Why Gold Is Valuable

The thing that makes gold valuable in essence is the same thing that makes anything valuable. It is desired work. If something is desired by most individuals but takes little work to obtain like oxygen, its perceived value by most individuals will be low. The only thing that will change this perception is if oxygen is still desired by most individuals and the work that it takes to obtain it becomes more difficult. Something can take a lot of work to accomplish; an example is digging a one hundred foot hole in the middle of the desert; but if this task isn’t desired by many individuals or is not a process to produce, cultivate or obtain something that is desired by many individuals; the perceived value of the task will be low.

It takes a lot of work to obtain gold because of its rarity. Some of this work is finding it, mining it, refining it, shaping it and shipping it. All this work by itself is only half of the equation that gives gold its perceived value. The other half of the equation is gold’s desirability by many individuals. One reason why gold is desired by individuals is gold’s resistance to corrosion. Gold because of its resistance to corrosion is used in the jewelry industry. Gold doesn’t rust or tarnish and is ideal for making jewelry that will last the test of time. Another reason why gold is desired by individuals is gold’s ability to conduct electricity. Gold because of its resistance to corrosion plus its ability to conduct electricity; makes it ideal for tasks where copper can not be used. Some of these tasks are producing microchips and professional sound equipment.

Some last reasons why gold is desired by many individuals is gold’s uniformity. Pure gold is the same quality no matter what year or place it was mine. Another reason is gold’s ability to store, divide and combine wealth; Gold’s six thousand year old track record of preserving wealth; Gold’s low to no maintenance cost to keep it as an investment; Gold’s ease to liquidate; Gold’s density and difficulty to counterfeit. All these reasons and many more, that makes gold desirable to many individuals, coupled with the work it takes to obtain it; is the reason why gold is perceived as valuable to many individuals.

Having Gold In Case Of An Emergency

Gold because of its ability to store wealth with little to no maintenance is one of the best assets to own in case of an emergency. Gold has a six thousand year track record of holding and protecting wealth. Also gold because of its resistance to corrosion can be stored in most secured places for little to no cost. Gold has such an ability to store wealth over time that when gold is lost at sea and recovered years or centuries later, the wealth of the gold found is always intact.

Another reason why gold is a good asset to have in case of an emergency is gold’s ability to reduce impulse buying. Since converting the gold to currency is an extra step, it will give most savers time to think if what they want to purchase is really worth it. Also if a saver does spend the gold, knowing how much gold they had to liquidate can give then motivation to replace it.

One last reason why gold is a good asset to have in case of an emergency is; gold’s ease to liquidate. Gold can usually be converted to any currency. Also most places that sell gold will usually buy gold. Gold coins and gold bars because of their known weight and purity are the recommended forms to store gold. It is also recommended that the largest gold coins or bars to buy are one troy ounce. The reason for this is if the gold coin or bar is larger than one troy ounce, it may become more difficult to find a buyer; making it harder to liquidate. Gold because of its ability to store wealth, reduce impulse buying, and its ease to liquidate, makes it one of the best assets to have in case of an emergency.

Why Fiat Currency Is Accepted More Than Gold

One question one may ask is; if gold is so good at storing wealth why don’t most businesses accept gold as payment. There are many reasons why businesses accept fiat currency over gold. One reason why most businesses accept fiat currency over gold is legal tender laws. With legal tender laws usually an individual can not refuse to be paid in currency that has legal tender status. Legal tender laws give an advantage to fiat currency over silver or gold.

Another reason why most businesses accept fiat currency over gold is tax laws. If a business pays its employees or does most of its transactions in gold; it is most likely that the government would go after that business for tax fraud or some other charge. Since governments and central banks do not like competition to their authority, they put laws in place to limit; if not eliminate competition. Most businesses would not want to use the extra resources it would take to understanding complicated tax codes that can change from year to year; in order to use and accept gold in transaction on a daily basis.

One last reason why most businesses accept fiat currency over gold is central banking. Most banks in a nation are usually controlled by a central bank. Since in most cases the central bank is the issuer of the currency, it is in their best interest to make sure all the banks they have control over accept their currency and their currency only. This makes it difficult for a business to accept and use alternative forms of money. Governments and central banks with their laws and practices perpetuates the acceptance of fiat currency; but history has shown that when there are no legal tender laws and central banks most individuals prefer gold and silver over fiat currency.

Gold Investment Advice

Investing in gold has many benefits that are hard to find in other investments. Some of these benefits are gold’s low to no maintenance, gold’s low counterparty risk and gold’s ability to hold wealth. One important piece of gold investment advice an investor should take into account before investing, is their main goal for investing. If an investor’s main goal is to preserve their wealth with low risk of losing all of their initial investment; usually physical gold bars or coins will coincide with their main goal.

Another important piece of gold investment advice an investor should take into account before investing is where is the most safe and convenient place to buy physical gold or which gold instruments or gold companies to invest in. Whether an investor is investing in physical gold, ETF’s or gold stocks, it is important for an investor to research the companies they are buying from or investing in. By researching an investor can save them self from the trouble of dealing with or investing in the wrong company.

One last piece of gold investment advice an investor should take into account before investing is where to safely store physical gold coins or bars. Physical gold unlike gold stocks or ETF’s must be stored in a safe place. A safe that can hold physical gold is usually inexpensive compared to the gold it can hold. Once an investor owns a safe, storing physical gold will usually cost nothing. Investing in gold can be daunting for a first time investor. Hopefully with some of the gold investment advice one reads here the task of investing in gold will become an easier one.

The Dollar, Euro, Pound And Gold, What Is The Ultimate Currency

Currency that is not backed by anything is not a new concept; in fact history has been riddled with many cases of this concept. In all cases where a nation tries to have a medium of exchange not backed by anything; that medium of exchange becomes worthless in less than one hundred years. This will be the faith of the Dollar, the Euro, the Pound, or any other currency not backed by anything. The Dollar being a significant percentage of some nation’s reserve currency will likely cause a chain reaction when it does eventually collapse.

Also those who lose their wealth because of a currency collapse of a widely use fiat currency will tend to distrust lesser used fiat currencies. If the Dollar the Euro the Pound or any other fiat currency does not anchor its self to something that is time tested to hold wealth, they will all eventually become worthless. The laws of economics doesn’t change, what was tried in the past and failed will fail again in the future.

Gold being something that was time tested to hold wealth can be used as a temporary way to shore up a failing system. The ultimate goal should be to decentralize the monetary and banking systems. Anyone should be able to issue their own currency once it’s back by their goods and services and valued in silver or gold. Also every one should be able to refuse any currency that they haven’t issued themselves. Having governments issue gold backed currencies can solve some of the problems some nations face today, but it ignores one of the biggest ones; having the power of the issuance of currency in the hands of a selected few.

Gold Coins And Gold Bars, The Differences

Investing in physical gold is one of the safest ways to invest in gold. The reason for this is once an investor has possession of the physical gold, they are not dependent on the solvency of an organization to preserve the wealth stored in the gold. The two most popular forms of physical gold the majority of investors invest in are gold coins and gold bars. There are some differences between gold coins and gold bars. One difference between gold coins and gold bars are the manufacturing cost. Gold coins are usually more expensive than gold bars of similar weight. The reason for this is because gold coins tend to be more expensive to manufacture compared to gold bars.

Another difference between gold coins and gold bars are gold coin’s ability to build numismatic value over time. Gold coins are usually struck with the year it was manufactured on it; this gives investors an idea on how old a coin is. If an investor’s main goal is to purchase the most physical gold for their money, they will tend to invest in gold bars because of gold coins higher manufacturing cost and its build up numismatic value. On the other hand if an investor’s main goal is to invest in physical gold and get a higher return than just holding gold, they will tend to invest in gold coins.

One last difference between gold coins and gold bars are the sizes in which they are manufactured in. Gold coins are usually only manufactured up to one troy ounce; though there are some limited coins that are much larger. Gold bars can come in a variety of sizes, even as large as four hundred troy ounces. Investing in gold coins and gold bars has its similarities and also its differences. The differences and what an investor is looking for, will determine which one an investor will choose at a given time.

Is Gold A Good Long Term Investment

Gold is one of the best investments when it comes to investing on a long term basis. The reason for this is some of the properties gold possesses. Some of these properties are gold’s ability to store, divide, combine, and transport desired work; i.e. wealth. One reason why gold is a good long term investment is gold’s track record. Gold has a six thousand year track record of storing wealth, in fact gold coins and gold bars have been shown to preserve its perceived value even when the organization that minted it ceases to exist.

Another reason why gold is a good long term investment is the fact that physical gold has no counterparty risk. Once an investor has physical possession of the gold, their wealth is independent of the solvency of the mint or the dealer they purchase the gold from. Stocks or bonds on the other hand are dependent on the solvency of the organization that issued them. The aspect of having no counterparty risk is one of the main reasons why gold is ideal as a long term investment.

One last reason why gold is a good long term investment is gold’s low to no maintenance cost. Gold because of its properties of being resistant to corrosion and tarnish makes it one of the easiest assets to store. In fact once an investor owns a safe the cost of maintaining gold is virtually zero. Gold because of its track record, its lack of counterparty risk and its low to no maintenance cost, makes it one of the best assets out there to have as a long term investment.

