Everyone says saving money isn't as easy as it used to be. Some people are intrigued when I tell them I save by converting my currency into gold. Other people shake their heads and dismiss my efforts as nonsense without a clue as to what gold is. This article isn't for them because they're locked into an outdated way of thinking about money and scrimping to try to save some for emergencies, for college tuition, or retirement. No, this article is for the people who understand the world has changed, that banks don't pay interest on savings accounts anymore, that an economy based on debt is moving them deeper into debt along with it. 5 Things Everyone Ought To Know About Gold is for people who are tired of their money slipping through their fingers and sense there must be a way to shore it up.
The 5 things you ought to know about gold are:
1.) Gold is money. Like the five dollar bill in your wallet, it doesn't grow or multiply on it's own. People do not invest in gold; people own gold, the same as they own dollars, pounds sterling, or euros. Gold is a vehicle to contain and preserve value. While the price varies due to currency fluctuations, gold's buying power remains constant.
2.) The US may not be officially on a gold standard, but gold sits in the shadows of the Fed balance sheets to keep the figures out of the red. As James Rickards writes in his book THE NEW CASE FOR GOLD, the gold certificate account listed on the Fred's ledger amounts to $11 billion based on 1971 valuation. However, current a mark-to-market brings this hidden asset to more than $300 billion. Mr. Rickarts goes on to point out the US gold holding consists of about eight thousand tons of gold. While the US is not on a gold standard in the historical context, it does rely on gold support.
3.) Gold certificates are not the same as owning physical gold. Gold certificates, like dollars have been over-printed. In other words, there are more certificates than there is gold available for payout should all of the certificate holders decide at once to cash them in for dollars.
4.) Already the markets show the decline in the value of the dollar and the increased price of gold. Gold is a reliable, solid asset.
5.) According to Mr. Rickarts, Mike Maloney, Robert Kiyosaki, and Bo Polny gold should represent at least 10% of your wealth strategy. They all advise converting currency to gold now.
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