The Case For Gold

verfasst von - Elli -, 05.06.2003, 23:03

-->Dear Friend and Reader,

For most of the 20th Century gold has been under assault. A war
against it has been waged for the last seven decades. The struggle
has gone back and forth... with gold gaining ground in some years,
losing it in others. Never has there been any doubt about the final
outcome. No paper money has ever endured over the long run... nor
has gold ever disappeared, or ever lost value against paper money
over an extended period. But something extraordinary happened in the
last two decades of the 20th century... something that never
happened before: For a period of 20 years the Midas metal
retreated... while paper currency, primarily the U.S. dollar... rose
in value against it. As a result, gold fell far from grace in the
eyes of governments, politicians, bankers, economists, Wall Street
and Main Street as well.

But there was a time when Presidents, bankers, economists and
philosophers spoke of gold with respect and awe, not just as money,
but also as a protector of wealth and freedom.

Paper money is a great aid to politicians. It makes it possible for
them, said President Herbert Hoover, to confiscate"the savings of
the people by manipulation of inflation and deflation."

"We have gold," Hoover added,"because we cannot trust
governments."

During The Great Depression, those who wanted a safe harbor for
their wealth, turned to gold. Now it appears that deflation, secular
recession, runaway inflation and perhaps another depression are on
the horizon. And gold once again is coming to the center of the
financial arena.

While gold represented a haven of financial safety during the great
depression years it was a haven that was difficult to reach. On
March 8, 1933 at his first press conference, Franklin Roosevelt
assured the nation that the gold standard would remain. On March 9,
he pushed the Emergency Banking Act through Congress - giving him
the power to regulate or prohibit gold ownership. And less than a
month later, the leader of the free world made it illegal to hold
gold.

Just two months later, Roosevelt even abrogated all contracts in
which payment was stipulated in terms of gold - including
obligations of the U.S. government.

Anything so popular that the government declares it illegal is bound
to be a good investment. Politicians and bankers have been fickle
about gold, changing their tune as easily as they change their ties,
depending on current fashion and their professional ambitions.

Greenspan: The Golden Turncoat

Take, for example, Fed Chairman Alan Greenspan, once a defender of
real money and now it's worst enemy.

"In the absence of the gold standard, there is no way to protect
savings from confiscation through inflation. There is no safe store
of value. If there were, the government would have to make its
holding illegal, as was done in the case of gold," wrote Greenspan
in 1966 for Ayn Rand's Objectivist magazine. He continued,"Deficit
spending is simply a scheme for the confiscation of wealth. Gold
stands in the way of this insidious process. It stands as a
protector of property rights. If one grasps this, one has no
difficulty in understanding the statists' antagonism toward the gold
standard."

Remarkably, this same Alan Greenspan - an ideological opponent of
central banking and paper money - later became the most central
banker the world had ever seen, as chairman of the Federal Reserve
System. Not only that, he also issued more new paper money than any
man in history.

A Distinguished Publisher Strikes Gold

Not that long ago, I was sitting with Lord Rees-Mogg in his library
on Bloomsbury Square, London. Under a gray sky, red double-decker
buses passed the window and we discussed the fragile state of the
world economy. The U.S. dollar has fallen against the euro by 22% in
the last 12 months, we noted.

"But I think the future could be even worse," said Lord Rees-Mogg.
"The logic and principles that govern valuation of currencies have
been stretched to their limit with the almighty dollar. Gold has
just begun to rise like the Phoenix from the ashes of a 20-year bear
market. Something dangerous and exciting is going on today," he
continued."And if you don't understand it, you are in danger."

Gold, a subject that has fascinated both of us for decades took
center stage. We recalled the gold's golden era after Nixon cut the
dollar loose from the artificial constraints. We reveled in the
gains made back when gold rose from $35 to $850 per ounce. Of
course, since then, it fell back below $250 per ounce and stayed so
low for so long people began to think it was finished for good.

Lord Rees-Mogg explained why he believes that gold's comeback today
isn't due to fears of war, failure in the stock market or investor's
fears."It's inevitable," he said. His reasoning came from a deep
historical perspective.

Golden Profits In The Age Of Bubbles

"The Irish banker, Richard Cantillon," he explained,"was the first
modern economist, not Adam Smith as so many people assume. And he
was the first to document how paper money, inflation, gold and
supply and demand work. And he made a fortune because of it."