Tips When Buying Or Investing In Gold

When investing in gold there are some steps you can take to make your experience of investing in gold a bit safer. One tip to follow to make your experience a good one is researching what you desire most in a gold investment, and what kind of gold will most likely fulfill what you are seeking in a gold investment. If you are looking for the most uniform form of physical gold for your money, gold bars may be the best kind of gold to invest in. If you are looking for the most returns and yet still hold physical gold then numismatic coins may be your best choice.

Another tip to follow when buying gold is to research any business before buying from them. By doing this it will save you from dealing with businesses that have a bad reputation when it comes to customer service or any other complaints that gave them a bad reputation. By doing this research it will also give you an idea on which businesses have a reputation of pleasing their customers needs. This will help to give you the best experience when investing in gold.

One last tip to follow when buying gold is to know the return policy of any business before purchasing anything from them. The reason for this is if there is some misunderstanding and you some how receive the wrong product, it will not take a lot of research or work to return it. It is recommended to only buy from businesses that have a return policy you are comfortable with. Investing in gold is one of the safest investments out there, if you follow the tips you read here it will become an even safer investment.

How To Get Started Investing In Gold

When first deciding to invest in physical gold, it is important to know the kind of physical gold to invest in. This decision will be determined by what is expected from an investment. If you are looking for an investment to protect your wealth from inflation and get the most gold for your money, gold bars would be a good investment. If you are looking for an investment that can protect your wealth from inflation but still have a chance of increasing your wealth through numismatic value, gold bullion coins would be a good investment. If you are looking for an investment that can increase in value over time but not the risk of losing all your money over night like a stock, numismatic or collectible coins would be a recommended investment.

When you have decided on what kind of physical gold to invest in, the next step is to research the specific gold coins or gold bars that have the qualities you are looking for in an investment. The next step is to research what businesses or websites are selling the coins or bars you are interested in. After finding a number of businesses or websites that are selling the gold coins or gold bars that you are interested in, it is important to research the businesses to see if they are trustworthy and have a return policy. When you narrow down the gold dealers that fulfill all these criteria, buy from the dealer with the lowest price.

It is important to also calculate the shipping cost and insurance if any. Getting started investing in physical gold does take a bit of research when first starting off, but the research can save you time and money the next time you are purchasing physical gold. Gold is one of the easiest investments out there, but by following some of the information you read here; investing in physical gold will become a bit easier.

Investing In Gold Bullion, Gold Coins Or Gold Bars

tremendously to make the right decisions. If your main goal of investing in gold is to protect your wealth from inflation, it is recommended to invest in gold bullion. Gold bullion is gold bars and gold coins that are usually a little above spot price. If you do decide to go with gold bullion you also have to decide if you will want the most physical gold for your money or if you want to invest in a form of gold that can build numismatic value over time.

If another goal is to get the most gold for your money, it is recommended that you invest mostly in gold bars. Gold bars usually cost less to produce than gold coins, and in turn is usually less expensive than gold coins. One of the major differences between bullion gold bars and bullion gold coins is not only the price, but gold coin’s ability to build numismatic value over time. Gold Coins because of the date struck on them, can easily be dated. Older gold coins will usually cost more than newer coins of the same kind. Over time this price difference can become significant.

As an investor you can choose to invest in both gold coins and gold bars. Gold bars will give you the most gold for your money and gold coins will give you a chance to increase your wealth through the increase of its numismatic value. If the main goal for investing in gold is to protect your wealth from inflation, gold bullion whether it is gold bars or gold coins is the way to go.

Gold And Financial Independence

Gold as a store of wealth is independent of any government or organization. Gold unlike fiat currency is independent of any nation’s financial policy. This means if a nation all of a sudden started to implement unsound fiscal policies, your wealth being in gold would have a better chance of escaping any bad repercussions. With fiat currency you are dependent on the state or the central bank not to inflate or collapse the currency. With the perfect track record of all fiat currencies becoming worthless in less than one hundred years, it’s a dependency that will eventually fail.

Gold because of its six thousand year old track record of holding wealth means its one of the safest ways to store wealth. Gold is not even dependent on the organization that minted it. If a mint that made gold coins or gold bars went out of business the gold coins or gold bars would still be worth something. In fact in some cases when a gold coin is not being produced anymore, it starts to build numismatic value more rapidly.

Another aspect of gold and financial independence is the financial privacy you get with gold. By having financial privacy it will be easier to transfer wealth to your love ones or anyone else without state impose restrictions. Without financial privacy you will be dependent on the state laws to be just. If the laws are not just and you don’t have financial privacy, you could have your wealth confiscated. Gold because of its time tested reliability will remain one of the best ways to become financially independent.

Why Gold Is A Good Long Term Investment

Gold is one of the best investments to own on a long term basis. The reason for this is some of the properties gold possesses making it ideal for the long term. One of these properties is gold’s durability. Gold does not rust or tarnish making it suitable for long term storage. In fact when gold is lost at sea and found years or centuries later, it comes out of the ocean just as good as new.

Another property that gold possesses that makes it good as a long term investment is gold’s ability to hold wealth. Gold has a six thousand year old track record of holding wealth. All fiat currencies become worthless in less than one hundred years, in fact no fiat currency can buy the same amount of gold it could of the day it was first issued. A chart of any nation’s currency purchasing power over time will have a downward trend. By investing in gold on a long term basis it will protect an investor’s wealth from erosion due to inflation.

One last property that gold possesses that makes it good as a long term investment is gold’s portability. Gold because of its ability to store a large amount of wealth in a small package makes it ideal to transport from place to place. An added bonus is gold is more private and has less counterparty risk than a bank account. Gold because of its durability, its ability to hold wealth, and its portability, makes it one of the best investments to own on a long term basis.

The Different Shapes Of Gold Bars

Gold bars are manufactured in a variety of different shapes depending on the manufacturer. One shape gold bars are manufactured in is rectangular minted bars. Minted bars are made by cutting blanks out of sheets of gold. After the blank is cut out the name of the manufacturer, the size and the purity of the bar is struck on the bar.

Another form of rectangular gold bars is cast bars. Cast bars are gold bars that are made by pouring molten gold into a mold. When the gold cools and solidifies, it is usually immersed in water to bring to room temperature. After the bar is room temperature, the name of the manufacturer, the size and the purity of the bar is struck on the bar.

Cast gold bars because of the process it is made can be any shape. The shape is determined by the shape of the mold the molten gold is poured into. Another shape gold bars are manufactured in is squared bars. Some Gold Tola Bars depending on the amount of gold it contains can be manufactured in a square like shape.

The last two shapes gold bars are manufactured in are boat shaped and doughnut shaped. The gold bars that are made in these shapes are known as Gold Tael Bars. Not all Gold Tael Bars are manufactured in these two shapes; some are also manufactured in the common rectangular shape. Gold Tael Bars are usually manufactured in East Asia. Gold because of its ability to take many shapes is one of the main reasons why gold bars come in a large variety.

Why Gold Is A Good Asset

Gold as an asset has many qualities that are beneficial. One of these qualities is gold’s ability to store wealth. Gold has a six thousand year old track record of holding wealth. In fact gold coins and gold bars can hold wealth even if the organization that minted it goes out of business. Stocks and Bonds on the other hand are dependent on the solvency of the organizations that issued them. Fiat currency is another debt based instrument that is dependent on the solvency of the entity that issued it.

Another quality that gold has that’s beneficial is gold’s low to no maintenance. Gold coins and gold bars once you own a safe, will cost nothing to keep and over time can appreciate. Other assets like real estate will cost money to maintain and if it appreciates can require more to be paid out in taxes. Also governmental policies can change which in turn may cause property taxes to increase or tax breaks to be cut.

One last quality that gold has that‘s beneficial is gold’s ease to liquidate. Gold coins and gold bars are one of the easiest assets to sell. In fact most places that sell gold will usually also buy gold. With the recent economic events and the problems with companies owning illiquid assets, owning an asset that has been time tested to be easy to liquidate under most economic situations is truly beneficial. Gold because of its ability to store wealth, its low to no maintenance cost and its ease to liquidate, will always be a good asset to possess.

The Different Units Gold Is Weighed In

Depending on what part of the world a gold bar is manufactured or the manufacturer’s preference, the weight unit a gold bar is weighed in can vary. In most nations where English is the first language, manufacturers usually will use the troy ounce as the unit in which gold is determined in. One troy ounce is equal to 31.1034768 grams. The troy ounce is distinct from the avoirdupois ounce which is 28.349523125 grams. The spot price of gold is what one troy ounce of gold is selling for at a given time.

Another unit which gold bars are weighed in is Grams. Gold bars that are weighed in grams can vary from one gram to a thousand grams (one kilo gold bar). Some of the most common sizes of gold bars that are manufactured in grams are 1, 2.5, 5, 10, 20, 50, 100, 250, 500, and one kilo. The next unit which gold bars are weighed in is Tolas. Some nations that use the tola to weigh gold are India, Pakistan, Bangladesh, Nepal, and Singapore. The tola was the weight of the silver rupee coin issued by the British East India Company. One tola is equal to 11.6638038 grams or 0.375 troy ounces.

