RSSBuy Gold During Times of Inflation
Nov 20
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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 a unit of exchange for nearly 6,000 years. Gold and silver were historically the first relied upon money that agreed with the standards of good money. Aristotle spoke of reliable money to have 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 was aware of something about money that most people today would struggle to comprehend. Paper money has no value, and that is what Aristotle described in his qualities of money.
Paper has very little value. It can be printed on demand. Paper has no rare or durable features. The value that the dollar has is only held up by our faith in it.
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.
It would be different if someone gave you something with real value like oil, copper, silver, or gold to mow their lawn. Those are hard assets. It means that someone’s blood, sweat, and hard work went into it so you could use it.
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 have to put lots of money and resources to even get close to producing any gold or silver. Energy and time is consumed in this process. Paper currency is a relatively new thing in world history. Since the start of using paper as currency, and there have been hundreds, all of them have failed.
Buying gold coins and silver coins are the only proven way to protect your assets during times of inflation. Gold will hold its value while paper money falls in value.
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?
Pretend you are inflating a balloon. The balloon gets so big that it sometimes bursts. Our government is inflating our dollars in much the same way. Our government is putting massive amounts of money into circulation. When you have more and more dollars chasing the same level of goods, you have inflation.
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.
You should only be invested in gold bullion, silver bullion, gold coins, silver coins, and mining stocks over the next few years at least. India, China, Arab states, and several other countries are dumping dollars and buying gold. You decide if it’s time to get invested in gold and silver.
God bless you.
Garrett Strong can give you more information on how to buy gold.
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