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Gold is the go to money in times of inflation and economic crisis. Gold is a hedge against inflation. If you are saying to yourself right now that gold is not money, and that it is just a shiny relic that people wear around their necks, then you are dead wrong.
Gold has been a unit of exchange for nearly 6,000 years. Gold and silver were historically the first relied upon money that agreed with the standards of good money. Aristotle spoke of reliable money to have the following characteristics.
1. The ability to be durable. It must stand the test of time and not wither.
2. The ability to be portable. Good money needs to hold value in a small space.
3. The ability to be divisible. Real money should have the ability to be divided evenly and still hold its value. Also known as fungibility. Diamnonds are not fungible because each diamond has it's own value.
4. It must hold a rare value or quality.
Those four requirments are important because Plato and Aristotle knew something that most people today are not aware of. Our paper dollar, and all paper money for that matter, do not meet any of the requirements of sound money.
Paper is paper. It can be made on the spot and printed at will. Paper is neither rare or durable. The trust that we put into paper is the only thing giving it value at this point.
A piece of paper with inked stamped all over it is essentially what our dollar is. That's it. If someone told you they would give you a sheet of paper for a pack of gum, it is equivalent to what our dollar is. There is no difference between the two, and that is where many get confused.
If someone gave you oil, silver, copper, or gold to wash their car then it is different. Those are real assets. It indicates hard work and sweat to bring those assets about.
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Our dollars become more worthless every day as our government prints dollars out of existence. A dollar collapse is happening in plain sight, yet few will recongnize the signs before it is too late. Gold and silver were used as the first real currency for this very reason. Gold and silver cannot be mass produced at will.
Mining companies must do lots of drilling and surveying before actually bringing a mine online. This takes precious time and resources. Using paper money as currency is a historically recent thing. There have been hundreds of fiat paper currencies in hivacationstory.com">story and all of them have failed.
Gold and silver coins are the only way to protect yourself from rising inflation. While paper money falls in value, gold will continue to soar higher.
Not only is our dollar falling in value, but gold is in the middle of a 20 year bull market. The gold price is at an all time high of over $1,100/oz. People flock to gold in times of Inflation. Why do people do this? It's because gold can not be inflated. What does inflated even mean?
Think of a balloon that you inflate. Basically, you are making that balloon bigger by blowing air into it. Well, our dollars are being inflated in much the same way. The more dollars that our government prints at will means more dollars in circulation. In this situation you have more dollars chasing the same amount of goods, which results in higher prices.
Inflation means printing more money, it does not mean prices have risen. The result of printing more money is high prices. The best advice I have heard is to get out of dollar related assets before it is too late.
You should only be invested in gold bullion, silver bullion, gold coins, silver coins, and mining stocks over the next few years at least. India, China, Arab states, and several other countries are dumping dollars and buying gold. You decide if it's time to get invested in gold and silver.
God bless.
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