What gives gold its value is what gives anything its value, which is desired work. If something took a little bit of desired work to obtain, it would be perceived by most people as less valuable than something that took a lot of desired work to obtain. Gold not only takes a lot of desired work to obtain but because of gold’s properties it is one of the best mediums of storing, holding, combining and dividing desired work. Desired work is wealth. If something is widely desired but takes little work to obtain most people would not trade a lot of desired work i.e. wealth for it, an example is a glass of water. Also if something is not widely desired but takes a lot of work to obtain most people still would not trade a lot of desired work for it, an example is a ton of sand.
What makes something valuable to an individual is how much they desire it plus how much work they perceive it would take to obtain it. Since every individual has different desires and different perceptions at any given time, value is something that is subjective and not objective. That being said what made individuals over the span of millenniums and even today desired gold? To answer this question you would have to ask each individual why they desired gold.
Some reasons why people desire gold is its beauty (gold has been used as jewelry, decorations and art by many different cultures and civilizations); its uniformity (pure gold is the same in quality, weight, color, no matter where or when it was mined); its durability (gold does not rust, tarnish or age); its fluidity (gold can be combined, divided and easily shape); its quantity (gold is not too rare that it takes too much desired work to obtain but not too common that it takes too little desired work to obtain); its portability (gold is a practical way to carry a large amount of desired work i.e. wealth in a small package); its reputation (gold has a dependable track record of storing and holding desired work i.e. wealth over time). Any of these reasons can be why an individual may desire gold. Also the properties that gold have makes it an ideal medium of exchange. So the answer to the question what gives gold its value is individuals desire for it and the work it takes to obtain it.
Will Gold Go Up Or Down
To predict what gold is going to do in the future is to have certainty of all aspects of human actions. It is impossible for someone to know what the price of gold is going to do from time to time. The best someone can do is to learn from the past to give them some clues on what gold is likely to do. That is what I will attempt to do. All fiat currencies become worthless in less than one hundred years. The world got off of the Bretton Woods system in the year 1971. This means if no government ties its currency to something physical they all will become worthless before 2071.
Today we are having an economic crisis and governments/central banks are creating more money to prop up insolvent businesses. From a first glance most people will look at this and say this should make the price of gold skyrocket. One thing that is over looked is banks are not loaning out as much as they did in the past. Banks when they loan out money create more currency (credit digital money) than central banks. Since banks have tightened up their loaning practices because of fears of people or businesses defaulting, the money supply is not growing as fast as real wealth (desired work/goods and services). This means prices will stay the same or fall.
Now what I see is people suggesting that governments force banks to lend. I predict when this happens and banks are force to lend for taking money from the government, this will be an inflationary disaster. The money that was used to prop up insolvent businesses will now be used with the fractional reserve system forcing the price of gold and everything up. When I say everything I mean everything even houses. People who manage to keep there jobs will see more of their money going to food and energy because of higher prices. So my prediction is gold will go up but don’t look for it to go up significantly until governments force banks to lend. I hope that I am wrong but this is what I think is likely to happen.
Today we are having an economic crisis and governments/central banks are creating more money to prop up insolvent businesses. From a first glance most people will look at this and say this should make the price of gold skyrocket. One thing that is over looked is banks are not loaning out as much as they did in the past. Banks when they loan out money create more currency (credit digital money) than central banks. Since banks have tightened up their loaning practices because of fears of people or businesses defaulting, the money supply is not growing as fast as real wealth (desired work/goods and services). This means prices will stay the same or fall.
Now what I see is people suggesting that governments force banks to lend. I predict when this happens and banks are force to lend for taking money from the government, this will be an inflationary disaster. The money that was used to prop up insolvent businesses will now be used with the fractional reserve system forcing the price of gold and everything up. When I say everything I mean everything even houses. People who manage to keep there jobs will see more of their money going to food and energy because of higher prices. So my prediction is gold will go up but don’t look for it to go up significantly until governments force banks to lend. I hope that I am wrong but this is what I think is likely to happen.
Collecting Gold Coins Old And Rare
Collecting old or rear gold coins can be an outstanding hobby or investment. There are some things you should know before ever buying gold coins for the purpose of building numismatic value. One thing you should know is the past performance of the coin or coins ability to build numismatic value. Some other things you should know is the rarity and age of any gold coin you are looking to buy. With numismatic gold coins the price of a coin can change depending on what year it was minted. Usually the older a coin is the more it will appreciate compared to similar newer minted gold coins.
It is important to research as much information on a particular coin to know what kind and what date of that gold coin you are interested in. Some gold coins have special kinds of coins called proof coins. Proof coins are struck with specially treated dies and usually double struck for a more detailed and mirror like finish. These coins are usually more expensive and rarer then its generic counterpart. Also some gold coins are only struck as proof sets.
The spot price of gold usually has little to no effect on the price of numismatic gold coins. The reason for this is that numismatic gold coins are worth more than its weight in gold. In some rare cases if the spot price of gold moves up or down significantly it can affect newer and less rear numismatic gold coins. As in the case of any gold you buy it is recommended that you research the company you buy your coins from before purchasing. Also if any of your numismatic coins come in a protective case it is recommended that you never remove from that case. Collecting gold coins can be a profitable hobby or investment if you research and know the right kinds and right price of coins to buy.
It is important to research as much information on a particular coin to know what kind and what date of that gold coin you are interested in. Some gold coins have special kinds of coins called proof coins. Proof coins are struck with specially treated dies and usually double struck for a more detailed and mirror like finish. These coins are usually more expensive and rarer then its generic counterpart. Also some gold coins are only struck as proof sets.
