10 Reasons I Save It, and Why You Should Too

The period of time it takes to liquidate an asset determines its value of actual liquidity. Gold is the most easily liquidated asset as it is accepted worldwide and regardless of where you are it can be accepted for or traded for money.

Gold is currency, the ultimate currency in fact, although it is not tied directly to any specific paper currency. It acts as a protection against devaluation of currency, which is directly related to governmental control and action. Historically when a government decides to print more money, to increase the amount of paper money in the market, existing currency is immediately worth less. Gold does not lose its value is this type of situation. In fact, gold values often rise when this occurs making the price of gold an effective alarm that alerts us to the devaluation of money.

We now have not one but two of the largest central banks of the world injecting massive amounts of cash into their banking systems. The relentless injection of capital by the Fed, and now the European Monetary Union will cause the spike of inflation to eventually burst under this monetary pressure.  The majority of economists see no way to avoid an inflationary season, causing the next phase in the gold market to have a massive increase. This has led to central banks aggressively buying gold.  The global debt is unmanageable, and countries will have no choice but to inflate. China, Russia, India, and Mexico are a few, among many countries, that have recently announced their plans to increase gold reserves.  China leads the charge in gold purchases, since they hold the most U.S. dollars next to the Fed.   In 2001, the Fed went on a printing spree of capital to fund the economy while our country’s debt grew massively because of 9/11, Homeland Security and the war on terrorism, as well as the devastation of Hurricanes Katrina and Rita in New Orleans and Texas. Additionally, tax incentive checks were issued two times. Then, in 2008, over $4 trillion was created and issued to bail out the ban king system, while the debt of the U.S. government at least doubled in three years from $7.3 trillion to over $14.2 trillion. Since 2011, our government spending has snowballed past manageable levels to over $17 trillion. Projections are that when Obama leaves office the debt will be around $23 trillion.

Volatility is a given in the stock market, and even bonds and real estate are subject to swings in value and bubbles. Diversifying with gold makes sense when considering the past performance of the markets and when looking ahead at uncertain times. Gold protects and holds value, making it a great hedge against depressions and other financial difficulties. A wise investor recognizes the value of gold and what it brings to a balanced portfolio, especially investors with a long term view of their wealth.

When you own gold in your portfolio, whether it be in coins, bullion or otherwise, you protect yourself and hedge your risk. Gold is not only stable and secure, but it is also more liquid than many other asset classes and types. It is also accessible; you can take it out of your vault and turn it in for cash or spend it directly, depending on what you hold. The advantages of gold are myriad, and gold is the key to a strong and diversified portfolio that will stand the test of time.

Paper money backed by a government is in its very nature volatile and uncertain. Policy changes overnight, elected officials cycle in an out, and pressure from other countries changes monetary value. Some investors make a living on betting against the stability of the dollar by trading on its ever changing value. Speculation on currency is a huge industry, made possible by uncertainty and changeability. A decision that was intended to bring structure did the opposite, taking currency away from gold backing has lead only to increased volatility that we are seeing today.  Gold has proven to be the best and only way to have stable money that can be counted on to retain its value. When countries base their currency on the gold standard there is historically an increase in trade and capital creation. This is tied in large part to confidence in and understanding of the value of the currency.

When investors believe in the currency, they will buy and hold it, which further spreads confidence to other investors and users of the currency. A healthy national and global economy is more likely under the gold standard. Interestingly, in a lesson from our own history that we should all learn from, the United States did not begin with a currency based on the gold standard. When our nation was first formed and during the revolution, money was printed recklessly and without oversight. This led to our infant economy falling into disarray before it had a chance to gain a foothold. The then secretary of the treasure, Alexander Hamilton, understood the situation and knew what to do to. He fixed the currency to gold, which immediately strengthened the economy and let to a national boom.

To adequately and securely diversify your portfolio, you simply have to have an allocation of precious metals and you need to consider this investment as a major asset class. If your investment manager or financial professional does not suggest such an investment, they are not doing their job in protecting your interests.

Commonly people think that diversification is simply choosing a variety of assets that sound good or promise solid returns. But again remember that this common mindset is wrong. Pension managers or financial advisors often adhere to this school of thought, or simply get lazy and fail to seek out other avenues for investment. In reality you need to understand that to truly diversify your asset mix you need to select assets among different classes including bonds, cash, real estate, stocks, natural resources, insurance, and yes precious metals and bullion. Markets are in continual flux, and are reliant on many factors including government stability, global climate and public perception. Take the time to frequently review your asset holdings and determine what should stay, what should go, and what needs to be added in to best protect your wealth. As you do this on a regular basis, you will see that the need to hold assets in the form of precious metals and bullion is great, and continues to increase. It is unfortunate and mind boggling that major investment companies don’t follow this simple formula for creating and protecting wealth. Invest in gold and precious metals now to protect yourself and increase your wealth. Don’t overlook this simple and valuable strategy. Diversification isn’t just a buzz word that sounds good when financial managers pitch potential clients, it is absolutely essential for a reliable portfolio. Don’t settle for second best when your financial future is on the line. Having gold and precious metals in your financial portfolio is not only wise, but it is imperative to grow and protect your assets and wealth.

Despite the complexities in the markets today, owning gold gives you assurance and stability When you own gold in your portfolio, whether it be in coins, bullion or otherwise, you protect yourself and hedge your risk. Gold is not only stable and secure, but it is also more liquid than many other asset classes and types. It is also accessible; you can take it out of your vault and turn it in for cash or spend it directly, depending on what you hold. The advantages of gold are myriad, and gold is the key to a strong and diversified portfolio that will stand the test of time. Gold is currency, the ultimate currency in fact, although it is not tied directly to any specific paper currency. It acts as a protection against devaluation of currency, which is directly related to governmental control and action. Historically when a government decides to print more money, to increase the amount of paper money in the market, existing currency is immediately worth less. Gold does not lose its value is this type of situation. In fact, gold values often rise when this occurs making the price of gold an effective alarm that alerts us to the devaluation of money.

Millions of people have trusted IRAs for their retirement needs. And many of these people have seen the value of their portfolios stay flat or even diminish over time due to losses and failures in the stock and bond markets. Some investors have eschewed commonly accepted strategies and have rolled their paper IRAs over into physically held gold backed instruments. This has given these investors the confidence, stability and security they want, and thought they had with traditional IRAs. The world is constantly in turmoil and it is becoming increasingly difficult to find financial security in traditional instruments and vehicles. Inflation is on the rise and will continue to plague investors and consumers. When monetary shortfalls occur, the government often resorts to printing more money, without regard to the harm this causes and the resulting devaluation of currency. The dollar will weaken, and with it the confidence of our consumers, investors and even the nations that we trade with. Never before has there been more need to have precious metals as part of your financial portfolio.