Should I Buy Gold? Why Gold and Silver Is a Smart Investment Now

Let’s understand first that different investments have pros and cons, and the choices we make are always personalized to our personal circumstances, which include many variables. Some of those variables include the following: investment objectives; length of time to reach your objectives; your risk comfort level; the value of your existing holdings; your unique tax consequences; your potential need for liquidity; and more. Here I named a few things that will lead each of us to our own decisions for our unique situations. Please note that I am not providing any investment advice, particularly in light of what I just mentioned above (I am not a tax, law, or investment professional, nor do I know anything about you or your unique circumstances). Let’s see how gold and silver fits into this picture.

So why gold and silver you ask?

The answer is because it has its place for almost anyone in their portfolio. Let’s review the reasons.

Both gold and silver are universal. That is, they hold their value anywhere in the world, no matter what the local currencies are doing or what the local economies are experiencing. Gold and silver is the world currency, and in fact has been the basis of currency on our planet for thousands of years.

Of the many objectives people have, some invest to build wealth, and others to sustain or protect wealth. I believe it is fair to say that most people invest to either build a financial future or to protect their financial future. Because gold and silver are precious metals, they have the innate ability to hold value – which is perfect for wealth protection. This makes it ideal to sock away a percentage of your investment dollars and to protect those dollars by owning physical bullion. By doing this, you are also building your wealth.

It is true that there are risky investments that can bring you a higher return, but it is also important to note that they are also more likely to bring you large losses. High risk investments have their place (for some people), but if you do venture there, be sure you know what you are doing and be sure to be diversified to mitigate that risk. Again, gold and silver is a perfect place for a low risk investment simply based on the fact it will always hold value by nature.

Another important point is how it relates to the economy and the changing economic conditions. Various economies move up and down the world over. These changes cause all sorts of investment to swing wildly. These changes cause inflation, and even deflation in currencies around the world. Both gold and silver values vary as well, but keep this interesting point in mind: You can pretty much buy the same amount of milk today with an ounce of gold as you were able to by thirty years ago. How’s that for stability! Don’t be fooled by the small swings in value… it is important to realize that both gold and (especially) silver have important roles in commercial use, and those demands do have a day to day effect.

So why is gold and silver a smart investment now?

In short, the answer is uncertainty. There is a great deal of unrest around the world. We have threats of terrorism abroad and at home. We have shifting world trade and power with the growth of China and other growing nations. We have an increasing threat from North Korea. We have a US President who some citizens feel is exactly what we need, yet other citizens are horrified at the very prospect of his presidency. No matter what happens here, the uncertainty is a good reason for having the stability of silver and gold in your portfolio right now.

An additional reason for investing now is the looming prospect some people feel for the implosion of our currency. People who prepare for disaster are collecting gold and silver because they can use it as currency for trading for the things they would need in such a scenario.

Whatever you reason, precious metals can make a great addition to your portfolio or a great way to start your portfolio. Just be sure to learn how to buy the right way, and do it with confidence!

I can help you with that too… visit my blog to learn how to buy gold and silver. I hope you found this article helpful. Thank you for reading.

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Gold and Silver – Why Every Prepper Must Own It

So you think you are prepared? Or maybe you are in the process of prepping. You’ve thought about food, you’ve thought about water, you’ve thought about security, housing, medical supplies, communication… even transportation. How much attention have you given to currency? If you have already been prepping and working through your options in this area then bravo to you! Are you doing it right?

By currency, I refer to the ability to trade for goods in the even of an economic meltdown or a currency implosion. In short, how are you going to buy stuff?

The answer is easy… stockpile gold and silver as an important part of your prepping plan. There are many other benefits as well… such as preservation (or building) of wealth, currency fluctuation protection, and a hedge against inflation. Both silver and gold makes sense for everyone, but is particularly useful to preppers.

Once you are building your portfolio these precious metals, this is how it goes when in need… you use your bullion to make simple purchases for every day things.

Investing in gold and silver for preppers differs from the investing other people are doing for other purposes. There are two things that differentiate us as preppers that we need to address when buying for prepping…

Important Preppers Point 1: Ensuring we have verifiable bullion that can be used in a wide array of denominations for the varying costs of goods. When I say verifiable, I am referring to buying bullion that other people will recognize as real, and which they will be able to easily understand the value of. As an example, coins (not all of them though) are generally a good choice for this purpose, while gold nuggets or ingots are generally not a good choice. Both gold and silver should be part of your portfolio because gold can be used for larger purchases (and take up little storage space), while silver can be easily used for smaller purchases.