"Cantillon was opposed to the inflationist theories of John Law. But
he understood Law's monetary schemes and created a substantial
fortune wisely applying his insights during Law's Mississippi
Scheme, which bankrupted France. He profited again during the
similar South Sea Bubble in England - because he understood the
enduring value of gold."

"In the wake of the economic chaos 300 years ago, Cantillon wrote
his groundbreaking Essay on the Nature of Trade in General. In it he
savaged the muddleheaded Mercantilist thinking of his day to make a
dramatic contribution to our knowledge of economic method, theory,
and policy. Mysteriously murdered, after writing the Essay,
Cantillon's work remained unpublished for more than twenty years.
And although he was among the few people acknowledged in Adam
Smith's, the Wealth of Nations, Cantillon was almost forgotten for
centuries." Then William added with a sly smile,"I intend to change
that."

I asked my friend how he came to know so much about such a
relatively unknown figure.

Lord Rees-Mogg told me that he'd just finished editing a historic
collection of the premiere writings concerning gold, including
Cantillon's brilliant Essay. I sat up straight and leaned forward to
get the details, admiring the handsome set of books as he explained
to me the grand reception these volumes have received in the world
of prestigious university libraries, stately collections in the
Embassies and among bibliophiles around the world.

He recounted the sum of the 20 different authors included in the
elegant three-volume set; from Gerard de Malynes, 'A Treatise of the
Canker of England's Commonwealth' (1601) through David Hume, John
Locke, David Ricardo, John Stuart Mill and Karl Menger, all the way
up to the more modern writings of Murray Rothbard.

"If looked at as a written history of the battle for gold as money
against fiat currencies - written by the heroes of the war - you
will see their impeccable logic. We can much learn from them today,"
he said.

The historical perspective of most people today barely stretches
back past the Clinton Years. Most haven't a clue of the
contributions made by giants of philosophy and economics like Locke
and Mill, let alone the more obscure geniuses in this collection.

Nor do they understand the crucial role that gold has played in
world economic history. Let me just put it to you straight. How many
times have paper currencies - unbacked by gold - become worthless?

Answer: every time.

And how many times has a gold currency lost its value? Never.

There is just something inherent in man. He cannot resist the
temptation to destroy a paper money. It is just too easy to print
more and more.

On the other hand, gold cannot be created easily. Each ounce is hard
to come by. And it is such a durable metal that almost every single
ounce that has ever been mined is still in circulation today.
Compared to paper money, it goes up in value and it goes down, but
it never goes away.

Critical Acclaim for The Case For Gold

Then Lord Rees-Mogg read me the review that William Chancellor
penned in the Prospect.

"Over the last thirty years, we have witnessed runaway inflation, a
variety of speculative bubbles and a succession of currency crises.
Is there no way to escape this mayhem which spreads its misery from
the day-labourers of Buenos Aires to the pensioners of New York? In
fact, one solution offers itself; an idea so unpopular that only a
handful of cranks nowadays even dare consider it. In order to rid
the global economy of its chronic instability, we must return to our
golden fetters.... In an introduction to a recently published
collection of historic writings on gold (The Case for Gold, three
volumes, published by Pickering & Chatto), William Rees-Mogg lays
out the case." - Edward Chancellor, Prospect

"Well, I've been accused of being a crank," I duly noted."And
accused of being a gold bug too, although so far I haven't been
convicted."

We both laughed. And then I proposed to buy whatever copies remained
of the first edition press run that he would allow. That way I was
certain to have it for my own library and I could offer them to book
lovers and history buffs among my Daily Reckoning readers. (It's not
the first time I gave in to this impulse. I bought his whole
inventory of the great Classics in Austrian Economics set... and
when I offered it to readers, it sold out almost immediately.)

Gold is hot now. The Chinese are buying. The Japanese are buying.
Daily Reckoning readers are buying. I like gold because we cannot
predict the future. But we know that eventually and always, paper
currencies disappear while gold remains.

Unusually and unnaturally, the world's most ubiquitous paper
currency - the dollar - rose against gold for the last 20 years of
the 20th century. It is not likely to do the same for another 20.
The Case for Gold lays out the reasoning for this inevitable trend
with unparalleled clarity.

