Now is the time to invest in a true physical asset for the future. Gold rose above $1,700 an ounce in early September soon after the Federal Reserve Bank announced its intention to begin a new round of Quantitative Easing. It is another way of saying they will print a lot more dollars. Hovering around $1,750 an ounce, gold continues to be a single investment for the world's greatest bargain hunters. As time passes, it is becoming apparent that stocks, bonds, and property in America and in many European countries are propped up on borrowed funds and borrowed time.
Bear in mind, the world economies have abandoned the gold standard now for more than four decades from the time Nixon unpegged the US dollar from gold. He did it as a means of fighting recession and inflation at that time. Had we adhered for the gold standard, the paper money backed by gold, the politicians and bankers would have already been facing more difficulties to manipulate the value of paper money to fit their fiscal policies.
Money today is not based on anything tangible or of intrinsic value. It has only a perceived value at whatever level currency traders and speculators think it is. Politicians and central bankers since Nixon have been free to print fiat money (a piece of paper with numbers on it) at will without control or restraint to keep their game going. These currencies have since been played off each other as in a game of monopoly. One clue of impending doom is the fact that every fool with greed in his heart can now trade currencies online.
As this practice of printing money accelerates, countries with more natural resources and manageable debt will see their currencies decline slower in relation with the US dollar, but all currencies will decline in relation to gold.
There will be a splinter group of savvy investors who take notice that the emperor has no clothes. These same group of smart people will make some wise investment decisions to replace a portion of their paper wealth with gold and other precious metals. These savvy investors will have adequate resources in the type of universally accepted coin, gold, to reside reasonably good throughout the shakeout and to pick up the bargains for literally pennies on the dollar when the storm ultimately passes.
The fact is, most people no matter how well meaning or educated, fail to learn from the lessons of history. They go through life with blinders on content with petty self-interest. Nero fiddles while Rome burns. These are among the reasons why gold is going to go up more, no doubt, a whole lot more. Owning gold bullion or gold coins is decidedly a happy thought.
Bear in mind, the world economies have abandoned the gold standard now for more than four decades from the time Nixon unpegged the US dollar from gold. He did it as a means of fighting recession and inflation at that time. Had we adhered for the gold standard, the paper money backed by gold, the politicians and bankers would have already been facing more difficulties to manipulate the value of paper money to fit their fiscal policies.
Money today is not based on anything tangible or of intrinsic value. It has only a perceived value at whatever level currency traders and speculators think it is. Politicians and central bankers since Nixon have been free to print fiat money (a piece of paper with numbers on it) at will without control or restraint to keep their game going. These currencies have since been played off each other as in a game of monopoly. One clue of impending doom is the fact that every fool with greed in his heart can now trade currencies online.
As this practice of printing money accelerates, countries with more natural resources and manageable debt will see their currencies decline slower in relation with the US dollar, but all currencies will decline in relation to gold.
There will be a splinter group of savvy investors who take notice that the emperor has no clothes. These same group of smart people will make some wise investment decisions to replace a portion of their paper wealth with gold and other precious metals. These savvy investors will have adequate resources in the type of universally accepted coin, gold, to reside reasonably good throughout the shakeout and to pick up the bargains for literally pennies on the dollar when the storm ultimately passes.
The fact is, most people no matter how well meaning or educated, fail to learn from the lessons of history. They go through life with blinders on content with petty self-interest. Nero fiddles while Rome burns. These are among the reasons why gold is going to go up more, no doubt, a whole lot more. Owning gold bullion or gold coins is decidedly a happy thought.
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