Gold

Jul 12, 2010

For most of you investors or non-investors almost everyone knows that gold is a good hedge. So if you make and earn US dollars but dont’ want to earn .5 or 1 or 2 or 3 percent interest in a savings account and don’t want to depreciate the value of your purchasing power by just storing your money saftly becuase every day that the national debt increases and that FED continues to manipulate the currency by printing more money you lose future purchasing power. But what does that mean well when you purchase or invest in gold its value is not determined by interest rates like our fiat currency which is also the reserve currency. So its not only a safer investment because its value is intrinsic and not made up like the dollar is through the Federal Reserve Bank. That means that no matter what, there is not a unlimited supply of gold that can be printed on demand so there is an actual limited amount of supply which is always being consumed by demand. Also gold can be melted down and traded and exchanged for other forms of currency or goods and services.

What I see nowadays is advertisements in the papers and magazine and on TV for cash for gold business looking to get old gold jewelery or gold jewelry that is not wanted anymore to be exchanged for cash. This is very enticing to those families or individuals that are not working or have come under hardship. They lacking  cash flow because they lived on a paycheck to paycheck life when faced with no money will sell their gold for a lot less than what its actually worth now or in the future because they have no leverage. This is a pretty blatant attempt at robing real wealth from the everyday Americans because of the financial situation that they are in now.

This is the time to try to have as much physical gold as possible because many economist believe that gold is highly undervalued on purpose through the actions of the Federal Reserve. With the price from July 9th being 1212.70 that could put gold’s real value somewhere between 2 to 3k per ounce.  So the price can easily reach 3k an ounce within the next few years.

If you were to have invested in gold heavily when it was 150 to 200 an ounce between 1977 and 1980  around 200k dollars or 1k Thousand ounces of gold and now gold is 1212.70 an ounce look at the simple  increase over the years. Profit of $1,012,700 after the 200k investment. Compared to the dollar which hasn’t’ increased in value but has steadily declined since the inception of the Federal Reserve Bank in 1913.