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Why
Buy Gold?
A hedge against Inflation
- Hyperinflation Survival - To Protect My Family
One of things I learned from reading the incredible book, “Stories from
the Desk of a Bullion Banker”, written by Phillip Judge, on what is going on in our lives today is that there is
a global need to combat inflation; the silent economic cancer that plagues
our lives on every continent of the planet.
What is inflation?
Our first thought is to think that inflation means prices increasing. In the
context of general conversation, this sounds correct, but it isn't. Inflation
in the economic sense means to inflate money. By this I mean to increase the
availability of money, or plainly putting it, printing more money into
existence. When we increase the circulation of money but the availability of
goods and services remain the same, this causes an increase in prices. So, when
you hear the word inflation, it isn’t prices mysteriously getting
higher, it means that the prices are higher AS A RESULT of an increase in the
money supply. Inflation is a silent tax that robs people of their savings,
purchasing power and prosperity.
In order to
combat inflation, we need to find something that will always hold its value.
We need to find something that is not subject to the effects of an increased
money supply. For many millennia, gold and silver have remained a stable
currency; their purchasing power has never changed and they have proved to be
inflation-proof assets.
To demonstrate, in 600 AD, 3 grams of silver (a silver Dirham) would buy a chicken. Guess what, in
England today, 3 grams of silver will still buy a chicken. We can demonstrate
this further by looking to ancient Roman times. Around 1 AD in the Roman
world, for one ounce of gold; one could buy a fine toga, a wool coat,
handcrafted leather sandals and belt. Today in 2009, for once of gold (1100
USD March 2010 AD) a man can buy a tailored suit, cotton shirt, tie, belt and
a pair of leather shoes.
Silver and gold
are a reliable, solid safe haven to store your wealth and protect it against
inflation. By keeping your money in fiat currency – Dollars, Euro,
Pounds, etc. you are subjecting your hard earned savings to both inflation
and devaluation.
Question
Where are you
storing your hard earned money now? In a savings account? "High
Interest" account? At all times, inflation is eating away at your
savings, even while you sleep.
In the absence of gold, there
is no way to protect savings from confiscation through inflation. There is no
safe store of value.” Alan Greenspan
Let me know if you are ready to save your money in tangible gold and silver.
I buy gold and silver in a variety of forms to protect my family.
Kirsty Hogg
Gold Wars
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