Buying gold coins is a way to protect your wealth and assets. Alan Greenspan said in 1967: “In the absence of gold, there is no way to protect savings from confiscation through inflation. There is no safe store of value.” Not only would buying gold coins represent saving, but also it is highly likely to be an excellent investment. The worldwide demand for gold has risen 36% which is equivalent to $29.7billion in the first quarter, according to the World Gold Council. Some experts are predicting that the spot price for gold will double in the next few months. (Jim Sinclair; Jim Rogers)
Current Factors Contributing to Economic Uncertainty
o The Price of Oil is set to rise. By 2015 Australia’s reliance on foreign oil will have increased by two-thirds. But the amount of foreign oil on the market is projected to shrink by 25% within three years of now. This will increase prices at the supermarket.
o Geopolitical Volatility makes companies and countries uncertain about international trade. The current situation in China being a case in point.
o The Baby Boomers Demographic These are entering retirement and:
a) want to cash in on their superannuation. Higher mandatory superannuation contributions are being proposed which puts added pressure on employers.
b) place higher demands on health providers who supply a service rather than a good that makes for little commerce.
o The Stimulus Packages have Failed to Stimulate Spending Rather, people have opted to save. In the US personal saving as a percentage of disposable income rose to 6.9% in May as compared to 5.6% in April. In 2008, it was negative. So if consumers do not spend, producers will have no incentive to produce. Currently, 65% of factories are idle in the US.
o The Value of the Dollar is Declining The value of the US dollar has declined 96% since 1913. When the gold standard was removed in 1971 the graph lines began to separate as the value of the dollar began to decline significantly while the value of gold began to incline reaching $850 in January of 1980.
o Australia is Dependent on Debt The Australian $20 billion government budget surplus has been transformed to a $57.6 billion budget deficit. Household debt equates to $1 trillion which is equal to the entire GDP. The $44 billion in credit card debt alone equates to $2000 per Australian (RBA).
o China is Accumulating Gold It has recently doubled its gold holdings to 1 054 tons, which is still only 1.6% of its overall reserves, but it demonstrates the value this nation places on gold, in preference to US Treasuries. The Chinese know that gold is the only currency of value.
The Secret of Protection
For the average person, the most convenient form is the gold coin. This is easily delivered to the buyer discreetly and is more easily liquidated in the marketplace if need arises. Further, it can be stored discreetly.
Your Unique Secret of Protection
The Executive Order 6102 issued in 1933 in the USA demanded confiscation of gold in exchange for just $20.67 per troy ounce. If you are considering buying gold coins, ensure they are a Religious Collectible, imprinted with a Biblical figure or similar and then you have not only protection of savings but also privacy and security in your purchase. Governments will not touch a Religious Collectible.
More Guidelines for Buying Gold Coins
Ensure they are:
1. a stipulated weight and purity 999.9
2. in small denomination of weight
3. internationally recognized via a reputable hallmark or trademark eg Argor Heraeus
4. endorsed with a certificate by the London Bullion Market Association (LBMA certified)
5. from a continuous and guaranteed supply
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