27DEC2011: Precious metals fever hit many investors for the first time in 2011, and in many cases these investors stuck out their necks a country mile going against deeply ingrained beliefs and principals to acquire their new highly praised assets. Many of these new investors came on board with the belief it was absolutely the best time and safest place to park precious retirement dollars for safe keeping. This wave of bullion investor was gearing up for “the big one”, the greatest financial meltdown of our time that many of today’s most highly respected economists speak of daily. In August of this year (2011) gold hit an all – time high of roughly $1,925.00 oz, as we were facing a credit downgrade, the debt ceiling debate and the probable end of the US dollar. Since then however we have seen the miraculous recovery of the US dollar, the debt ceiling debate kicked down the road a bit further and our downgraded credit rating become a non factor.
When you consider how gold has pulled back 15% from its all – time high in August 2011, it is important to remember gold is still more than 10% higher today than a year ago at this time. Not only that the whole point of owning gold and silver bullion in the first place is to avoid having conversations like this where we are constantly looking over our shoulders, worrying. Gold and silver bullion is so unique, such a perfect form of “money” that you can virtually put it in a safe place and just forget about it. Regardless of the circumstances today or ten years from now, it’s a safe bet whatever dollars you hope to protect in gold or silver bullion will remain intact, when compared to its equivalence in goods or services, “whenever!”. For some families who have been able to accumulate gold and silver bullion over time, the torch will someday be passed to the next generation unless, the unthinkable takes place.
Today, we are at a place in time where it may be too late to fix this particular (debt) problem. The truth is we have created too much money out of thin air, to the point where inflation will surely become a serious issue down the road. In 1980 when gold hit $850oz., there was still enough gold above ground to back all the currency in circulation. Based on the total amount of currency in circulation as of December 2011, the price of gold per ounce today should be more than $15,000.00 ounce!!! We are actually seeing the greatest transfer of wealth in the history of mankind with baby boomers standing to lose the most. Unfortunately much of the wealth the boomers inherited from their hardworking parents or earned themselves has been squandered on lousy stock tips, BMW’s and sailboats.
In a nutshell, gold and silver bullion has been considered money for thousands of years, and that’s not going to change anytime soon. The reason gold and silver bullion is part of the conversation these days, is not exactly convenient for the federal government or the Federal Reserve Bank in fact quite the opposite. You see when people start paying more attention to gold and silver bullion than they do the US dollar, (instrument of debt) it will be the end of the US dollar for good. Obviously this system is in trouble and if you find yourself top heavy in US dollars with no private gold and silver bullion holdings, the next decade could be a painful learning experience.
Our advice: Maintain a “defensive” 20% minimum physical position (investment grade gold & silver bullion) and plan on holding indefinitely. And buy those dips!
A weak currency is the sign of a weak economy, and a weak economy leads to a weak nation.
Ross Perot
Australia`s Perth Mint produces some of the highest quality investment grade gold and silver bullion bars and coins available today. Founded in 1899 as a branch of Britain`s famed Royal Mint, it was acquired by the state government of Western Australia in 1970. The Perth Mint is responsible for manufacturing most of Australia`s legal tender gold and silver coins such as the Australian Nugget gold coins, Australian Platinum Koala coins and the highly popular Australian Silver Kookaburra coins and bullion.
At Midwest Bullion Exchange, Inc. we highly recommend gold bars produced by the Perth Mint for many reasons. For starters there is a wide range of sizes beginning with the 5 gram gold bar, 10 gram gold bar, 20 gram gold bar, 1 ounce gold bar and the 10 ounce gold bar. These bars are struck from 99.99% pure gold and bear the distinctive symbol of the Mint`s famed majestic swan. The back of each bar is stamped with the image of a kangaroo, native inhabitants of Australia`s “outback” where most of Australia`s gold is mined.
Whether you are interested in putting gold into a precious metals IRA or prefer a private physical holding of gold bullion, Perth Mint gold bars are a solid choice.
Scott Hage
President
Midwest Bullion Exchange, Inc.
Disclaimer: Midwest Bullion Exchange, Inc. is a precious metals broker/dealer and is not a licensed investment adviser. Although we strongly advocate programs that allow you to hold precious metals in your retirement, we cannot predict the future performance of precious metals or programs that allow precious metals. Furthermore, we recommend that you consult with a professional tax adviser when making decisions that carry tax liabilities. Midwest Bullion Exchange, Inc. reserves the right to decline services to individuals after it has been determined the products and services offered by Midwest Bullion Exchange, Inc. are not suitable for the individual. The author has made every effort to ensure accuracy of information provided; however, neither Midwest Bullion Exchange, Inc., nor the author can guarantee complete accuracy. This article is for informational purposes only. Midwest Bullion Exchange, Inc. and the author of this article do not accept any fault for losses and/or damages arising from the use of this publication
