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Gold Investments - Will Gold Continue to Rise

Gold Investments - Will Gold Continue to Rise

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Published by directorbcm
http://www.vipgoldplan.com/goldinvest/ : Best Real GOLD Business ! Multiply x 3 TIMES your initial investment forever. Get rid of risky investment operations !!


http://www.vipgoldplan.com/goldinvest/ : Best Real GOLD Business ! Multiply x 3 TIMES your initial investment forever. Get rid of risky investment operations !!


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Published by: directorbcm on Feb 17, 2012
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 ==== ====Best Real GOLD Business ! Multiply x 3 TIMES your initial investment forever. Get rid of riskyinvestment operations !!http://www.vipgoldplan.com/goldinvest ==== ====Nervous investors the world over have many questions on their minds. A question that is attractingmore and more attention is this: When considering Gold Investments - Will Gold Continue to Rise?At over $1400 an ounce, we are in uncharted waters to be sure. Right now, this question carriesmuch more importance than whether or not now is a good time to buy gold...it signifies the faith, orlack of faith, in the World's economies. If you have no idea about what I am talking about....youreally need to keep reading. For regular readers who have a fairly deep understanding of the economy, financial markets andhow precious metals interact, bear with me for a minute. If you are new to much of this, you needto know a few facts: Gold was money for roughly 5000 years.When current world governments substituted paper for money, its value was only accepted as a"note" that could be exchanged for gold anytime the holder of the note wanted.The government set the relationship or price between these "notes" and gold. For many years,that rate was between $20 and $40 an ounce. One ounce of gold could be "swapped" for thisgovernment set "official" price in dollars.The governments needed to keep gold in reserve in these ratios to the dollars they could print andspend. If the national budget was say 20 billion dollars, and the official price of gold was $20 anounce, the government was supposed to have stored 1 billion ounces of gold in reserve. i.e... TheGold Standard.The first official act to loosen the rules and allow the officials to spend more without collecting anymore real money to fund the spending would be to change the ratios by changing the official priceof gold. If they had 1 billion ounces of gold in reserve (many believe long before this they stoppedfollowing these rules and stored less than they were directed to by law), and they changed to anofficial price from $20 to $30, they just added $10 worth of value to their supposed holdings of 1billion ounces of gold...presto-change-o, $10 billion dollars of extra cash in their coffers.Eventually the government officials became less able to say no to anything and instead, changedthe rules, eventually ending with President Roosevelt removing the US dollar from most of the goldstandard during the Great Depression in 1933 while making it illegal for a US citizen to own mostkinds of gold. In 1971, President Nixon finished off what little relationship left between how muchgold the Federal Reserve needed to have in reserve to back the amount of dollars they could print.Now they were free to decide - if they needed more money, officially raise the debt ceiling, then just print some up. Gold was officially not money anymore. So, now knowing that Gold is not money and not directly tied to it in any formal way, when
 