Important Preppers Point 2: Ensuring we have chosen, a smart, safe, and easy way to access and store our bullion. It should be obvious that all preppers must own physical gold and silver (which, by the way, I think every buyer should do), but it may not be as obvious to think about how and where to store it. Your storage options and choices can make all the difference of having access to your gold and silver when you need it.

The content of this article is important! To sum up its importance, just remember that we must have bullion that can be recognized by others as real and genuine, we need to have small enough denominations to purchase low-cost items (such as bread), as well has higher denominations to easily facilitate a larger transaction (for say, a horse). Lastly, we need to ensure we have a safe, easy to access place to store our gold and silver so that we can reach it in time of need.

You can find more information about buying gold and silver for prepping on my informative blog.

Thanks for reading. To learn how to buy gold (for prepping or for anything), visit my blog using the link above.

Buy Gold and Silver – 3 Things You Must Know

So you are ready to buy gold and silver! You’ve seen a ton of commercials on TV pounding the importance of physically owning your precious metals, and you’ve heard the myriad of reasons why you must own it. You’ve made the decision… you’re ready now to start buying! Now what?

Do you know how to ensure a safe and confident purchase? I’m going to make this really easy and simple for you. There are three things you really must know to buy your gold and your silver the right way and with confidence. You do want to buy with confidence, right? OK, so here are three essential things you need to know.

  1. Authentication: You need to know how to authenticate, so you know it is real. It would really be a shame if you finally went out and bought some bullion, only to find out later that it wasn’t even real. To avoid this pitfall, you need to know how to authenticate your purchases before you buy. The subject can get deep and it is not realistic to go into the pros and cons of the various methods for authentication here, but I do want to briefly share what those methods are so are aware of your choices. There are three ways you can test the authenticity of your bullion… those methods are chemical testing, electronic testing, and physical testing. The testing methods you choose will be based on the types of purchases you are making, the volume of your purchases, and your budget for testing (particularly, some of the electronic testers can be pricey). Chemical and electronic testers are pretty much what you’d expect them to be. Physical testing includes testing weight, size, and sound (yes, sound) of the bullion you are testing.
  2. Valuation: You need to know how to determine value, so you don’t overpay. To determine value, you must know the weight, the purity, and the trading price (known as the spot price). Weight is straight forward and is a measurement of the weight of a given piece of bullion. But weight is only part of the equation… we need to also know how much of the piece is pure. For instance, if a piece of silver bullion is 50% pure, then the silver content would be 50% of the weight. Once you know how much silver (by weight) is in the piece, you can easily figure the value using the spot price. Note that trading prices vary slightly based on premiums charged by dealers. I just cannot over stress the importance of your ability to determine value so you can make smart buying (and selling) decisions.
  3. Strategy: You need to understand your own strategy, essentially the real reason why you are buying these precious metals in the first place. This is more important than you may initially think because it will help you choose the correct bullion. Bullion comes in many different sizes, shapes, and value, and you will need to make purchase choices based on your objectives. Your choices could differ if you are buying for wealth protection, or if you are buying to hedge against currency fluctuation, or if you are buying to prepare for an economic meltdown. Whatever your reasons, you must know why so you can make the right choices. And here’s an extra tip: You’ll also need a strategy for storage.

Buying gold and silver is simpler than you think, but one mistake can cost you big time. After all, precious metals are valuable, and your purchases can (and should) really add up. I hope you found this article helpful on your journey.

You can always learn more essentials about how to buy gold and silver on my informative blog, or even ask me a question there!

Thanks for reading. For more information on the right way to buy gold and silver, visit my blog using the link above.

Junk Silver – 3 Reasons Why It Is the Best Metal to Buy When Preparing for an Economic Crisis

Despite its name, junk silver is not junk. The term junk silver refers to coins minted in the United States prior to 1965. These are coins that contain 90% silver and 10% copper. The US government stopped minting 90% silver coins in 1964 but it continued minting 40% silver half dollars from 1965 to 1970.

The first reason that this is the best precious metal to buy is its affordability.

You don’t have to have a lot of money to be able to buy it. In fact, you can buy it in as small of a quantity as a single dime on eBay. As with anything, the premium you pay will be higher when you buy it in smaller quantities. It is bought and sold in increments of $1.00 of face value. 10 dimes sell for the same as 4 quarters or 1 half-dollar and 5 dimes. Any combination of coins that total $1.00 face value weighs the same when they were minted and have the same silver content.

The second reason is because it’s easily recognizable.

The majority of people around the world have seen a US quarter, dime or half-dollar. This is very useful when it comes time for authenticating on the go. This is what makes it so valuable in times of economic crisis. You can use it to make every day transactions without the fear of having the coins being rejected because the seller does know if it is authentic or not.

