Skip to comments.The Number One Reason To Invest In Gold… [There is a] One hundred percent [chance of inflation].
Posted on 02/10/2013 11:06:39 AM PST by blam
The Number One Reason To Invest In Gold
February 10th, 2013
With the the U.S. economy having once again dropped into negative recessionary growth, currency wars around the world heating up through direct and indirect devaluations, and trillion dollar fiscal deficits piling on, how is it possible that the stock market, a key measure of economic health for many Americans, is touching near all time highs?
Marin Katusa, Chief Strategist at Casey Research, suggests that this effect can be traced to monetary machinations that are happening behind the scenes, where few people are willing to look.
Because theyre printing and making the availability of money so easy, the market is really confused right now, says Katusa.
The reality is that literally trillions of dollars have been borrowed and printed to bail out the United States and Europe, and much of that money has been injected into stock markets to give the appearance of recovery.
It is, at best, an illusory effect.
Given that more people than ever before are out of work, over half of American households are dependent on some form of government disbursement to survive, and prices for essential goods like food and energy are consistently rising, its only a matter of time before confusion in financial markets turns to panic.
And when it does, just as weve seen throughout history, only real, tangible assets will be of value.
One such asset that has always maintained real value in times of calamity is gold.
Despite arguments that gold doesnt grow like typical modern day investments and simply sits in a vault gathering dust, according to Marin Katusa in a recent interview with Future Money Trends, there is one key reason for why it should be in your diversified basket of goods.
The number one reason to invest in gold is insurance.
Because of the massive liquidity and the dilution of, not just the US and not just Bernanke, but all of the major countries they are a printing press The main reason to invest is because gold is money.
Before they had fiat currencies thats the currencies like today there was gold.
The Romans. The Egyptians. The Babylonians.
For thousands of years they used gold before they used these fiat currencies.
And, every time in history a fiat currency ends in disaster.
We have recent examples. If you look at what happened to Yugoslavia, or Zimbabwe, or even Germany with their fiat currencies gold always holds true value.
Thats why we believe gold is a true, original money.
I think at least you can see with gold, it is the insurance policy to bet against the bankers.
(Click to the site to watch a video)
With all of this money literally hundreds of billions of dollars being thrown into stock markets by leading financial institutions that were just a few years ago on the brink of insolvency, there are massive price distortions happening across the board. This includes rising stock markets, one of the key benefactors of the Federal Reserves printing press.
Another not so positive effect (at least not for the American people) are ever increasing prices in the free market, something that Katusa says is going to continue:
[There is a] One hundred percent [chance of inflation].
You can guarantee these three things in life: Taxes, Death, and Inflation.
Inflation is coming I just dont know if its next week, or in six months, or twelve months.
But the reality is, its coming.
Thats why if you have a percentage in gold, youre covered.
Its an insurance policy.
When all fiat monetary exchange mechanisms fail, only one asset has stood the test of time as a store of wealth.
Gold is and always has been an insurance policy.
It will be the only thing left standing when the U.S. dollar, the Euro, the Yen, and other paper currencies are inflated to oblivion by their respective governments.
Make sure you have some when that happens
Wouldn’t a weakened dollar and inflation inflate the price of all non-monetary holdings including stocks and real estate?
Most financial advisers say that you should have at least 10 to 20 percent of your assets in precious metals. My PM physical holdings consist of American Gold Eagles, American Silver Eagles and “junk” silver. One excellent source of PM information can be found on Kitco forums. Before all the naysayers chime in about how you cannot eat PM’s, let me say that I already have my other preps of food, water, guns, ammo, medical supplies, tools and barter items including pint bottles of whiskey and vodka, .22lr ammo, batteries, etc.
Invest in guns, ammo, and dry goods. The reason being that you can’t eat gold, and it makes for some really expensive bullets. If and when the SHTF, your gold would be useless to me. You better have something more useful to barter if you want to survive.
What good is gold? When you sell it you have to pay tax on the “profit!” Goldsellers are required to issue a 1099 when you sell gold back to them. Then you pay tax on the “appreciated value.”
If on the other hand you really do think that the SHTF will occur soon then stay away from the stuff. In that case gold wont be valued in overinflated dollars or Euro’s or yen..but in how much wheat or rice you could find someone to trade it for in a 3rd world economy..
That is their plan.
Gold is occasionally under priced, but never overpriced.
Gold is the anchor point with reality.
To put it another way, while the “price” may drift, the buying power of gold is almost a constant.
There will always be a wealthy and powerful element that will look to acquiring whatever gold is available.
AND Arable Land
Congress repealed the 1099 provision in April of 2011 with large majorities. I’m guessing that bozo signed it, but no 100% sure.
>> Then you pay tax on the appreciated value. <<
Only if you are foolish enough to sell it. Your gold is for the time that the revenoors have abandoned ship.
Add fuel and footwear.
Indeed, I don’t really intend to invest much in non-monetary hedges against inflation that I can’t eat, drive/ travel in, burn, wear, heal with or shoot.
REM: IF this becomes a long-term crisis, you’ll be able to barter decent footwear for food and ammo.
Actually, the $’s and ’s are now and always have been measured in gold.
As I say if you believe in gold you also believe the folks who actually control the price of the stuff will somehow muddle through and the world economy will more or less survive intact. I don't that's why I have not bought any in years..
He did sign it, but there are some restrictions.....
“The question we are always asked is ... Are my transactions private? When I sell my gold bullion or silver bullion, is it a private transaction, or is it reported to the IRS?
First, when a customer buys from our dealership, the transaction is private. There are no forms we are required to fill out when you buy.
Secondly, when an investor sells their gold bullion or silver bullion to a dealer, some of these trades are private, some are not. Depending upon what you are selling will depend upon whether the powers that be require us as a dealer to fill out something called an IRS 1099 B Form.
When you sell your bullion back to a dealer, the pertinent questions are:
1) What form of gold and or silver bullion you are selling?
2) What amount of silver bullion and or gold bullion are you selling?
Remember, this is for private investor sales (your sale) of gold and or silver bullion to dealers.” (snip)
There’s some good info in the whole article.
The “world economy” is not Gold based.
Gold is reality, and fiat is pipe dreams.
None of the “Real Equity” class envision themselves without gold. They are driven to somehow acquire all of it.
Talk about devaluation woes and gold, this guy sums it up nicely!