Gold Is A Hedge Against Inflation
Do not wait for a pullback to buy gold! Every investor needs to know that gold is a hedge against inflation. The movements in the gold market have been monumental, and there are several reasons for that.
To protect yourself from out of control government spending and sky high inflation your money needs to be in gold bullion, gold ingots, and gold bullion coins
If you have not seen the gold price lately, it is going to the moon. The demand continues to surge as worried investors seek shelter. Many countries China, India, and Russia are diversifying out of dollars and into gold bullion. The IMF recently sold 200 tons of gold bricks to Indias central bank.
The amount of gold per capita on the planet is currently 23 grams. That does not even amount to a one ounce coin. The available mined gold on the planet amounts to about $3.7 trillion.
The amount of gold above ground is--0,000 tons and that number goes up by 2,600 tons every year. With this 2% increase each year, it doesnt scratch the surface of demand placed on the yellow metal.
The demand is 4,000 tons/year and rising exponentially. Gold has been selling for about the price of production prior to this price rise.
The laws of supply and demand have surely been lacking, and not making much since in this market. In 2001 the price of gold was about $250/oz and the current gold price is about $1,040/oz. So, even though the price has risen significantly, economists suggest that it should be at around $7,000/oz due to inflation.
Any situation where demand exceeds supply means the price must go higher, but until recently it has not. The gold price has risen from $250/oz in 2001 to $1,140/oz today, but the inflation adjusted price shows that gold needs to be around $6800.
The answer is that there are a few factors that have caused this price suppression and they are still to blame. The central banks have been selling their gold supplies onto the open market in an attempt to suppress the price. It has worked, but central banks are running out of gold to sell.
Another factor that has suppressed the gold price is the advent of paper gold (i.e. exchange traded funds, futures contracts). These investment vehicles simply give you the price exposure to gold. The futures contracts on the COMEX will allow you to take physical delivery of your gold, but many investors are finding that the COMEX is defaulting on the delivery. The default is occurring because the COMEX does not have the gold that they claim they have.
You are left holding paper rather than gold in COMEX contracts or ETF shares. These paper gold investments serve a purpose for the government, and that is to help prop up the falling dollar.
These fraudulent investment vehicles will blow up, and they are just another bubble waiting to burst. Unless you know for certain that a paper investment has the gold that they claim, stay away from these investments. You should invest in American Gold Eagles, American Gold Coins, and gold bars.
With a crashing dollar, you will be sorry if you choose not to invest in hard assets. With the current price of gold at $1,140/oz, there is suddenly a reason to get out of dollars. $1,058 was the price of gold per ounce one month ago. You can see how far it has come. Gold will protect you and your wealth in this economy. Buy gold now to hedge against inflation! - 23305
To protect yourself from out of control government spending and sky high inflation your money needs to be in gold bullion, gold ingots, and gold bullion coins
If you have not seen the gold price lately, it is going to the moon. The demand continues to surge as worried investors seek shelter. Many countries China, India, and Russia are diversifying out of dollars and into gold bullion. The IMF recently sold 200 tons of gold bricks to Indias central bank.
The amount of gold per capita on the planet is currently 23 grams. That does not even amount to a one ounce coin. The available mined gold on the planet amounts to about $3.7 trillion.
The amount of gold above ground is--0,000 tons and that number goes up by 2,600 tons every year. With this 2% increase each year, it doesnt scratch the surface of demand placed on the yellow metal.
The demand is 4,000 tons/year and rising exponentially. Gold has been selling for about the price of production prior to this price rise.
The laws of supply and demand have surely been lacking, and not making much since in this market. In 2001 the price of gold was about $250/oz and the current gold price is about $1,040/oz. So, even though the price has risen significantly, economists suggest that it should be at around $7,000/oz due to inflation.
Any situation where demand exceeds supply means the price must go higher, but until recently it has not. The gold price has risen from $250/oz in 2001 to $1,140/oz today, but the inflation adjusted price shows that gold needs to be around $6800.
The answer is that there are a few factors that have caused this price suppression and they are still to blame. The central banks have been selling their gold supplies onto the open market in an attempt to suppress the price. It has worked, but central banks are running out of gold to sell.
Another factor that has suppressed the gold price is the advent of paper gold (i.e. exchange traded funds, futures contracts). These investment vehicles simply give you the price exposure to gold. The futures contracts on the COMEX will allow you to take physical delivery of your gold, but many investors are finding that the COMEX is defaulting on the delivery. The default is occurring because the COMEX does not have the gold that they claim they have.
You are left holding paper rather than gold in COMEX contracts or ETF shares. These paper gold investments serve a purpose for the government, and that is to help prop up the falling dollar.
These fraudulent investment vehicles will blow up, and they are just another bubble waiting to burst. Unless you know for certain that a paper investment has the gold that they claim, stay away from these investments. You should invest in American Gold Eagles, American Gold Coins, and gold bars.
With a crashing dollar, you will be sorry if you choose not to invest in hard assets. With the current price of gold at $1,140/oz, there is suddenly a reason to get out of dollars. $1,058 was the price of gold per ounce one month ago. You can see how far it has come. Gold will protect you and your wealth in this economy. Buy gold now to hedge against inflation! - 23305
posted by Mr. Forex at
9:26 AM
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