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.
How To Save Money When Buying Gold Coins And BarsThe Benefits Of Saving In GoldWhat Kind Of Gold Bars To BuyWhy Any Fiat Super Currency Is Doom To FailCan Gold Confiscation Happen AgainCan Gold TarnishThe Counterparty Risk Of Gold Compared To Other InvestmentsHow Are Gold Bars MadeGold And Silver, The Differences When InvestingWhy All Fiat Currencies Eventually Become WorthlessBuying Gold From A Dealer, Important Things To KnowThe Goal Of Investing In GoldThe Price Of Gold, The Ways To Determine ItKeeping Your Gold Safe From Theft And ConfiscationHow Are Gold Coins MadeWhat Are Proof Gold CoinsGold And Financial PrivacyHow To Tell If Something Is Made Of GoldGold And Fiat Currency ~ The Gold Blog