Why Gold?

Hedge Against Inflationary Cycles

Gold has real value. In the past, the U.S. dollar did as well since it could be exchanged for gold upon demand. During this time, currency was nothing more than a receipt in which a $20 bill could be exchanged for $20 worth of gold. Since moving away from the gold standard, however, our American (fiat) currency has lost all of its intrinsic value and much of its economic value as well.

 Gold, on the contrary, has become exponentially more valuable over time, increasing from $35 per ounce in 1970 to well over $1,000 per ounce today.

 This trend has continued throughout the 21st century, as gold outperformed the S&P 500 by three-fold from 2001 through 2014.

 Over that same time period, silver also performed twice as well as the S&P 500.

 Gold’s meteoric rise in value is due in large part to the metal’s supply and demand dynamics, which have been far more favorable than the U.S. dollar’s.

Gold Prices vs. U.S. Dollar – 10 Year Chart

Gold Is a Real Currency

Gold can easily be converted into cash at any time, virtually anywhere on the planet. This incredible liquidity is unique to gold and can be an insurance policy against uncertain times. Unethical actions by governments and financial institutions, such as the Eurozone debt crisis of 2011, are an example of such an uncertainty that can bring about tremendous economic hardship. Gold can insulate you from the risk of fiat currencies becoming worthless, as it can essentially act as a real currency that can be used outside of the banking system.

Supply & Demand (Finite Supply = High Demand)

The demand for gold is at an all-time high, and with most of the world’s gold in circulation, less and less of it is being dredged out of the earth

In the past decade, global mining explorations have failed to increase the production of gold, and the world’s largest gold deposits having already been found and extracted. But governments across the world, such as China, continue to purchase gold by the billions of ounces, leaving an increasing demand and a decreasing supply

Drop in Gold Prices

Gold prices have dropped over the last few years with the recent stock market rally but appear to be climbing again as the market begins its periodic tank.

World Markets Are Inherently Volatile

Given the state of world economics, as well as the current state of the union, gold is perfectly positioned to increase in value. Now is the time to follow in the steps of economic superpowers like China, India, Germany, and Russia and buy gold while it’s low. With strong tailwinds blowing in favor of gold, now is the time to invest.

The U.S. Mint has produced gold, silver and platinum bullion coins since 1986, and guarantees their precious metal content. The Mint produces two types of bullion coins:
  • Proof bullion coins, which are specially minted for collectors and usually sold in a protective display case directly by the Mint.
  • Uncirculated bullion coins, which are minted for investment purposes and sold to a select number of authorized buyers based on the current market price (the spot price) for the precious metal plus a small premium charged by the Mint.

Top 5 Little Known Gold Facts

  • In every cubic mile of sea water there is 25 tons of gold! That’s a total of about 10 billion tons of gold in the oceans; however, there’s no known way to economically recover it.
  • A single ounce of gold can be drawn into a wire 60 miles long.
  • All of the gold in the world could be compressed into an 18-yard cube, which is about 1/10 the mass of the Washington Monument.
  • Gold is said to be so rare that the world pours more steel in an hour than it has poured gold since time began.