One last unit which gold bars are weighed in is Taels. The tael was used in many eastern Asian nations and can vary from nation to nation or region to region. In China and Taiwan a tael is equal to 37.5 grams; in Hong Kong a tael is equal to 37.8 grams. Gold tael bars usually come in three shapes biscuits, doughnuts, and boat shape. The unit in which gold bars are manufactured and weighed in can vary from culture to culture, but thanks to the metric system gold bars can be compared a little easier.

How To Save Money When Buying Gold Coins And Bars

When investing in gold coins or gold bars there are some things you can do in order to save money. One thing you can do in order to save money when buying gold coins or gold bars is buy as much gold as you can afford at a given time. The reason for this is some places or websites offer discounts depending on the amount of gold you buy at a time. Another reason is by buying most of your gold at the same time, you will save in shipping cost if you are buying online and buy most of your gold from the same place.

Another thing you can do in order to save money when buying gold coins or gold bars is buy larger sizes. The larger the size of gold coins or gold bars you buy the more gold you will get for your money. The reason for this is when you buy smaller gold coins or bars; you are paying a higher percentage in manufacturing cost compared to larger coins or bars. It is recommended if you do buy gold bullion larger than one troy ounce, that you know some places you can liquidate it when or if the time comes.

One last thing you can do in order to save money when buying gold coins or gold bars is research and compare prices before buying. It is important to research any business before purchasing gold from them. By comparing the cost of gold coins and gold bars between the businesses you trust, you will get the lowest price and still maintain safe shopping practices. Some other things to keep in mind when comparing prices are the shipping cost and insurance if any. Investing in gold is a good way to protect your wealth; if you follow some of the things here you will save money when buying gold.

The Benefits Of Saving In Gold

Gold is not only one of the best ways of preserving wealth; there are also many benefits when saving in gold compared to fiat currency. One benefit of saving in gold bullion is gold’s ability to protect your wealth from inflation. With today’s economic uncertainties and governments around the world creating more currency out of thin air to bailout banks and other institutions; the possibility of unprecedented inflation is more prominent then ever.

Another benefit of saving in gold bullion is it reduces the chances of using savings for impulse buying. If the saver knows that in order to spend some of the savings they will have to sell some of their gold, the process will usually give them more time to think. If the good or service that they want to purchase is not worth the trouble of selling the gold, it can usually be classified as impulse buying. Also it will give the saver more time to assess and see if the good or service is really worth tapping into savings.

One last benefit of saving in gold bullion is the investment aspect. Gold just like any other investment does not have a guarantee to always increase in value, but it is a possibility. With the chances of inflation increasing, gold’s price may increase in terms of currency but remain the same in purchasing power. In the case where gold’s purchasing power remains the same but goes up in terms of currency, the saver would have lost that purchasing power if just holding cash. Saving in gold may be a unique practice in today’s society, but it does have its benefits.

What Kind Of Gold Bars To Buy

When deciding on what kind of gold bars to invest in, there are some things that are important to know. One of these things that are important to know is which gold bars are respected by investors in your area and investors worldwide. By knowing which gold bars have a good reputation with investors in your area and worldwide, it will give you an idea on the kind of gold bars to invest in. Also if the gold bars that you buy have a good reputation worldwide, it will be easier to sell when the time comes to liquidate.

Another thing that is important to know when deciding what kind of gold bars to buy, is the size of gold bars you want to invest in. The larger the size of gold bars you invest in, the more difficult it will be to sell. Also the smaller the size of gold bars you invest in, the more you will pay in manufacturing cost. It is recommended if you do buy gold bars larger than one troy ounce that you know some places you can liquidate the bars. Smaller gold bars like chip gold are only recommended if you want to own physical gold but can’t afford to buy gold in a larger size.

The three sizes of gold bars that are popular with many investors are the one troy ounce bars, the ten troy ounce bars, and the one kilo bars. As stated before if you buy gold bars larger than one troy ounce, it is important to know some places you can liquidate the bars. Some gold bars that are recommended are the Swiss Pamp Gold Bullion Bars; the Credit Suisse Gold Bars; the Union Bank of Switzerland Gold Bars; the Johnson Matthey Gold Bars; and the Engelhard Gold Bars. It is important to research any mint or business before investing in their bars. Gold bars are one of the most popular ways to invest in physical gold. If you follow some of the information here, deciding on the right kind of gold bars to invest in will become an easier task.

Why Any Fiat Super Currency Is Doom To Fail

Many central banks around the world would like to implement a policy of using a super global currency in an attempt to fix their economies. The reason why any fiat “super” currency is doom to fail is the fact that most of the economies around the world are in a mess for similar practices. These practices are central economic planning, fiat currency, legal tender laws, central banking, fractional reserve banking, and unstable tax rates. Of course the governments and central banks would never voluntarily give up some of their power, and allow its citizens to have an option to opt out of this insolvent planned system; for a freer and less centralized one.

Another reason why a fiat “super” currency is doom to fail is the mind-boggling idea of fixing problems due to centralization with even more centralization. The individuals who control the central banks around the world and the governmental servants who forgot that they’re servants and not masters, will never own up to the fact that it was their meddling in the market that was the underline cause to this mess. In fact they blame the market and the lack of control they have over it as the problem. If all banks in a nation were not controlled by a central bank some of them could of set their interest rates if any, at a rate that was determine by their reserves. Also if there were competing private currencies backed by goods and services and valued in silver or gold, these currencies would not be prone to inflation and banks would not have to find risky ways to make profits. One of the main reasons why banks engaged in risky practices was the fact that holding the currency and doing nothing with it meant losing profits through inflation.

Some other reasons why a fiat “super” currency is doom to fail is the fact that fiat currency all fail within one hundred years. Also another reason is that two of the major causes of the problems with the economy are the centralized banking and the centralized monetary systems most nations have in place. Introducing another fiat currency to operate within their systems would prolong the inevitable at best. The inevitable being the failure of most nations banking and monetary systems. The best a government and its central bank can do is to allow competition to the banking and monetary systems. By allowing its citizens to opt out of these failing systems for the competition, it will alleviate some of the pain when the old systems eventually collapse. A super currency whether controlled by the IMF or any other organization not only is doom to fail, but is ultimately a step in the wrong direction.

To see why a free market alternative is superior to the centralized banking and centralized monetary systems most nations have in placed today, I recommend Why The Gold Standard Is Not Enough.

Can Gold Confiscation Happen Again

To answer the question can gold confiscation happen again, we have to look at the first example of gold confiscation in the United States of America. The first gold confiscation Executive Order 6102 was signed by President Franklin D. Roosevelt on April 5, 1933. This order roughly said that most gold coins, gold bullion and gold certificates were to be turned in to the Federal Reserve before May 1, 1933. If an individual didn’t comply they would be fine up to $10,000 (gold was $20 per troy ounce back then) or up to ten years in prison; or both.

Also individuals were allowed to own up to 5 troy ounces of gold each. The government back then and now didn’t have the resources to enforce this order (Not to mention the order was and is unconstitutional); and only one person was ever indicted for not complying with the order. Frederick Barber Campbell who had 5000 ounces of gold deposited in a bank, tried to sue the bank for not allowing him to withdraw his 5000 ounces of gold. After this lawsuit being filed, the federal prosecutors knew that Mr. Campbell didn’t comply with the order. The prosecution failed to put Mr. Campbell behind bars, but his 5000 ounces of gold was never returned to him.

The truth is most of the gold that was confiscated in 1933 was voluntarily turned over. There is no practical way of knowing how much individuals refused to comply with the order. Today just like in the 1930’s the government does not have the resources to indicate how much physical gold an individual may have. That being said if the government did order the confiscation of gold again, like the first time most of the gold they would collect would be voluntarily turned over. Gold because of its ease to hide would cost the government more resources going after the individuals that refused to comply, than the gold they would collect from them. Gold confiscation even though tried in the past, was impractical back then and would be impractical today.

Can Gold Tarnish

The answer to the question, can gold tarnish is an unequivocal no. This means if your gold coins, gold bars or gold jewelry are made of pure gold, these items will never change color or show any signs of discoloration. Pure gold is known as 24 karat gold. 24 karat gold will be softer than the other forms of gold with lower karat ratings. Pure gold because of it softness is usually alloyed with other metals to increase the hardness of the gold. All reputable gold bars are made of pure gold. Some gold bullion coins like the South African Krugerrand and the American Gold Eagle are made of 22 karat gold.

The lower karat ratings of gold, because of the mixture of other metals can show some signs of discoloration. The discoloration is due to the other metals mixed in and not the gold. In most places on earth, gold alloys that are 18 karat or higher usually do not tend to tarnish. In India in some rare cases, gold alloys that are as high as 22 karat are known to show some signs of discoloration. It is recommended if you live in a place that has some rare cases of high gold karat showing signs of discoloration; that you only invest or buy physical gold items that are 24 karat.

Pure Gold because of its ability to never tarnish is one of the best ways to invest or buy gold. If you are not sure if you live in one of the places on earth where higher karat of gold show signs of discoloration, you can ask other investors or jewelry stores. Also you can limit yourself to only investing or buying 24 karat gold. In most cases gold that’s 18 karat or more will tend not to tarnish, but the only form of gold guaranteed never to tarnish is 24 karat; in other words pure gold.

