“Gold Is Currency; No Fiat Currency, Including the Dollar, Can Match It” – Alan Greenspan, Former Chairman of the Federal Reserve of the United States
Throughout history there has always been a strong demand for gold. It has always been an incredibly safe and effective store of wealth and has a long documented role as money. Everyone should have a portion of their wealth stored in a fungible, highly-concentrated, portable form. The goal here is to prepare, not to predict. After-all, you buy homeowner’s insurance but never expect your house to burn down.
To own gold is to control one’s own wealth. In times of crisis, gold is the safest holding that also has the greatest potential to increase your wealth. It’s much safer to save gold than it is paper money. Gold can be a very useful way to diversify your portfolio. It’s relatively rare, and its value often doesn’t move in line with other assets such as equities or property. GOLD is recognized as being real money in EVERY country in the world…bar NONE. Fiat Paper Currencies are Paper and Perishable. Gold offers Stability and Safety for Your Future.
Gold provides insurance for your portfolio. Experts say most people should allocate around 5%-15% of their portfolios to gold.
Let’s have a look at some reasons why you should own physical gold:
- You can protect your savings against the currency devaluations.
- You can protect your purchasing power as inflation is steadily rising.
- You can protect yourself should a severe banking crisis occur, should one of the big banks collapse for example.
- You can protect your portfolio and wealth if an economic crisis in China, the US or Europe occurs. Even if an economic crisis would result in (temporary) deflation, you would be better off with gold than paper money or paper assets.
- You can protect yourself against the uncontrolled actions of governments, who have excessive debts and try to solve it with huge money printing. Trying to solve the problem of too much debt by creating even more debt is ridiculous! Someone has to pay the bill … you better be sure it’s not you.
- You have no counterparty risk with gold (contrary to paper assets where there is always a counterparty risk involved)
Purchasing physical gold
Physical gold is worth holding because it’s a universal finite currency, held by most central banks. In the same way that the family home should not be regarded as an investment, gold bullion is not an investment per se, rather a form of ‘saving for a rainy day’ or of financial insurance. Gold is an excellent way to ensure wealth preservation and for passing wealth from one generation to the next.
For preservation of wealth and to hedge against the possibility of a financial system implosion, there is simply no substitute for owning physical bullion Many people don’t understand exactly what “buying precious metals” means. For those looking to purchase gold you need not complicate things. If you are in the market to purchase this timeless commodity just buy the real thing.
Exactly What “Buying Precious Metal” Means
If you are going to part with your hard-earned money on something, you should be able to see it, touch it, and easily transfer it from one party to another. When you buy gold, you need to buy the real physical item. Forget the stock market for now and focus on what you can trust.
Look to purchase gold bars. When you own the real thing, you then have the power to instantly control the fate of your wealth. When another economic crisis hits, where will your wealth be tied up? Will you scramble to your bank or broker only to find your money has vanished? Take control of your wealth today.
The economy has a façade of being calm at the moment. However, as 2015 begins there will be many changes that take place in the USA and elsewhere in the world. Political parties change, wars are waged and businesses still fail.
Being flexible with your wealth means when the economic circumstances of your country are heading south, you need not go with it. You (who had the foresight to buy gold ) can easily take your metal money anywhere in the world – and it will still be good.
Paper money, on the other hand, means nothing really. Its value is based on the performance of that respective nation’s economy. The dollar has been through a hurricane in the past few years and sadly, we may only be in the eye of the storm.
A Safe Haven That Only Gets Sweeter
After you transfer your dollars into gold you have instantly improved your financial situation. You have transferred your wealth into a more stable form of currency. The dollar may go up or down, but your gold assets are steady like a rock. This safe haven we know as gold will only get sweeter with time. “LIKE” IS NOT “SAME AS”
First of all, there is no substitute for physical gold.
- Certificates are not gold.
- Gold notes are not gold.
- Futures are not gold.
- Options are not gold.
- Mining stocks are not gold.
- Electronic gold currencies (“E-gold”) are not gold.
All of these are “claims on gold,” which is not gold, but a claim. All of these ownership mechanisms interpose an extra layer of risk between the owner and his gold. All history teaches us that from time to time the extra risk layer explodes, leaving the owner without his gold. There is no substitute for owning physical gold.
BUT GOLD PAYS NO INTEREST AND CARRIES EXCHANGE RISK
How should we view the transaction cost of owning gold? After all, physical metals pay no interest while you hold them, and they also risk a price drop. For a fit contrast, we should compare the cost of holding metals against the cost of holding US dollar denominated assets.
Something that cost $100 in 2000, will cost you $128.18 in 2011. That is a loss in value of 22%. Setting aside for a moment gold’s gain from 2000 through 2011 and assuming that gold had remained flat during this period, what would holding gold have cost? Anyone swapping dollars into gold in 2000 and back into dollars in 2011 would be (22% -7%) = 15% better off in physical gold, even assuming a 7% transaction cost.
