How to by Gold?
Where can you buy gold at a reasonable price? Before you purchase gold be it physical or paper gold, you must watch the video below:
Gold’s Greatest Use
Not many people seemed to understand gold and its purpose, usually they ask the purpose of gold when paper money is the main medium of exchange in every business transaction. Which is a valid question, just like religion, paper money is based on faith. Gold on the other hand is not.
Have you ever asked yourself why do central banks all over the world are hoarding gold. If it is indeed worthless with no investment value, why do these bankers buy gold and store it is a safe? We have to admit that gold is more than a precious metals, it is ‘the money’, real money. If it is not real money, why central bankers do not keep diamonds? or any other rare earth metals? Gold is not a bubble.
Where can you find gold?
Fortunately, there is not much gold in the world. The sea bed contains lots of gold, the only problem is it is costly to harvest it, even with today’s modern technology. In total, there is about 160,000 tonnes of gold harvested by man. That is a really huge number until you put it into perspective.
Yes, it is so little. Gold has been mined for almost the birth of civilization and yet it is that much only. On average, 2600 tonnes of gold is mined a year, not much when everyone is now a goldbug. With China and India’s huge population and demand for gold, gold price will continue to increase. There are approximately 45,000 tonnes of un-mined gold in the world.
Gold Usage As Precious Metal?
Gold can be used in some electronics for its non-corrosive nature and excellent conductivity, to a lesser extend on false teeth. However, most of the gold mined in the world are kept as wealth, a storage of real money.
Relatively to the availability of gold as oppose to demand, it is believed that demand is outstripping supply by many factors, thus the reason why gold price is skyrocketing.
Gold – A Tool of Trade
Gold has been the tool of trade since the birth of civilization, it has been the money all over the world regardless of race, time, enemies, culture and more until Nixon took US off the gold standard. Due to the fact that every currency in the world at that time was pegged to the US dollar, virtually over night all the paper money in the world became fiat currency.
Gold based monetary systems was the basis of every civilization, with gold, the currency supply is stable and inflation is the thing of the past. With the current fiat monetary system, money can be created out of thin air digitally. Backed by nothing but faith, which in time of crisis could cause even more inflation. Google for Zimbabwe hyperinflation and hyperinflation in germany 1923.
Is Gold Money Or Debt?
Gold is a physical asset, you can’t create gold out of thin air. Currency is debt, it doesn’t exist.
Risk In Investing In Gold
The value of gold pretty much depends on the Federal Reserve of america. The only way for gold price to drop is for them to raise the interest rate, which happened twice throughout history. At the moment, the federal reserve is keeping interest rate at near zero percent, thus a guarantee of inflation and even more buyers of gold. As shown in the gold price chart below:
If you want to buy gold then this is the best way.
Top 10 Countries In Buying Gold
According to research, these are the top 10 countries of gold buyers. Surprisingly, germany and many other european nations such as Switzerland is not in.
- United States
- Singapore
- Australia
- India
- United Arab Emirates
- Canada
- United Kingdom
- New Zealand
- Ireland
- South Africa
Next / Part 2: What Is Gold? And Why It Is Worth Investing In
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