The third reason is because it comes in quantities small enough to use for every day purchases when bartering.

The last thing you want in an economic crisis is to have bullion that is worth $1000+ per coin when you need to buy a loaf of bread. Today, 90% silver dimes are worth $2.95 if you buy one and $1.50 if you buy 10. Similarly, you can buy a single quarter for $5.75 and $3.75 if you buy 10. For this reason alone, you should buy junk silver first and only when you have a stockpile that will last you 1 year (at a minimum) should you start to buy less recognizable gold and silver bullion.

In summary, junk silver is the best precious metal to buy because it’s affordable, easily recognizable and comes in small enough quantities to be able to be used for every day transactions.

Gold Bullion – Safe Haven for Savvy Investors

The term bullion refers to gold, silver and other precious metals in form of coins, ingots or bars. Intrinsically, the value of bullion is determined by the purity and mass of the precious metal content.

However, from time immemorial gold bullion has proven to be short and/or long term solution during dangling financial situations. Therefore, savvy investors and any reasonable person(s) needs to give greater consideration to their investment vehicles, thus gold bullion is the most effective and efficient strategy.

As we dig deeper, you can tell the mystery behind gold bullion as the first and best option among conflicting investment mechanisms;

1. Universal acceptability. Gold bullion is recognized and in high demand globally, territorial boundaries are not barriers to buying or selling of these precious metals, so wherever you are on the globe, you can invest in gold.

2. Physical and tangible assets. Gold bullion is product you can see and touch; as such you are buying or selling a real precious metal and not transient goods like stocks or ETF.

3. Capital growth and ROI. When you invest in gold or silver, your investment will grow with time. It a common saying in the UK that gold is the best performing asset of 21st Century. Based on available statistics, from 1999 to date, gold has a growth of about 330% compare with FTSE and Housing market with growth of 173% and 231% respectively.

4. Inheritance/retirement planning. Buying of gold is the present days Solomon’s wisdom of planning for retirement (IRA) and inheritance of your estate. The mere fact that you are buying physical asset (gold), the propensity of growth and tax efficiency is an assurance that you will be financially strong at retirement and have worthwhile assets for your estate.

5. Safe haven. Investment in gold is antidote or assurance against inflation. In view of the increasing debts of strong nations like USA and UK, inflation is having negative impacts on paper currency, goods and services.

During this worst economic scenario, the value of currency is eroded, prices of goods and services are increasing and this circumstance is a pleasurable time for gold because while currency value is decreasing, the value of gold is increasing with the pace of inflation.

Therefore, the only route of escape to preserve your asset is to invest heavily on gold bullion. For instance, Judge Soro and Warren Buffet have gold investment worth about $50Billion and $31Billion respectively.

6. Tax exemption. Gold has tax advantage and certain types of gold are tax free. Also, it not mandatory to make returns to IR.

7. Low price. Provided you are tactical and strategic about your investment and future, you can predict with absolute certainty and buy when the price is slightly down in anticipation that your investment will grow with passage of time. If you are naive about the strategies, you can engage the service of professional at a reasonable fee.

8. Financial market. Your investment is outside the financial market, so you less concern about inflation, laws and monetary policies affecting the financial sector.

9. Private investment. Your investment is personal, no need of registration with any government agency and no mandatory laws as to how you should invest your hard earned money, compared with corporate world with several investment do’s and don’ts.

10. Scarcity. Gold is finite in supply that is the availability is limited. The law of demand and supply says, the higher the demand
the lower the supply, this is true about gold being an ostentatious goods.

In light of these revelations, what is now your investment decision about gold? Your decision will determine your financial destiny.

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Adewale Olofinnika is a multi-disciplinary professional, internet marketer and expert writer who has made a landmark in various niches on the internet. He is also a major player in some freelancer sites. Of paramount importance in all deals are professionalism, ethics, attention to details, integrity, uprightness etc.

Gold And Unrealistic Expectations – Gold Is Not An Investment

Gold has been characterized as insurance, a hedge against inflation/social unrest/instability, or, more simply, just a commodity. But it is treated most of the time, by most people, as an investment.

This is true even by those who are more negative in their attitude towards gold. “Stocks are a better investment.” In most cases, the logic used and the performance results justify the statement. But the premise is wrong. Gold is not an investment.

When gold is analyzed as an investment, it gets compared to all kinds of other investments. And then the technicians start looking for correlations. Some say that an ‘investment’ in gold is correlated inversely to stocks. But there have been periods of time when both stocks and gold went up or down simultaneously.

