Investing In Gold

Gold is the ultimate wealth asset.  It is the purest form of money, and the oldest, most durable wealth-preserving asset on the planet.  Governments can’t devalue it.  It has no debts, no board of directors, no politicians or central bankers that can manipulate its value. That’s why gold has survived every economy in history, has outlasted every paper currency ever printed, and preserved investors’ purchasing power over a span of some 5000 years.  Negative economic, political, environmental, or monetary policy conditions contribute to a rising gold price.  This is the reason gold has always been referred to as a perfect diversifier and “asset of last resort”.

Gold is perhaps the world’s most liquid investment trading throughout the world. The market almost never closes and, as a result, you can buy and sell Gold anywhere in the globe and at any time. Gold can form the cornerstone of a conservative or aggressive portfolio because it tends to move in the opposite direction of paper investments and the US Dollar.  It has become even more popular as a necessary addition to any diversified portfolio in the last few years.  Federal bailout programs and stimulus have caused a major increase in the volume of dollars printed and have also caused the federal budget deficit to grow to historical and unprecedented levels.  As a result, holding hard gold as a hedge has become more important for Americans than ever before.

Why should I own gold?  Good question…  

10 fundamental reasons to own gold

1. Gold remains ultimate form of payment – No counter party risk

2. Currency debasement – US Dollar is losing status as world reserve currency

3. Gold crawling back into the monetary system

4. Negative real interest rates

5. Falling gold supply vs. increased investment demand

6. Gold & Historic averages – gold should be trading above $2300 these days

7. DOW/GOLD ratio points to $5.000+ gold before 2015

8. Gold & US public debt – gold prices required to counter balance all US public debt held in foreign hands exceed the $10.000 mark

9. Large short positions – half of all central bank’s gold has been leased into the market. (about 15.000 tons). Covering these short positions is not possible without catapulting gold prices to unimaginable highs.

10. Gold acting as safe haven in times of rising geopolitical tensions