Global Currency Crisis & Gold – What’s Really Going to Happen in 2011 – 2012

Following on from the first 2 parts in this series: Whats really going to happen in 2010 Whats going to happen in 2010/2011 – part II Another great writer and analyst makes it into our categories section, Bob Chapman of Global research with a seminal must read piece outlining the road ahead towards a new [...]

Invest in Gold & Silver

Gold or Silver as an investment in your future

Investing in gold now is easily the safest thing you can do to protect your wealth and invest in your future.

Wikipedia states – Gold

Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a hedge or safe haven against any economic, political, social or currency-based crises. These crises include investment market declines, currency failure, inflation, war and social unrest. Investors also buy gold during times of a bull market in an attempt to gain financially.

Since the fall of Lehman Brothers sent the Stock Markets into freefall and threatened to collapse the entire global financial system, it is now clear to any intelligent person looking at the facts that “paper” or “computer” wealth is not real and can literally vaporize in a few seconds following the next inevitable financial bombshell or “Act of God” – earthquakes, terrorist attacks hurricanes, tsunamis etc etc.

The question is now not “if..” , it is only a matter of when..

The Real Value of Gold

From the World Gold Council – Investment

“The value of gold, in terms of the real goods and services that it can buy, has remained largely stable for many years. In 1900, the gold price was $20.67/oz, which equates to about $503/oz in today’s prices. In the two years to end-December 2006, the actual price of gold averaged $524.

So the real price of gold changed very little over a century characterised by sweeping change and repeated geopolitical shocks. In contrast, the purchasing power of many currencies has generally declined.”

currencies performance against gold

In the last 10 years alone the purchasing power of the $ USD has dropped by 35% and is now some 95% less than when it was attached to the Gold Standard.

Gold vs Inflation

From the World Gold Council – Investment

Investors in gold can point to a growing body of research supporting gold’s reputation as a protector of wealth against the ravages of inflation. Market cycles come and go, but extensive research from a range of economists has demonstrated that, over the long term, through both inflationary and deflationary periods, gold has consistently maintained its purchasing power.

In the short run, experience has shown that gold can deviate from its long-run inflation-hedge price, and, when enjoying a sustained buoyant period, as is currently the case, can offer opportunities for impressive returns.

This is currently the case and will remain so all the time the world has no confidence in the global monetary system, which is not going to miraculously “cure itself” from it’s now fatal self-inflicted wounds.

Gold & silver are now firmly “once-in-a-lifetime” opportunity territory..

- See video Gold Price to reach $5000 ?

Don’t miss out on the potential gains to be had, especially as investing in precious metals is now the safest thing you can do with paper cash or money from stocks anyway.

So really, the question to ask yourself is:

“ Gold a Reasonable investment?“<click for more info