One of the commonly voiced ‘negative’ characteristics about gold is that it does not pay dividends. This is often cited by financial advisors and investors as a reason not to own gold. But then…

Growth stocks don’t pay dividends. When was the last time your broker advised you to stay away from any stock because it didn’t pay a dividend. A dividend is NOT extra income. It is a fractional liquidation and payout of a portion of the value of your stock based on the specific price at the time. The price of your stock is then adjusted downwards by the exact amount of your dividend. If you need income, you can sell some of your gold periodically, or your stock shares. In either case, the procedure is called ‘systematic withdrawals’.

The (il)logic continues… “Since gold doesn’t pay interest or dividends, it struggles to compete with other investments that do.” In essence, higher interest rates lead to lower gold prices. And inversely, lower interest rates correlate to higher gold prices.

The above statement, or some variation of it, shows up daily (almost) in the financial press. This includes respected publications like the Wall Street Journal. Since the US elections last November, it has appeared in some context or other multiple times.

The statement – and any variation of it that implies a correlation between gold and interest rates – is false. There is no correlation (inversely or otherwise) between gold and interest rates.

We know that if interest rates are rising, then bond prices are declining. So another way of saying that gold will suffer as interest rates rise is that as bond prices decline, so will gold. In other words, gold and bond prices are positively correlated; gold and interest rates are inversely correlated.

Except that all during the 1970’s – when interest rates were rising rapidly and bond prices were declining – gold went from $42 per ounce to $850 per ounce in 1980. This is exactly the opposite of what we might expect according to the correlation theory cited earlier and written about often by those who are supposed to know.

During 2000-11 gold increased from $260 per ounce to a high of $1900 per ounce while interest rates declined from historically low levels to even lower levels.

Two separate decades of considerably higher gold prices which contradict each other when viewed according to interest rate correlation theory.

And the conflictions continue when we see what happened after gold peaked in each case. Interest rates continued upwards for several years after gold peaked in 1980. And interest rates have continued their long-term decline, and have even breached negative integers recently, six years after gold peaked in 2011.

People also talk about gold the way they talk about stocks and other investments… “Are you bullish or bearish?” “Gold will explode higher if/when… ” “Gold collapsed today as… ” “If things are so bad, why isn’t gold reacting?” “Gold is marking time, consolidating its recent gains… ” “We are fully invested in gold.”

When gold is characterized as an investment, the incorrect assumption leads to unexpected results regardless of the logic. If the basic premise is incorrect, even the best, most technically perfect logic will not lead to results that are consistent.

And, invariably, the expectations (unrealistic though they may be) associated with gold, as with everything else today, are incessantly short-term. “Don’t confuse me with the facts, man. Just tell me how soon I can double my money.”

People want to own things because they expect/want the price of those things to go up. That is reasonable. But the higher prices for stocks that we expect, or have seen in the past, represent valuations of an increased amount of goods and services and productive contributions to quality of life in general. And that takes time.

Time is of the essence for most of us. And it seems to overshadow everything else to an ever greater degree. We don’t take the time to understand basic fundamentals. Just cut to the chase.

Time is just as important in understanding gold. In addition to understanding the basic fundamentals of gold, we need know how time affects gold. More specifically, and to be technically correct, we need to understand what has happened to the US dollar over time (the past one hundred years).

Lots of things have been used as money during five thousand years of recorded history. Only one has stood the test of time – GOLD. And its role as money was brought about by its practical and convenient use over time.

Gold is original money. Paper currencies are substitutes for real money. The US dollar has lost 98 percent of its value (purchasing power) over the past century. That decline in value coincides time wise with the existence of the US Federal Reserve Bank (est. 1913) and is the direct result of Federal Reserve policy.

Gold’s price in US dollars is a direct reflection of the deterioration of the US dollar. Nothing more. Nothing less.

Gold is stable. It is constant. And it is real money. Since gold is priced in US dollars and since the US dollar is in a state of perpetual decline, the US dollar price of gold will continue to rise over time.

There are ongoing subjective, changing valuations of the US dollar from time-to-time and these changing valuations show up in the constantly fluctuating value of gold in US dollars. But in the end, what really matters is what you can buy with your dollars which, over time, is less and less. What you can buy with an ounce of gold remains stable, or better.

When gold is characterized as an investment, people buy it (‘invest’ in it) with expectations that it will “do something”. But they are likely to be disappointed.

In late 1990, there was a good deal of speculation regarding the potential effects on gold of the impending Gulf War. There were some spurts upward in price and the anxiety increased as the target date for ‘action’ grew near. Almost simultaneously with the onset of bombing by US forces, gold backed off sharply, giving up its formerly accumulated price gains and actually moving lower.