The Counterparty Risk Of Gold Compared To Other Investments

Gold as an investment has little to no counterparty risks compared to other investments. This means if you have physical gold coins or gold bars you don’t have to depend on another person performing certain duties for the investment to remain sound. On the other hand investments like stocks will inherently have a higher counterparty risk. Some of the things that can add to the counterparty risks associated with stocks are the managers of the company not doing a competent job; the shares of stocks in the company being diluted; or dubious accounting giving false sense of profitability.

Some of the things that can add to the counterparty risks associated with real estate are, the property taxes rising too fast, the cost of maintaining the property increasing, fires and natural disasters, (if you have your gold in a fire proof safe that is bolted down to the foundation of your property, your physical gold will usually be safe from most fires and natural disasters.) or governmental laws changing making it easier to take away property. (In the past governments did pass laws to confiscate gold, but gold coins and gold bars are easier assets to conceal and is also harder to confiscate than real estate.)

Some of the things that can add to the counterparty risks associated with holding fiat currency are, the government defaulting on its debt obligations, the central banks that issued the currency inflating the currency, or the people of the nation or other nations refusing to accept the currency as a medium of exchange. (Some may say; well couldn’t people refuse to accept gold as a medium of exchange? The answer is yes, but gold has a six thousand year track record, compare that to fiat currency that always becomes worthless in less than one hundred years; no exceptions.) Physical gold because of its low to no counterparty risks; makes it one of the safest and soundest investments out there.

How Are Gold Bars Made

Gold bars are one of the most cost effective ways of minting gold. It’s not unusual for gold bars to cost less than gold bullion coins that contain the same amount of gold. The main reason why gold bars a usually less expensive than gold coins, is the fact that gold bars are less expensive to manufacture. Another reason why gold bars are usually less expensive is the lack of numismatic value associated with gold bars. Gold coins are usually struck with a date on them. The older a coin is, the more it will usually be worth. With gold bars the price is usually uniformed no matter when it was manufactured.

There are two main methods used to manufacture gold bars. The first method of manufacturing gold bars produces gold bars known as Minted bars. Minted bars are made by cutting rectangular blanks out of sheets of gold. After these rectangular gold blanks are cut the weight is then checked. Depending on the mint’s procedures, the blanks weight can be checked manually or through an automated process. In the last process the blanks are struck with the name of the mint, the size and its purity.

The next method of manufacturing gold bars produces gold bars known as Cast bars or Ingots. Ingots are made by pouring molten gold into molds. The molten gold is then allowed to slowly cool. After the ingots are solidified they are then usually immersed in water to bring them to room temperature. Next the weight of the ingots are then checked, and like minted bars the ingots are struck with the name of the mint, the size and its purity. Gold bars are not only one of the most cost effective ways to invest in physical gold; it is also one of the most cost effective ways of minting gold.

Gold And Silver, The Differences When Investing

As this being a gold blog, it could be fairly said that silver is underrepresented. Some investors that invest in gold will usually also invest in silver. Investing in gold and investing in silver is almost identical in nature. Gold and silver both have been historically used as money, they both can be combined and separated, and they both have been time tested for thousands of years to store and hold wealth.

The most significant difference between investing in gold and investing in silver is the fact that over time silver can tarnish. The tarnish of silver known as silver sulfide is cause by the small bits of hydrogen sulfide in the atmosphere. Silver sulfide can cause silver to become darker or even black over time. Silver sulfide is not permanent and can usually be cleaned off with certain products or certain household chemicals. In fact in some cases cleaning the tarnish off of a silver coin can make it less valuable to investors.

This small difference between gold and silver can make owning silver a bit more complicated than gold. In some cases you should clean your silver bullion once a year if needed and if applicable. Also it is recommended that you try your best not to let silver get in direct contact with materials like rudder or stainless steel. Some of these are not a concern when storing or holding physical gold. All in all investing in physical silver is just as safe and just as wise as investing in physical gold. The only difference is physical silver may take a little more knowledge and maintenance.

Why All Fiat Currencies Eventually Become Worthless

I hear from time to time people equating fiat currency to gold or things that took desired work i.e. wealth to produce, perform or cultivate. There is a big difference when it comes to fiat currency and real wealth. The most significant difference is the fact that there is no human shortcut to producing, performing or cultivating desired work i.e. wealth out of thin air. On the other hand with the advent of computers it is possible to create fiat currency out of thin air. In fact with the banking system most nations have in place today, the process of creating currency out of thin air is institutionalized with fractional reserved banking.

The reason why all fiat currencies eventually become worthless is human nature. It is human nature to seek the maximum amount of benefits for the least amount of work. Fiat currency gives the person or persons in charge of it the ability to covertly steal the desired work i.e. wealth of anyone who puts their trust in it as a medium of exchange. Since it is human nature to seek the maximum amount of benefits for the least amount of work, the people in charge of that fiat currency will inflate until all trust in the currency is eventually lost.

The reason this scenario plays over and over again in history is the fact that when first inflating a currency the benefits are easy to see compared to the drawbacks. After a while prices rise as the growth of currency out paces the growth of goods and services. Governments rather than see the inflating of the currency that gave them the initial benefit as the cause to the high prices; will usually blame the private sectors greed and continue to inflate until the currency becomes worthless.

Gold unlike fiat currency can not be conjured out of thin air at the whim of bureaucrats or an insolvent banking system, so its ability to hold desired work i.e. wealth is independent of government or banking and is time tested. This is one of the many reasons why gold has and is used as money. The equating of fiat currency to gold or any other thing that took desired work i.e. wealth to produce, perform or cultivate is a mistake done by many in history; and sadly many today.

Buying Gold From A Dealer, Important Things To Know

Before buying gold coins or gold bars from any dealer whether online or offline, some things are important to know. One thing that is important to know is the return policy of any place you buy from. The last thing you want is to have some misunderstanding with a gold dealer and end up with a product that you did not want. It is recommended that you only buy from gold dealers that have a return policy in case of any misunderstanding.

Another thing that is important to know before buying gold from a dealer is the gold dealer’s reputation. By knowing a dealer’s reputation it will help you to stay clear of dealers that have a lot of customer complaints. Also by knowing a dealer’s reputation it can give you some ideas on what to expect if any problems may arise. The more you know about a gold dealer, the easier it will be to do business with them.

One last thing that is important to know before buying gold from a dealer, is to know if that dealer also buys gold. The more places that you know that buys gold the more options you will have if you ever decide to liquidate. Also the more places you know the higher chances you will have of finding a dealer that will pay more than the other places. Buying gold coins and gold bars are some of the best ways to invest in gold. By knowing what things to look for in a gold dealer, investing in gold will become easier.

The Goal Of Investing In Gold

When investing in gold it is important to keep in mind your main goal for investing. The reason for this is your main goal can give you some ideas on what you expect from an investment. Also on the aspect of investing in gold it can help you to know what form of gold investments will tend to give you the most desired results. If your main goal for investing in gold is to preserve your wealth from inflation, it is recommended to invest in gold bullion. Gold bullion is gold coins and gold bars that are closest to the spot price of gold. Gold bullion will tend to be a little above spot price because of manufacturing cost.

If your main goal is to invest in physical gold and yet get the highest return you can, it is recommended that you invest in numismatic gold coins. Numismatic gold coins will take more research than gold bullion for the fact that not all numismatic coins will increase in value at the same rate. Just like any other investment when you invest in gold the more return you expect the more risk you will likely have to take. If you invest in the wrong numismatic gold coin, there is a chance of losing some of your investment. With numismatics the best approach is to know which coins performed well in the past. This will give you an estimate on how it is likely to perform in the future.

If your main gold is to invest in gold without holding any of the physical metal, and yet get the highest returns; it is recommended to invest in gold mining stocks or ETFs. Investing in gold stocks just like any other stock will take a lot of work researching which companies to invest in. The reason you should research diligently is the fact unlike physical gold if you invest in the wrong stocks, there is a possibility of losing all your investments over night. Also if you invest in the wrong companies you can end up losing money even if physical gold goes up. The positive thing about gold stocks is if gold goes up and you invest in the right stocks, you are likely to get a higher return than physical gold. By knowing your main goal, your decision will be easier when determining what form of gold to invest in.

The Price Of Gold, The Ways To Determine It

The Most popular way to determine the price of gold is the spot price of gold. The spot price of gold is the amount one troy ounce of gold is selling for at any given time. The spot price of gold is volatile and can change from second to second. Most dealers that sell physical gold will use the spot price of gold as one of the major indicators on how much to charge. Gold bullion is one of the forms of gold most influence by the spot price.

Another way to determine the price of gold is a gold futures contract. A gold futures contract is a contract in which a specific amount of gold is to be bought or sold at a given date in the future for a given price determined on the date the contract was created. The price of gold can rise or fall but the holders of the contract must buy or sell for the price on the contract before the date stated on the contract, known as the delivery date. This contract is divided up and bought and sold, the price of the contract at the end of a day’s session is known as the settlement price. The settlement price and the amount of gold in the contract divided into one troy ounce is the amount some investors will look at to determine the price of gold.

