______________________________________
Gold Suppression Institution #4: The Mainstream Media
Mainstream TV News
Whether it’s FOX News or CNN, conservative or liberal, the engines of mass media are fueled by the revenue from their advertisers. And just like investment banks, the media depends on your continued support of corporations.
Whether these corporations provide a good service or strong returns on your investment matters little, so long as you continue to funnel your hard-earned money into their coffers.
Now, before you start to take sides on conservative vs. liberal media, let me point out that I believe both sides care less about their respective doctrines and more about advertising revenue.
For example, consider the FOX Broadcasting Company. FOX News has, of course, a very conservative voice with commentators like Bill O’Reilly and Glenn Beck.
But at the same time, FOX airs television programing that is anything but conservative, including some of the most unapologetically vulgar shows on television, like the popular Family Guy as well as some raunchy reality shows. The television programs on FOX are so outrageous that the company is frequently fined by the FCC for violating the nation’s indecency laws.
My whole point here is that the mainstream media cares less about dogma and more about advertising revenue, which can only continue to stream in as long as corporations do well.
Of course, you’ll never hear any of this from the well-compensated talking heads you’ll see on the old boob tube. But buying gold may preserve your wealth, even if it takes money out of the media’s pocket.
Gold Suppression Institution #5: Corporate America
Corporate America Flag
As you’ve probably surmised by now, corporate America is also heavily vested in the strength of the dollar. As the dollar weakens, the values of their stocks plummet. And as inflation takes hold, consumers are less and less likely to purchase goods produced and sold by our nation’s biggest companies.
Every ounce of gold you buy means hundreds of dollars lost, either by manufacturers, by retailers, or by banks that would have otherwise received the cash deposit.
Once again, you sidestep the liabilities associated with making speculative investments in their securities or blowing your money on their goods. In the process, you retain and grow your wealth, but cause them to grow weaker.
You better believe the rich executives have gold in their own portfolios. But, once again, you’ll never hear them make the suggestion to you. There’s just too much for them to lose.
Gold Suppression Institution #3: The IRS
The IRS Building in Washington DC
Our favorite government entity is also one of the most vulnerable to loss of revenue when gold is bought and sold.
Notoriously hard to tax, gold is one of those things that the auditors hate seeing on income statements because of the problems associated with establishing a basis and the issues of measurable gains made at a sale. It’s just too easy to lie about. The bottom line is, when trading gold privately, it’s impossible for the IRS — or anyone for that matter — to know exactly how much you bought or sold the bullion for without your honestly reporting it.
The difficulties with accurately evaluating gold bullion, coins, and jewelry create a host of problems for people who need to deal in decimal places and precise figures.
In fact, the IRS has never issued a public guidance on the question of how gold is to be valued, at face or market value. This lack of specificity on their part led to a landmark loss in Nevada Federal court for a case involving 9 defendants whom the IRS tried to convict on tax evasion and other charges. Gold makes it far to easy for individual investors to legally conceal the extent of their wealth and tax liability. The IRS, as a result, has a much easier time maximizing the rate at which they can tax you when you keep your money in cash or securities.
Conclusion
Gold has a long-running history as a safety net during times of financial difficulty, a method of preserving and actually growing wealth as other sectors in the economy go into decline. It’s a see-saw battle that’s been going on since antiquity. Unfortunately, the two sides of the see-saw remain in perpetual conflict as investors have to make either one choice or another.
Right now, that see-saw is clearly swinging in the direction against business and industry. While certain biased sources will tell you otherwise, the choice really is pretty simple. You can either fight the see-saw and lose what you’ve earned, or use the mechanism to your advantage and gain while most everyone else watches their savings decline in value.
I am satisfied to wish everyone else the best of luck in seeking a better store of value in fiat currencies. I, however, will be owning gold.
Good Investing,
Alex Koyfman
Contributing Editor, Gold World
P.S. With a gold resource worth 63 times more than its market cap, this junior gold stock is getting ready to pay off big time. This tiny $0.34 stock could make it’s first move over $2.00 in short order. The whole story is laid out for you here.