Most observers describe this turnabout as somewhat of a surprise. They attribute it to the quick and decisive action of our forces and the results achieved. That is a convenient explanation but not necessarily an accurate one.

What mattered most for gold was the war’s impact on the value of the US dollar. Even a prolonged involvement would not necessarily have undermined the relative strength of the US dollar.

Gold Isn’t Money

I drive men mad for love of me.

Easily beaten, never free.

What am I?

Why, you’re gold, of course.

Indeed, the metal is many things to many people. But one thing it’s not: money.

That comes as a surprise to some people.

Over the years, in reader letters about acquiring, transporting or storing gold, I’ve noticed that many folks assume gold to be money. From that they extrapolate to all sorts of false conclusions about how they should manage their ownership of the metal.

Some even miss out on major opportunities as a consequence.

Gold isn’t money… and that makes an enormous difference when it comes to wealth management strategies…

What’s Money… and Why Does It Matter?

Those of you with an interest in bitcoin probably know about the long-running debate over whether the virtual currency is a form of money or a nonmonetary asset.

Government agencies, the IRS and the courts have all grappled with this issue from time to time. It’s important for several reasons… all of which apply equally to gold bullion.

Money – currency, a legal tender issued by a sovereign authority like the U.S. government, including face-value gold coins – isn’t regarded as an asset. It’s just a store of value, a unit of account and a means of exchange.

Because governments issue money, governments have a unique interest in keeping tabs on it… such as when you take it into or out of the country, or store it in a foreign financial institution, or use it for a large transaction. That’s why they impose such stringent reporting requirements on it.

On the other hand, governments don’t normally tax appreciation in the value of money. If you have an account denominated in Swiss francs and its value increases vis-à-vis the dollar, boosting its buying power, it’s not considered a capital gain.

The same would apply to bitcoin, or gold, if they were considered forms of money… hence the debate.

The Bullion Advantage

But bullion gold – gold that hasn’t been minted into legal tender coins, which is treated as money – is an asset, not money, and that matters… a lot.

Let’s review some of the key differences.

  • Purchases of gold bullion aren’t reportable to the U.S. government. Many people think they are. That’s because if you pay with cash or a cash equivalent for $10,000 or more worth of bullion, the dealer must submit IRS Form 8300, “Report of Cash Payments Over $10,000 Received in a Trade or Business.” This requirement, however, isn’t specific to precious metal purchases. It applies to all cash transactions over $10,000, no matter what you’re buying. If you buy bullion with a credit card, there’s no need to tell Uncle Sam.
  • You don’t have to declare gold bullion when you bring it into or take it out of the U.S., the way you do with currency. Admittedly, this is a tricky issue, and many people advise you to play it safe and declare it anyway to avoid trouble. But technically, gold bullion is just like any other personal property – furniture, a car, etc. – and cross-border movements don’t have to be reported if the value exceeds $10,000, as is the case with any form of currency (including legal tender gold coins).
  • You aren’t obligated to report gold stored outside the United States. Whether you keep it in a safe-deposit box or a private vault, gold bullion is considered personal chattel property – an asset no different from jewelry, artworks or any other valuable thing. By contrast, if you keep money in a foreign financial institution, you’re faced with all sorts of onerous reporting requirements, such as the Report of Foreign Bank and Financial Accounts (FBAR) and the Foreign Account Tax Compliance Act (FATCA).
  • You report and pay capital gains taxes on gold sales – but can also deduct losses. The IRS classifies gold billion as a collectible. That means profit on its sale can be taxed at the maximum capital gains rate of 28%. The actual rate you pay is determined by the amount of time you’ve owned it and your ordinary income tax rate. You’d report capital gains from gold sales on Schedule D of Form 1040 and pay the tax when you file. By contrast, if you sell gold bullion at a loss, it may potentially offset other capital gains or even ordinary income.

The Universal Asset

Looking at gold bullion as an asset rather than a financial instrument illuminates its role in wealth management strategies.

Lots of people speculate successfully on price movements in gold. Some even invest in funds like the SPDR Gold Trust (NYSE Arca: GLD). (Although that doesn’t count as owning gold in my book – it’s just paper.)

But by far the bulk of the world’s gold bullion is doing precisely what assets should do in any smart wealth-management strategy: storing value securely over the long term as a hedge against the slings and arrows of markets in financial instruments such as stocks, bonds and the like.

Gold bullion is the ultimate “set it and forget it” strategy. If you haven’t “set it” yet by accumulating some of the yellow metal that “drive[s] men mad for love of me,” now’s the time to start.