An Investor's Arsenal of Knowledge and Wisdom

The Case for Gold contains perhaps the greatest insights ever
written about gold and it's the most comprehensive collection ever
compiled in one place. You'll grasp gold's value as real money and
the role it plays in our freedom. Each time you remove one of these
beautiful volumes from your library shelf and open it, you'll have
at your fingertips knowledge and wisdom that's been largely
overlooked for years -- left to gather dust in research and
reference libraries in Europe and America.

As you turn the pages of these volumes you'll open the door to a
remarkable resource, the history and hidden logic behind gold's
enviable position in the monetary systems of the world. You'll
deepen your understanding of the principles of money and the logic
of gold. You'll take in wisdom that will serve you well for as long
as you remain financially active... unlike the vast majority of
today's investment"information"... information that evaporates as
soon as you look at it closely.

Unfortunately, I was only able to secure 47 copies of this special
edition of The Case for Gold... out of a total print run of 400. But
I managed to reserve them for you and my other customers. After they
are gone, that's it. It will never be reprinted in this form, for
reasons I'll explain.

You Won't See These On The New York Times Bestsellers List

Pickering & Chatto isn't an ordinary publishing company. This
180-year-old venerable institution doesn't publish popular fiction
for the benefit of the Lumpeninvestoriat. It's established a name
for itself in the most important libraries of the world. It
publishes important works, like the complete writings of famed
biologist Charles Darwin in 29 volumes. It publishes elegantly bound
limited editions destined to last for centuries.

The Case for Gold is more than just a fount of economic knowledge.
It is also a prized product in its own right.

Each volume in this essential trilogy is lovingly hand-bound in rich
gold library buckram with classic gold-detailed spines using
centuries-old techniques. Crafted by master bookbinders that only
Pickering & Chatto and a handful of European publishers can afford
to commission, each volume is almost a work of art in its own right.
The materials exceed the standards set by American National
Standards Institute.

They use only the finest 100% wood-free pulp available, laced with
micro-fibers to prevent tearing. The paper is better than simply
"acid-free." It's neutral pH paper with an alkaline reserve, or
buffer, in the finish of the pages. Barring accident, they should
last hundreds of years and be treasured for their outward beauty as
well as the wisdom contained inside.

Even before you begin reading this remarkable collection of wisdom,
you stroke the luxurious bindings and feel the silk-smooth pages,
you'll understand and appreciate that you' re the owner of something
exceptional.

Several years ago, Pickering and Chatto issued the first in a series
of collectible first editions: a collection of the writings of the
key Austrian economists. This beautiful three-volume set has gained
much attention by collectors worldwide. If you have the Austrian
Economics set, The Case for Gold is an ideal addition to your
growing collection.

One of the nice things about these books is that they are almost
eternally valuable. Not just the ideas - even though they contain
the wisdom of many generations - but the books themselves. They are
designed to last nearly as long as the essential ideas they contain
- that is, for hundreds of years. And since they are very limited
print runs, they typically become hard to find after a few years -
and often more valuable. Thus, Lord Rees-Mogg promises me that if
you ever choose to part with your set of The Case for Gold,
Pickering and Chatto will buy it back. All the while, it will
enhance your personal library and be a lasting symbol of who you are
and what you believe.

This Is The Time For Gold

In 1997, economist Robert Mundell predicted,"Gold will be part of
the international monetary system in the 21st century." In 1999
while accepting his Nobel Prize Mundell said,"The main thing we
miss today is universal money, a standard of value, the link between
the past and the future and the cement linking remote parts of the
human race to one another...The absence of gold as an intrinsic part
of our monetary system today makes our century, the one that has
just passed, unique in several thousand years..."

He's right. And the good news is that recently there's been a change
in investor's sentiment.

Mundell continues,"We are seeing a gradual but marked change in
investor sentiment toward gold and a simultaneous return of gold to
its 2000-year old status as a reserve asset... It will be desirable
to select as the standard of value that appears likely to continue
to exchange for many other commodities in nearly unchanged value."

Like gold - that sits at number 79 in the Periodic Table and never
moves - the wisdom in this three-volume set is immutable. It will
hold fast and true for the rest of your life, for your children's
and grandchildren's lives and for the generations that follow.

An Opportunity For Sense Instead of Nonsense

Whether you are already a dedicated book-lover... a collector with
an extensive library of valuable and unique tomes... or want to
start building your own library of truly worthy financial and
investing books... I urge you not to pass up this opportunity to
possess your own copy of this remarkable three-volume anthology.

