Today’s entry is fairly light-hearted, but still will be quite revealing to some I hope. If you asked people on the streets of America the following question,
Would you rather have the five grams of gold pictured above or USD$200?
how do you think the majority of people would react? From past experience, my personal belief is that most would snatch the $200 without thought, even if you asked this question in front of a gold dealer where the gold could be verified as real four nine fine 99.99% gold (given the condition that the responder would have to choose before entering the gold dealer shop to discover the price). Or, if I asked, Would you pay me a five gram gold bar for a year’s subscription to this newsletter instead of its current USD price? I bet that many Westerners would immediately choose the gold bar option, believing the gold bar option to be considerably less in USD equivalency than the current annual USD subscription price.
Among the dozens of people to whom I’ve spoken over the years and convinced to purchase physical gold for the very first time in their lives, all made a similar comment following their physical purchase. The common denominator among comments issued by first time physical gold buyers was the following. They all mentioned that they were underwhelmed by the amount of gold they received in exchange for the amount of currency spent, and that the amount received did not meet their respective expectations, both in size and in weight. Even for those that made purchases of ten ounces or more, whether in coins or bars, all commented about the underwhelming amount, in size and weight, of their gold purchases in exchange for the amount of currency spent.
That said, let us consider the exact opposite reaction that occurs when a man buys a flawless 1-carat diamond for his soon-to-be wife. It would be extremely rare for a Westerner, or even an Asian, to comment on how underwhelming the nature of his purchase felt in exchange for the $12,000 to $15,000 purchase price. In fact, all men have been conditioned to spend even more than this amount, or three months of salary, for an engagement ring by the global diamond industry. And many men willingly will do this, though they would never for a second, consider spending three months of wages on a physical gold purchase. Even if a man were to purchase a lesser quality 1-carat diamond for $6,000 to $8,000, he still likely would not comment on the underwhelming feeling of his purchase. Why? Because bankers have conditioned all men around the world to expect to spend very large sums of currency to receive a very small size diamond in exchange. All men already know that if we are going to purchase a diamond that is noticeable from 50 meters away, that we will have to be fairly wealthy to afford such a purchase. Men, especially Western men, have been conditioned to spend lots of money on diamonds but none on purchases of physical gold, due to lies spread by billionaires about gold’s “worthless” nature.
Yet, if we introduced a half-carat diamond into the question above, so a person’s choice now becomes a half-carat diamond, 5 grams of gold or 200 US dollars, as pictured below, I guarantee you that the majority of Westerners (meaning over half) would choose the half-carat diamond as the correct choice of highest priced item, given our conditioning of certain beliefs about asset prices.
Thus, the very small size of the 5 gram gold bar is not the reason, when we are provided with a choice between 5 grams of gold and $200, that most of us, if we have grown up in the West, immediately gravitate to the $200 in cash over the tiny, thin gold bar. Most men that have grown up in the West, when given the choice of the three items above, would immediately gravitate to the half carat diamond, even though the diamond is much smaller in size than the 5 gram gold bar. By the way, for those that do not know the correct choice between 5 grams of gold and $200, it is, of course, 5 grams of gold, as the current price of 5gAu is $442, a price that would yield about double the amount of the $200 in cash, even when considering slightly lower prices that would result in a sale to a bullion dealer. And the correct choice among the three items above, is of course, the high quality half-carat diamond, as one could sell this for a few thousand dollars.
Perhaps Americans have become slightly more educated about the value of gold after big box retailer Costco started selling gold bars in its stores last year. However, during life in five different countries, with three of them located on the Asian continent, I’ve witnessed massive differences in knowledge about gold’s value on the Asian continent versus the North American continent. I’m still fairly certain that one could stand on a street corner and offer a one-ounce gold bar for free to passersby in certain parts of America and Canada, and have at least fifty pass by before finding one that would accept a free ounce of gold. Pawns of the Ruling Class. like Charlie Munger, Warren Buffet, Mark Cuban and others, have conditioned North American citizens to believe gold is a “barbarous relic” and “worthless” and to never consider gold as an asset that effectively preserves wealth. And given the fact that propaganda about gold on the internet outweighs truth 100:1 and will only become worse as Artificial Intelligence programs determine the answers you are provided to financial questions posed in your internet searches, the ignorance about gold’s value among most is wholly unsurprising. And even though many American cities are becoming quite lawless in nature, despite the risks of doing so, one could probably stand on a street corner for several hours, stop all passerbys and openly show an ounce of gold to them, and not be robbed, simply because most Americans have been conditioned to believe gold is worthless (and by most, I only mean the majority, or more than 50%).
Thus, the very curious nature of an incorrect choice between an offer of 5gAu and $200 in cash, and a correct choice among 5gAu, $200 and a relatively high quality half-carat diamond, is the direct result of the deliberate exclusion of all monetary truth from the global academic system, including all MBA programs and all business curricula. Though this article was not intended to expose any mind-blowing information to its readers, it was meant to expose the lack of knowledge the vast majority of us possess about money and monetary history. Even if you knew the correct choice between 5g of gold and $200 in cash, it is still highly likely that your knowledge about monetary history is near zero if you have not engaged in extensive efforts of self-education about this topical matter. Unfortunately, without knowledge of this topic, it literally will be impossible to make smart financial and investment decisions throughout your life.
And speaking of this topic, a few paying subscribers have asked me to address certain big global banks’ predictions about gold having already peaked in price for this year and a prediction of $2,000 gold by the end of the year. Other have asked me to explain my commitment to higher gold prices later this year despite analysis provided by other American analysts that claims no fundamental support exists for the current rise in gold prices. Again, the explanations for these Western analysts’ predictions is simple. It is due to their lack of education about monetary truth and predictions based upon ignorance versus education. For those interested about this topic, I spent years creating courses with all the relevant information necessary to take proactive actions against coming implosions in fiat currencies in my recently launched online Tomii Academy. Regarding the questions addressed in this paragraph, I am writing an article, exclusively for paid subscribers, that will be published later this week.
If you have spent considerable time living both in Asian nations as well as Western ones, please comment below. Let our readers know if your experiences have been similar to mine, with many North American citizens being relatively clueless about the value of gold. Do you think that small amounts of gold, up to a couple thousand dollars in price, can actually be offered in the streets of Canada and the US, for pocket change without a single taker? And in comparison, do you believe that conducting the same experiment in most Asian nations would not last longer than the first two or three passersby? No doubt, if many Westerners are disappointed by the amount of gold received for fiat currency purchases now, think about how much greater there disappointment will grow if the price of gold exceeds $5k per ounce in the future. This means that the bankers’ war against monetary truth, in their efforts to convince men to spend loads of money on diamonds but to remain unwilling to spend a fraction of this amount on physical gold, is still demonstrating success in the West. And the only way to reverse such ignorant beliefs is to self-educate about monetary history and truth.
To your point - There a jeweler in NY called TraxNYC who regularly goes out on the streets offering gold and silver bars to passerby’s if they can answer how much is a 1oz gold coin worth or something similar. Most people don’t answer or are cluesless. It’s fun to watch the videos of it.
😂 This is a Mark Dice video where he offers people the choice of gold or a candy bar
https://youtu.be/BgUxF7gvYeE?si=K8cfYsyn8Tj5vNKM