The Five Laws of Gold

We live in an impatient age, and when it comes to money we want more of it now, today, not tomorrow. Whether it’s a deposit for a mortgage or clearing those credit cards that sap our energy long after we stopped enjoying what we bought with them, the sooner the better. When it comes to investing, we want easy pickings and quick returns. Hence the current mania for crypto-currencies. Why invest in nanotechnology or machine learning when Ethereum is locked in an endless upward spiral and Bitcoin is the gift that keeps on giving?

A century ago, the American writer George S Clason took a different approach. In The Richest Man in Babylon he gave the world a treasure trove – literally – of financial principles based on things that might seem old-fashioned today: caution, prudence and wisdom. Clason used the wise men of the ancient city of Babylon as the spokesmen for his financial advice, but that advice is as relevant today as it was a century ago, when the Wall Street Crash and the Great Depression were looming.

Take for example, the five laws of gold. If you are looking to place your personal finances on a sound footing, wherever you are in life, these are for you:

Law No1: Gold comes gladly and in increasing quantity to anyone who puts by at least a tenth of their earnings to create an estate for their future and that of their family. In other words, save 10% of your income. Minimum. Save more than that if you can. And that 10% is not for next year’s holiday or a new car. It’s for the long-term. Your 10% can include your pension contributions, ISAs, premium bonds or any kind of high interest/restricted access savings account. OK, interest rates for savers are at historic lows now, but who knows where they’ll be in five or ten years? And compound interest means your savings will grow faster than you think.

Law No2: Gold labours diligently and contentedly for the wise owner who finds profitable employment for it. So, if you’re looking to invest rather than save, do it wisely. No crypto-currencies or pyramid schemes. We’re focusing on the words “profitable” and “employment”. Make your money work for you but remember the best you can hope for this side of the rainbow is steady returns over the long term, not lottery wins. In practice this is likely to mean shares in established companies offering a regular dividend and a steady upward trend in share price. You can invest directly, or through a fund manager in the form of unit trusts, but before parting with a single penny, see Laws 3, 4 and 5…

Law No3: Gold clings to the protection of the cautious owner who invests it under the advice of those wise in handling it. Before you do anything, talk to a qualified, experienced financial adviser. If you don’t know one, do some research. Check them out on the internet. What expertise do they have? What kind of clients? Read the reviews. Call them first and get a feel for what they can offer you, then decide if a face to face meeting will work. Check out their commission arrangements. Are they independent or tied to a particular company, under contract to push that company’s financial products? A decent financial adviser will encourage you to get the basics in place: pension, life insurance, somewhere to live, before steering you towards investing in emerging markets and space travel. When you’re satisfied that you’ve found an adviser you can count on, listen to them. Trust their advice. But review your relationship with them at regular intervals, say annually, and if you’re not happy, look elsewhere. Chances are, if your judgment was sound in the first place, you’ll stick with the same adviser for many years to come.

Law No4: Gold slips away from the one who invests it in businesses or purposes with which they not familiar or which are not approved by those skilled in its keep. If you have a deep knowledge of food retail, by all means invest in the supermarket chain that is increasing market share. Likewise, if you work for a company that has an employee share ownership scheme, it makes sense to take advantage of it, if you’re sure that your company has good prospects. But, you should never invest in any market or financial product that you don’t understand (remember the Crash!) or can’t fully research. If you are tempted to try your hand at currency dealing or options trading and you have a financial adviser, talk to them first. If they’re not up to speed, ask them to refer you to someone who is. Best of all, steer clear of anything you’re not sure about, no matter how big the potential returns.

Law No5: Gold flees the one seeking impossible earnings or who follows the alluring advice of tricksters and schemers or who trusts his own inexperience. Again, the fifth law follows on the heels of the fourth. If you start scouring the internet for financial advice and wealth creation ideas, your inbox will soon be full of “tricksters and schemers” promising you the earth if you’ll invest £999 in their “system” for turning £1 into £1XXXXXX on the Chicago Mercantile Exchange. Remember, the only one who makes money in a gold rush is the one selling shovels. Buy the wrong shovel and you’ll quickly dig yourself into debt. Not only will you pay through the nose for a system that has no proven value; by following it you will probably lose a lot more than the price you paid for it. At the very least you should check genuine reviews of the product. And never buy any system, investment vehicle or financial product from any company that is not registered by a national watchdog, such as the Financial Conduct Authority for the UK.

These five laws are of greater value than gold itself… Next time we’ll look at George S Clason’s seven cures for a lean purse.

Gold Bullion Price, 10 Cogent Issues

Universally, gold is used as standard of value for currencies; in like manner the price of gold is usually expressed in US dollars. There may be slight fluctuation in the price of gold premised upon the market conditions and the highlighted cogent issues/determinants.

