Everyone Should Own Gold and/or Silver.
Why should you?
Top Reasons You Should be Protecting Yourself with Gold and/or Silver:
When it comes to saving a portion of your earnings, an error most people make is to save their wealth in man-made currencies. These currencies are controlled by central planners, regularly manipulated, and created out of thin air without regard for the value of the currency you have in your wallet.
In the digital age, accounts holding these currencies can be frozen, easily confiscated, and tracked.
We advocate saving a portion of your wealth gold or other precious metals like silver, palladium, or platinum. A combination of truths lead us to this simple savings strategy:
Lawsuit proof, not technically, but the fact is no one knows how much gold you have, it is a private matter. Gold/Silver is “off the books” when it comes to financial accounting.
A history of being money, an independent unit of account that is the same no matter where it was mined or how old it is. It is a constant measurement of value, you can take a gold piece anywhere in the world and it will have value. This is much different than a fiat currency, once outside of your nation’s borders, a currency may not be generally accepted. You also have thousands of fiat currencies that no longer have any value, like the U.S. Continental or the Confederate States of America dollar.
It can’t go to zero. Zero value for gold isn’t an option, hasn’t ever happened and never will. The process to get a 1 ounce gold coin to you has hundreds of man hours behind it, maybe even thousands if you consider the full operation of gold exploration, production, refinement, and delivery.
This is the entire point of saving your wealth, you save to not lose. We understand that you can measure gold vs. the dollar, or gold vs. oil, and that its price will fluctuate, but the value in gold itself does not change.
The currency printers are hoarding it. When the most powerful group of people in the world, the central bankers, desire to have 1 asset, then that alone should get your attention. Central banks who print the currencies that the masses treat as a store of value, those central banks buy and store physical gold, not silver, not houses, not oil, they own gold! If it is good enough for the masters of this world, then it’s good enough for me.
Financial insurance. At the end of the day, when it all hits the fan…be that a government or economic collapse, gold survives. It still has value in the new world. It also makes for a great “start over fund” for the reasons listed above, it won’t go to zero and it’s private money.
Portable. I think it’s important that if you need to, you could easily carry or move your wealth to a different region. Just to give you an idea, $200,000 in gold is about the size of a VHS tape. Your fiat currencies are typically tied up over the weekend and on bank holidays; in fact, even if you wanted to physically get your cash, you couldn’t unless you gave your bank a 72 hour notice for withdraws over $5,000.
Legacy wealth. Gold is something you can safely store away knowing that it is something of great value that you can pass on to your children and your children’s children.
It is a safe stash of value that you can tap into when you are in your “golden” years or at anytime throughout your life.
Ultimately when you are saving a portion of your earnings, you want to protect and preserve it. Gold, in our opinion, along with the other precious metals, are the best way to achieve the objective of saving money by preserving both the value of your savings and protecting it from unwanted dangers, like government and civil litigation.
Marc Faber is quick to stand up to the gold bears. “We have a lot of bearish sentiment, [and] a lot of bearish commentaries about gold, but the fact is that some countries are actually accumulating gold, notably China. They will buy this year at a rate of something like 2,600 tons, which is more than the annual production of gold. So I think that prices are probably in the process of bottoming out here, and that we will see again higher prices in the future.”
Brent Johnson, CEO of Santiago Capital, told CNBC viewers to “buy gold if they believe in math… Longer term, I think gold goes to $5,000 over a number of years. If they continue to print money at the current rate, I think it could be multiples of that. I see a slow steady rise punctuated with some sharp upward moves.”
Jim Rogers, billionaire and cofounder of the Soros Quantum Fund, publicly stated in November that he has never sold any gold and can’t imagine ever selling gold in his life because he sees it as an insurance policy. “With all this staggering amount of currency debasement, gold has got to be a good place to be down the road once we get through this correction.”
George Soros seems to be getting back into the gold miners: he recently acquired a substantial stake in the large-cap Market Vectors Gold Miners ETF (GDX) and kept his calls on Barrick Gold (ABX).
Don Coxe, a highly respected global commodities strategist, says we can expect gold to rise with an improving economy, the opposite of what many in the mainstream expect. “You need gold for insurance, but this time the payoff will come when the economy improves. In the past when everything was falling all around you, commodity prices were soaring out of sight. We had three recessions in the 1970s and gold went from $35 an ounce to $850. But this time, gold is going to appreciate when we start getting 3% GDP growth.”
Congress’ relentless borrowing and spending for wars and supporting foreign nations has ensured continued federal borrowing and continued increases in money supply. Since we have not seen strength in the underlying economic fundamentals in our nation, it tells us that there will be additional burden on the taxpayers should congress decide to raise taxes to help pay down debts. This will further weaken the consumer and harm the economy. The scenario is a Catch-22, and the smart money is already placing their bets.