Saving Gold Beats Losing Money
A consistent monthly buying program for saving gold is the best hedge against an inflationary reccession.
|The Secret of Saving and Shopping with Gold and Silver:|
Starting a consistent gold accumulation program makes sense in more ways than one. In addition to enabling you to take advantage of the powerful principle of cost-averaging, you are building up a stash of gold that actually lets you increase the size of the discount you enjoy when shopping with gold, virtually at will.
In a rising, multi-decade, secular gold bull market like the one we are in right now, the earliest gold grams purchased will yield the most buying power because you have spent fewer fiat-dollars on them than the later ones. That means the earlier you start saving, the better.
Right now and for a long time to come, there is no concern that you will spend all of your savings to get the discounts, for the simple reason that only very few businesses offer these discounts, yet.
Convincing businesses to offer these discounts will take time. During that time you have much to save and little to spend, which means that by the time businesses begin to offer them in larger numbers and on a broader scale, you will have lots of gold saved up. That, finally, means you will have paid far fewer dollars for the products you buy then than you would if you waited to convert dollars to gold or silver until the day you buy a product.
On the other hand, saving only in dollars will make you lose out on both the discount and the appreciation of gold or silver. What's worse, the buying power of your dollars declines over time due to price-inflation, so you end up losing even more!
The US is currently in what can no longer be called a period of "stagflation" - it is what we term an inflationary recession. Saving gold or other precious metals is not only the most effective and profitable way of counteracting that process, it is also the safest. After all, saving should be safe - don't you think?
Yet, saving your wealth in US dollars would be a big mistake. The best interest rate on savings accounts banks are offering these days are a whopping 6 percent per year. Deduct from that the official consumer price inflation rate of 4.3 percent, and you are left with 1.7 percent. Then, consider that the official numbers have been fudged for decades now in order to save the government money while "inflation-indexing" savings bonds and social security checks. What you are left with is a net loss!
Add to that the decline in purchasing power of the dollar abroad (which will vastly accelerate price-inflation here in the US), and you pretty much get the picture. "Saving" in the traditional sense is the equivalent of losing money.
Of course, in this day and age nobody has a savings account anymore. If they do, it's nearly empty. People have their life's savings invested in the stock market through their IRAs and 401Ks.
That's even more bad news than saving dollar-cash in a bank.
Stocks are under siege. Big companies' borrowing costs are up due to the credit crunch, choking their bottom lines, while consumer demand is down - and the dollar keeps on dropping and dropping!
What Can You Do About That?
The best thing is to buy gold and silver, consistently, over time, in equal, incremental amounts, month after month. If you do have savings languishing in an account somewhere, it makes sense to take at least half of that out and buy gold and silver with it.
Silver is on a tear. It has outperformed gold over the past several years. It is a good metal-savings diversifier. In 2003, silver was $4.50. Now, it's above $19 per ounce.
Gold was at $300-350/oz. back then. Now it is at $960/oz. Gold tripled, silver quadrupled.
A very good way to accumulate and store both gold and silver is through GoldMoney's "Gold Accumulation Program". It works like a monthly draft on your bank account. Every month, or week, or two weeks, cash is withdrawn from your bank account and turned into physical gold and/or silver in your GoldMoney Holding. The metal is safely and securely stored at GoldMoney's London or Zurich vault.
You should not put all your eggs into one basket, of course. The very best and safest way to own precious metals is to buy them from your local dealer (no shipment costs involved) and store them at home in your safe or another secure place. In emergencies, that is the only way to guarantee access to your metals if some temporary problems with the infrastructure should make bank withdrawals or deductions from your GoldMoney holding impossible.