Gold Classics Library
Timeless and treasured essays collected over our more
than two decades on the world wide web
Money and Politics in the Land of Oz
by Quentin P. Taylor
L. Frank Baum claimed to have written The Wonderful Wizard of Oz “solely to pleasure the children” of his day, but scholars have found enough parallels between Dorothy’s yellow-brick odyssey and the politics of 1890s Populism to suggest otherwise. Did Baum intend to pen a subtle political satire on monetary reform?
Gold and Economic Freedom
by Alan Greenspan
“[T]he welfare statists were quick to recognize that if they wished to retain political power, the amount of taxation had to be limited and they had to resort to programs of massive deficit spending, i.e., they had to borrow money, by issuing government bonds, to finance welfare expenditures on a large scale.”
Who Owns and Controls the Federal Reserve?
by Dr. Edward Flaherty
Is the Federal Reserve System secretly owned and covertly controlled by powerful foreign banking interests? If so, how?
Gold Seizure: How it could happen and what you can do about it
by David L. Ganz, J.D.
Much has been offered in the way of opinion on the matter of a potential gold confiscation, but too little of it is well-researched, well-informed and grounded in a true understanding of the laws and regulations involved. Herein the author, a prominent New York City attorney who specializes in numismatic and precious metals’ law and is often called upon by Congress to offer testimony in this regard, unravels past legal precedent and offers practical suggestions on a course of action for those concerned with the possibility of a contemporary confiscation.
Layman’s Guide to the Rules and Laws of Finance and Investment
There is an old saying that not all that glitters is gold — as in the gold coins many of you have held in your hands. There is another kind of gold that inhabits the practical wisdom of the ages. In today’s “go-get-’em,” “read-it-and-forget-it” world of everyday web browsing, it can be a challenge to separate the run of the mill from the meaningful.
Britain’s Gold Sales ‘a Reckless Act’
by Sir Peter Tapsell
In this speech before the House of Commons, June 16, 1999, Sir Peter Tapsell argued vigorously to keep the government from selling off over half of the country’s gold reserves. It remains one of the most eloquent speeches ever made on the merits of gold ownership for nation-states and individuals alike.
Alan Greenspan-Ron Paul Congressional Exchanges
The Congressional exchanges with Ron Paul Here we spotlight Fed Chairman Alan Greenspan’s remarkable and extended dialogue with Representative Dr. Ron Paul from 1997 – 2005 before the Congressional Committee on Financial Services.
by Kenneth Rogoff
In this short 2013 essay, Dr. Rogoff discusses gold’s volatility, its decline from all-time highs to $1250 per ounce and tells why it might one day rise again.
The ‘Criterion’ Speech on Gold
by Charles DeGaulle
Delivered at the Palais de l’Élysée in 1965, Charles DeGaulle’s “Criterion” speech remains perhaps the most eloquent short discourse ever delivered on gold’s historical role as the final arbiter of value.
Fiat Money Inflation in France
by Andrew Dickson White
The famous study on the late 1700s runaway inflation in France. White reveals toward the end of the essay how those who had the wisdom to keep their savings in gold weathered the inflationary storm.
Extraordinary Popular Delusions and the Madness of Crowds
by Charles Mackay
We include this remarkable study with an agenda. If the rising generations now receiving their education, or even their more jaded elders, find application in their own investment philosophy, then the purpose of this Gilded Opinion entry has been served. Complicated and timelessly revealing, here you will find examples of herd behavior, delusion, mania, craftiness, and financial loss and gain.
Ten Rules For Investing In Gold
by John Hathaway
Gold is a controversial, anti-establishment investment. Therefore, do not rely on conventional financial media and brokerage house commentary. In this area, such commentary is even more misleading and ill-informed than usual.
The Scientific Tale of the Creation of Gold
by Robert Krulich
Only in a supernova is it possible to create atoms with 30 protons, 40 protons, 50 protons or even 60 protons. Nature prefers even numbers for stability…Gold is a rare, odd-numbered atom with 79 protons.
by Colin Seymour
Optimism was abundant as the stock market crash of 1929 unfolded. Seymour offers an oft-referenced chronology sure to raise an eyebrow.
