A Guide To Buying Gold
The people who believe in the value of paper and electronic money are betting that the financial system will not collapse and leave them penniless. Yet, this blind faith in the monetary system is not supported by economic facts. Those who rely on paper money increase their financial risk every day. Even the media, the traditional supporter of the status quo, is hinting that the economy is not recovering, unemployment is still high, and the national debt rate shows no sign of slowing down or reversing.
What makes things even worse is that customer bank accounts pay no interest or low interest. Customers earn almost nothing for taking the risk of letting banks hold and use their money.
Unless one chooses to buy gold soon, it may be too late when economic panic hits the streets. Money held in bank account will not be protected simply because the money that is backing it up will itself is worthless. A recent example of this happening is Greece, when the government revealed that it did not have enough money to bail out their banks.
The reason to buy gold, then, is simple: the dollar can’t be trusted. Gold acts as a hedge against inflation and protects during times of economic instability should governments default on its debts to the international banking cartel.
Although owning gold will not pay dividends, and although gold is rarely used for industrial purposes, its major value is that it can be used to buy goods when paper currency has lost its usual value.
In the financial markets, those who buy gold are momentum traders. They’re buying while everyone else is buying but hope to sell before everyone else begins selling.
Few assets can match gold when it comes to uniqueness. Although gold has such a low utilitarian value—unlike silver, for example, which has a broad range of industrial applications—it has always been considered of high value by all societies.
Although buying gold is good, it has to be bought with a clear investment strategy in mind.