Why You Should Buy Gold
When you are trying to figure out how to buy gold or why you should buy gold, it is important to note several things. First, inflation is rearing its ugly head and governments won’t stop until the dollar is completely devalued. Second, we are in the midst of major bailouts, layoffs, Ponzi schemes, and sky high unemployment.
Let us look at why you should be invested in gold. In 2001, the gold price was sitting at around $250/oz. Today the gold price is sitting at over $1,100/oz. So, for a one ounce gold coin it would cost you over four times the amount it did just 8 years ago. What other investments do you know have gained 400%, and not lost any value due to inflation like dollar related investments have?
If you are going to argue that your paper investments (i.e. stocks, bonds, derivatives) made 400% returns, then you obviously aren’t factoring in the falling dollar. Even though the Dow Jones is showing noticeable increases, it is quietly crashing under our noses and most people aren’t even aware of it.
If the Dow has been in a bull market then you may be asking how this can be. The Dow may even crash as it rises to 20,000 or maybe 40,000. The dollar will be losing value faster than the Dow even if the Dow rises to those levels.
The USDX compares the dollar to a basket of other currencies around the world. The dollar has already fallen below 76, and many prominent economists are calling for the dollar to go much lower. Get out of dollars now before it is too late. The USDX is on a one way track to 65, and from there many economists believe it will go to 40.
There is only one safe haven in a real world scenario like this. Gold and silver are the only safe hedge against inflation. As we see some people naively sit by and expect the government to throw them a bailout, others are preparing, and they know that the dollar’s days as the world’s reserve currency are limited.
This bull market is the greatest bull market that has ever been witnessed in history. Paper currencies are being over inflated, and we are in the middle of some very bad economic times. The unemployment rate just passed 10%, and those are the conservative numbers.
A $7,000 gold price 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 want you buying gold.
Gold bullion and silver bullion are smart investments. It may be difficult to afford silver bars or gold bars. If that is the case, you can buy American Gold Eagle Coins or American Silver Eagle Coins.
God bless.
Garrett Strong can give you more information on how to buy gold.
