How To Play The Pros And Cons of Gold Bullion To Your Best Advantage
At the heart of gold bullion lies a truth that is unknown to most people, even if they own physical gold right now.
And it is this: Gold is not an investment.
It is a store of value. But what does that mean?
Over time whatever level of purchasing power you exercised when you acquired your gold is maintained and preserved, in gold’s intrinsic value, into the future. Its like a battery â it will hold the “charge” of your “currency” consistently and faithfully for future use, the market averaging its “paper currency value” to keep pace with the inflation or deflation of the dominant legal tender.
Which is a really fancy way of saying that a quantity of gold today (let’s say an ounce) will buy the same amount of goods in the future as it does in today’s market. In contrast, as we all know from experience, our US Dollar bill is going to buy substantially less goods in the future as compared to today. Simply, the same dollar gets you less bread and milk tomorrow than it did yesterday.
So lets understand bullion gold correctly: it’s a hedge and insurance against wealth loss. Gold has been a store of value throughout time, and therefore real money. That has been its historical and proven role, and it is why gold has always been considered the true wealth of nations, kings, and countrymen.
Therefore, having gold is all about wealth preservation. It is this special property of gold that should be your primary consideration right now in your thinking and decisions about the precious metal. Because if you are evaluating your financial planning and our economy in terms of gold’s current “record pricing” you might misconstrue that gold must be yet another “asset bubble.” And that would be a fundamental misunderstanding.
The fact is the dollar is a failing and dying currency. This is no secret to the much larger world outside the US. That’s because other countries are forced to conduct international trade in dollars, therefore our corrosive inflation becomes their corrosive inflation. This is not sustainable for the world financial system and this will not stand. In fact many of the most important financial players around the globe are taking concrete steps right now to topple the US dollar as the world reserve currency and to simultaneously position and protect themselves against our failure with more stable, dependable, and predictable hard assets and better managed currencies.
That is the reality and no amount of wishing or hoping or willful ignorance is going to make it otherwise. Â So let’s make a good conscious decision about gold and use to your best advantage the power of this very unique and appropriate wealth tool. Â As a matter of fact, from now on when you think of the word “gold” think of these words: Money Insurance. That will help you re-focus your understanding, and most importantly, to take action.
So what is the con of bullion gold?
It is not a “leverage” asset and therefore won’t multiply your relative and real buying power in the future. Gold hedges and protects your present wealth and you position into this kind of hard-asset money as a defensive strategy. This is the kind of approach that is totally appropriate right now and is completely in line with the historical period we are now witnessing and experiencing.
Now please use this clear perspective and valuable information to wisely create and engage your rapidly evolving and emerging financial future. Do it for yourself and do it for everyone who depends on you.
Aaron Kutchinsky is a writer, lecturer, and committed financial activist.
In 2010 Aaron created and founded Guardian Gold & Silver as a definitive and groundbreaking alternative to the gold industry norm, a mission-oriented and revolutionary precious metals company with 3 specific goals in mind:
â¢Â Â Â Do the right thing.
â¢Â Â Â Lead others to understanding.
â¢Â Â Â Get as many into the boat as possible.
It is extremely important to understand the current world financial paradigm shift, which is now well underway. Please visit http://www.guardiangoldandsilver.com for more information and insights, and to request our Special Report.
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