One last way to determine the price of gold is to research the price of a specific gold coin or gold bar. Some ways of doing this is to research businesses that buy that specific coin or bar and see how much they are offering for them. Another way is to search auction sites to see what the specific gold coin or gold bar sold for on the most recent date. These two ways may be less accepted than the spot price or the settlement price, but these are two of the best ways to determine the price of a specific coin or bar. By determining the price of gold, it can help an investor to know the right price to buy or sell gold.

Keeping Your Gold Safe From Theft And Confiscation

There are certain things you can do as an investor of physical gold to keep your gold safe from theft or governmental confiscation. One thing you can do if possible is buy some of your gold with hard cash. The reason for this is if you buy some of your gold with hard cash, there is no paper trail leading to you owning that gold on some unknown database. With the new events of governments hinting of nationalizing banks, the little financial privacy one may have had in the past is rapidly evaporating.

Another thing you can do to keep your gold safe is not to tell every one the amount of gold you have. It’s good to help others by letting them know some of the benefits of investing in physical gold, or even recommending them to dealers, places or websites you purchase from in the past; but telling others how much physical gold you have and how much it is worth may have some unintended consequences. The person may be a trustworthy person, but there is no telling if that person may end up talking about it with the wrong person.

The last thing you can do to keep your gold safe is to keep your gold in a safe. Safes are relatively inexpensive and can really keep your personal items safe. If you do buy a safe it is important that it can be bolted down to something secure like the foundation of a house. It will deter most burglars. The reason it will is the work it would take to unbolt it means a greater risk of getting caught. Keeping your gold safe is an easy process. If you follow some of the things you read here, keeping your gold safe will become an even easier process.

How Are Gold Coins Made

The process of manufacturing gold coins is a complicated one. First an artist or artists will sketch the designs of the obverse and reverse sides of the gold coin. After the two sides are decided on, a master sculptor or master sculptors; engraves the two designs on two or more round plaster molds that are usually five times larger than the actual gold coin. This process is painstakingly long, the reason for this is the master sculptors must keep in mind the right depth and detail to make a well design gold coin. After the obverse and reverse sides are sculpted to perfection, the plaster molds are used to make a rubber resin mold. The rubber resin mold is then used to make an epoxy resin mold. Plaster is first used and then transferred to rubber because any mistakes on the plaster mold can be corrected by the master sculptors; these corrections are not practical to perform on the rubber molds.

Next the epoxy resin molds are mounted onto a pantograph. The pantograph traces the details of the epoxy resin molds onto master dies made of steel. The details of the master dies will be the same size of the actual gold coin. The steel master dies are then heated to a very high temperature and then rapidly cooled. The process of heating and then rapidly cooling the steel master dies makes it hard enough to strike gold coins. The diameters of the master dies are then shave down to the required size to strike gold coins. The master dies are then polish to perfection to be in an ample condition to strike the coins. Usually the master dies are used to make matrix dies; matrix dies are larger then the master dies and usually the same size of the original round plaster molds. The matrix dies are used with the pantograph to make duplicates of the master dies known as working dies. In most cases the master dies are used to help make working dies. The reason for this is dies after striking numerous coins starts to wear and must be replaced. The process of making master dies and working dies are similar in nature.

In the final process gold sheets are punch into circular blanks the same size of the gold coins to be struck. These blanks are then fed into an upsetting machine. The upsetting machine raises the rim of the blanks. A blank that is fed through an upsetting machine and have a raised rim is known as a planchet. Planchets are then polish using steel beads and water; after being polish each planchet weight is checked. The planchet is then struck with the polish working dies on the obverse and reverse sides with over one hundred tons of pressure. The working dies will have a negative image to make a positive imprint on the gold coins. The gold coins are then manually inspected for any imperfections. The gold coins that pass this inspection are then sold. The process of manufacturing gold coins is a complicated process; but it is this process that gives us the beautiful gold coins we have today.

What Are Proof Gold Coins

Proof gold coins are gold coins that are manufactured using a special process. This process usually involves the coin being double struck with specially treated dies. This gives the gold coin more detail and sometimes a mirror like finish. Proof coins are usually considered to be collectibles and are often rarer than its generic counterpart. Proof gold coins because of the process it takes to manufacture them, are more expensive than its generic counterpart.

Some gold bullion coins that also have proof coin versions are The American Buffalo, The American Gold Eagle, The Canadian Maple Leaf and The South African Krugerrand. The proofs to these versions are made in limited quantities compared to the bullion versions. As mention above the proof versions sell for a higher mark up compared to the generic bullion versions. Investors that invest in proof gold coins are usually coin collectors whose main reason for buying them is for the beauty and numismatic value.

Proof gold coins because of its collectible status can often be sold in proof sets. Proof sets usually consist of a book like case that displays the different sizes of gold coins. Proof sets also usually come with a certificate of authenticity. The certificate of authenticity will usually have information like the name of the coins and where they were struck. Some proof coins like The China Panda Gold Coin will come in a single plastic case if each coin is purchase separately. Proof gold coins because of its beauty and rarity are one of the best coins for a collector to have.

Gold And Financial Privacy

With today’s world of central banking and central bank issued fiat currency the concept of financial privacy may seem alien to many. Some may even think the aspect of wanting financial privacy means that you are someone doing something illegal or devious at best. This can not be further from the truth; the aspect of wanting financial privacy is to protect the individuals who may engage in activities that may be legal but counterproductive to the state or any of its agendas.

Also not all laws are created equal; history has shown that governments can often create laws to enhance its own power even if it means violating the rights of its citizens. If there is no financial privacy what is to stop a power hungry government from seizing the assets of a peaceful opposition to their power? Also what is to stop a government from seizing assets unjustly? Some may point to constitutions or any other documents that governments are to follow. But when is the last time a government servant with any real power been indicted, tried, and jailed for violating any constitution.

Gold bullion is one of the best ways to have inflation proof savings outside of central banking or fiat currency influence. Gold coins and gold bars is also a good way to privately pass down wealth to your progeny without state interference. There are many reasons to advocate for financial privacy; one of the most important ones is the fact that governments are our servants and not our masters.

How To Tell If Something Is Made Of Gold

There are many ways to determine if something is made of gold. If the item in question is something like a gold coin or a gold bar one of the easiest ways to determine this is to weigh it. Gold’s density is something hard to counterfeit. You can research the weight of most popular gold coins or gold bars. By knowing its weight in grams it will be easy to spot if the coin or bar does not have the right weight.

If the item is something which the weight can not be research, it is recommended to use an electronic gold tester. Some electronic gold testers are so sophisticated they can not only determine if an item is made of gold, but also indicate the number of karat of gold the item is made of. If an item is made of pure gold it will be 24 karat; if an item is made of seventy five percent gold and a mixture of other metals it will be 18 karat; if an item is made of fifty eight percent gold and a mixture of other metals it will be 14 karat; and if an item is made of forty two percent gold and a mixture of other metals it will be 10 karat.

A mixture of gold and other metals also gives gold some of its different colors. Some examples of this are rose gold which is usually a mixture of gold and copper; and white gold which is usually a mixture of gold and nickel or palladium. Electronic gold testers will usually be able to detect the amount of gold in these alloys. Finding out if something is made of gold is easy if you have the right tools or know the right techniques to do so.

Gold And Fiat Currency

Gold in history has been used as money. The reason for this is the properties gold possesses to make it ideal as a medium of exchange. Some of these properties are gold’s ability to hold wealth; the fact that gold does not rust or tarnish; gold’s rarity, gold’s ability to be combined, gold’s ability to be divided and the fact that pure gold is the same no matter when or where it was mined.

Fiat Currency on the other hand when used in history was always for a short time and ended up becoming worthless in less than one hundred years. The reason for this is the issuer or issuers of fiat currency can never know if they are issuing too much or too little currency until it is too late. Also when fiat currency was used rulers or governments had to use coercion to keep people from rejecting it as payment.

Gold takes desired work to get out of the ground and this keeps the purchasing power of gold relatively stable. If there is too much gold mined at any given time the price or purchasing power of gold will temporarily go down. This in turn will cause less gold to be mined because of the smaller profit margins. If there is too little gold mined at any given time the opposite will happen.

Gold has been used as money because of its time tested reliability to keep its purchasing power. Even when a manufacturer ceases to exists, the gold coins or gold bars they produce will still hold wealth. This feat is something that fiat currency usually can not follow. Gold is not only superior to fiat currency; history has shown if a people have the liberty to choose between the two, gold will usually come out the winner.

The Benefits Of Investing In Gold

Gold is an investment with many benefits. One benefit of investing in physical gold is the low to no maintenance cost. Gold unlike many other investments can be kept without paying any additional funds. If you have your own safe, keeping the gold is basically maintenance free. Another benefit of investing in physical gold is the low risk compared to other investments. Gold has intrinsic value and will not become worthless because of mismanagement or a company going out of business.

One other benefit of investing in physical gold is the privacy of gold compared to other investments. In most nations you don’t have to disclose how much physical gold holdings you have or where you store your physical gold. By having a private investment like gold the risk of it being confiscated because of a change in law or any other situation, is lower compared to other investments.

