Only Scam Artists and Idiots Tell You to Buy Gold Instead of Stocks

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Most gold bugs aren't exactly the smartest people in the world. In part, this explains why they've been fooled by false and misleading claims from con artists in the gold-pumping syndicate. But in fairness, even some intelligent individuals have been fooled by these slick hucksters.   

Biggest Gold Bug Myth: "The Dollar Has Lost 95% of its Value"

Gold bugs are always talking about how the dollar's value is being "inflated" away over the years. 

They claim the dollar's purchasing power has shrunk by 95% over the past one hundred years due to inflation. 

To emphasize their point, they love to post a picture of a shrinking dollar over time to make you think you're much better off buying gold than holding dollars.  

This is a dishonest scare tactic. 

And it's the main M.O. of gold-pumping scam artists. 

I'll get into the details as to why this tactic is dishonest soon enough.

For now I'll give you a brief summary.

First, no one holds dollars for decades.

People put their dollars in interest-bearing bank accounts, CDs, and invest in real estate and the stock market.

This investments yield income and/or capital appreciation which boosts the value of their dollars over time.  

Second, while inflation gradually reduces the buying power of dollars over time, wages also increase over time to counter the impact of inflation. 

The misleading picture of the shrinking dollar is usually used as a lead in to:

1) Sell pro-gold disinfo books from one of the many gold-pumping con artists.

2) Pitch junior mining stocks (which are almost always pump-and-dump scams).

3) Sell physical gold.  

4) Pitch some kind of gold gimmick (gold IRAs, valcambi gold bars, etc.).

Facts About the Reduced Purchasing Power of the Dollar

Focusing on the reduced purchasing power of the dollar over time without including the proper context is a dishonest, fear-based tactic used by gold pumpers to convince people to buy gold.

Let's me explain how they are being dishonest. 

Because some inflation normally exists in the economy, it's reasonable to expect a single dollar today to be worth more than a single dollar ten years from today in terms what you are able to buy. 

The first critical point gold pumpers leave out is that wages also increase over time as inflation increases. Thus, although the purchasing power of a single dollar will be less in ten years due to the impact of inflation, wages will also be higher ten years from now. Therefore, you will receive more dollars in wages ten years from now than you receive from the same amount of labor you perform today.   

From this point alone, I could argue the dollar does not experience reduced purchasing power. 

The second critical point left out by gold pumpers is that the only way the dollars you own will lose purchasing power is if you stash them under your mattress or somewhere else where they are not being used for a long time.

The fact is no one stashes their dollars under the mattress for decades. 

They buy things. 

They pay bills.

And they invest in productive assets that are capable of yielding high returns. 

People put their money in interest-bearing bank accounts and CDs. This interest compounds over time resulting in a larger cash balance. Thus, your dollars are NOT being inflated away as gold pumpers claim. 

Many people also buy real estate with their dollars. Over time, real estate appreciates in value. In my view, real estate offers better protection against inflation than gold.

In addition to providing an essential need, real estate has the potential to produce a stream of income if the property is rented out. In contrast, gold produces nothing except commissions for dealers when you buy and sell it. 

Some people take the dollars they earn from work and reinvest them back into their business. This can be one of the most lucrative investments they will ever make.

But most people take their dollars and invest in the stock market through personal accounts or retirement plans. 

In summary, the dollar has not lost its purchasing power because wages have increased. That means you are receiving more dollars over time. 

Furthermore, wages have increased sufficiently to boost living standards way above those from one hundred years ago. Therefore, the real purchasing power of dollars earned is actually higher compared to one hundred years ago. 

Later we will compare the performance of the stock market to that of gold so you can for yourself that gold is not a good investment. 

Reappearing Gold Bug Myth: Dollar to Lose World Reserve Currency Status

One of the most common fear-based myths from gold pumpers that tends to reappear during periods of economic turmoil is the claim that the U.S. dollar will soon lose its position as the world's reserve currency. 

According to gold pumpers, such a fate will cause the dollar to collapse.

So according to them, you need to buy gold to avoid the "collapse" of the dollar. 

Perhaps the most hilarious part of this claim is that these charlatans fail to position a reasonable replacement for the dollar. 

Does the Dollar Risk Losing its World Reserve Currency Status?

Video Excerpt from 2016

(image in the video is from 2018 because original content was an audio file created in 2016 that was converted to video format in 2018)

Most Ridiculous Gold Bug Myth: Federal Reserve Started Taxes

Many gold bugs also make the false claim that the Federal Reserve started federal income tax system. According to this conspiracy, the US government began imposing federal income taxes in 1913, immediately after the formation of the Federal Reserve. 

This simply isn't true. Federal income taxation was in place long before the Fed was formed.  

But this crack pot conspiracy gets worse. 

