Saturday, November 6, 2010


For centuries, buying gold has been recognized as one of the best ways to preserve one's wealth and purchasing power. Gold is a unique investment, one that has served mankind well for thousands of years.
From the time of the ancient Egyptians, Greeks and Romans to more modern times, man has been fascinated with the beauty and magic of Gold, and with its power to change men's lives.
After WW 2, the US Dollar was pegged to gold at a rate of US $ 35 per troy ounce. This rate existed until 1971 when the US unilaterally suspended the direct convertibility of the United States dollar to Gold. At that point the separation of Gold from the dollar began. For example, the value of Gold in 2000 was approximately $300 per ounce. Just recently, Gold hit another record high at $1393.58 per ounce That is an increase of approximately 460%. During the same period of time the Dollar has dropped about 20% with a recent closing of 1 USD=0.000717643 Gold Ounce (Conversion Chart: ). To put it into prospective, many years ago you could buy a suit with an ounce of Gold or a $20 bill. Today, you can buy a fine suit with an ounce of gold and buy a shirt and tie with a $20 bill. Well, maybe just a shirt.
With the existing policies of the US Government and the Federal Reserve Bank, in the United States we may have a 2 headed snake. On the one side we have a tidal wave of debt ( Debt Clock: ) on the other side we look into the eyes of hyperinflation. (Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is a situation where the price increases are so out of control that the concept of inflation is meaningless.)

In Feb.2010 Federal Reserve Chairman Ben S. Bernanke warned Congress that the United States could soon face a debt crisis like the one in Greece, and declared that the central bank will not help legislators by printing money to pay for the ballooning federal debt.
In Nov. 2010 The Fed has reversed its position and now plans to purchase $600 Billion of U.S. Treasury Securities by Mid 2011. (Plus much More.) They are going to accomplish this with 'quantitative easing' which some might say is 'fire up the printing presses and shower wads of cash into the financial system.' Which comes first the collapse of the dollar or hyperinflation?

NOW BACK TO GOLD! The true Value of Gold is shown in times of crisis. A small amount, easily carried , can purchase a significant amount of goods and services. It is universally accepted and can be bought and sold around the world. Economist & Investment Guru Mard Faber suggests, "Everybody should accumulate gold over time. I would recommend people to buy, every month, some gold forever."


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