1. Demand and supply. As you are fully aware that the supply of gold scarce and finite. Therefore, the cost of mining gold and precious metals are not cheap, geopolitical instability and unfavourable action of central banks tends toward inflation. Furthermore, the high demand and activities of jewelry and ancillary products manufacturers imparts positively by pushing the price of gold upwards. So the law of demand and supply in reality, the lower the supply, the higher the demand and the greater the price.

2. The cost of gold production. Based on available data, about 2, 500 metric tons of gold is mined annually and yearly production cost is not static but rather increasing. The aftermath is the reflection of this cost in the price of buying and selling of gold.

3. Jewelry and ancillary products manufacturers. Gold is a hedge fund and safe haven investment against inflation, based on this fact, there are heavy demand from countries like USA, China, India etc. Assuredly, in these countries, large quality and quantity of gold is used for manufacturing jewelry and components of electronic equipment. The high demand for gold brings about increase in the price of gold.

4. The worth of US dollars. The USD is highly prominent among the currencies of nations and of course the most acceptable currency for international trade. In fact, the price of gold is negatively correlated with the strength of the USD, when the value of gold is stronger, that of USD is weaker and people used to capitalize on stronger USD as avenue of buying more gold.

5. War and other global crisis. Gold is termed crisis commodity borne on the fact that price of gold usually increased during geopolitical instability and war. During this situation, there will be “gold rush” as people lack confidence in the prevailing economic scenario and gold is the only safe haven as assured assets.

Take for instance, during the geopolitical instability in Russia, there was spike in gold price as the Russians were moving to Ukraine.

6. Unstable monetary policies of central banks. All the nations of the world have their respective central bank that regulates their economic policies. For instance, the Federal Reserve Bank of USA, European Central Bank, Bank of Japan, Swiss National Bank etc.

Any unfavourable monetary policies that imparts negatively on paper currency will lead to gold rush been a safe haven and most preferable physical and tangible assets. The increase in the demand for gold will lead to hike in the price of gold.

7. Inflation. The consequence of unstable monetary policies is inflation and devaluation of currencies. As the currency value fluctuates and eroded, savvy people invest heavily on gold as hedge or insurance against inflation. The good aspect is that gold is valued worldwide and outside the control of any monetary policy.

8. Interest rate. Gold bullion is not subject to interest rate but the increase or decrease in interest rate usually reflect in the demand for and price of gold. When interest rate is increased, investors’ sells gold to raise money for other investment and during the period of decreased interest rate, gold actually experienced a boom market in form of “gold rush”.

9. Government reserve. Governments of nations through their Central bank have standard practice of keeping a national reserve in form of gold and paper currency. The Federal Reserve of USA, France, Germany, Portugal etc is practical examples. When these countries begin to invest heavily on gold, the price will spike.

10. QE. Quantitative easing is a strategy used by the central banks to ease the flow of money into the economy. These pinnacle banks like Federal Reserve of USA, Bank of England, Bank of Japan etc; will mop-up (buy) the securities from the financial market and money available to commercial banks to lend to the people. This enormous supply money will push interest rate downward and lower interest rate will propel investors to buy gold by all means.

In view of the above, l hope these revelation will be of tremendous benefit when you are making your next purchase of gold bullion.

Adewale Olofinnika is a multi-disciplinary professional, internet marketer and expert writer who has made a landmark in various niches on the internet. He is also a major player in some freelancer sites. Of paramount importance in all deals are professionalism, ethics, attention to details, integrity, uprightness etc.

Why Invest In Gold

Why should gold be the product that has this unique property? Most likely it is because of its history as the first form of money, and later as the basis of the gold standard that sets the value of all money. Because of this, gold confers familiarity. Create a sense of security as a source of money that always has value, no matter what.

The properties of gold also explain why it does not correlate with other assets. These include stocks, bonds and oil.

The gold price does not rise when other asset classes do. It does not even have an inverse relationship because stocks and bonds are mutually exclusive.

REASONS TO OWN GOLD

1. History of Holding Its Value

Unlike paper money, coins or other assets, gold has maintained its value over the centuries. People see gold as a means to transmit and maintain their wealth from one generation to another.

2. Inflation
Historically, gold has been an excellent protection against inflation, because its price tends to increase when the cost of living increases. Over the past 50 years, investors have seen gold prices soar and the stock market plummet during the years of high inflation.

3. Deflation
Deflation is the period during which prices fall, economic activity slows down and the economy is overwhelmed by an excess of debt and has not been seen worldwide. During the Great Depression of the 1930s, the relative purchasing power of gold increased while other prices fell sharply.

