Gold has attracted investors throughout the centuries, protecting their wealth and providing a ‘safe haven’ in troubled or uncertain times – like TODAY.
In volatile and uncertain times investors seek to protect their capital by moving it into assets considered to be safer stores of value. Gold is among a handful of financial assets that provides insurance against extreme movements that often occur in the value of traditional asset classes in unsettled times.
Many European countries implemented gold standards in the later part of the 19th century until these were dismantled in the financial crises involving World War I. After World War II, the Bretton Woods system pegged the United States dollar to gold at a rate of US $ 35 per troy ounce. The system existed until the 1971 Nixon Shock, when the US unilaterally suspended the direct convertibility of the United States dollar to gold. Paper money is no longer backed by gold.
Return to the Gold Standard?
With fiat money, inflation has increased, and many have called for a return to the gold standard. Given the complexity of the economy, it is unlikely that governments will return to the limitations that currency backed by gold imposes.
In this YouTube video you can get an explanation why bankers don’t want to return to the gold standard.
Gold is safe in times of crisis
You would have to have been living under a rock to be unaware of the financial crisis sweeping the western world in recent years. Iceland, Greece, Germany, United Kingdom, Italy, Portugal, Spain, United States, Canada; almost every major country is experiencing either collapse or near collapse of its financial system. Representatives of the Federal Reserve Bank have publicly declared that the Fed has lost its ability to influence the US economy as it has done so successfully in the past. The way to neutralize this present threat and return to yourself the value of your labor as represented in monetary terms, is to invest in the oldest store of wealth known to man – precious metals.
Investing in gold
For thousands of years, gold has been valued as a global currency, a commodity, an investment and simply an object of beauty. As financial markets developed rapidly during the 1980s and 1990s, gold receded into the background and many investors lost touch with this asset of last resort. Recent years have seen a striking increase in investor interest in gold.
Gold bullion is real, honest money…and, many say, the best form of money the world has ever known. Gold is rare, durable and does not wear out in the manner of lesser metals (or paper money!) when passed from hand to hand. A small amount, easily carried, can purchase a significant amount of goods and services. It is universally accepted and can easily be bought and sold around the world. Leading investors and economists such as Marc Faber, Peter Schiff, Warren Buffett and Robert Kiyosaki say that the economy hasn’t reached rock bottom yet and will get much worse. They have been recommending that we keep from 5% to 20% of our assets in the form of flexible units of gold or silver, so we in the event of hyperinflation still can acquire essential goods and services.
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