If you had a safe that couldn’t be opened for another 10 years, what would you rather fill it with? $1,400 in cash or 1 ounce of pure gold?
Gold has worked down to Alexander’s time. When something holds good for 2000 years, can it be so because of prejudice or mistaken theory? In ancient Rome, an ounce of gold would buy you a suit of armor or a gentleman’s suit. Not much has changed in 200o years. Today, an ounce of gold will still buy a nice suit. 100 years ago, an ounce of gold would have bought you a certain amount of bread loaves. Today, an ounce of gold would buy you multiples and multiples of those loaves. Here’s the truth of the matter:
The U.S. dollar has lost 97% of its value in the 97 years since the formation of the U.S. Federal Reserve
You could have bought 10 loaves of bread for a dollar one hundred years ago. Today, you can buy just a fraction of that. What is fascinating is the extent at which gold still holds reign over the financial system as the ultimate source of payment.
Gold obviously is in great demand and is often used in many consumer products as well. The Central Banks are net buyers of gold for the first time in many years. Many analysts believe that China will increase its official gold reserves to equal those of the U.S. – by more than 700% from 1054 tonnes to 8,133 tonnes. The Chinese were actually banned from buying and owning gold from 1950 to 2003 as the per capita consumption of 1.3 billion people is massively increasing from a very tiny base. This creates enormous opportunity.
Legendary investors such as John Paulson, David Einhorn, Paul Tudor Jones, Jim Rogers, Marc Faber, are now all buying gold. And if those names don’t seem familiar to you, do a Google search on each and you’ll see how significant the gold buying opportunity is right now. Why?
Because gold is very, very rare! All of the gold ever mined through history, if refined to .9999 purity, would fit into a 20 m2 cube on Wimbleton’s centre court. And also keep in mind that global gold production is actually falling. Gold is durable. Gold cannot be debased, it has no expiration date, it is non-perishable, it’s recyclable, and reusable.
Compare that to U.S. dollars, which have value only to the extent that they are (supposedly) strictly limited in supply. But the U.S. government has a technology called a printing press (or today, its electronic equivalent) that allows it to produce as many U.S. Dollars as it wishes at essentially no cost.
Gold has no nationality! And gold is liquid, meaning it is easy to buy and sell gold 24 hours a day throughout the world and more rapidly than many other investment options. In uncertain economic times like these, this liquidity is critical.
While you read this article, over $6.4 million dollars of cash was printed. In the same timeframe, only $400K of gold was mined. If you take nothing else from today, realize one thing: goverments lie… bankers lie… even auditors sometimes lie…but gold tells the truth.
So what would you rather have in that safe example mentioned above? You need to buy gold today. You need to save gold today. You need to own gold today. Register for the KB Gold buying opportunity for free where you can exchange your depreciating fiat paper money for gold and hedge against these uncertain financial times we’re living in right now and in the future.