The recent sharp decline in gold prices has shaken the confidence of many people. Don't worry. The price of gold has dipped, but will rise to new heights soon. In the long term, gold prices will rise far more than inflation. For the masses, gold is the best inflation hedge. It is the best weapon for the little guy to fight central banks that help a few to rob many.
Yes, gold doesn't bear interest. Many, including Warren Buffett, belittle its investment value. But, paintings or antiques don't bear interest either. When money supply is rising, anything scarce tends to rise in value. Gold is the best scarce commodity in the world.
There are more artists that can paint more paintings every day. 80% of the world's gold has already been extracted. The remaining 20% will be dug up in the next 20 years. The money supply will grow forever. But the gold supply can grow only by 25% and no more.
The income growth in emerging economies will vastly increase with gold demand. When people realize how little gold the world has left, the price will skyrocket. If you don't know how to preserve your wealth in an inflationary environment, you should accumulate gold. When the price comes down, just as it did two weeks ago, just buy more.
Yes, gold doesn't bear interest. Many, including Warren Buffett, belittle its investment value. But, paintings or antiques don't bear interest either. When money supply is rising, anything scarce tends to rise in value. Gold is the best scarce commodity in the world.
There are more artists that can paint more paintings every day. 80% of the world's gold has already been extracted. The remaining 20% will be dug up in the next 20 years. The money supply will grow forever. But the gold supply can grow only by 25% and no more.
The income growth in emerging economies will vastly increase with gold demand. When people realize how little gold the world has left, the price will skyrocket. If you don't know how to preserve your wealth in an inflationary environment, you should accumulate gold. When the price comes down, just as it did two weeks ago, just buy more.
More information can be found online at http://www.goldbullionadvisors.com
No comments:
Post a Comment