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.
Smart investors are getting into gold coins, gold bars, and gold bullion as the inflation rate rises to 10.2%. To protect yourself from rising inflation, its important to be invested in gold bullion, gold ingots, and gold bullion coins.
The demand for gold is going through the roof. The demand in 2008 was up 64% as scared investors searched for a safe haven for their money. Countries like China, India, Russia, and Arab states have been steadily increasing their gold reserves. India just made a huge purchase of 200 tons from the IMF.
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.
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.
Any situation where demand exceeds supply means the price must go higher, but until recently it has not. The gold price has risen from $250/oz in 2001 to $1,140/oz today, but the inflation adjusted price shows that gold needs to be around $6800.
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.
Even though you can request physical delivery of the gold bullion on the COMEX, some investors have complained of receiving cash settlements or ETF shares instead. The COMEX does not have the gold they claim to have.
You are left holding paper rather than gold in COMEX contracts or ETF shares. These paper gold investments serve a purpose for the government, and that is to help prop up the falling 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! - 23223
Smart investors are getting into gold coins, gold bars, and gold bullion as the inflation rate rises to 10.2%. To protect yourself from rising inflation, its important to be invested in gold bullion, gold ingots, and gold bullion coins.
The demand for gold is going through the roof. The demand in 2008 was up 64% as scared investors searched for a safe haven for their money. Countries like China, India, Russia, and Arab states have been steadily increasing their gold reserves. India just made a huge purchase of 200 tons from the IMF.
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.
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.
Any situation where demand exceeds supply means the price must go higher, but until recently it has not. The gold price has risen from $250/oz in 2001 to $1,140/oz today, but the inflation adjusted price shows that gold needs to be around $6800.
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.
Even though you can request physical delivery of the gold bullion on the COMEX, some investors have complained of receiving cash settlements or ETF shares instead. The COMEX does not have the gold they claim to have.
You are left holding paper rather than gold in COMEX contracts or ETF shares. These paper gold investments serve a purpose for the government, and that is to help prop up the falling 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! - 23223
posted by X - Men @ 4:17 AM
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