Gresham’s Law in the History of Money
by Dr. Robert A. Mundell, 1999 Nobel Laureate
Gresham’s Law is not a statement about static conditions; it is a statement about a dynamic process. “Good money drives out bad if they exchange for the same price” is an acceptable expression of Gresham’s Law. But a better statement of it is that “Cheap money drives out dear if they exchange for the same price.”
The Only “Why Gold” Infographic You Will Ever Need
by Jeff Desjardins
This five-part infographic on gold will educate and delight prospective and experienced gold owners alike. Not the stuff of dry economics, it reveals in roughly 15-minutes viewing time how gold came to be mankind’s most revered form of money and safe haven asset, and why it is likely to remain so for a long time to come.
A word on USAGOLD – USAGOLD ranks among the most reputable gold companies in the United States. Founded in the 1970s and still family-owned, it is one of the oldest and most respected names in the gold industry. USAGOLD has always attracted a certain type of investor – one looking for a high degree of reliability and market insight coupled with a professional client (rather than customer) approach to precious metals ownership. We are large enough to provide the advantages of scale, but not so large that we do not have time for you. (We invite your visit to the Better Business Bureau website to review our five-star, zero-complaint record. The report includes a large number of verified customer reviews.)
A Gold Classics Library Selection
A Layman’s Guide to Golden Guidelines
for Wise Money Management
Gresham’s Law, Say’s Law, Rule of 72, Marginal Utility, Diminishing Returns, Regression to the Mean, Unintended Consequences, Murphy’s Law, Occam’s Razor, Law of Attraction, Law of Polarity, and more
by R.E. McMaster, former editor of The Reaper newsletter
There is an old saying that not all that glitters is gold — as in the gold coins many of you have held in your hands. There is another kind of gold that inhabits the practical wisdom of the ages. In today’s “go-get-’em,” “read-it-and-forget-it” world of everyday web browsing, it can be a challenge to separate the run of the mill from the meaningful. It is with that thought in mind we offer this compendium of the rules and laws of finance and investment by long-time market analyst R.E. McMaster. Formerly the writer/editor of the widely-circulated The Reaper newsletter, McMaster is known for his occasional forays into the realm of economic philosophy and history. I think you will agree with me that these skillfully condensed descriptions are indeed meaningful — a wellspring of knowledge worth reading, re-reading and passing along to friends and family, especially the kids and grandkids.
(Illustrations by Ed Stein)
Britain’s Gold Sales ‘a Reckless Act’
(Sir Peter Tapsell’s speech before the House of Commons, June 16, 1999, on the partial sale of United Kingdom’s gold reserves)
We do not update our Gold Classics Library often, but when we do we try to choose items that have a timeless quality. This latest selection certainly meets that standard. It comes to us unexpectedly as a by-product of research for the recently published article, The Power of Gold Diversification, and with the kind permission of the United Kingdom Parliamentary Archives.
Many associate Britain’s sale of nearly 60% of its gold reserves in 1999 with the beginnings of gold’s secular bull market. The government’s rationale for the sale, as explained by then Economic Secretary to the Treasury Patricia Hewitt, was to “achieve a better balance” in its reserves by going to foreign currencies. Sir Peter Tapsell took the opposite tack. “The Chancellor [of the Exchequer] may think that he has discovered a new Labour version of the alchemist’s stone,” he argued, “but his dollars, yen and euros will not always glitter in a storm and they will never be mistaken for gold.”
History’s indisputable verdict is that Tapsell was correct and the British government wrong. The ensuing nearly two decades featured a global financial crisis, low-to-zero-percent interest rates, scrambling central banks, and the consistent depreciation of global currencies against gold. Currencies did not glitter in the storm, and they could not have been mistaken for gold which rose relentlessly from $287 per ounce at the time of his speech to the current price of over $1500 (at one point reaching almost $1900 per ounce in 2011). Though his speech before the House of Commons failed to stop the sales, it goes down as one of the most eloquent appeals ever made on the merits of gold ownership for nation states and individuals alike.
