Gold Is A Hedge Against Inflation
Gold is a hedge against inflation and a way to preserve your wealth. The movements in gold have been huge lately. The rate of inflation is about currently about 10%, and its essential to be invested in gold coins, gold bars, and gold bullion.
Smart investors are getting into gold coins, gold bars, and gold bullion as the inflation rate rises to 10.2%. To protect yourself from rising inflation, its important to be invested in gold bullion, gold ingots, and gold bullion coins.
The gold demand is rising steadily with no end in sight. Investors looking to put their money into hard assets increased the demand for gold in 2008 by 64 percent. Countries who have added to their gold piles include Russia, India, China, and others. The IMF recently made a sale of 200 tons of gold to India.
The amount of gold available for each person is miniscule at 23 grams. That is only about $840 worth per person. The value of all above ground gold inventories is about $3.7 trillion, and is going up rapidly.
The amount of gold mined each year is 2,600 tons, and the amount of above ground gold sits at about–0,000 tons. That does not cover the demand situation and is only a 2% increase in the supply each year. The supply is actually short of demand each year by 1,400 tons due to the demand of 4,000 tons each year. Gold has been selling at or below the cost of production until this recent surge in metals prices.
The demand for gold each year is about 4,000 tons, so the mines are coming up short by about 1,400 tons. Until the recent gold price highs, gold has been selling for around the cost of production.
Due to the low prices in gold and silver, mine supply has decreased by close to 10%. Seeing how the fundamentals for gold show that the demand outweighs the supply and has for a long time, then why has the gold price been suppressed until recently?
Why has the price manipulation occurred? There are several factors. Central banks have attempted to suppress the price by selling gold bars onto the market. This tactic did work, but the banks are running out of gold to use as a suppression tactic.
This price manipulation by our government has occurred to keep the dollar falsely propped up. Central banks have played a part by selling gold bars onto the market and sending the price of gold lower. These tactics are coming to an end because central banks are running out of gold.
Even though you can request physical delivery of the gold bullion on the COMEX, some investors have complained of receiving cash settlements or ETF shares instead. The COMEX does not have the gold they claim to have.
ETF shares or COMEX contracts will only leave you wondering if the gold is really there. These investment vehicles are the governments way of keeping investors in dollars therefore strengthening dollars.
These fraudulent investment vehicles will blow up, and they are just another bubble waiting to burst. Unless you know for certain that a paper investment has the gold that they claim, stay away from these investments. You should invest in American Gold Eagles, American Gold Coins, and gold bars.
The falling dollar is enough reason to invest in gold. The current price of gold is $1,140/oz, and the price of gold per ounce one month ago was $1,058/oz. Gold is the only safe bet in this inflationary environment. You wont be sorry if you invest in gold now!
Check out my site about whygold is a hedge against inflation to learn more.
categories: gold is a hedge against inflation, gold coins, gold investing, gold bullion, silver coins, silver bullion, silver investing, gold price, american gold eagle, american gold coins, american gold eagle coins, inflation, dollar collapse, investing
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