One last benefit of investing in physical gold is its ease to liquidate. Most places that sell gold usually also buy gold. Another reason why gold is easy to liquidate is the fact that the spot price of gold is easy to find out at any given time. The spot price usually can give buyers and sellers a rough guess if their getting a good price or not. An investor can also do research on a specific gold coin or gold bar to know the current fair price for the item. Physical gold not only is a safe investment, it is also an investment with a lot of benefits.

Can Gold Become Worthless

To answer the question can gold become worthless; it is important to understand the nature of wealth and value. The essence of wealth is desired work. If a person’s only wealth was currency, but no one was willing to trade any services (it takes desired work to perform services) or trade any goods, (it takes desired work to produce or cultivate goods) for that currency, as long as that person isn’t willing to do any desired work; or as long as anyone isn’t willing to do any desired work for that person, that person has no wealth. On the other hand if a person had no currency, but people were willing to perform services or give goods to that person, as long as people are willing to do those things; or if that person did do desired work and traded it, that person has wealth.

The nature of value is subjective and not objective. Just like beauty value is in the eye of the beholder. One person can look at a product and see it as too expensive. In that case that person values the money it takes to buy the product more than the product itself. On the other hand if another person looks at the same product and sees it as a good deal; that person values the product more than the money it takes to buy it. Since people’s views and perceptions can change at any given time, their value of something can also change at any given time.

Gold’s value like any other product is in the eye of the beholder. There are a number of reasons why gold was and is valued by many cultures and individuals. Some of these reasons are gold’s durability (gold does not rust or tarnish), gold’s beauty (gold has a distinctive color), gold’s rarity (gold is rare enough to be used as money but not too rare to make it impractical), gold’s weight (gold is dense and hard to counterfeit), gold’s uniformity (pure gold is the same no matter where or when it was mined), gold’s fluidity (gold cam be made to be any shape and can be divided or combined), gold’s ability to hold wealth (gold has held wealth for over six thousand years).

These qualities and many more are some of the reasons why people value gold. To answer the question can gold become worthless; anything can become worthless if no person is willing to do or trade desired work for it. Gold with its six thousand year track record and the fact that no civilization that accepted it ever turned around and then rejected it; shows that gold becoming worthless is highly unlikely.

The Different Categories Of Gold Coins And Gold Bars

The different categories of gold coins and gold bars can determine the price of the physical metal. The categories can be differentiated by several factors. One factor is the way a coin or bar is manufactured; another factor is the rarity or what circumstances a coin or a bar has been through. The first category of gold coins is gold bullion coins. Gold bullion coins are gold coins that are usually a little above the spot price of gold. Gold bullion coins are the best way to buy the most physical gold for your money in a coin form.

The next category of gold coins is numismatic gold coins. Numismatic gold coins are coins that for a number of reasons are worth significantly more then its weight in gold. Some reasons can be the way the coin is manufactured, the age, the circumstances the coin has been through or the rarity of the coin. Gold bullion coins can also become numismatic coins over time depending on its age, rarity or the circumstances it has been through. The last category of gold coins is proof gold coins. Proof gold coins are gold coins that are struck with specially treated dies to give the coin a detail and mirror like finish. Some proof gold coins are even double struck to give the coin more details. Proof coins are usually collectibles and is considered a kind of numismatic coin.

The first category of gold bars is gold bullion bars. Gold bullion bars are similar to gold bullion coins in the aspect of usually being a little above the spot price of gold. Most gold bars will usually fall under the category of gold bullion bars. Gold bullion bars are also one of the best ways to buy the most physical gold for your money in a bar form. The next category of gold bars is ingots. Ingots are gold bars that are manufactured by pouring molten gold into a mold. Ingots can come in sizes as large as four hundred troy ounces, to as small as one gram.

Ingots that are one to twenty grams are usually known as chip gold. Chip gold usually comes in a credit card like seal to make it easily more identifiable. The last category of gold bars is numismatic or rare gold ingots. Rare gold ingots are usually not for sale and can be found in museums. Some aspects that can make these gold ingots special are the historic significance they hold. Gold coins and gold bars are the best ways to invest in physical gold. By knowing the different categories, it can make investors aware of the many options they have.

Gold And Currency Collapse The Worst Case Scenario

There are many reasons why it’s a good idea to invest in physical gold. One of these reasons is the historic fact that gold is one of the only assets that can hold its value during a currency collapse or a systemic economic breakdown. In the wake of current events many governments around the world are creating an unprecedented amount of currency to prop up insolvent institutions. The consequence of this form of governmental intervention in the markets is not only making investors leery of these institutions, but also is one of the main reasons why every nation’s currency is falling when compared to gold and other physical assets. The essential problem with the world economy is nation’s monopolistic adoption of fiat currency and central banking. These two unsustainable practices have been so integrated and institutionalize in most nation’s economies, that the notion of insinuating that they are the cause of the problems can not be fathom.

The worst case scenario is nations with their attempts to prop up an unsustainable central banking model, will hastily collapse another unsustainable model; fiat currency. As more and more currency is created in an attempt to keep trust in the banking system, and as businesses find it more difficult to secure credit; governments will likely adopt rules for banking institutions to loan out money. These rules will apply to banks that got loans from the government. This will cause banks to loan out money that they otherwise would not have because of the economic situation. With this scenario banks that did not take any government loans will have to also make loans or take government loans to compete. This will cause inflation, and as prices of goods and services rise rapidly and more banks ask for government assistance; the trust in the currency and the banking system will ultimately collapse.

This scenario being the worst case scenario is more likely to happen than governments allowing its citizens to opt out of the central banking and fiat currency systems. Some ways governments can allow it citizens to do this is by allowing free market competition to these systems. The only way to opt out is to invest in assets that are independent of these two systems. Gold bullion is one of the best ways to store wealth independent of fiat currency, central banking or governmental institutions. In fact history has shown when all fails only things with real value remain, be it time tested institutions or assets. Extra Ecclesiam nulla salus.

What Makes Gold Unique

Gold has played a large part in human history, from ancient Egypt to the Roman Empire. The reason for this is the unique qualities that gold possesses. One quality that gold possesses is its resistance to corrosion. Gold does not rust or tarnish, this is one of the reasons why gold has and is used by many cultures as jewelry. Another industry gold is used because of its resistance to corrosion is electronics. In fact most computers have some traces of gold in them.

Another quality that gold possesses is its ease to shape. This is also another reason why gold is popularly used as jewelry. One other industry gold’s ease to shape comes into play is the striking of coins. Gold because of its softness is the main reason why some gold coins use an alloy of other metals. These other metals make the gold coin harder and more resistant to scratches. Gold because of its ease to shape was use by many civilizations to make statures and other figures. In fact most religions today use gold in some way to help with their ceremonies.

One last quality that gold possesses is its rarity. This is one of the reasons why gold was and is used as money. Gold’s rarity is unique that it is rare enough to be seen as special but not too rare to make its implementation as money, jewelry, in electronics and other applications viewed as impractical. Gold because of its resistance to corrosion, its ease to shape, and its rarity, makes it one of the most unique metals ever to be used.

Why No Stimulus Package Will Ever Work

I see from time to time talks of governments needing to spend money on various projects to help the ailing economy. The tragic part of this belief is that it allows governments to continue to practice the same policies that got us in this mess. What got us in this mess are things like central economic planning, fiat currency, fractional reserve banking, central banking, legal tender laws, over taxing and overgrown government. It is hard to imagine governments giving up some of its power for the good of its people, who ultimately are their masters. The problem is caused by governments and central banking, so there for the solution is not for them to solve. In fact all seven things I mention above that got us in this mess can be solved by governments doing less not more.

The reason why no stimulus package will ever work is the fact every time governments collect revenue and spend it, it is more wasteful and less effective than people spending it or saving it for themselves. Imagine every time you got paid your money was given to a person to spend it for you. If this person charge you for every expense plus took a ten percent fee for every product they bought for you; would this arrangement be more beneficial to you than you buying the things for yourself?

This is roughly what governments do. Governments have to pay the people who collect the taxes, the people who spend the taxes, the people who supervise them, the people who decide how the taxes should be spent and more. Even if you have a government that was less wasteful and had no corruption, it still would not be as efficient as people spending their money for themselves. Another problem is even if governments reduces its size and collect fewer taxes, it still will use fiat currency and central banking. The system of central banking, fractional reserve banking and fiat currency is unsustainable and doom to collapse. Instead of stimulus packages what governments need to do is get out of the way and allow people to opt out of these failing systems.

Why No Nation Uses The Gold Standard

There are many reasons why no nation uses the gold standard today; one of them is not that the fiat, central banking system that most nations have in place today is superior. In fact a gold standard would work better than any fiat system for the simple fact that gold back money would never become worthless. So if the gold standard is superior why no nation uses it today? You ask; there are two reasons for this. The first reason is that fiat currency gives the government the ability to inflate the currency. This in essence gives the government the ability to secretly tax its citizens through inflation. The other reason is that the gold standard alone is not enough to stop governmental manipulation of the economy.

If a nation has a gold standard and some people within or outside of government wanted it gone for their own benefit, there are three options they can do. The first option is to raise taxes; by raising taxes businesses will in turn raise the price of goods and services in order to stay profitable. The price increase would cause less goods and services to be able to be purchase at that given time. Next step is to blame it on the gold standard and say things like “we need a more elastic kind of money, to help the people of course”.

