Why gold will soar in price.

One of the most poignant stories in the Bible is the fall of Man; of Adam and Eve. The original sin was the disobedience of God to not eat the forbidden fruit. All sin is a disobedience of God. And the wages of sin is death. There was another wrinkle though, namely, that Eve and her female descendants would have a tough time delivering children. Someone compared the birth of a child to passing a bowling ball through a straw - a process that is obviously difficult and painful.

Almost as difficult will be the process of people acquiring gold to use as currency. You see the US government has fallen into the hands of a bunch of communists who are nationalizing banks and industries and "pay" for it by printing money. These communists want to destroy Capitalism and in its place build a society that is more "just," more equal. The destruction part is easy and we have seen it in several countries. The rebuilding will never happen, unless we get rid of the communists. The accompanying effect of this "CHANGE" is the destruction of the dollar. How easy will it be for people to obtain gold?

Let's run some numbers. The value of all the gold in the world is $5T. Our GNP is about $9T, our national debt is $12T, the "bailouts" (i.e. the cost of nationalizing GM, Chrysler, AIG and the banks and mortgage companies) cost $13T and the world bailout costs is $20T. The value of WalMart and Microsoft each is set about the value of the total gold supply in the world. I am telling you this to illustrate that the world's supply of gold is limited.

An ideal currency is one that is limited in supply and can not be counterfeited by the government. If we plotted the numbers I just cited as a bar graph, the annual gold production would be less than the thickness of the baseline. The time will come when people realize that the governments are cheating them by printing currency and that the only way to avoid being ripped off is owning gold (or gold mines). One writer compared the selling of the world's gold like passing Niagara through a straw. The results? A lot of pain and rising prices.