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Gold Bullion: The Insurance Policy No One Talks About

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Your financial advisor has warned you against buying gold bullion It's a a terrible investment, you've been told. Gold has a real rate of return of practically zero over the past one hundred years. It's midnight cable tv's investment "snuggie."

I'm certain you have heard these arguments before by popular investment professionals, who are either misinformed or simply dismiss the advantages of investing in precious metals.

Let's look at the metal from the perspective of an insurance policy against the loss of purchasing power and not as simply an investment that has appreciated substantially against all of the world's currencies as well as tripled in price over the past six years.

Entertain this thought for just a minute.

To protect your home against destruction, you purchase an insurance policy, right? Gold bullion is a form of financial insurance and should be regarded as so. Not as an investment but as insurance against the erosion of purchasing power caused by the declining dollar.

President Richard Nixon closed the proverbial gold window on August 15th 1971, terminating dollar convertibility into gold. Unfettered by the gold standard, the dollar could now just 'float' (be printed in unlimited quanties).

Thirty eight years later, after being backed by nothing but the full faith and credit ouf the United States government, the dollar is worth just a mere fraction of what it used to be. After adjusting for inflation, you would be able to buy just .18 cents worth of goods compared to 1971.

Why The Dollar Will Decline Farther

In reaction to the financial crisis of the preceding twelve months, the government accelerated its printing presses to warp drive. The U.S. monetary base literally blew up as a consequence, up from $800 billion in August of 2008 to $1.7 trillion. To cast that into perspective, that signifies that there are today more than $2 dollars for every one dollar that was in existence one year ago. The money supply has never increased at this rate in all of history.

Our federal budget shortfall has now increased to a new record high of $1.42 trillion dollars, thanks to our government's massive spending fling in their endeavor to steady the financial system and jump start the economy.

If that wasn't deplorable in itself, our national debt is at present over $11 trillion dollars. And unfunded liabilities like programs such as Medicare and Social Security stand at an astonishing $58 trillion.

In order to ante up for all of this, the government is either going to have to trim down spending (not likely), increase taxes (very likely) or crank up the printing presses a lot more and attempt to print their way out of this jam. And that deficit is calculated to climb to $9.1 trillion over the next ten years.

The dollar simply cannot maintain it's value when a country participates in the unrestrained printing of money. Inflation will climb higher the more the dollar is debased. It is for this reason that you must own gold. As an insurance policy to ensure the value of your savings is maintained.

Since 1971, the buying power of gold has held up and expanded. History books are full of examples of paper money whose value has been wiped out. But not gold. Gold has prevailed through recession and depression, deflation, inflation, hyperinflation, and war.

Gold bullion is the ultimate store of value and protection of wealth. The value of gold has never been ZERO. Never. It could very well be the most important insurance policy you'll ever purchase.

Protect your hard earned money from inflation and the devaluation of the dollar with pure gold bullion coins such as the beautiful Ten Dollar Gold Eagle. For great deals and selection, visit us at:

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Christina Goldman
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