Gold As A Hedge Against Inflation
Gold is a hedge against inflation and a way to preserve your wealth. The movements in gold have been huge lately. The rate of inflation is about currently about 10%, and its essential to be invested in gold coins, gold bars, and gold bullion.
For one, the official inflation rate is about 10%, and investors are getting out of dollars and into gold coins, gold bars, and gold bullion as a hedge against inflation. Buy gold bullion, gold ingots, and gold bullion coins to protect yourself during inflation.
The gold demand is rising steadily with no end in sight. Investors looking to put their money into hard assets increased the demand for gold in 2008 by 64 percent. Countries who have added to their gold piles include Russia, India, China, and others. The IMF recently made a sale of 200 tons of gold to India.
There is currently about 23 grams of gold available per person on earth. Thats about $840 worth of gold per person. The existing value of all the available mined gold on earth is $3.7 trillion.
There is around--0,000 tons of gold above ground, and that number increases each year by 2,600 tons. That is an increase of about 2% per year, but that doesnt even come close to satisfying the demand.
The demand is 4,000 tons/year and rising exponentially. Gold has been selling for about the price of production prior to this price rise.
The laws of supply and demand have surely been lacking, and not making much since in this market. In 2001 the price of gold was about $250/oz and the current gold price is about $1,040/oz. So, even though the price has risen significantly, economists suggest that it should be at around $7,000/oz due to inflation.
Supply and demand have not played a part in these markets since price manipulation has been occurring. Even though the price of gold has risen to current levels of $1,140/oz, the inflation adjusted price puts gold at around $7,000/oz.
This price manipulation by our government has occurred to keep the dollar falsely propped up. Central banks have played a part by selling gold bars onto the market and sending the price of gold lower. These tactics are coming to an end because central banks are running out of gold.
Another factor that has suppressed the gold price is the advent of paper gold (i.e. exchange traded funds, futures contracts). These investment vehicles simply give you the price exposure to gold. The futures contracts on the COMEX will allow you to take physical delivery of your gold, but many investors are finding that the COMEX is defaulting on the delivery. The default is occurring because the COMEX does not have the gold that they claim they have.
The way the default happens is that the COMEX will either give a cash settlement upon delivery, or shares of the GLD (exchange traded fund). Either way, you do not own the physical gold, which means that you are still holding paper. These paper investments have kept investors in dollars, which has fraudulently propped up the dollar.
This paper gold market is a bubble waiting to burst. Steer clear of these investments if you can help it. Keep your money safe by buying American Gold Eagle Coins, American Gold Coins, and gold bars.
The falling dollar is enough reason to invest in gold. The current price of gold is $1,140/oz, and the price of gold per ounce one month ago was $1,058/oz. Gold is the only safe bet in this inflationary environment. You wont be sorry if you invest in gold now! - 23226
For one, the official inflation rate is about 10%, and investors are getting out of dollars and into gold coins, gold bars, and gold bullion as a hedge against inflation. Buy gold bullion, gold ingots, and gold bullion coins to protect yourself during inflation.
The gold demand is rising steadily with no end in sight. Investors looking to put their money into hard assets increased the demand for gold in 2008 by 64 percent. Countries who have added to their gold piles include Russia, India, China, and others. The IMF recently made a sale of 200 tons of gold to India.
There is currently about 23 grams of gold available per person on earth. Thats about $840 worth of gold per person. The existing value of all the available mined gold on earth is $3.7 trillion.
There is around--0,000 tons of gold above ground, and that number increases each year by 2,600 tons. That is an increase of about 2% per year, but that doesnt even come close to satisfying the demand.
The demand is 4,000 tons/year and rising exponentially. Gold has been selling for about the price of production prior to this price rise.
The laws of supply and demand have surely been lacking, and not making much since in this market. In 2001 the price of gold was about $250/oz and the current gold price is about $1,040/oz. So, even though the price has risen significantly, economists suggest that it should be at around $7,000/oz due to inflation.
Supply and demand have not played a part in these markets since price manipulation has been occurring. Even though the price of gold has risen to current levels of $1,140/oz, the inflation adjusted price puts gold at around $7,000/oz.
This price manipulation by our government has occurred to keep the dollar falsely propped up. Central banks have played a part by selling gold bars onto the market and sending the price of gold lower. These tactics are coming to an end because central banks are running out of gold.
Another factor that has suppressed the gold price is the advent of paper gold (i.e. exchange traded funds, futures contracts). These investment vehicles simply give you the price exposure to gold. The futures contracts on the COMEX will allow you to take physical delivery of your gold, but many investors are finding that the COMEX is defaulting on the delivery. The default is occurring because the COMEX does not have the gold that they claim they have.
The way the default happens is that the COMEX will either give a cash settlement upon delivery, or shares of the GLD (exchange traded fund). Either way, you do not own the physical gold, which means that you are still holding paper. These paper investments have kept investors in dollars, which has fraudulently propped up the dollar.
This paper gold market is a bubble waiting to burst. Steer clear of these investments if you can help it. Keep your money safe by buying American Gold Eagle Coins, American Gold Coins, and gold bars.
The falling dollar is enough reason to invest in gold. The current price of gold is $1,140/oz, and the price of gold per ounce one month ago was $1,058/oz. Gold is the only safe bet in this inflationary environment. You wont be sorry if you invest in gold now! - 23226
posted by X - Men @ 5:58 AM
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