Gold As A Hedge Against Inflation
Do not wait for a pullback to buy gold! Every investor needs to know that gold is a hedge against inflation. The movements in the gold market have been monumental, and there are several reasons for that.
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.
If you have not seen the gold price lately, it is going to the moon. The demand continues to surge as worried investors seek shelter. Many countries China, India, and Russia are diversifying out of dollars and into gold bullion. The IMF recently sold 200 tons of gold bricks to Indias central bank.
The amount of gold available for each person is miniscule at 23 grams. That is only about $840 worth per person. The value of all above ground gold inventories is about $3.7 trillion, and is going up rapidly.
The amount of gold mined each year is 2,600 tons, and the amount of above ground gold sits at about--0,000 tons. That does not cover the demand situation and is only a 2% increase in the supply each year. The supply is actually short of demand each year by 1,400 tons due to the demand of 4,000 tons each year. Gold has been selling at or below the cost of production until this recent surge in metals prices.
Mine supplies have actually decreased by 10% due to suppressed gold prices. Since the fundamentals for the gold price put the price much higher than it has been, why has the price been suppressed?
The gold and silver mine supplies have plummeted by 10% due to the low prices. If you add up all of the fundamentals, gold should be much, much higher.
Why has the price manipulation occurred? There are several factors. Central banks have attempted to suppress the price by selling gold bars onto the market. This tactic did work, but the banks are running out of gold to use as a suppression tactic.
The answer is that there are a few factors that have caused this price suppression and they are still to blame. The central banks have been selling their gold supplies onto the open market in an attempt to suppress the price. It has worked, but central banks are running out of gold to sell.
Paper gold like exchange traded funds (GLD) and COMEX contracts only give you price exposure to gold. With these investments you do not really own the gold. Some investors have even complained that the COMEX is defaulting when customers request physical delivery of their gold. The COMEX does not have the gold they claim to 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.
All of these gold suppression tactics are starting to come unraveled, and with inflation setting in there is no doubt the gold price will continue to explode. Stay away from paper investments if you can, unless you know for sure that they are legitimately holding the gold. Stick with American Gold Coins, American Gold Eagles, and gold bars.
With a crashing dollar, you will be sorry if you choose not to invest in hard assets. With the current price of gold at $1,140/oz, there is suddenly a reason to get out of dollars. $1,058 was the price of gold per ounce one month ago. You can see how far it has come. Gold will protect you and your wealth in this economy. Buy gold now to hedge against inflation! - 23221
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.
If you have not seen the gold price lately, it is going to the moon. The demand continues to surge as worried investors seek shelter. Many countries China, India, and Russia are diversifying out of dollars and into gold bullion. The IMF recently sold 200 tons of gold bricks to Indias central bank.
The amount of gold available for each person is miniscule at 23 grams. That is only about $840 worth per person. The value of all above ground gold inventories is about $3.7 trillion, and is going up rapidly.
The amount of gold mined each year is 2,600 tons, and the amount of above ground gold sits at about--0,000 tons. That does not cover the demand situation and is only a 2% increase in the supply each year. The supply is actually short of demand each year by 1,400 tons due to the demand of 4,000 tons each year. Gold has been selling at or below the cost of production until this recent surge in metals prices.
Mine supplies have actually decreased by 10% due to suppressed gold prices. Since the fundamentals for the gold price put the price much higher than it has been, why has the price been suppressed?
The gold and silver mine supplies have plummeted by 10% due to the low prices. If you add up all of the fundamentals, gold should be much, much higher.
Why has the price manipulation occurred? There are several factors. Central banks have attempted to suppress the price by selling gold bars onto the market. This tactic did work, but the banks are running out of gold to use as a suppression tactic.
The answer is that there are a few factors that have caused this price suppression and they are still to blame. The central banks have been selling their gold supplies onto the open market in an attempt to suppress the price. It has worked, but central banks are running out of gold to sell.
Paper gold like exchange traded funds (GLD) and COMEX contracts only give you price exposure to gold. With these investments you do not really own the gold. Some investors have even complained that the COMEX is defaulting when customers request physical delivery of their gold. The COMEX does not have the gold they claim to 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.
All of these gold suppression tactics are starting to come unraveled, and with inflation setting in there is no doubt the gold price will continue to explode. Stay away from paper investments if you can, unless you know for sure that they are legitimately holding the gold. Stick with American Gold Coins, American Gold Eagles, and gold bars.
With a crashing dollar, you will be sorry if you choose not to invest in hard assets. With the current price of gold at $1,140/oz, there is suddenly a reason to get out of dollars. $1,058 was the price of gold per ounce one month ago. You can see how far it has come. Gold will protect you and your wealth in this economy. Buy gold now to hedge against inflation! - 23221
posted by X - Men @ 5:37 AM
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