Why You Need to Buy and Hold Gold Now / Commodities / Gold and Silver 2021
In the currentenvironment of rising inflation and easy monetary policies, the value of goldcould potentially go sharply higher from recent levels.
Unlike many traders outthere, the successful gold investor has learned to “see the forest through thetrees.”
Put simply, goldinvestors understand that the shiny yellow metal is not likely to go straightup in price. It can, however, be expected to trend higher and over time, movingwell beyond all-time highs.
Modern investors, whohave grown accustomed to the free-for-all that is the stock market, often findthemselves asking why they ought to buy and hold gold. The savvy investor, onthe other hand, understands that you cannot afford not to own gold bullion.
Below are threehighlighted reasons to buy and hold physical gold. Ignore them at your peril!
Inflation Is Surging
The threat of risingprice pressures has been the topic of financial news media for several weeksnow.
The price of everydaygoods and services has without question shown a sharp rise in recent months.
As the prices of goodsand services are on the rise, the Federal Reserve and other global centralbanks have voiced their intent to keep their feet on the monetary gas pedal,maintaining rates at or near zero while also continuing to purchase bonds in QEprograms.
As the Fed maintains itsstatus quo, the value of the dollar is likely to decline further, perhaps muchfurther. Recent declines may only be the tip of the iceberg.
Gold Is More Than a Promise
In the modern world offiat currencies, nations no longer back their paper money by anything more thana promise.
The United States, forexample, does not back the Federal Reserve Note “dollar” by anything except itsgood faith and credit since the nation was taken off the gold/dollar peg.
This makes every dollarnothing more than a promise to pay.
As the confidence inthese promises decline, so does the amount of goods and services they can buy.
As it takes more dollarsto buy goods and services – think everyday items such as milk, bread, gasoline,or electrical service – the real disposable income of dollar [bag]holdersdeclines as well.
The effects of priceinflation are readily felt in the economy.
Having to cough up moreto cover the essential bases, people are far less likely to purchase items suchas vacations, new cars, and other such products, preferring to focus on thestaples. This can drastically slow economic activity and even put the economyinto a full-blown recession.
As the country continuesto borrow, borrow, borrow and spend, spend, spend, NOW is the time to takeaction to protect yourself from what could be coming down the road.
Gold Is Traded and Valued All Over the World
There is perhaps no otherasset class that is as valued and recognized the world over as physical gold.This makes gold, many would argue, the only true form of money left on theplanet.
Paper money has showntime and time again that it tends to fail with the passage of time, and theU.S. dollar should be no different. The current downtrend in our fiat currencywould seemingly point to an eventual worthless status.
Gold is a physical assetthat can be felt and put into your hand. The value of a gold bullion coin is derived almostentirely from its intrinsic metal content rather than a promise to pay or otherfeatures.
When you buy goldbullion, you know what you are getting and what it is valued at. You know thatgold can be exchanged or traded anywhere in the world for other assets, papermoney, or tangible goods. Gold is also a highly liquid market, making it simpleand convenient to sell your gold at any time to dealers or other investors.
As the United States andother developed countries enter what could be a very dangerous financialperiod, now is the time to think about your future and to protect your wealth.
Given its long history asa reliable store of value and protector of wealth, there is no better assetclass to turn to than physical gold.
Stefan Gleason isPresident of Money Metals Exchange, the national precious metals company named 2015"Dealer of the Year" in the United States by an independent globalratings group. A graduate of the University of Florida, Gleason is a seasonedbusiness leader, investor, political strategist, and grassroots activist.Gleason has frequently appeared on national television networks such as CNN, FoxNews,and CNBC, and his writings have appeared in hundreds of publications such asthe Wall Street Journal, Detroit News, Washington Times, and National Review.
© 2021 Stefan Gleason - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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