Monday, October 8, 2012

"Gold Bullion is going to be one of the best assets you can hold for protection"

What Casey Research sees ahead, quite frankly, is some type of inflationary recession or inflationary depression. We don't think the economy is going to be vibrant. We're not going to be able to grow our way out of our massive debt -- that seems pretty clear at this point. I would go so far as to say there's no way out.


So this implies that they're going to continue printing money. And of course the more you print, the lower the value of the currency and the higher the value of the gold price. To prevent this, politicians would have to suddenly become responsible and the Fed would have to immediately stop printing. But even if they did all that, we have yet to experience the fallout from what they've already done. It's a punch line, but it's still accurate: Inflation is baking the cake here. At some point, all that money is going to hit our economy. Inflation will trump deflation, because inflation always gets another turn until it wins. And that's the path politicians are pursuing. ...

You can't do these kinds of things and expect to have no consequences forever. It's not free. It feels free of consequences right now because official inflation is low, but there are going to be ramifications. And this is one of the core arguments for holding gold right now. When that fallout hits, gold is going to be one of the best assets you can hold for protection. ...
The bars are cheaper, but the coins are probably more practical. They're more recognizable. And larger bars could require an assay in order to sell, especially if you take possession of them.

You don't have that issue if you buy a government-minted coin. Coins are more expensive and their premium is higher. But the interesting thing is, if you sell during a bull market, you're going to get a lot of that premium back. They might be more practical for day-to-day currency -- you're not going to turn your gold coin in at the gas station, but you can sell one to cover your expenses for that month. That's going to be one of the great advantages to owning gold when inflation does hit. Plus, coins are prettier. 

More information can be found online at http://www.goldbullionadvisors.com

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