Imagine the scenario where a pot of water is filled to its brim and placed on a stove. Then you begin to turn up the heat for several minutes, and the water volume is not reducing. Surprisingly, the water begins to transform to steam, the same pot contains water molecule, the chemistry has not changed because of the transformation, it remains H2O.
Water has undergone a phase change, it now exists in a different state from liquid to gas.
I’m sure that you have watched a pot of water boiled, you have seen that before water turn to steam, its surface is kind of turbulent and filled with bubbles. If we are to analyze this situation, the molecule of water at this stage does not know its fate, it doesn’t have a clue if it will become steam or liquid. It is either water to steam or steam to water, there is no decision regarding its final state. Suddenly, the turbulence is further triggered and the water change to steam.
Yet at this indecisive stage, if the heat is turned down the surface returned to being water. This turbulent state is a point that must be crossed from water to steam.
My friends, this is a great metaphor for where the world’s economy is today. We have gone past the old face that existed in 2007 prior to the global meltdown, yet we are not at the new stage. We are at the metaphorical phase where investors are really as confused as we are.
It is a fact that what affect US economy affects every other country, IMF has given a fancy name to it, they call it “spillovers.” At the moment of this writing, 70% of US GDP is from the financial institution, not agriculture, construction and manufacturing sector.
The booming financial sector is cool, but when a means to an end becomes the end, there is a trap. The financial sector is powered by greed and bankers are bullish on extracting wealth from the masses, without adding equal value.
Over financialization of the economy almost destroyed the entire world economy in 2008. But it seems like no lesson has been learned. There is no way finance can create wealth it depends on other sectors, it is kind of parasitic and it can be called a sucker.
What Do We Do
The aim of this piece is not to create fear in readers’ minds, but to enlighten them on available insurance, gold has a history of creating a safe haven for people in times of financial crisis, nationwide or statewide.
Due to mining, the gold stock has been increasing almost in the same proportion of world population growth, this leads to honest money. I have written a lot about why gold is money in my blog. This is not the time for epistles. It has been more than 100 years since the last gold deposit was discovered, so it is as if gold was designed to increase about the same rate with the global population. Annual output has been quite slow and steady, not more than 1.6% increase by the year.
Gold scarcity is heaven sent to save the masses from government recklessness and poor decision making. There is one power that no one can take away from you, it is the power to own private gold. This is even easier to achieve at the age of globalization. This is the best insurance against the next level of economic collapse. Go to the internet and become a student of history, if not for any reason, at least for economic awareness. Read about past global economic collapse too, you will understand that economic prosperity and fall is always in a cycle, how fast it fails is the function of how the world’s policymakers managed the economy.
Truly, more than 90% of us are not part of those who formulate policies, we are left with only one option, it is personal financial responsibility and vigilance.
Save in gold when you can, the masses cannot afford to drag the precious metal with top wealthy people in times of rush, a little bit of gold per annum will accumulate over time. Not everyone can afford to buy a gold bar or coin, but you can buy it in the form of jewelry. This is wearable wealth, but ensure that you are investing in 24k gold, anything less than 99.99% purity will jeopardize your investment, 24k and 18k gold can never command the same price at sale points, in most cases, people buy impure gold at the cost of the purest one.
Do your research and by the right gold. If your annual profit is a million naira be sure to invest a minimum of 10% in gold. A word is often enough for the wise people of this world. What is the word? Gold!