In this Internet-driven information age, fine books themselves are
becoming an endangered species. Once so valuable that they were
thoughtfully passed from generation to generation as family
heirlooms, fine books are being replaced by electronic reproductions
that flicker and jump on computer screens.

This opportunity is not for everyone. But for discerning investors
and readers with a hunger for deep knowledge and success and an
appreciation for life experience garnered over the centuries (as
opposed to the opinions of popular pundits who are still spewing
propaganda for Wall Street) this three-volume The Case for Gold
collection offers a fantastic opportunity. And one that may never be
repeated.

I hope that you accept his invitation as a token of my gratitude for
your support and business. Please note, however, that our supplies
of this unique collection are absolutely limited. Not because we
want to limit them. It' s just the economics of publishing this kind
of a book makes it difficult to go back for reprints.

The Case For Gold And Your Prosperity

Why do I get so excited by these books? After all, they're just
books... right? No, this book is different. It's an investment of
the sort I especially like. Here's why:

You can't lose money...you will always have the option to return
your set of books for what you paid for it. This is my personal
guarantee to you.

This wouldn't be the first time investors made money on limited or
rare books. Today a first edition of Ayn Rand's Atlas Shrugged sells
for about $1,800. It cost a fraction of that when it was first
offered back in 1957. A first edition of J.D. Salinger's Catcher in
the Rye is worth $12,500; Ernest Hemingway's Old Man and the Sea
sells for $1,400; Samuel Johnson's Dictionary of the English
Language has soared to $140,000.

But I don't want you to buy this unique collector's series of the
first edition of The Case for Gold just to make money. And I
wouldn't want you to count on it any case. The value of these books
lies in their remarkable contribution to Western society - and the
value they can hold for your personal future.

They're attractive, substantial assets that you can see and
appreciate. Not merely an electronic entry made by your stockbroker
- these are tangible things of real value that you can hold in your
hands, appreciate and admire.

Subscribers and friends who purchased copies of the collected
writings of Nikolai Kondratiev, or The Wealth of Nations, by Adam
Smith, and who know the superb quality offered by those sets, will
undoubtedly rush to order The Case for Gold. If you want to add this
museum-quality collection to your own library, I urge you to act
immediately - before they are all gone.

The ideas they contain are not just interesting, they're essential -
these are the great ideas that underpin our civilization...like the
Bible, The Iliad and The Origin of Species... they are the ramparts
of our culture, protecting us from economic ruin and barbarism.

Here, in three handsome volumes that will honor any library, is the
history, economics and philosophy of The Case for Gold. You'll read
brilliant observations and forceful arguments that detail and
develop the case for gold. From the 400-year-old treatise of Gerard
de Malynes to the 40-year old writings of Murray Rothbard, you'll be
privy to the battle as it proceeds across the centuries. This is the
most complete and important collection concerning the arguments for
gold ever published.

By helping you understand the nature of gold and its relationship to
currency, commodities and wealth, they help you organize your
economic life. And help you and your family to build and protect
real wealth.

As you build your library, it's natural to look for volumes that
reflect what you believe... that are valuable collectibles... that
are also valuable for the information they can give you... and
finally, an invaluable legacy to your children. These are the books
that remain in your family for generations: books that by their
presence ennoble your library's atmosphere.

Your Golden Key to Wisdom and Riches

As I said before, this opportunity is not for everyone. But for
those with the intelligence, the hunger for knowledge and success,
the sheer good taste - The Case for Gold offers you nothing less
than a once in a lifetime opportunity.

This information is priceless. If I set a figure of thousands of
dollars on it, it would be worth every cent. Yet I believe these
books offer you so much remarkable information that Pickering &
Chatto sold this book for £295 in the UK or about $450, but because
I bought all the remaining stock, I can offer you a substantial
discount. You'll pay only just $350 - a special discount of $100.
And, if the books are shipped to you within the U.S., I will pay the
shipping and handling on top of that.

Let me remind you, these books should last 700 years or more, but
the 100% money-back guarantee lasts forever. To reserve a set in
your name, click below to order. I promise immediate attention to
your order and a prompt refund of your payment if we should run out
of copies.


Sincerely yours,

Bill Bonner

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• The Case For Gold - - Elli -, 05.06.2003, 23:03