A Practical View of Gold Prices

A Practical View of Gold Prices

You are probably reading this because you have heard some startling things about the nation’s future, and have also heard of the hedge-like properties of gold.  In this article, we are going to give you some practical suggestions of how to invest in gold prices without going overboard. 

First, understand that it’s never a smart move to withdraw all of your assets and convert them into gold.  This is precisely what was happening in the 1930s in the midst of Great Depression.  This was hurting the U.S. economy and thousands of banks were going out of business.  Within a few years, the federal government had banned gold “hoarding” and made it a punishable crime to be in possession of gold bars or gold coins (in excess of a $100 value).

Likewise, investing in gold prices today should be done with caution.  Aim to convert about 10% of your cash assets into gold and stick it out like the rest of us until more problematic events occur.  For the time being, the U.S. dollar has some value.  You are still being paid on a bi-weekly basis (or on a contract basis), so you have to work within the economy of your country.  If you are that fearful of the future, then move to Canada or Mexico!  The point is, it’s not practical to totally lose faith in the country and start hoarding gold to the point of obsession.  Build your gold collection slowly but surely.

It will also help you to become more educated in the gold industry.  Learn more about the supply and demand of gold prices.  For example, the current state of gold mining is critical.  Resources are running out and the demand for gold is outweighing the production.  Gold mining companies are going under and gold prices are steadily increasing.  Some experts believe that within a few years, the price of gold will increase by 100%. 

Understand that while the price of gold fluctuates due to various factors, the actual turn of the overall market doesn’t seem to affect the price of gold.  This will always work to your advantage.  That means that you will always have a safe form of investment with gold prices, unlike stocks and bonds, and unlike a bank savings account.  You can protect yourself against inflation, economic downturn and even government seizure. 

How can you protect yourself against government seizure?  Is it even possible that the government can break into your account and seize your money?  Of course!  They once seized the nation’s gold supply, so certainly are not above taking U.S. dollars in a state of emergency.  After all, when you deal with U.S. dollars, you are holding the government’s money!  Gold prices are a separate entity from the U.S. government and are accepted throughout the world.

What you could do to avoid seizure as well as other security risks, is store your gold assets in an offshore account.  This will protect you from all national sources.  Furthermore, this is one step closer to becoming a multi-national citizen who doesn’t depend on any particular economy to survive.  It all starts with investing in gold prices!