Invest In Gold During Periods of Inflation
Gold is the money people turn to in times of inflation and economic turmoil. Gold is a means of hedging against inflation. If you are thinking at this moment that gold is not money, but rather a yellow metallic decoration that people adorn themselves with, then you are incorrect.
Gold has been used as money for nearly 6,000 years. The first forms of good money that qualified as real money were gold and silver. Aristotle believed that stable money had the following characteristics.
1. The ability to be durable. It must stand the test of time and not wither.
2. The ability to be portable. Good money needs to hold value in a small space.
3. The ability to be divisible. Real money should have the ability to be divided evenly and still hold its value. Also known as fungibility. Diamnonds are not fungible because each diamond has it's own value.
4. It must hold a rare value or quality.
Aristotle knew something that most modern day people have no clue about. Fiat paper currencies around the world do not match the standards of good money put forth by Aristotle and his predecessor Plato.
Paper is paper. It can be made on the spot and printed at will. Paper is neither rare or durable. The trust that we put into paper is the only thing giving it value at this point.
A piece of paper with inked stamped all over it is essentially what our dollar is. That's it. If someone told you they would give you a sheet of paper for a pack of gum, it is equivalent to what our dollar is. There is no difference between the two, and that is where many get confused.
If someone gave you oil, silver, copper, or gold to wash their car then it is different. Those are real assets. It indicates hard work and sweat to bring those assets about.
Our dollars become more worthless every day as our government prints dollars out of existence. A dollar collapse is happening in plain sight, yet few will recongnize the signs before it is too late. Gold and silver were used as the first real currency for this very reason. Gold and silver cannot be mass produced at will.
Mining companies must do lots of drilling and surveying before actually bringing a mine online. This takes precious time and resources. Using paper money as currency is a historically recent thing. There have been hundreds of fiat paper currencies in history and all of them have failed.
Gold and silver coins have proven throughout history to hold their value and hedge against inflation. While fiat paper currencies plummet, gold will continue going to the moon.
Not only is our dollar falling in value, but gold is in the middle of a 20 year bull market. The gold price is at an all time high of over $1,100/oz. People flock to gold in times of Inflation. Why do people do this? It's because gold can not be inflated. What does inflated even mean?
Think of a balloon that you inflate. Basically, you are making that balloon bigger by blowing air into it. Well, our dollars are being inflated in much the same way. The more dollars that our government prints at will means more dollars in circulation. In this situation you have more dollars chasing the same amount of goods, which results in higher prices.
Inflation does not mean higher prices, it simply means printing more money. Higher prices are the result of printing more money. So, get out of dollar related assets now before you lose out big time.
Gold, silver, gold bullion, silver bullion, and mining stocks are the only assets you should be invested in right now. China, India, Arab countries, and others are diversifying out of dollars as we speak, and India's central bank just purchased 200 tons of gold from the IMF. You decide if it's time to get invested in gold and silver.
God bless. - 23212
Gold has been used as money for nearly 6,000 years. The first forms of good money that qualified as real money were gold and silver. Aristotle believed that stable money had the following characteristics.
1. The ability to be durable. It must stand the test of time and not wither.
2. The ability to be portable. Good money needs to hold value in a small space.
3. The ability to be divisible. Real money should have the ability to be divided evenly and still hold its value. Also known as fungibility. Diamnonds are not fungible because each diamond has it's own value.
4. It must hold a rare value or quality.
Aristotle knew something that most modern day people have no clue about. Fiat paper currencies around the world do not match the standards of good money put forth by Aristotle and his predecessor Plato.
Paper is paper. It can be made on the spot and printed at will. Paper is neither rare or durable. The trust that we put into paper is the only thing giving it value at this point.
A piece of paper with inked stamped all over it is essentially what our dollar is. That's it. If someone told you they would give you a sheet of paper for a pack of gum, it is equivalent to what our dollar is. There is no difference between the two, and that is where many get confused.
If someone gave you oil, silver, copper, or gold to wash their car then it is different. Those are real assets. It indicates hard work and sweat to bring those assets about.
Our dollars become more worthless every day as our government prints dollars out of existence. A dollar collapse is happening in plain sight, yet few will recongnize the signs before it is too late. Gold and silver were used as the first real currency for this very reason. Gold and silver cannot be mass produced at will.
Mining companies must do lots of drilling and surveying before actually bringing a mine online. This takes precious time and resources. Using paper money as currency is a historically recent thing. There have been hundreds of fiat paper currencies in history and all of them have failed.
Gold and silver coins have proven throughout history to hold their value and hedge against inflation. While fiat paper currencies plummet, gold will continue going to the moon.
Not only is our dollar falling in value, but gold is in the middle of a 20 year bull market. The gold price is at an all time high of over $1,100/oz. People flock to gold in times of Inflation. Why do people do this? It's because gold can not be inflated. What does inflated even mean?
Think of a balloon that you inflate. Basically, you are making that balloon bigger by blowing air into it. Well, our dollars are being inflated in much the same way. The more dollars that our government prints at will means more dollars in circulation. In this situation you have more dollars chasing the same amount of goods, which results in higher prices.
Inflation does not mean higher prices, it simply means printing more money. Higher prices are the result of printing more money. So, get out of dollar related assets now before you lose out big time.
Gold, silver, gold bullion, silver bullion, and mining stocks are the only assets you should be invested in right now. China, India, Arab countries, and others are diversifying out of dollars as we speak, and India's central bank just purchased 200 tons of gold from the IMF. You decide if it's time to get invested in gold and silver.
God bless. - 23212
posted by X - Men @ 10:28 AM
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