Gold Will Hedge Against Inflation
Get in on the gold action now! Every investor should know that gold is a hedge against inflation. There has been a huge movement in the gold price, and there are several reasons for that.
To protect yourself from out of control government spending and sky high inflation your money needs to be in gold bullion, gold ingots, and gold bullion coins
The gold demand is rising steadily with no end in sight. Investors looking to put their money into hard assets increased the demand for gold in 2008 by 64 percent. Countries who have added to their gold piles include Russia, India, China, and others. The IMF recently made a sale of 200 tons of gold to India.
The amount of gold available for each person is miniscule at 23 grams. That is only about $840 worth per person. The value of all above ground gold inventories is about $3.7 trillion, and is going up rapidly.
The amount of gold mined each year is 2,600 tons, and the amount of above ground gold sits at about--0,000 tons. That does not cover the demand situation and is only a 2% increase in the supply each year. The supply is actually short of demand each year by 1,400 tons due to the demand of 4,000 tons each year. Gold has been selling at or below the cost of production until this recent surge in metals prices.
The demand for gold each year is about 4,000 tons, so the mines are coming up short by about 1,400 tons. Until the recent gold price highs, gold has been selling for around the cost of production.
Due to the low prices in gold and silver, mine supply has decreased by close to 10%. Seeing how the fundamentals for gold show that the demand outweighs the supply and has for a long time, then why has the gold price been suppressed until recently?
Why has the price manipulation occurred? There are several factors. Central banks have attempted to suppress the price by selling gold bars onto the market. This tactic did work, but the banks are running out of gold to use as a suppression tactic.
Paper gold is a source of price suppression. Paper gold includes futures contracts, ETFs, and other investments. These give you the exposure to the price of gold, and not the real gold.
Paper gold like exchange traded funds (GLD) and COMEX contracts only give you price exposure to gold. With these investments you do not really own the gold. Some investors have even complained that the COMEX is defaulting when customers request physical delivery of their gold. The COMEX does not have the gold they claim to have.
ETF shares or COMEX contracts will only leave you wondering if the gold is really there. These investment vehicles are the governments way of keeping investors in dollars therefore strengthening dollars.
All of these gold suppression tactics are starting to come unraveled, and with inflation setting in there is no doubt the gold price will continue to explode. Stay away from paper investments if you can, unless you know for sure that they are legitimately holding the gold. Stick with American Gold Coins, American Gold Eagles, and gold bars.
With a crashing dollar, you will be sorry if you choose not to invest in hard assets. With the current price of gold at $1,140/oz, there is suddenly a reason to get out of dollars. $1,058 was the price of gold per ounce one month ago. You can see how far it has come. Gold will protect you and your wealth in this economy. Buy gold now to hedge against inflation! - 23162
To protect yourself from out of control government spending and sky high inflation your money needs to be in gold bullion, gold ingots, and gold bullion coins
The gold demand is rising steadily with no end in sight. Investors looking to put their money into hard assets increased the demand for gold in 2008 by 64 percent. Countries who have added to their gold piles include Russia, India, China, and others. The IMF recently made a sale of 200 tons of gold to India.
The amount of gold available for each person is miniscule at 23 grams. That is only about $840 worth per person. The value of all above ground gold inventories is about $3.7 trillion, and is going up rapidly.
The amount of gold mined each year is 2,600 tons, and the amount of above ground gold sits at about--0,000 tons. That does not cover the demand situation and is only a 2% increase in the supply each year. The supply is actually short of demand each year by 1,400 tons due to the demand of 4,000 tons each year. Gold has been selling at or below the cost of production until this recent surge in metals prices.
The demand for gold each year is about 4,000 tons, so the mines are coming up short by about 1,400 tons. Until the recent gold price highs, gold has been selling for around the cost of production.
Due to the low prices in gold and silver, mine supply has decreased by close to 10%. Seeing how the fundamentals for gold show that the demand outweighs the supply and has for a long time, then why has the gold price been suppressed until recently?
Why has the price manipulation occurred? There are several factors. Central banks have attempted to suppress the price by selling gold bars onto the market. This tactic did work, but the banks are running out of gold to use as a suppression tactic.
Paper gold is a source of price suppression. Paper gold includes futures contracts, ETFs, and other investments. These give you the exposure to the price of gold, and not the real gold.
Paper gold like exchange traded funds (GLD) and COMEX contracts only give you price exposure to gold. With these investments you do not really own the gold. Some investors have even complained that the COMEX is defaulting when customers request physical delivery of their gold. The COMEX does not have the gold they claim to have.
ETF shares or COMEX contracts will only leave you wondering if the gold is really there. These investment vehicles are the governments way of keeping investors in dollars therefore strengthening dollars.
All of these gold suppression tactics are starting to come unraveled, and with inflation setting in there is no doubt the gold price will continue to explode. Stay away from paper investments if you can, unless you know for sure that they are legitimately holding the gold. Stick with American Gold Coins, American Gold Eagles, and gold bars.
With a crashing dollar, you will be sorry if you choose not to invest in hard assets. With the current price of gold at $1,140/oz, there is suddenly a reason to get out of dollars. $1,058 was the price of gold per ounce one month ago. You can see how far it has come. Gold will protect you and your wealth in this economy. Buy gold now to hedge against inflation! - 23162
posted by X - Men @ 4:18 AM
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