Investing In Gold
In this section of the site, I’m going to talk about why you should invest in gold.
Gold has been the backbone of monetary systems throughout history. But, every so often, the governments, monarchies or ruling classes of the day start to introduce currencies rather than money. Currency is a physical representation of money but not money in and of itself.
Currency Vs Money
There’s a fantastic video that explains the difference between the two, so I’ll let you watch that rather than attempt to explain it myself! The video is on a site I built to organize all the great videos about investing in gold that I came across. I’ve turned it into a membership site for anyone who’s interested but it’s completely free to join:
Why A Devalued Currency Should Matter To You
The problem with currency is that it can be devalued and debased. In the ancient world, gold and silver coins were clipped (taxed) and those clippings went into the state coffers where they were melted down to make new, additional coins.
Another way of devaluing a currency is to mix lower value metal into coinage. So instead of a pure gold coin, people were issued with copper/gold coins. The coins still had the same face value but weren’t worth as much as a solid gold coin of the same face value.
Today, inflation devalues our currencies as does the seemingly endless rounds of Quantitative Easing. Interest rates paid by banks on savings is so low as to be almost non-existent. Your money, just sitting in a bank, is losing value over time.
A devalued currency means that it costs more of that currency to buy the same things. In other words, you start seeing the price of everyday things like bread going up. Your money doesn’t stretch as far. It gets harder and harder to make ends meet.
When Currencies Crash
Every time in history that a Fiat currency (a paper currency not backed by some precious metal) has tanked – and they have all tanked – humanity goes back to using gold. There’s no reason to think that it’ll be any different this time.
Again, down through history, those who have bought and held gold have been able to preserve their wealth as whatever currency they used lost its value.
China, Russia and India are buying huge quantities of gold. China mines gold as well, but it goes straight into storage and never appears on the open market. And there are rumors that a new global, gold-backed currency may be introduced in the not too distant future.
I’ve come to believe that the world currencies are going to lose a lot of their present value in the coming years and that investing in gold is a way to preserve the purchasing power of at least some of my money should that happen.
So in this Investing in Gold section of the site I’ll be talking about why I think investing in gold is a good idea. I’ll also talk about my own experiences in buying gold, how much to invest, where you can buy it from, where you can sell it, how to store it and how you can build a savings plan in gold rather than currency.
If you have any questions about gold investing or would like to offer any insight you have gotten over the years (from your personal experiences), please leave a comment below. I would love to hear all about it!
Articles About Investing In Gold
- How And Where To Buy Gold And Silver
- This May Be Your Last Chance To Buy Silver And Gold
- Silver Analyst David Morgan Says “The Gold and Silver Bottom Is In”
- David Morgan Says Gold And Silver Bullion “Super Bull Market” Has Started
- Ever Wondered How Much Money Is Available To Cover A Run on The Banks?
- You Can Redeem Gold And Silver Coins And Bars From BitGold
- BitGold Now Settling Euro Credit Card Transactions in Euros
- What Is BitGold? And Is It A Good Way of Investing In Gold?