Welcome back to the Worldwide Fiat Currency Race to Debase!

By: GoldCore

At the close of third quarter 2010, it is clear for the world to see that all fiat currencies around the globe have been getting their paperback-sides kicked in by true hard monies, silver and gold.

To all the paper-bug fiat currency fools out there, we have this to say to you. Scoreboard.

Fiat money has no place to go but gold. If all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine. It signals problems with respect to currency markets. Central banks should pay attention to it.

- Alan Greenspan

Many people, like the aforementioned bubble maestro Alan Greenspan, mistakenly refer to fiat currency as fiat money. In order for a currency to also be money it must by definition be a store of value over a long period of time.  Only two currencies are money, gold and silver.

Lets delve further into the numbers.

Here is a look at how real monies, gold and silver, have performed against 74 various fiat paper currencies thus far in 2010.

We're in the midst of an international currency war. This threatens us because it takes away our competitiveness. Advanced countries are seeking to devalue their currencies.

- Guido Mantega, Brazil's finance minister

The competing currency war is ramping up, with gross interventions, open disputes, notable desperation, friction among trade partners, and urgent need to take action. Nations are taking positions against each other increasingly. In defending their economies, they are pitting themselves against allies and foes alike. The number of bilateral squabbles has never been greater. The winner will be Gold, as all paper currencies will circle the toilet and lose. The Gold price acts as a meter; it will rise in spectacular fashion. It rises due to the profound debasement in a death process of the currency system.

- Jim Willie CB, aka "The Golden Jackass"

Over the long haul, only money maintains its purchasing power. Gold and silver are money and they are destined to be the world champions of purchasing power.

The 74 different fiat paper currencies listed above are not money. They are poor stores of value for they don’t and won’t maintain their purchasing power over the longterm. We forecast that their worth will continue to fall, that their face values will simply purchase less and less as we continue to witness this ongoing worldwide race to debase.

Yes!  Physical silver and gold bullion coins and bars are for winners!

http://goldsilver.com

Mike Maloney is the owner and founder of GoldSilver.com, an online precious metals dealership that specializes in delivery of gold and silver to a customer's doorstep, arranges for special secured storage, or for placement in one's IRA account. Additionally, GoldSilver.com provides invaluable research and commentary for its clients, assisting them in their wealth building endeavors.

© 2010 Copyright  GoldSilver - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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