The second option is to get the government to implement a central bank. Use the central bank to raise interest rates. By raising interest rates high, people would spend less and invest less, because the better option would be to keep the money in the bank and get a higher return. Also businesses would have less income; some may even go out of business if implemented long enough. Like the first option, blame it on the gold standard and say things like “we need a more elastic kind of money, to help the people of course”.

The last option is to slow the minting of coins and printing of certificates to a stand still (in this case it is necessary for the government coins and certificates to be the only legal tender). After a while less and less money would be in the system, causing businesses to have less income and like mention be for some would even go out of business. You can guess the rest, blame it on the gold standard and say things like “we need a more elastic kind of money, to help the people of course”.

All three of these options do one thing, soak up the money supply. All a government has to do is to implement all three simultaneously and blame the gold standard to get the system that is most beneficial to them. The devious part is that most of the time the new system is even easer to manipulate than the gold backed system. With the gold back system banks have a shorter time limit on how high or low they can keep the interest rates. The reason for this is if banks keep interest rates too high for too long the bank’s gold would be paid out to the customers. If too much of the bank’s gold is paid out, the bank would start to default on the interest rates they pay to their customers and then they would most likely go out of business.

If interest rates are too low for too long less people would keep their money in the bank and the banks would take in less profits or even take a loss. With a fiat currency, central banking, fractional reserve system the banks can manipulate the economy easier by creating money out of thin air anytime someone takes out a loan. This also would allow banks the ability to keep interest rates too high or too low for a longer period of time compared to money backed by gold.

Government benefits because of the ability to grow larger without having to overtly raise taxes. If this is not bad enough, the fiat currency, central banking, fractional reserve system is not sustainable, it will eventually implode on itself when the fiat currency becomes worthless. The main reason why no nation uses a gold standard is it can be made to look bad, and governments love a system that gives them more power no matter how unethical, unsustainable or unstable that system might be.

Buying Gold Coins And Gold Bars Online

With the rapid growth of the internet buying gold coins and gold bars online has become easier than ever before. Before buying from an online dealer there are some things you should know. One thing you should know before purchasing physical gold online is the reputation and the reliability of the person or the site you intend to buy from. The reason for this is it will save you from doing business with a company or a person that has a reputation of unreliable or unethical business practices.

Another thing you should know before purchasing physical gold online is the kind and size of the gold coin or bar. It is important to carefully read any description of the gold coin or bar to make sure that you are indeed buying the right kind and size. The reason for this is some gold coins may look alike, but be different because of certain features. An example of this is proof coins. Proof coins from an online picture may look similar to its generic counterpart but one may be classified bullion and the proof coin classified as a collectible.

One last thing you should know before purchasing physical gold online is the kind of return policy if any a site may have. It is recommended to only buy gold from people or businesses that have a return policy. The reason for this is for your own safety. It is recommended to know the weight and weigh every gold coin and bar you buy online as soon as it is shipped to you. With a return policy if there is some misunderstanding, you will always have the option of a trade or getting your money back. Buying gold coins and gold bars online is relatively safe to do, but if you follow some of the things here it will become even safer.

Protect Your Wealth With Gold

Physical gold is one of the best ways to protect your wealth from any economic downturn. The reason for this is gold has a track record that spans well over five thousand years of holding wealth. Gold has the property of holding and storing wealth because it takes desired work to mine more gold. Desired work is, in essence wealth. The reason why any good or service has any perceived value is the desired work that it takes to produce, cultivate or perform that good or service. Fiat currency and anything that is backed up by fiat currency is subjected to government and central banking policies to keep and hold wealth. Since fiat currency can be created independent of desired work, usually more fiat currency will be created than the production of goods and services. When more fiat currency is created than the production of goods and services it causes inflation.

Gold being a good that takes desired work to mine has a limit on how much that can be produce at any given time. Also if more gold is produce at a given time than the growth of other goods and services, the price of gold will fall and less gold will be produce. If less gold is produce than the growth of other goods and services the opposite will happen, keeping gold’s relative value stable. Fiat currency doesn’t keep its purchasing power for long compared to gold and other precious metals, in fact history has shown that once a government unties its currency from any physical asset the currency becomes worthless in less than one hundred years.

With physical gold your wealth is not subjected to government and central banking policies, barring an all-out governmental theft of gold. If the main reason for investing in physical gold is to protect your wealth it is recommended to invest in gold bullion. Gold bullion is gold coins and gold bars that are usually a little above spot price. With gold bullion you get more physical gold for your money compared to numismatic gold coins and any other uniform forms of physical gold. Protecting your wealth from inflation or any other economic downturn does take some planning; with physical gold you will have an asset that has a track record of protecting wealth.

What Size Gold Bullion To Buy

Gold coins and bars are two of the best ways to invest in physical gold. A question that comes up from time to time is what size gold bullion to buy. If you buy bullion in small sizes you will usually pay a higher markup for manufacturing and if you buy bullion too large it will be more difficult to liquidate when the time comes.

It is recommended that you buy gold bullion in one troy ounce. The reason for this is one troy ounce is the size that’s popular with most investors. If you buy the kind of gold bullion and the size of gold bullion that is popular with investors in your area, the easier it will be to liquidate when the time comes if you ever decide to sell any of your gold bullion.

Another reason why one troy ounce is recommended is the fact that one troy ounce is the size that the spot price of gold is measured in. If you know the spot price and know the markup for all your one troy ounce bullion, it will be easier to calculate the worth of your investment in any currency. One last reason why one troy ounce size is recommended is usually that’s the largest size most gold bullion coins are manufactured in. No matter what size or kind of gold bullion you decide to invest in, the most important part is to know what will be the easiest to liquidate when the time comes.

How To Stimulate The Economy

To understand how to stimulate the economy it is important to know what some of the restrictions that hinder it. I will try my best to shine some light on the two major problems and not the symptoms. The two major problems are a centralized monetary system and a centralized banking system. There is no way to have a sustainable economic recovery if these two systems alone are in place. The major flaw with a centralized monetary system is that there is no way that the organization behind it can tell if there is too little or too much currency in the system until it’s too late. If there is too much currency in circulation, prices go up and individuals on a fix budget will usually have to lower their standard of living or go into debt to maintain their current life style. If there is too little currency in circulation, prices go down and businesses profits shrink which in turn causes layoffs.

There is a similar major flaw with a centralized banking system. With a central banking system dictating the actions of all banks in a given nation, the centralized organization can control the money supply. Some ways they can do this is by raising or lowering interest rates or reserve requirements. It is impossible to have a free market if the medium of exchange and the supply of it is control by a central organization. What should be proposed to stimulate the economy is the decentralization of the monetary and the banking system. Some ways of doing this is to allow any individual or business the ability to practice the right of issuing their own currency once it’s backed by their goods and services and valued in silver or gold. Since it would be valued in silver or gold and backed by goods and services, its purchasing power would not be so easily manipulated by the issuer. Also with this anyone should have the right to reject any currency they did not issue themselves (even government currency).

The other thing that should be proposed to stimulate the economy is to allow any individual or business the ability to start up their own bank like entity. This bank like entity should be unregulated by government or the central banking system. The only government involvement in these two activities should be in the case of fraud, which then it should be handled by the court system. Also these two activities should be tax exempt. Private currency and decentralized banking should not be forced on everyone, but the people who wish to opt out of the centralized system most nations have in placed today, should have the opportunity to do so.

What I believe would happen is the private currency would allow businesses to use their production of goods and services to build up equity and be more independent of the banking sector. Also with these more stable and independent businesses, the decentralized banks would have to compete and come up with the best and safest services to attract capital. What needs to happen to stimulate the economy is not governments and central banks involvement; but to them to get out of the way and allow individuals and businesses the ability to opt out of the centralized monetary and banking system that is the root of the problem.

Is Gold A Safe Investment

Gold is one of the safest investments out there; the reason for this is gold has intrinsic value and will not become worthless because of human error unlike a stock. In fact gold coins and bars still retain value even when the organization that minted it goes out of business. Physical gold unlike other assets does not take any additional funds to maintain if you store it yourself. Also some gold coins can build numismatic value over a period of time.

Another reason why gold is a safe investment is gold’s ability to protect wealth from inflation. Since it takes desired work to mine more gold there is a limit on the amount of gold that can be added to the gold supply at any given time. Other assets that can be duplicated without desired work are prone to being diluted and can become worthless because of increased volume.

One last reason why gold is a safe investment, is gold’s ease to liquidate. Gold is one of the easiest assets to sell. Most places that sell gold will usually buy gold. With the advent of the internet there are many sites you can sell gold to. Also with auction sites and classified sites, finding investors to sell your gold to has never been easier. Gold because of its intrinsic value, its ability to protect wealth from inflation, the limit on how much that can be mined and its ease to liquidate, makes gold one of the safest assets an investor can have.

Gold Coins Or Gold Bars, Which To Invest In

Gold coins and gold bars both have different advantages over each other when it comes to investing in one or the other. To some investors these advantages are the reason for choosing one over the other. To other investors these advantages may be miniscule and will invest in both. Gold coins and gold bars are the most popular ways most investors invest in physical gold.

