Consider Buying Gold In A Recession.
As predicted months ago, gold has reached new highs.
Why has this happened?
The US and the UK are both in serious trouble. Sorry to be a doom monger folks, but that's the truth.
US banks are still going bankrupt with very little insurance to cover the losses. Government spending is still soaring which will eventually lead to hyperinflation.
Hyperinflation is not as rare as governments would like you to believe. Whenever a government spends far more than it takes in, the risk of Hyperinflation is there. It wipes out the value of accumulated savings, leaving even affluent people penniless.
Also, increasingly totalitarian governments which believe in illegal surveillance of law abiding citizens will lead to even more taxes wherever you are in the world. Gold is and always has been, real money, and in a severe global meltdown, would very likely rise substantially in value. There are even predictions of gold rising to $2000 or even $3000 per ounce.
Gold is and always has been, real money, and in a severe global meltdown, would very likely rise substantially in value. There are even predictions of gold rising to $2000 or even $3000 per ounce.
Just as in France and Norway, don't be surprised if a wealth tax is introduced at some time in the future. This will be a tax on everything you own, anywhere in the world, there will be no escape for anyone. If you want avoid this tax, then the only way to do it would be to change citizenship and leave the country, as France has found out to its cost. Enough of the doom, why is gold so good?
Gold is rallying on the fear of falling stock prices, and a probable collapse of the dollar which is leading investors towards gold.
The massive debts accrued by the US government must continue to affect the dollar, it is certainly starting to frighten people around the globe.A new global bank with a new currency to replace the dollar has been discussed by the UN.The Chinese are not happy with the US printing dollars.Russia has recently increased its gold reserves, and middle eastern countries are increasing theirs too.China holds massive dollar investments, and they are more than concerned that they are losing big time on the dollar, estimated to be over $200 billion a year.China would like to make moves and reduce reliability on the dollar. It is arranging currency accounts with many of its neighbours and also with some South American countries, hopefully to dump the dollar and reduce dependency.
If you think all this is unimportant, remember the US needs China more than China needs the US. If other countries turn their backs on the dollar, it would mean most things getting more expensive for us all.
So what are the good points about holding gold?
Throughout history, only gold and silver have stood the test of time.
In times of uncertainty, gold has always been a safe haven, it has a place in history, it is real money, when things get bad, people will always look to gold.
Gold can never become worthless no matter what happens. Gold has stood the test of time by holding and increasing its value.
They don't make gold anymore, well not much of it anyway. South African gold production, once the biggest in the world, only managed 200 tonnes last year, and the fear is that this trend may continue for at least another five years.
Gold is becoming increasingly difficult and expensive to find. Each year there is more demand for it, so each year there is less to go round.
Good for gold investors- low supply- higher prices.
The safe haven appeal of gold continues to grow in the difficult economic climate, a 40% increase in the price of gold since last October.
In these difficult times, gold is once again holding its value, and returns continue to be positive.
Anyone with gold investments should be interested that South African gold production fell by 12% last year, lower supplies should lead to higher demand and thus higher prices.
A recent surge in gold jewellery in Asia, particularly China, looks certain to continue for the time being. As the economy improves in Asia, increased demand will be supportive of the gold price.
So the safe haven of gold continues to appeal in difficult times, increasing over 40% over the last year. Of all precious metals, gold continues to be the most popular investment. For the small investor, to increase chances of survival in a recession or depression, the first thing he must do is to get rid of debt. If you have no debt and your house is paid for, you are in a good position.
The second thing you must do is buy some gold, for all the reasons stated above.
Gold is and always has been, real money, and in a severe global meltdown, would very likely rise substantially in value. There are predictions of gold rising much higher, yes gold still has some way to go.
by: Raymond Carr
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Consider Buying Gold In A Recession.