While for short periods fiat currencies (like the US dollar) may actually rise against gold, over the long term their course is uniformly down, so there is always an inherent cost in holding fiat currencies. Naively remaining in US dollars does not avoid currency risk—it just concentrates all your risk in one currency.
Currency devaluation protection
Make no mistake about it. Just because you live in North America does not necessarily mean that you are safe from currency devaluation. In fact, this is exactly what the US did after the crash of 2008 according to some financial analysts. The US Federal reserve started flooding the global market with cheap dollars by buying US debt in issuing paper money. The more paper money there is in the global circulation, the lower the price of the existing US dollars. It is no surprise that the US dollar crashed against the Euro and Yen due to this devaluation approach. Therefore, one of the best the benefits of owning physical metals is being protected from currency devaluation. While the amount of dollars in circulation increases, the amount of dollars that it takes to buy that particular metal increases as well. This way, regardless of how badly the dollar does in terms of exchange rates, the value of your physical metals is protected. This one of the key benefits of owning physical metals.
Protection against economic crisis
The US stock market goes to several periods of bull-and-bear runs. In a bull market, the price of stocks keep going up. With a lot of speculations, the market is driven primarily by greed. Investors think that even if they buy at high prices, somebody else would still be stupid enough to buy at an even higher price. This can only go on for so long. The bear market, on the other hand, works in the reverse assumption. This market players would continue to sell short hoping that the price of the stock will continue to crash. They make money when they sell short because they borrow at a high price and buy it back at a lower price and then keep the difference. One of the key advantages of owning physical metals is that their value go up when there is a general economic uncertainty.
Very liquid compared to other holdings
You can’t get more liquid than physical metals. With gold coins, you have to get them appraised, hold auctions and hope that the collectors’ market would find value in your collection and then buy it at a price that you want. One of the most easily recognizable benefits of owning physical metals is that you only need to know the current bid-and-ask price for gold, to retrieve your physical gold and then sell it. It’s very straightforward. It’s easy to get in and get out. This liquidity is one of the reasons owning physical metals is very popular in many parts of the world. In fact, in many developing countries, it is preferred than holding paper cash. Did you ever ask yourself, as an individual or as an investor, why you should own gold? You should look around you to discover is happening in the world: governments have too much debt which is impossible to pay back, inflation is looming, currencies all over the world are losing value, banks need massive amounts of money to survive.
In your daily life: have you compared the amount of money you paid for a full tank at the gas station, let’s say 5 years ago, compared to today? Have you done the same for a full shopping cart in the grocery store?
One particular organization makes it possible for people of ALL classes to buy personal gold, hedge against inflation and protect against recurrent financial crises…..Karatbars International GmbH.
The Karatbars product not only provides those who see the importance of securing and protecting themselves against the wealth draining affects of inflation, deflation, volatile financial markets and the VERY REAL possibility of hyper-inflation, thanks to the Karatbars Affiliate Program, incredible incomes are being generated at the same time.
Karatbars goal is to provide a solution to create financial security and a hedge against the falling purchasing power of the world’s fiat paper currencies, with 24 Karat 999.9% pure Gold. Gold is a legitimate, proven, hard asset which retains its purchasing power, while the value of paper currency steadily decreases.
Karatbars International is committed to putting gold bullion of the highest quality, into hands of the masses in small, practical units as a personal savings plan, and as a hedge against inflation or sudden currency devaluation. Karatbars Affiliate members are there to help others in this process. Karatbars provides a unique way to save, by offering an alternative to banks and paper money (fiat money). This is the best way to preserve your wealth. Gold is the only asset that has proven the test of time (it’s inflation-proof and can never go bankrupt). Historically, paper money has always failed. We know the state of US and European economies. If you truly understand the steadily diminishing worth of paper money or “fiat currencies” and the timeless value and purchasing power of gold, then we believe it is time to empower yourself and take personal control over your wealth and financial future by getting out from under the debt based fiat currency system. One can easily begin to do this by converting paper and digital money into affordable, portable, storable and usable Karatbars gold bullion: real gold currency.
Are you convinced of the benefits that come with owning gold?
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Read more on the lucrative Karatbars Business Opportunity For AFFILIATES!
Includes The Karatbars 12 Week Strategy for Affiliates to Build A Tremendous Weekly Residual Income with Matt Rettick: http://goo.gl/0gaV9g
Learn More about this category creator in the gold market via a comprehensive overview: http://goo.gl/PCAhIw
-with notes from “The Moneychanger” and “BullionByPost”
*It is important to note that Karatbars Affiliates are NOT and DO NOT claim to be Financial Advisors