Gold vs Fiat Currency
Today everyone is talking about buying gold, but a lot of us are not doing anything about it because they don’t know how or even why they need to. Right now the Federal Reserve is printing money 24 hours a day in order to get people to borrow money and spend more. Isn’t that what got us into this mess in the first place? Every stimulus program dilutes our purchasing power by increasing inflation. Learn more on Gold Dealers Directory.
A precious metal that has long been used since ancient times as a method for trading and commerce is gold. Economic problems such as inflation, low rates of interest and the value of currency does not influence how the value of gold or silver should be. In other words, gold is the safest money out there. How to buy gold is the question that you should first ask yourself if you are a novice in this area. Make sure that you know the basics on how to check the authenticity of gold.
Gold is your insurance against the failure of the dollar and increased inflation. Gold is the best and least complicated to own. No matter how much fake new money is printed the price of gold goes up to offset the loss of purchasing power. At one time gold was $20 an ounce and today it is over $1,500 and heading to $2,000. $7,000 an ounce gold is not out of the question over the next few years. Some economists believe it has to go this high to compensate for inflation. The dollar is only being propped up by our faith in it, and that is why our government doesn’t really want you buying gold.
Gold may be purchased as gold bars, minted coins or as stock. Having the physical gold in your hand is probably best as it may be difficult to exchange a stock certificate for the metal when it is needed. Gold bars are very acceptable, but when it is time to cash them the buyer may require an assay which is both expensive and time consuming. Gold coins are immediately negotiable and their value is published daily. Any dealer will buy as will individuals. They may also be used in transactions of all types. It is best to buy coins that have a stated amount on the face.
If you understand how the dollar is losing its purchasing power a shrewd person will want to have some form of his wealth protected by gold. So what conclusion should we reach. The signs are so positive, those who embrace gold will possibly be very relieved they had the foresight to do just that. If you do nothing else this year you should buy gold.