How To Hedge Against Inflation

It’s great to educate yourself on how to hedge against inflation, because not knowing about the advantages of investing in precious metals could cost you dearly. Gold and silver are truly on the rise and it has a proven track record of 400% return on investment over the past 10 yrs.

For a complete overview of how to invest in gold and silver, grab your FREE copy of “Why You Should Buy Gold Now!”

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Grab your FREE eBook “Why You Should Buy Gold Now!”

Doing some basic research about the precious metals dealers will truly benefit you greatly. After all, there are dealers out there who would prefer you to buy Read more…

Causes of Inflation

The causes of inflation are never quite explained as clearly as they should be. When governments print massive amounts of money, the value of the dollar falls. 

The definition of inflation is when the money supply gets “inflated” or printed at will. 

Should you hang on to dollars during inflation? That is the question that many people are pondering as the value of the dollar slides further and further into the abyss. Should you hang on to the most liquid asset, paper dollars, or should you trade those dollars for gold and silver coins?

This is a good question considering gold has risen from$250 to $1,200 per ounce in recent years. The difference between holding paper dollars and gold/silver is that paper is paper.

If you want to hold real, heavy, tangible money you need to hold gold. Many things have been money throughout history including rare shells, ornamentals, and of course paper.

The thing about shells, ornamentals, and gold is that they all are priced for their intrinsic value. You can only find so much gold on planet earth. Paper is different. Paper can be printed at will.

The causes of inflation are undoubtedly the result of printing paper money.

Paper is not money. Paper is simply a receipt of money stored with a bank, or at least that’s what it began as until the government made it illegal to trade the paper money for gold and silver on deposit.

Most people actually think that paper dollars have value. This is a total scam and a lie. Paper money has zero intrinsic value. In fact, the reason paper is perceived as having value is because people put faith in it.

Author Robert Kiyosaki says it best. His saying “cash is trash” speaks volumes about what paper money really is. This is from the mouth of a billionaire.

What is the solution to all of this inflation and money grabbing by Goldman Sachs (aka Gold-In-Sacks) and JP Morgan Chase? The ultimate solution right now is to hold real money.

Main causes of inflation result when governments need more money, but don’t want to tax the people for it.

Swapping your dollars for gold and silver is a great way to hedge against inflation. If you are saving your cash at a bank getting 0% interest, why not save that money in an asset that is set to go up 5-10 times over the next 10 years.

The government is not going to bail you out, so why not protect yourself while they are inflating our money supply. The one answer to inflation is to swap paper dollars and hold things of real tangible value.

Commodities will be a good play over the coming years, especially gold and silver. Oil and food will also rise in price.

I’m writing this mainly to tell you to prepare for the inevitable crash of the U.S. Dollar. It is coming and is just a matter of time.

The causes of inflation are obviously money printing, and you must get prepared if you expect to preserve your wealth.

Grab your FREE eBook “Why You Should Buy Gold Now” to prepare yourself.

Where To Buy Cheap Gold

You can find several places online to buy cheap gold. Good prices on gold and silver coins are a necessity when allocating a portion of your nest egg to precious metals.

When you are ready to buy gold then you will certainly want to make sure you check the current gold price. You do not want to pay way of the spot price of gold.

Today’s gold price is $1,135/ounce. That price is likely to swing up and down for a while, but long term the market looks very bullish.

Currently the currencies of the world are fluctuating and it may drive the price up one day then down another. Don’t worry about this though. You are buying gold as a store of wealth and it should be treated as thus.

I’m getting off topic. Where were we at? Oh, where to buy cheap gold.

Well, there is a vast market of gold and silver dealers online, but it takes a little research to compile the best ones.

I can tell you that I’ve bought from only 3 dealers online, and each one had some great products.

Products is not what is important here though. When investing in gold you want the most gold for your money. How can you make sure you are not getting ripped off?

Here’s a tip. Stay AWAY from numismatic coins. You know, these are the coins that were sitting on the ocean floor for 500 years and now they cost $10,000 a piece.

As if the gold content is any different. Gold is gold.

There are some collectors out there who spend big money on these, but it’s not a stable investment by any right.

Picture this scenario: A collector pays $100,000 for an extremely rare gold coin. Let’s say the gold price is $1,100/ounce when he purchases the coin.

Let’s also assume that in this situation the economies of the world are sliding into depression. Sound familiar to today?

If that gold coin had to be sold or exchanged for a good or service during a depression, nobody will have the desire or the money to pay $100,000.

In fact, what would probably happen is that while the dollar is falling in value, the people who bought gold bullion coins are reaping the benefit of a higher ROI.

Meanwhile, the rare coin has dropped in value to the current spot price or maybe a little higher for lack of demand.

Solution: Don’t buy numismatic coins, especially in a down economy. Some people will argue this and maybe they have some merit, but I say why risk it.

Ok. So, back to where to buy cheap gold. Let’s have a look at my three favorite place to buy gold online.

1. Goldline- They are a highly rated company and you will see lots of their advertisement on different financial websites. Glenn Beck from Fox News endorses them. They are worth checking out.
2. Monex- This is also a highly rated company. The thing I like about them is the array of educational videos on their website explaining each metal. Check them out to at least learn more about the metals.
3. Apmex- These guys are my favorite place to buy cheap gold. They have the best prices I have found and they have great packaging. Your order will usually arrive within 5 business days if you pay online.

That’s it for my recommendations on the companies. Sorry I can’t really recommend more but I just haven’t had the opportunity to buy from more places.

