Investment Warning – Buying Fake Gold Coins as An Investment

Posted on January 7, 2010
Filed Under Investment | 2 Comments

There may not be anything foolish about “buying gold as an investment”, just buying it the wrong way.

I’m not recommending for or against holding gold, but I will point out that gold seldom goes down in price very much but has actually gone up every year in the past decade.

Monetary concerns aside (that is, the value of currencies varies), as a well known gold adviser, James Dines (dinesletter.com) points out, one ounce of gold buys about the same thing today that it did 100 years ago (such as a good mens’ suit), which you can’t say about the dollar.

This issue briefly goes into some background so you will understand a potential concern about “owning actual physical gold”, but mostly it concerns how to invest in precious metals if you choose to do so.

You didn’t hear about gold during the past 10 years because it isn’t popular among most investment advisors or TV investing hosts. People who invest in gold tend to hold rather than buying and selling a lot and brokers mostly make money when you trade – they really don’t care whether you make money or lose money, just so you keep buying and selling stocks or mutual funds so they get commissions.

In the absence of government intervention gold just keeps quietly going up decade after decade while stocks swing wildly making people anxious to keep trading them.

But the fact is that since the internet-bubble collapse in 2000 gold has been one of the most solid investments you could make, going up in value every year while the stock averages and even real estate plunged in the wake of the massive banking fraud we all just lived through.

The reason gold has been a good investment for, or say 5 or 6 thousand years, is because of inflation.

Now in the U.S. (as in other countries) the government doesn’t want to admit to inflation. That’s why they “always” want to exclude food and energy (the two things everyone uses every day.) At the very least they don’t want to admit to the real cause of inflation.

It really is obvious though if you give it a bit of thought. Once a government decides it can’t keep raising taxes, it has only one real option since there has never in history been a politician or government willing to reduce spending – they must printmore money.

Yes, I know, Republicans all say they are for reducing spending, but what they actually mean is that they want to spend more money on their projects and get the inflation fairy to pay the bill, did spending go down under Reagan or either Bush?

MORE >>>> http://newsblaze.com/story/20100106180217mcco.nb/topstory.html

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2 Responses to “Investment Warning – Buying Fake Gold Coins as An Investment”

  1. Investment Warning – Buying Fake Gold Coins as An Investment … | Drakz Free Online Service on January 12th, 2010 5:01 pm

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  2. bandsxbands on February 3rd, 2010 6:08 am

    My friend and I were recently discussing about the ubiquitousness of technology in our daily lives. Reading this post makes me think back to that discussion we had, and just how inseparable from electronics we have all become.

    I don’t mean this in a bad way, of course! Ethical concerns aside… I just hope that as technology further innovates, the possibility of transferring our brains onto a digital medium becomes a true reality. It’s one of the things I really wish I could experience in my lifetime.

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