the Basel III talks with America. It is widely expected that the US will lead the way in further developments towards gold’s rise to Tier I status.

Within developed countries of the world, the unified consensus is that gold has yet to show any real signs of true-value towards the 41 year old paper currency fiat money system. The system now is starting to break down. Over the past 5 years serious strain and stress has occurred within the current dollar fiat system. Intensifying signs show problematic developments, now and into the future. These developments could be a sign where the current fiat based system is too flawed. This makes a good argument where gold held in reserves would be necessary to increase liquidity, thus granting easier access to loans of nations in need.

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