At this moment, there are two very compelling reasons why you should be investing in gold bullion coins or bars.
1. To safeguard your money from financial catastrophe. 2. To insulate your money from the debasement of the dollar.
Let’s take a look at reason number one – buying gold bullion as a way to protect your money from some sort of terrible financial catastrophe, such as a bank failure, war, act of terrorism, etc.
They seem to be everywhere these days. Those doomsayers who like to promote owning gold bullion as an insurance policy against the collapse of the global financial system. A few years ago, they were dismissed as extremists, crazy, and delusional.
Yet after the gut wrenching turmoil we’ve seen in the financial and credit markets over the past year, their doom and gloom scenarios don’t seem so unrealistic any more. An investor who was wise enough to allocate ten percent of his portfolio in gold bullion is probably sleeping pretty well these days.
Okay, now let’s look at the other powerful reason why you should be buying gold bullion – as a hedge against the debasement of the dollar.
Right now, the government is cranking their printing presses into high gear, churning out an ever great quantity of paper dollars. In the Federal Reserve’s book, deflation must be avoided at all costs and no debt is too great to be monetized in order to keep the faltering financial system going.
A central bank simply can’t participate in unrestrained money printing like this without the dollar losing value. If you own dollar-denominated assets instead of gold bullion, your value of your wealth is going to slowly deminish.
Whatever the eventual outcome from the current credit crisis turns out to be, total financial catastrophe or complete devaluation of the dollar, the investor who owns gold bullion will be protected.

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