4. Geopolitical Fears/Factors
Gold retains its value not only in times of financial uncertainty but also in times of geopolitical uncertainty. It is also often referred to as “crisis commodity” because people flee to their relative safety as global tensions increase. During these times gold outperforms any other investment.

THE HISTORY OF GOLD AND CURRENCIES

All world currencies are backed up by precious metals. One of these being gold playing the major role is support the value of all the currencies of the world. The bottom line is Gold is money and currencies are just papers that can wake up valueless because governments have the overruling power to decide on the value of any country’s currency.

The Future Of Currencies We Are At The Tipping Point

WHY SMART INVESTORS ARE INVESTING IN GOLD?

1. The markets are now much more volatile after the Brexit and Trump elections. Defying all odds, the United States chose Donald Trump as its new president and no one can predict what the next four years will be. As commander-in-chief, Trump now has the power to declare a nuclear war and no one can legally stop him. Britain has left the EU and other European countries want to do the same. Wherever you are in the Western world, uncertainty is in the air like never before.

2. The government of the United States is monitoring the provision of retirement. In 2010, Portugal confiscated assets from the retirement account to cover public deficits and debts. Ireland and France acted in the same way in 2011 as Poland did in 2013. The US government. He has observed. Since 2011, the Ministry of Finance has taken four times money from the pension funds of government employees to compensate for budget deficits. The legend of multimillionaire investor Jim Rogers believes that private accounts will continue as government attacks.

3. The top 5 US banks are now larger than before the crisis. They have heard about the five largest banks in the United States and their systemic importance since the current financial crisis threatens to break them. Lawmakers and regulators promised that they would solve this problem as soon as the crisis was contained. More than five years after the end of the crisis, the five largest banks are even more important and critical to the system than before the crisis. The government has aggravated the problem by forcing some of these so-called “oversized banks to fail” to absorb the breaches. Any of these sponsors would fail now, it would be absolutely catastrophic.

4. The danger of derivatives now threatens banks more than in 2007/2008. The derivatives that collapsed the banks in 2008 did not disappear as promised by the regulators. Today, the derivatives exposure of the five largest US banks is 45% higher than before the economic collapse of 2008. The inferred bubble exceeded $ 273 billion, compared to $ 187 billion in 2008.

5. US interest rates are already at an abnormal level, leaving the Fed with little room to cut interest rates. Even after an annual increase in the interest rate, the key interest rate remains between ¼ and ½ percent. Keep in mind that before the crisis that broke out in August 2007, interest rates on federal funds were 5.25%. In the next crisis, the Fed will have less than half a percentage point, can cut interest rates to boost the economy.

6. US banks are not the safest place for your money. Global Finance magazine publishes an annual list of the world’s 50 safest banks. Only 5 of them are based in the United States. UU The first position of a US bank order is only # 39.

7. The Fed’s overall balance sheet deficit is still rising relative to the 2008 financial crisis: the US Federal Reserve still has about $ 1.8 trillion worth of mortgage-backed securities in its 2008 financial crisis, more than double the $ 1 trillion US dollar. I had before the crisis started. When mortgage-backed securities become bad again, the Federal Reserve has much less leeway to absorb the bad assets than before.

8. The FDIC recognizes that it has no reserves to cover another banking crisis. The most recent annual report of the FDIC shows that they will not have enough reserves to adequately insure the country’s bank deposits for at least another five years. This amazing revelation admits that they can cover only 1.01% of bank deposits in the United States, or from $ 1 to $ 100 of their bank deposits.

9. Long-term unemployment is even higher than before the Great Recession. The unemployment rate was 4.4% in early 2007 before the start of the last crisis. Finally, while the unemployment rate reached the level of 4.7% observed when the financial crisis began to destroy the US economy, long-term unemployment remains high and participation in the labor market is significantly reduced five years after its end. the previous crisis. Unemployment could be much higher as a result of the coming crisis.

10. US companies fail at a record pace. At the beginning of 2016, Jim Clifton, CEO of Gallup, announced that the commercial failures of the United States are larger than the start-ups that began for the first time in more than three decades. The shortage of medium and small companies has a great impact on an economy that for a long time has been driven by the private sector. The larger companies are not immune to the problems either. Even heavyweights in the US economy such as Microsoft (which has reduced 18,000 jobs) and McDonald’s (which shut down 700 stores during the year) are suffering this terrible trend.

Why smart investors add physical gold to their retirement accounts?

Ensuring inflation and deflation.
Limited delivery Demand up
A safe haven in times of geopolitical, economic and financial turbulence.
Diversification and portfolio protection.
Stock value.
Cover against the decline of the printing policy of dollars and money.