source: reuters.com

Why Gold Is the Only Money You Can Trust

What’s better than a dollar in your pocket? An ounce of gold. Besides the fact that an ounce is now worth nearly $1400 again, there is a strong case to be made for recognizing the fact that one bullion coin is much, much better than $1400 in your bank account.

The world is heading into a period of major uncertainty. That’s when investors lose faith in stock markets, currencies, bank accounts – and put their trust in gold. These are the leading reasons people trust bullion first and last.

1. Climate Change

Not everyone believes that human activity is changing the planet or on how to solve the problem, but scientists are pretty much convinced that the world is headed to become 2 degrees warmer, and the consequences will have you reeling if you’re not prepared read more on erizon.com.au.

2 degrees Celsius (or 3.6 Fahrenheit) of warming will upset the world order. Extreme heat will affect 37% of the world’s population, drought will significantly disrupt agriculture in the U.S., Mediterranean, and other parts of the world and flooding will have massive financial consequences in coastal areas. If you have money invested in Florida, there’s a good chance the land itself will disappear. By 2100, Florida could see $413 billion in real estate literally go underwater. Sell while you still can.

In times of major upheaval, gold may be the only currency investors trust.

2. Bank Bail-Ins

source: kiplinger.com

The 2008 financial crisis was accompanied by some of the world’s biggest bank bail-outs (and later followed by major bail-outs of auto companies). In the U.S., taxpayers footed the bill for an estimated $700 billion to prevent a global depression. In fact, there’s now evidence the true cost could be in the trillions as part of an extended effort to rescue the economy.

In response to this, the U.S. could be on the verge of following in the footsteps of other G20 nations and introducing a bank bail-in system, where depositors, not taxpayers, pay to keep banks afloat. Your bank accounts, shares, and even gold stored in a bank could be used to rescue the reckless financial institutions you chose to keep your money.

To keep your gold out of the bank, learn about global allocated storage from your source of bullion.

3. Gold Prices in a Crisis

Because everyone puts their trust in the staying power of bullion, prices thrive on uncertainty. It’s a hedge against an irresponsible monetary policy, inflation, the stock market crashes, and just about everything that can go wrong with financial markets.

Before you make your investment, click here for more info about gold investing, prices, and your options.

4. Currency Debasement

source: nhindependence.org

In the not-so-distant past, when governments needed their money to stretch further, they’d reduce the gold and silver content of the coins they used to make payments. They controlled the mints and money, so it was within their power to do so, but ultimately it caused inflation – the money they made was worthless.

Today, through quantitative easement, governments make money worthless by creating credit. It was a tool extensively used post-2008 to the point that there are some serious concerns about the stability of U.S. monetary policy.

Your money is safest in precious metals. It’s the secret to investing in an uncertain world.

About Ed Dillinger

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