Some people claim that gold is not really an investment. They assume gold is used only for making jewelry or coins. That gold has no “real value”. Actually that is completely false.

For instance, 10% of all gold mined is used in manufacturing electronic goods.

Without gold, thousands of products such as satellites, space vehicles, cell phones, car components, computers, flat screen TV’s would not exist. Over 400 tonnes of gold per year are used to create these products. Gold is also used in the medical profession. Life support systems, cancer treatments and arthritis are just a few examples of how the medical profession uses gold.

To say gold is not a good investment is naive. Here is why…

1. All US currency was once backed by gold and silver. Why was our dollar backed by gold? Because gold is scarce. If something is scarce it has worldwide value. And for more than 5000 years gold and silver has been used as money throughout the world.

2. The US went off the gold standard in 1971. Use of gold in coins ended in 1933 when the government outlawed private ownership of gold and increased its controlled price as part of efforts to end the Great Depression. In 1971 President Nixon ended all controls on the metal’s price, allowing it to float and ending its use as backing for the US dollar.  What is backing our US dollar now? Your property and labor. That is it. As the government continues to escalate our national debt, we face the prospect of bankruptcy and allowing foreign governments to confiscate our property and freedom.

Gold has risen 20% in value each year since 2000. As the US government continues to print more money and devalue the dollar and go further in debt, gold will continue to rise. Gold and silver are a hedge against inflation. That is fact.

To invest in gold purely as speculation is not advisable. Gold should be used as a safety device to protect yourself from inflation. It is your investment from a collapsed economy. If your other investments plunge such as real estate, the Dow Jones or your business, gold will be the one investment that saves you from complete financial disaster. 5000 years of history proves that point.

A well rounded investment portfolio would have at least 10-20% in gold.

So what type of gold should you invest in? After all, you could choose gold stocks and bonds, gold bullion, gold jewelry or gold coins.

Of all the gold investments, gold coins have appreciated the most. Since the year 2000, many gold coins have risen 7000% in value. Compared to 20% for gold bullion, coins can be a much better choice. But beware of new coins. The fact is coins minted today are plentiful compared to coins minted prior to 1933.

Gold coins are more valuable when they become scarce. The better the quality and the rarer the coin, the more it will increase in value.

If you are buying gold strictly as a hedge against the economy, then bullion would be a safe investment. If you want to catch the wave of the gold bull market and make higher returns, older gold coins is a proven winner.

Be sure to request our FREE “Gold Investment Guide”. The guide will not only educate you about gold opportunities but will also show you what to avoid in gold investments.

Gold is being bought for protection. Watch the video to see why. Be sure to request our FREE “Gold Investment Guide”. The guide will not only educate you about gold opportunities but will also show you what to avoid in gold investments.

Here is a video to educate you about gold investment coins.  Be sure to request our FREE “Gold Investment Guide”. The guide will not only educate you about gold opportunities but will also show you what to avoid in gold investments.

Is gold a good investment and if so, why is gold a good investment?

To answer these questions first ask yourself this… are you protected from a complete economic disaster with your current investments? Is there “uncertainty” with our government and leaders creating fear for the future?

Gold has been used as currency for thousands of years because it is a scarce commodity. Because gold is in short supply, gold will remain a valuable asset for thousands of years in the future.

Most important, gold offers the investor protection from uncertain economic times. The more inflation occurs, the more uncertainty caused by our government leaders, the higher gold rises in value. Gold is the one commodity you can count on for uncertain times or a complete economic disaster. That is why smart investors buy gold bullion, for protection no other investment can provide. Also…

The gold market has never crashed in thousands of years.

The demand for gold is sky-rocketing since the year 2000 due to a weak economy, inflation, record unemployment, wars, huge government deficits and uncertainty from our government leaders.

Gold bullion has historically proved itself to be secure no matter what happens in the world.

Gold is a highly liquid asset, it can be bought and sold anywhere in the world. It is universally recognized as a valuable asset. Right now, many countries will not exchange dollars, or buy US currency outright. In economies like this, having assets that are liquid is essential should an emergency occur.

Take a close look at the world economy. Nobody can say with certainty that the world economy will recover any time in the near future. It is my opinion that the world’s economy has been spinning out of control due to greed. Greed has ruined not only the US economy, it is rooted within most governments worldwide. I don’t see that changing any time soon, do you? All of these things make for an increase in the value of gold. So if you truly want to invest for success, and want your investments to last far into the future, invest in gold so you have the best protection from being completely wiped out financially.

If an investor is looking for an investment for the long term that has low risk; physical gold would be the ideal investment in that case. One other aspect about gold is unlike other investments gold can not become worthless because of the actions of a few, unlike a stock or a bond. If the organization that issues the stock or bond is engage in dubious accounting practices, the value of the stock or bond can be affected drastically.

Gold coins and bars have been shown to hold its value or sometimes even increase its value when the manufacturer of the coin or bar ceases to exist. The reason for this is if a gold coin stops being manufactured it can essentially mean that coin becoming a collector’s item. Also if the coin was not manufactured extensively it can mean it becoming rare as well. To answer the question is gold a good investment, knowing the investor’s goals is one of the most important factors in answering the question.

But before considering any investment at all, you have to be clear with yourself what is the main objective of your investment. Gold is not recommended as a sole investment. Smart investors do not buy gold with the thought of getting rich. They buy gold to protect their wealth. Looking at gold, it is generally considered to be a hedge against inflation and against a weak US Dollar. Investors globally view gold as a safe haven and regularly buy gold as a means of protection against any currency-based, economic, political or social crisis. Such crises, for example, could be inflation, currency failures, social unrest that result from it, or wars.

Today we are dealing with an artificially manipulated economy and the Fed keeps printing money as is needed. The deficit spending of the US government is spiraling out of control and you should protect yourself from economic disaster.

To understand the value of gold is a bit like understanding the principle of an umbrella. When it rains people easily see the value of an umbrella and they will buy it even on a sunny day when rain is forecast. Just as you should buy gold bullion before the crisis arrives. When it continues to rain, soon enough the price for umbrellas goes up and they will quickly be sold out, just like the snow shovels back east.

I hope this has shed some light as to why is gold a good investment.

Be sure to request our FREE “Gold Investment Guide”. The guide will not only educate you about gold opportunities but will also show you what to avoid in gold investments.