Gold Bullion: The Insurance Policy No One Talks About
Posted: Saturday, December 05, 2009
by Christina Goldman
Gold bullion is a HORRIBLE investment! It's real return is practically zero over the past 100 years! It's the investment "snuggie" of late night cable television!
I'm sure you've heard these statements before by popular investment gurus, who either don't understand or ignore the true value of investing in precious metals.
Laying aside the reality that gold has increased at double-digit rates on average this decade versus each of the world's currencies and tripled in monetary value over the past six years, let's consider the metal not as an investment instrument but as an insurance policy against loss of buying power.
Gold bullion should be thought of in the same way as a homeowner's policy - as a form of financial insurance not as an investment. After all, you do buy a homeowner's policy to protect your home against destruction, not as an investment. Gold bullion should be thought of in the same way - as a form of financial insurance that protects against destruction of fiat or paper currency.
President Richard Nixon closed the proverbial gold window on August 15th 1971, terminating dollar convertibility into gold. Unfettered by the gold standard, the dollar could now just 'float' (be printed in unlimited quanties).
Today, after 38 years of being endorsed by utterly nothing except the full trust and credit of our United States government, our beloved dollar is valued at a fraction of what it used to be. If you equate the purchasing exponent of that one dollar bill in 1971 against today, you'd be able to purchase just EIGHTEEN CENTS, after adjusting for inflation.
Why The Dollar Will Fall Further
In reaction to the financial crisis of the preceding twelve months, the government accelerated its printing presses to warp drive. The U.S. monetary base literally blew up as a consequence, up from $800 billion in August of 2008 to $1.7 trillion. To cast that into perspective, that signifies that there are today more than $2 dollars for every one dollar that was in existence one year ago. The money supply has never increased at this rate in all of history.
Thanks to our government's monumental spending spree in their attempt to stabilize the financial system and kick-start the economy, our federal budget deficit has now soared to a new record level of $1.42 trillion dollars!
If that wasn't deplorable in itself, our national debt is at present over $11 trillion dollars. And unfunded liabilities like programs such as Medicare and Social Security stand at an astonishing $58 trillion.
These liabilities must be paid for so the government must cut spending, increase taxes, or increase the money supply in order to inflate their way out of this hole. As bad as it may seem now, that deficit is predicted to grow to $9.1 trillion over the upcoming decade.
The dollar simply cannot maintain it's value when a country participates in the unrestrained printing of money. Inflation will climb higher the more the dollar is debased. It is for this reason that you must own gold. As an insurance policy to ensure the value of your savings is maintained.
Since 1971, the purchasing power of gold has endured and increased. History books are ladened with instances of paper money whose value has been annihilated. But not gold. Gold has endured through wars, inflation, hyperinflation, recession and depression.
Gold bullion is the ultimate store of value and protection of wealth. The value of gold has never been ZERO. Never. It could very well be the most important insurance policy you'll ever purchase.
Protect your hard earned money from inflation and the devaluation of the dollar with pure gold bullion. Buy gold bullion now at the best price available: http://BullionBargains.us
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Top-level comments on this article: (1 total)My favorite source to buy bullion online is Scottsdale Silver.
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