Some gold bugs claim that all federal income taxes are funneled to the Federal Reserve, which they claim is used to fund the Federal Reserve Banking system. 

This doesn't even make sense if you understand the basics of the federal government, the Federal Reserve, and US Treasury.  

This propaganda plays into many conspiracies based on anti-Fed narratives held by the same groups that pump gold. 

It's all a huge web of lies, manipulation, and deceit involving thousands of disinfo kingpins, boiler rooms and penny stock promoters, from Alex Jones, Ron Paul, Peter Schiff, Adrian Day, James Turk, Paul Craig Roberts, David Stockman, Nomi Prins, Mike Maloney, Robert Kiyosaki, Jim Rogers, Marc Faber, Jim Rickards, John Rubino, Jim Puplava, Martin Armstrong, Catherine Austin Fitts (thousands more), to Agora Financial, Casey Research, Stansberry Research, Zero Hedge, and hundreds other copywriting shops, precious metals dealers, and penny stock promoters. 

It's one enormous cluster fuck. 

Do Honest Gold Dealers Exist? 

As much as gold dealers tell you how wonderful gold is and how high they expect it to rise, they're ready to sell you their gold for your fiat currency, which they insist is worthless and headed to zero. 

Why do you think that is? 

Answer: They're conning you. 

In addition, they'll never recommend gold ETFs.

Why?

Because they can't make money that way. 

That's what the gold-pumping syndicate is all about; making money from you.

They aren't concerned about helping you make money.

They're focused on taking your money because they're dishonest parasites; not only gold dealers, but also gold promoters and others who work in that network.  

I have not come across a single individual from the thousands of members of the gold-pumping syndicate that's even capable of providing good investment insight. 

This explains why they're involved in various precious metals-related scams, from selling you gold based on false premises, fear, greed, and deception, and/or charging high fees to store it (after scaring you about confiscation) to precious metals penny stock pump-and-dump scams. 

Instead of recommending investing in gold ETFs which (unlike physical gold) come with extremely low fees and provide excellent liquidity, members of the gold-pumping syndicate claim gold ETFs aren't safe, using all kinds of conspiracies, baseless assumptions, and fake news. 

All gold pushers are complete idiots at best, and scam artists at worst.  

I've proven this claim for more than a decade in hundreds of articles and videos. 

Gold Dealer Lynette Zang Claims You Can Buy an Entire City Block with 25 ounces of Gold

Performance of Gold and Stocks versus Inflation

Let's look at the performance of gold since February 1915 through April 2023 (which was current data at the time this article was being prepared for publication).  

It looks quite good, ay?

10,000% is nothing to sneer at.

But once you factor inflation into the picture, the performance is not that great.  

Let's look at the inflation-adjusted performance of gold.

Gold returned 340% when adjusted for inflation between 1915 and 2023. 

Now let's compare the performance (unadjusted for inflation) of the Dow Jones Industrial Average (DJIA) over the same time frame. 

As you can see from the chart below, the DJIA soared by more than 62,000%, or 620 times.

Thus, the DJIA (unadjusted for inflation) outperformed gold (unadjusted for inflation) by more than six-fold (10,300% for gold versus 62,000% for the DJIA). 

Let's compare the inflation-adjusted performance of gold over the same time period with that of the Dow Jones Industrial Average (DJIA).  

As you can see, gold returned 340% when adjusted for inflation between 1915 and 2023. 

In contrast, the DJIA returned 2040% when adjusted for inflation over the same time frame. 

Thus, the DJIA (adjusted for inflation) outperformed gold by more than six-fold (340% for gold versus 2040% for the DJIA). 

Keep in mind this calculation was made without counting the cash dividends paid out by DJIA stocks. Thus, the outperformance of the DJIA versus gold is even higher if reinvested dividends are factored in.  

Of course gold does not pay a dividend, which is just one of many reasons why gold is not a good investment over the long run.   

Advice from a Wall Street Insider: Never Put Gold into an IRA 

One of the more disturbing trends I've noticed in recent years is the promotion of gold IRAs.  

Let me be clear.

Anyone who puts gold into their IRA is acting irresponsibly.  

Consider all of the millionaires created in the U.S.A. just from retirement plans alone. 

These retirement funds contain stocks and bonds.

They don't contain gold.  

The U.S. stock market has created far more wealth for individuals than any other asset class. 

If you want to become wealthy from gold, my advice is to become a gold dealer.

This is the same advice I have been giving for more than a decade.  

Why do you think gold dealers have been spending so much time, effort, and money trying to convince you to buy gold? 

It's the gold dealers who are making all of the money, not the people buying and selling their gold. 

Remember, these are the same people who keep telling you that your currency is worthless and it's headed to zero.

Amazingly, they're eager to take your (worthless fiat) currency in exchange for their gold. 

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