Saturday, 20 January 2018

Is Gold Still a Buy?

The price of gold has advanced more than
100% is less than a year. Is this a time to buy or

As you know gold comes in many forms. Gold
bars, gold coins, gold mining stocks, Exchange
Traded Funds (ETFs) and gold mutual funds.
Lots of gold bars are at the US Mint. These
come in various sizes and the largest drawback
is resale because they have to be re-assayed
for purity content.

Gold coins are minted by many governments
including our own. They all have approx
one ounce of gold, but may be of different
carat purity. There are American Eagles, South
African Krugerands, Austrian Philharmonics,
Chinese Pandas, Canadian Maple Leafs,
Australian Kangaroos and on and on. Almost all
stamped in one ounce coins and many are
available in 1/10 ounce size. These can be
bought and sold at any legitimate coin shop
with a bid and offer differential of less than

Price of gold fluctuates daily as it is
traded on a supply and demand basis.
There is not a single major currency in the
world in which gold has not seen a price rise.
That is why gold is going up and that is why
gold has not seen its highest price yet.

Let's look at it a different way. An ounce
of gold is still an ounce of gold, BUT the major
world Governments are printing more and more
paper money every day with no backing to the

What you are really seeing is more paper
money being created for the same amount of gold.
Yes, more is being dug out of the ground, but Japan,
Germany, England, France, Germany, etc. etc.,
are running the printing presses faster than
the guys are digging with the shovels. As long
as that continues the price of gold will rise –
and there does not seem to be any end in sight.

The excess printing of paper money until it
has become completely worthless has been done
many times in history before including by our own
government. During the Civil War both the
North and South printed themselves into
oblivion, but gold was always accepted because
it had value.

Gold has always been hoarded more in Europe
and Asia because they have seen the ravages of the
government printing press. We all remember the
stories of inflation in the Weimar Republic of
Germany after World War I where it took a
wheelbarrow of paper money to buy a loaf of
bread. Without we can put a muzzle on
politicians it can happen again. The only
protection the citizen has is real value and
gold represents one item of true wealth.

Is gold still a buy? As long as the federal
government continues printing worthless paper
money gold will be a good investment.

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