One advantage an investor may choose to invest in gold coins over gold bars is gold coins ability to build numismatic value over time. Since gold coins are struck with a date on them, the older a coin is usually the more numismatic value it will build. Another reason an investor may choose to invest in gold coins over gold bars is the governmental status of a coin. If a coin is minted by a government it will usually be widely accepted by investors in that nation.

One advantage an investor may choose to do the opposite and invest in gold bars over gold coins is the lower manufacturing cost to produce gold bars. Since gold bars are less expensive to manufacture investors usually get more gold for their money compared to gold coins. Another reason an investor may choose to invest in gold bars over gold coins is the ability of buying older bars with out paying for numismatic value. Gold coins and gold bars are both great ways to invest in gold; it is ultimately up to the investor if they choose to prefer one over the other.

Buy Gold Ingots, Is Gold Ingots A Good Investment

Gold ingots are gold bars that are made by pouring molten gold into a mold. Gold ingots come in many different sizes from one gram to four hundred troy ounces. The smaller gold ingots are known as chip gold. Chip gold usually comes in a credit card like seal. This seal is one of the ways the manufacture of the ingot can authenticate it. It is recommended that you never remove the gold ingot from its credit card like seal.

Chip gold sizes usually range from one gram to twenty grams. Since chip gold comes in smaller sizes compared to other forms of gold bullion, it is more affordable for someone to purchase that doesn’t have a lot of capital to invest. The drawback with chip gold is that compared to larger bullion you are paying a higher mark up for manufacturing. Chip gold is only recommended if you can not afford the larger bullion but want some gold in case of an emergency.

Just like any other form of gold it is recommended that if you do decide to buy gold ingots that you research any company you buy from before you purchase. Gold is a good investment if you are looking to protect your wealth from inflation or any other economic downturn. Gold is also one of the easiest assets to liquidate when the time comes. With the advent of chip gold even if you don’t have a lot of money to invest there is still a way to purchase physical gold.

A Solution To The Economic Crisis

The main reason for the economic crisis is central economic planning, central banking and fiat currency. Once these three things are in place, anything a nation does to try to fix the problem will ultimately fail. To the contrary of conventional thinking this is not a problem with the free market, no nation in the world has anything close to resembling a free market. Once a nation has a central bank, the ability to raise and lower taxes at will, a monopolistic control of the money supply, legal tender laws and fiat currency its economy is anything but free.

The solution is to abandon central economic planning, central banking and fiat currency. Ways of implementing this solution is not just to teardown the old system but to allow individuals to opt out of it. A way to opt out of the central banking system and the fiat currency system is to allow individuals to create independent and autonomous “bank” like entities; also to allow individuals the ability to issue their own currency once it’s back by their goods and services and valued in silver or gold. (Individuals would have the right to refuse to be paid in any currency they have not issued themselves).

To stop government from interfering with these two activities they should be both tax exempt and unregulated. The only exception is in the case of fraud which then it should be handle by the court system. These two activities being tax exempt and unregulated should always be caveat emptor "Let the buyer beware" or in this case let the user beware. It would be up to individuals to assess a business goods, services and practices before accepting its currency; also it would be up to individuals to assess a “bank” like entity services and practices before using them. As mention before in cases of fraud there is the court system but to save time and trouble caveat emptor.

The results of implementing this solution would be businesses having the ability to produce goods and services and create equity. Businesses would know longer depend on banks; banks would now depend on businesses. Another result of implementing this solution would be that “bank” like entities would compete with each other to be more open and transparent to show potential customers that their currency would be safe in their hands. This solution would revitalize local economies when local businesses circulate and accept each others currencies; also “bank” like entities would likely create debit cards to make online and off line shopping more convenient. The economic crisis would slowly dissipate and become a thing of the past with this permanent, innovative and most importantly free market solution.

For more in-depth details on this subject I would refer to two older posts Why The Gold Standard Is Not Enough and Why Everyone Should Be Able To Issue Currency , they are long reads but do go into great detail.

Gold And The Death Of Centralization

Gold coins and gold bars for the pass eight years have been going up consecutively compared to the US dollar. Meanwhile The Federal Reserve is trying all the tricks they can to try to save its insolvent central banking system. What is being witness is the slow death of anything over grown and centralized. The reason for this is fiat money, fractional reserve banking, and central banking is not sustainable and never will be. Naturally any institution that benefited the most from this system or depend on it will also be affected by its slow demise.

Physical Gold and any other assets that can hold wealth even when the economic situation is deteriorating is some of the best ways to protect yourself. Centralization is one of the results of central banking. With central banking comes the growth of government and the overly dependence on government. The reason for this is when governments can borrow at will the people within government are usually tempted to use the power to borrow to “solve” problems that governments have no business solving.

Also with a fiat system any money that is borrowed or created is a tax on everyone through inflation. The institutions that have been prosperous artificially because of easy credit or government subsidies will have to find a way to produce real profits or become insolvent. With the climate of looking to government for help and not looking how to become independent of it, I think a lot of overgrown and overly centralized companies will not adapt but like most central banks reach their slow demise.

Why Everyone Should Be Able To Issue Currency

As an advocate of allowing anyone to issue their own currency once that currency is backed by goods and services and valued in silver or gold, I see some people are reluctant to agree with this concept. The reason for this is the notion of others creating currency and not backing it by anything. In a free market where anyone can issue their own currency once it fits the criteria mention above and people are allowed to reject any currency they have not issued themselves; such a system would be for the most part self-regulating. Naturally like every other aspect of commerce if there is fraud involving private currency it should be resolved in a court of law. The reason a system like this would be self-regulating is the fact that it would be beneficial for any business or person to have the ability to use their inventory or man power as a liquid asset to acquire even more goods and services. The last thing a business or person would want is to have people reject their currency and have people accept their competition’s own. The disadvantage would mean the competition having the ability to expand and grow faster.

Some other reasons why people would be reluctant in allowing anyone to issue their own currency is the amount of different currencies that would be floating around. These currencies would be valued in silver or gold, so it would be fairly easy to compare them to each other. Also companies or private institutions would spring up that would rate or ask businesses to voluntary abide by certain guidelines in order to receive a stamp of approval or a certification for their currency. An example of a system like this is the privately owned Underwriters Laboratories Inc. and their testing and certification of products most of us used today. Other companies or private institutions that would spring up would document which businesses accept each others currencies.

Some last reasons why people would be reluctant in allowing anyone to issue their own currency is the thought that it would lead to inflation; the belief that government currency would be superior; the belief that gold or silver backed currency would be superior; the thought that a business would go out of business leaving people holding the bag; or the risk of counterfeiting. I will try my best to address all of these. The occurrence of inflation would be unlikely because these private currencies would be backed by something, also businesses would be limited to the amount and value of their goods and services they have or can produce pertaining to their worth in silver or gold . If a business or person did decide to issue more currency than the goods or services they have or can produce in a timely manner, two things would likely happen. One they would have to raise the prices of their goods or services to soak up the extra currency, or two have long lines or empty shelves. Both scenarios would hurt the business in the long run and allowed their competition an advantage.

The aspect of believing that government, gold or silver backed currency would be superior can be answered with one answer. If anyone believes a certain type of currency to be superior they can refuse to be paid in anything other than the currency they trust. Governments would just lose the ability of forcing people to use government currency if they wish not to. The availability of gold and silver backed currencies should be widespread because of mining companies. If mining companies issued their own currencies there is a good chance that it would be backed by what they mined, so gold and silver backed currencies would also be in circulation. The risk of businesses going out of business and leaving people holding the bag can be alleviated by the court system or insurance. Also because of the fact that the currencies are backed by something, if the business is honest it will satisfy its currency before it closes up shop for good. Compare this to the scenario of an entire nation’s currency collapsing where alleviating the situation is much more difficult to say the least.

Last but not lease the risk of counterfeiting. The risk of counterfeiting would be reduce because businesses would be able to use their own authentication techniques and also be able to know the serial numbers of all the currency that they issued that is in circulation. Allowing anyone to issue their own currency once that currency is backed by goods and services and valued in silver or gold is in reality less risky than it sounds, in fact it is less risky than the fiat system most nations have in place today.

Underneath is the amendment that would list how a nation can go about allowing anyone to issue their own currency once that currency is backed by goods and services and valued in silver or gold. (Note I don’t believe rights are given by government but are given by God).

Amendment 28

Every corporation and person with a good or service shall have the right to issue their own currency back by their goods and services. This currency must be valued in silver or gold and must be treated as legal tender by the corporation or person who has issued the currency. Any corporation or person shall have the right to refuse the payment of any currency they have not issued their selves. No government, corporation or person shall have the right to stop a corporation or person from issuing currency once that currency is back by their goods and services and valued in silver or gold. If a corporation or person issues currency and do not have the goods or services to back it, the corporation or person's assets must be seize and given to the holder or holders of the currency until the currency value is fulfilled. If a corporation or person issues currency and do not have the goods or services to back its currency because of natural disaster or fire, that corporation or person shall have thirty years to fulfill the currency. If a person dies or a corporation is disbanded assets from that person or corporation must be given to the holder or holders of the currency until the value of the currency is fulfilled. No government shall tax currency issued by a person or corporation in anyway.
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