Wednesday, October 19, 2011

Why Buy Gold Now?

Does gold provide protection for your money? In other words, can you sleep at night knowing that when you want to use the wealth you have stored (savings), it's going to be available?

In my experience, gold and silver go up and down in price quite violently at times. You need to have an iron-clad philosophy and will if you are going to survive these market palpatations.

You see, when the USD goes up in value, gold and commodities go down in price. You would expect this to happen though with the USD being the reserve currency. But generally commodities, and especially gold, will maintain their value, even when sometimes they can become overvalued or undervalued. If you look at this ten year chart of gold, you can see that at times (recently) gold is very volatile. But overall, the trend is still up.

The main reason that Martin Armstrong says gold must be owned is for political protection. Fund manager Harris Kupperman says “You don’t own gold because you expect it to do remarkable things – you own it because you are scared of your government doing remarkable things.”

Confidence in Government is what really has waned over the past ten years. Politicians ability to fix the debt problems (as stated yesterday) lacks credibility and when credibility is lost confidence is lost and that sends confidence in fiat money, controlled by governments, shooting into negative.

The only place left to insure yourself against loss of confidence in fiat money, is gold and silver. Gold being the primary monetary commodity over history. Just take the example of when Jews fled Nazi Germany during the second world war. What did they sew into their jacket pockets to use as money as they travelled to safe-havens? German Marks? English Pounds; no, gold.

Ok, so that is an extreme example, but the the idea is a sound one. Having gold outside the current banking system is imperative to protect yourself from politicians. Politicians who will protect themselves and their cronies when the financial system gets to breaking point. This is already happening and the middle-classes who have done everything asked of them, are suffering.

Gold in New Zealand dollars: $2079.60 per oz
Previous all time high: $2284.16 per oz (19 Aug, 2011)

Silver in New Zealand dollars: $40.18 per oz
Previous all time high: $59.19
per oz (30 Apr, 2011)

YOUnique Gold and Silver

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