Why Buy Gold Coins?
Buying gold coins is a way to defend, protect and insure your wealth and assets.
Alan Greenspan said in 1967: “In the absence of gold, there is no way to protect savings from confiscation through inflation. There is no safe store of value.” Not only would buying gold coins correspond to saving, but also it is highly likely to be a tremendous investment. The global demand for gold has risen 36% which is equivalent to $29.7billion in the first quarter, according to the World Gold Council. Some experts are predicting that the spot price for gold will double in the next few months. (Jim Sinclair; Jim Rogers)
Current Factors Contributing to Economic Uncertainty
* The Price of Oil is set to rise. By 2015 Australia’s reliance on foreign oil will have increased by two-thirds. But the amount of foreign oil on the market is anticipated to shrink by 25% within three years of now. This will increase prices at the supermarket.
* Geopolitical Volatility makes companies and countries uncertain about international trade. The current circumstances in China being a case in point.
* The Baby Boomers Demographic These are entering retirement and: A) want to cash in on their superannuation. Higher mandatory superannuation contributions are being proposed which puts added stress on employers. B) place higher demands on health providers who supply a service rather than a good that makes for little commerce.
* The Stimulus Packages have Failed to Stimulate Spending Rather, people have opted to save. In the US personal saving as a percentage of disposable income rose to 6.9% in May as compared to 5.6% in April. In 2008, it was negative. So if consumers do not spend, producers will have no inducement to produce. Currently,65% of factories are idle in the US.
* The Value of the Dollar is Declining. The value of the US dollar has declined 96% since 1913. When the gold standard was removed in 1971 the graph lines began to separate as the value of the dollar began to decline notably while the value of gold began to incline reaching $850 in January of 1980.
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Graph Showing Decline In Dollar
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* Australia is Dependent on Debt. The Australian $20 billion government budget surplus has been transformed to a $57.6 billion budget deficit. Household debt equates to $1 trillion which is comparable to the entire GDP. The $44 billion in credit card debt alone equates to $2000 per Australian (RBA).
* China is Accumulating Gold. It has in recent times doubled its gold holdings to 1 054 tons, which is still only 1.6% of its overall reserves, but it demonstrates the value this nation places on gold, in preference to US Treasuries. The Chinese see that gold is the only currency of value.
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