Buy Gold During Times of Inflation

Gold is the go to money in times of inflation and economic crisis. Gold is a hedge against inflation. If you are saying to yourself right now that gold is not money, and that it is just a shiny relic that people wear around their necks, then you are dead wrong.

Gold has been money for over 6,000 years. Gold and silver were the first forms of real money that met the requirements of sound money. Plato and Aristotle spoke of sound money to be

1. The ability to be durable. It must stand the test of time and not wither.

2. The ability to be portable. Good money needs to hold value in a small space.

3. The ability to be divisible. Real money should have the ability to be divided evenly and still hold its value. Also known as fungibility. Diamnonds are not fungible because each diamond has it’s own value.

4. It must hold a rare value or quality.

Aristotle was aware of something about money that most people today would struggle to comprehend. Paper money has no value, and that is what Aristotle described in his qualities of money.

Paper has no intrinsic value because it’s paper. It can be produced on demand. There is no rarity or durability.. The only thing giving value to paper money is the trust that we put into it.

A piece of paper with ink stamped on it is essentially what our dollar bill is. That’s all. If someone gave you some a sheet of paper to wash their car, it is the same thing as receiving a paper dollar. Ink is the only thing making a difference. Both are paper.

If someone gave you oil, silver, copper, or gold to wash their car then it is different. Those are real assets. It indicates hard work and sweat to bring those assets about.

Our money becomes more worthless each day our government prints more money. A dollar crisis is happening right now, and most don’t know it. Gold and silver were the first real established currencies that stood the test of time. This is because gold cannot be printed at will.

Gold and silver exploration companies have to survey and drill sites, and then they must mine the ore out of the ground. All of this takes energy and time. Only until relatively recently have governments used paper money as currency. It is important to not that there have been hundreds of paper currencies in history, and they all effectively went to zero.

Gold and silver coins are the only way to protect yourself from rising inflation. While paper money falls in value, gold will continue to soar higher.

Gold is in the middle of a 20 year bull market, and the dollar will continue to plummet. The most recent gold high is around $1,100/ounce. Inflation means that people will flock to gold. Why do they do this? Gold cannot be printed or inflated. What does that even mean?

Think of a balloon that you inflate. Basically, you are making that balloon bigger by blowing air into it. Well, our dollars are being inflated in much the same way. The more dollars that our government prints at will means more dollars in circulation. In this situation you have more dollars chasing the same amount of goods, which results in higher prices.

If you print more money then you have inflation, but inflation does not mean higher prices. Higher prices are the result of inflating the money supply. Basically, you should be diversifying out of dollars as soon as possible.

You should only be invested in gold bullion, silver bullion, gold coins, silver coins, and mining stocks over the next few years at least. India, China, Arab states, and several other countries are dumping dollars and buying gold. You decide if it’s time to get invested in gold and silver.

God bless.

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