Five good reasons to invest in gold

Financial markets have always been uncertain; it’s the nature of the beast. But in today’s globalized world, economic health may deteriorate more than ever before. This may be a good time to smooth over this uncertainty by investing in gold, also known as the money of last resort. You will not only protect yourself from the fall of the dollar, but also get a significant profit from precious metals. Here are the best reasons to convert your money into gold:

o Troubled times in the United States fiscal gap.

As you read this, the US government is racking up ever-increasing debt, currently at $63 trillion. What does this mean to you? As the Federal Reserve continues to print more money, this will reduce the purchasing power of the dollar and inflation will spiral out of control. This is what happened to Germany after the First World War, when one loaf of bread required a wheelbarrow of German stamps.

o Troubled times in the macroeconomic investment climate.

Kuwait has just announced that their currency will not be pegged to the dollar. China sold at least 1 billion US Treasuries as Venezuela and the United Arab Emirates swapped their dollar reserves for euros. The signal coming from other governments is a warning sign; our dependence on foreign bond buyers to finance domestic consumption is rapidly diverging. The United States economy is held together by wire and duct tape.

o Supply and demand.

While mining companies continue to extract gold, production cannot keep up with demand. From 1992 to 2005, global production was 1.1 billion ounces. Stocks are barely half that size and shrinking. Major mining companies must scramble to keep up with production, turning to the junior segment of the mining industry for exploration and discovery. But between 1985 and 2003, the number of new discoveries fell by 30 percent. Basic economics tells us that when supply cannot meet demand, the price increases.

o Historical value.

Gold cannot be manufactured. It is what it is. This is why the value of gold has been used for over 5,000 years. In his speech, Anthony S. Fell, a leading banker at the Royal Bank of Canada, said:

“Unfortunately, to some extent, all paper currencies become suspect, and accordingly I believe that gold bullion, rather than the barbaric relic described by John Maynard Keynes, may well become an asset for many. investors over the next decade…despite the modest rise in gold prices over the past few years, this is where bullion gold is today, and it represents a great opportunity.”

o Gold is a great stabilizer for all economies.

Gold prevents governments from printing money and borrowing from citizens. This prevents currency devaluation caused by inflation and increases the wealth of nations. Gold provides protection against the abuses of usury, encourages savings, and puts an end to the taxation and exploitation of the world’s population.

Investing in precious metals is the only safe haven from a falling currency. The US dollar index has fallen 30% since 2001, while gold and silver have more than doubled.

Since 1913, when the Federal Reserve System became the issuer of US currency, the dollar has lost 98 percent of its value.

The question arises, should you invest in paper assets or gold?

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