considering gold investments, will gold continue to rise? But wait a minute. If there is no relationship between gold and the US dollar, why has Gold beenrising in the first place and who cares? It is a precious metal and by definition this means there isnot much of it and it seems to be something people want to own. Unlike other precious metals likesilver, palladium, rhodium, etc...gold is not used in any manufacturing. There is no need to acquiremore of it for increased production in other products - this is not what is driving up gold's price.There is most definitely an increase demand that is a component of gold's steady rise in price...butwhy and from whom? Other than jewelry, and an occasional tooth filling, could that be it...morecavities and bracelets? No. In fact, the more "traditional" investment crowd who consider stocks and bonds as "real"investments would argue that there is no such thing as gold as an investment any more than theywould consider lumber an investment. This is the common front presented from Ben Bernanke, theChairman of the Federal Reserve, on down to your local banker and stock broker. Yet...gold'sprice just keeps on rising. Whether you agree that gold is an investment or not, buying gold at anytime up a short time ago and holding it would have been a great investment. Even from itsprevious unheard of high during the last period of great inflation in the 1980's of over $800 anounce, if held, would offer you today an approximate 75% return. So, let's review for a minute. Gold is not money nor is it tied to money anymore. Governments and banks do not need to haveany in reserve anywhere in the world. It is not an industrial metal that is in demand to produceother things people are buying. The majority of the investment world laughs at the idea of gold asan investment. You can't buy gold easily and stick it in your IRA (there are gold IRA's wherecompanies offer to buy and store gold for you at their location...but it is difficult to set up and oftennot allowed in company sponsored retirement plans.) In a global market decline like we have beenliving with since 2008, could it be greatly increased jewelry purchases? In some countries, Indiaand China to name a few, there is increased demand for these products but no way near enoughto drive these price increases....so, what is up with gold and should you even care? I know the answer. I know the answer and it may surprise you. It has to do with two words that in many ways are exact opposites. In the Christian Faith, thesewords are defined as exact opposites. Where one exists, the other cannot. They are Fear andFaith. The bible exhorts us more than 100 times to "Fear Not", "Do not be afraid". Great fear was asign of little faith....and there you have it; only in reverse. No faith has a tendency to produce greatfear. Even those who know and understand little about the depth and breadth of our globaleconomic problems know enough to be afraid. And with good reason. There is no good reason tohave faith in our current monetary system. It is based on nothing really....pieces of paper. As longas everyone agrees to accept them in exchange for things you need, everything moves along.Once large numbers of people lose faith in that value, they become worthless in an instant. Anyrecent reasons to worry about that? Iceland's currency was the world's darling only two yearsago...then it collapsed... Greece, Portugal, Spain! The United States government and the FederalReserve's unprecedented effort to inflate their debt away by printing more money in the last twoyears than in the entire history of the United States combined.....COMBINED! 
 
The ONLY reason there has not been a complete collapse of the US Dollar just like Iceland'sKrona is its enviable position of being the world's reserve currency. But even that will not holdforever. Should the countries that hold the majority of our debt lose faith in the dollar and sell theirholdings...new purchases would slow down or cease as others would see the amount of dollars forsale from previous buyers and the dollar will have no support and be left in the dust. There isevidence that this is slowly underway now. If you held a lot of dollars, like say China does, theycouldn't sell too many of them at once or risk devaluing their remaining holdings. Add the entireMiddle East and what it is doing to the price of oil; food and other commodity priceincreases...wow - there are plenty of reasons to be concerned. I know in my 55 years, I havenever seen so many forces working like this ever - it's like the making of a perfect storm. Fearmasked as concern abounds...but what about faith? If you agree with me on the relationshipbetween fear and faith, then an answer to fear is faith. To make my final point, put yourself in the middle of the following story.... You live in a world where your currency has imploded. There is no faith in the government that younow clearly see created the problems that led to the collapse. You need to get through this. Youare in the enviable position of being a chicken farmer. Since there is no common currency, younow are forced to take that which you have that others want and trade it for what they have thatyou want. Someone comes to you who needs some food -some chickens, but they have nothingyou need to live day to day; but they ask if you would take some gold. Even if you don'tunderstand deep economic theories...would you? Yes you would. You would because what youreally want is something that everyone recognizes as having value everywhere. Something thathas stood the test of time...maybe 5000 years of time. You are looking for widely recognizedmedium of exchange. That would be gold. The reason the price of gold has risen is because of itsbroad acceptance as a likely alternative to economic uncertainty. And it is not just individuals whoare driving this...but countries. Still less than 5% of Americans own any gold at all...and as we sitand think about it...China, who produces more gold than any other country on Earth, is sellingnone of it...they are keeping it all. Now what would a country that already owns more dollars thanany other want with all that gold? Gold Investments - will gold continue to rise? That's the question on the table. In my opinion - untilreal economic progress is made in the form of reduced debt and currencies that are tied to valuethat cannot be easily manipulated by selfish politicians...YES! - You bet it will. Steve Peters brings over 24 years of business, financial markets and gold broker experience tohelp new or unsure gold buyers avoid the mistakes so many make. Go here to read more: SafeGold? More detail on current economic conditions can be found here as well: Economics 101 You can post this article on your web site or blog as long as no changes are made, the author'sname is retained and the links to our site URLs remain active. Thank you.  

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