Who owns and controls the Federal Reserve
by Dr. Edward Flaherty
“Is the Federal Reserve System secretly owned and covertly controlled by powerful foreign banking interests? If so, how? These claims, made chiefly by authors Eustace Mullins (1983) and Gary Kah (1991) and repeated by many others, are quite serious because the Fed is the United States central bank and controls U.S. monetary policy. By changing the supply of money in circulation, the Fed influences interest rates, affecting the mortgage payments of millions of families, causing the financial markets to boom or collapse, and prompting the economy to expand or to stumble into recession. Such awesome power presumably would be used to benefit the U.S. economy. Mullins and Kah both argued that the Federal Reserve Bank of New York is owned by foreigners. Although the New York Fed is just one of twelve Federal Reserve banks, controlling it, they claimed, is tantamount to control of the entire System. Foreigners use their command of the New York Fed to manipulate U.S. monetary policy for their own and, as Kah asserted, to further their global political goals, namely the establishment of the sinister New World Order.” – From the author’s preface.
A Gold Classics Library Selection
Money and politics in the land of Oz
The extraordinary story behind the extraordinary story of
“The Wonderful Wizard of Oz”
by Professor Quentin Taylor, Rogers State University
Year in, year out, Money and politics in the land of Oz is among our most highly-visited Gold Classics Library selections. Here is the extraordinary story behind the extraordinary story of ‘The Wonderful Wizard of Oz’. Most have seen the movie version of this allegorical tale, but few are aware of what the various characters, places and things represented in the mind of Frank Baum, the tale’s author. Though ‘The Wonderful Wizard of Oz’ was written over 100 years ago, the themes will be recognizable to those with an interest in golden matters. While many today consider gold an instrument of financial and personal freedom, in Baum’s tale, it is painted as a villain — the tool of oppression. So, as you are about to see, we have come full circle, and gold has traveled a yellow brick road of its own.
The Nightmare German Inflation
The surprise is not only the length of time Scientific Market Analysis’ The Nightmare German Inflation has ranked among our most-visited essays, but that it has remained popular even now, when inflation seems a more distant concern. Inflation, though, is never far removed from the minds of many Americans particularly those who remember the inflationary-stagflationary 1970s decade and the dangers it imposed on financial markets and individual investment portfolios. The survivors of the German hyperinflationary debacle of the 1920s did so, as you are about to read, by purchasing gold early in the process. This comprehensive report not only describes how and why the hyperinflation occurred but how various investments performed under those trying circumstances. There is little doubt it will affect your thinking.
Here’s how it can happen and what you can do about it.
Allow us to make a personal observation and then we will send you on your way to Mr. Ganz’ important and timely analysis. Too many gold owners labor under the false presumption that high-end, high-premium numismatic gold coins are the only way you can protect your holdings against a potential seizure. Many of our prospective clients are pleasantly surprised when they discover that there is a whole genre of pre-1933 gold coins that can be acquired at modest premiums over the gold content and still meet the criteria for exemption Mr. Ganz outlines. As he points out, “rare and unusual” does not necessarily equate to “pricey” or “expensive.” To understand why the words “rare and unusual” are important, we invite you to proceed to the link.
Fiat Money Inflation in France
How It Came, What It Brought, and How It Ended
Andrew Dickson White ends his classic historical essay on hyperinflation, “Fiat Money Inflation in France,” with one of the more famous lines in economic literature: “There is a lesson in all this which it behooves every thinking man to ponder.” This lesson — that there is a connection between government over-issuance of paper money, inflation and the destruction of middle-class savings — has been so routinely ignored in the modern era that enlightened savers the world over wonder if public officials will ever learn it. In this essay Dickson White explores France’s hyperinflation at the end of the 18th century in exhaustive detail – its politics, its economics and the social consequences which led, in the end, to Napoleon’s rise as emperor.