It’s hugely important that you prepare now for a dollar collapse, and save yourself financially while you still can. You can now grab your free instant download copy of “Why You Should Buy Gold Now” – created especially for the gold investment newcomer – by clicking here.

Gold Bull Market

It will only be time before the gold bull market absolutely explodes. I’m a huge believer in gold because it’s the money that has been used for thousands of years.

What makes me so bullish on the gold price in the future is the fact that people are waking up in masses to what is going on with our money supply.

The dollar has fallen in value by 95% since the Federal Reserve’s inception in 1913. Central banks like the Federal Reserve have never maintained a sound currency over time, and that’s what it was created to do.

It’s no wonder that Thomas Jefferson worked against the First Bank of The United States to even gain its charter. Thomas Jefferson knew from experience that private central banks do one thing, inflate the money supply.

During the Revolutionary war the continental Congress issued a fiat currency to finance the war against the British. The currency was dubbed the “Continental” and it became worthless in a matter of a few years.

The British government made counterfeit “Continentals” and put them into circulation in all of the colonies as a way to try and stifle the resistance. The massive amount of paper money in circulation eventually led to a collapse of the currency.

With all of the money printing going on today it will only lead to the same thing. The people holding gold and silver will be the ones making the decisions when it’s all said and done.

Gold and silver cannot be inflated. Governments can’t increase the supply of gold like they can paper dollars. Eventually people the herds of people will see this, but the rush into gold probably won’t even start until the gold price gets to $2,000/ounce.

That’s the way bull markets work. You have the people who saw the fundamentals a long time ago and got positioned, you have those who are getting in today, and you have the masses who will get in close to the top which is when I will be selling.

Where are we in the gold cycle?

Take advantage of these low prices because you are going to look back at $1,100 gold and see how cheap it really was. There is worldwide inflation occurring as I write this and the printing presses still aren’t slowing down.

China is buying gold, India is buying gold, and investors are buying gold. There is maybe 3-5% of people who are actually invested in gold. If the number of people invested in gold jumps to even 10% the gold price will go ballistic.

It’s in your best interest to do more research about the gold market and inform yourself as to why it’s imperative that you position yourself into gold.

Don’t be like the people of Zimbabwe and get stuck with a worthless 100 trillion dollar bill that will only buy a loaf of bread. Don’t think this can happen in America? Think again.

It’s important that you are getting the best price possible when you buy your gold. Shop around and don’t buy from the first company you find. There is a way I’ve found to buy gold at 50% of the spot price. This is the best and cheapest way that I know of to accumulate gold during this gold bull market.

 It’s hugely important that you prepare now for a dollar collapse, and save yourself financially while you still can. You can now grab your free instant download copy of “Why You Should Buy Gold Now” -- created especially for the gold investment newcomer -- by clicking here.

Gold Shortages and Peak Gold

 Gold has been the king of metals for over 6,000 years, and investor demand has been steady since 2000. But do you think gold shortages and peak gold have arrived?

We have seen peak oil, and most are worried that we will see a massive spike in the price of oil due to lack of new exploration discoveries.

Both oil and gold are similar in that the easy reserves have been exploited and mined.

When hearing the term peak oil or peak gold it strikes fear in the minds of people because it seems we are running out. The term peak oil or peak gold refers to the peak of the easy gold and oil.

There is still plenty of oil on the earth, it will just take more effort to extrude it because oil companies are having to drill deeper to find more reserves. Thus, the price will have to go much higher eventually to justify new exploration.

Gold is in a similar situation. All of the easy gold reserves on earth have essentially been mined up. South Africa used to account for 2/3 of the world’s gold production.

They now produce much less because all of the easy gold veins at the surface have been mined. This is one reason we may be facing gold shortages.

China is now the world’s largest gold producer with the U.S. right behind them. The major concern is that although exploration companies are finding new gold to mine, there have not been any significant finds in a long time.

Gold production has dropped dramatically since the gold bull market began in 2000. In conjunction with falling production numbers, the gold price has steadily risen and will continue to do so until gold producers can keep up with demand.

The world won’t totally run out of gold, but there must be a huge price increase in order to stifle demand and increase supply.

Bob Chapman- 2035 banks in serious danger, FDIC broke

This fits in with the gold bull market scenario very nicely. Since we are in the midst of an inflationary period and investors become more wary of fiat currencies, we will see the gold price go to numbers that will surprise even the most bullish gold bugs.

Bob Chapman of the International Forecaster is predicating gold to go over $6,500/ounce and monetary expert Mike Maloney is predicting gold to go to $15,000/ounce.

These numbers may seem crazy and far fetched, but think about it for a second. Gold is at an all time high nominally, but to meet the 1980 price of $850/ounce you have to adjust for inflation and that puts gold over $2,000/ounce.

What’s important to note is that the world has never seen so many fiat currencies being inflated all at once like we are seeing today. Central banks around the world are using the same Keynesian principles to print their way out of debt.

It doesn’t work and it won’t work. When people finally realize that their paper currencies are getting more worthless by the day, the rush will be on to buy gold and silver.

Gold and silver are a store of wealth and are the anti inflation remedy for those looking to hedge against inflation. It would be smart to start informing yourself of the gold and silver bull market.

It’s hugely important that you prepare now for a dollar collapse, and save yourself financially while you still can. You can now grab your free instant download copy of “Why You Should Buy Gold Now” -- created especially for the gold investment newcomer -- by clicking here.