The spot price of gold usually has little to no effect on the price of numismatic gold coins. The reason for this is that numismatic gold coins are worth more than its weight in gold. In some rare cases if the spot price of gold moves up or down significantly it can affect newer and less rear numismatic gold coins. As in the case of any gold you buy it is recommended that you research the company you buy your coins from before purchasing. Also if any of your numismatic coins come in a protective case it is recommended that you never remove from that case. Collecting gold coins can be a profitable hobby or investment if you research and know the right kinds and right price of coins to buy.
Deregulation Of Banks, The Myths About The Economic Crisis
From time to time I read or hear people blaming the economic crisis on the deregulation of banks or the free market. I understand some people heard this on T.V. or on the Web but it can’t be further from the truth. Most banks in most nations are not free or deregulated; most are controlled by a central bank. In fact if you wanted to start up a gold bullion bank where you don’t charge interest and don’t practice the act of fractional reserve banking, in most cases it would be impossible. The reason for it being impossible is not because a business model of a gold bullion bank is impractical; it is because the central banks which get its power from government don’t like anything to remotely threaten its monopolistic control over most banks.
Let me give an analogy. Imagine there was a nation where every cookie factory was regulated by a central cookie factory. The central factory told every cookie factory what and how much ingredients to put. Then one day the central factory loosened up one of its rules when it comes to the ingredients. The rule was you are now allowed to put as much sugar as you like. Since sugar being one of the expensive ingredients, most factories used less of it and started making horrible cookies. Can someone in this case say it was the lack of regulation and the free market that made the horrible cookies? Can someone say if a cookie company was not regulated and used its own ingredients those cookies would always be horrible?
This is the same thing like blaming the economic crisis on the lack of regulations on banks or the free market. The only difference is in this analogy the operation of the central cookie factory is somewhat sustainable. Now imagine the central factory dictating to all factories on how much cookies they can make. No matter how much profits or losses each factory has, they must make the same amount of cookies. What do you think will happen? Factories will go out of business because of making too much or too little cookies compared to the profits or losses they make. Now I will make a list on some of the regulations most banks have on them.
1. Must use fiat currency (Gold coins or Gold bars are out of the question and with fiat currency banks have to use it as soon as possible or lose profits through inflation.)
2. Fractional reserve banking (Must lend out more money than they have/ create money out of thin air.)
3. Interest rates are somewhat uniformed. (If a bank has to used the central bank or other banks to get currency they can not have interest rates too low or will take a loss.)
4. Give out risky loans or face penalties. (This is becoming less of a rule these days but was emplaced nonetheless.)
So the reason for the economic crisis is not the lack of regulations or the free market. In fact it’s the opposite. What mainly caused the economic crisis are three things. 1. The lack of real competition in the banking sector. 2. The unsustainable use of fiat currency. And 3. The Central control of the banking system. All three can be put at the foot of government and not the free market.
Let me give an analogy. Imagine there was a nation where every cookie factory was regulated by a central cookie factory. The central factory told every cookie factory what and how much ingredients to put. Then one day the central factory loosened up one of its rules when it comes to the ingredients. The rule was you are now allowed to put as much sugar as you like. Since sugar being one of the expensive ingredients, most factories used less of it and started making horrible cookies. Can someone in this case say it was the lack of regulation and the free market that made the horrible cookies? Can someone say if a cookie company was not regulated and used its own ingredients those cookies would always be horrible?
This is the same thing like blaming the economic crisis on the lack of regulations on banks or the free market. The only difference is in this analogy the operation of the central cookie factory is somewhat sustainable. Now imagine the central factory dictating to all factories on how much cookies they can make. No matter how much profits or losses each factory has, they must make the same amount of cookies. What do you think will happen? Factories will go out of business because of making too much or too little cookies compared to the profits or losses they make. Now I will make a list on some of the regulations most banks have on them.
1. Must use fiat currency (Gold coins or Gold bars are out of the question and with fiat currency banks have to use it as soon as possible or lose profits through inflation.)
2. Fractional reserve banking (Must lend out more money than they have/ create money out of thin air.)
3. Interest rates are somewhat uniformed. (If a bank has to used the central bank or other banks to get currency they can not have interest rates too low or will take a loss.)
4. Give out risky loans or face penalties. (This is becoming less of a rule these days but was emplaced nonetheless.)
So the reason for the economic crisis is not the lack of regulations or the free market. In fact it’s the opposite. What mainly caused the economic crisis are three things. 1. The lack of real competition in the banking sector. 2. The unsustainable use of fiat currency. And 3. The Central control of the banking system. All three can be put at the foot of government and not the free market.
Gold As A Hedge Against Inflation
There are many reasons why gold is a hedge against inflation. One reason is gold is one of the best mediums of storing desired work i.e. wealth. It takes desired work to mined gold, since this is true there is a limit on the amount of gold that can be mine at any given time. With this limitation and the aspects of less profits for mining companies if the price of gold goes down or more profits and more incentive to mined more if the price of gold goes up, keeps the purchasing power of gold relatively stable.
Fiat government currencies on the other hand all have a trend of losing purchasing power over time. With inflation the number or quality of goods and services you can acquire over time with the same amount of currency is drastically diminished. This is one of the main reasons why some investors are interested in gold. If looking to invest in gold as a hedge against inflation it is recommended to invest in gold bullion. With gold bullion you will get the most physical gold for your money. Gold bullion is gold coins and bars that are usually a little above spot price.
When investing in gold as a hedge against inflation it is recommended that you stay away from numismatic or proof coins. The reason for this is these coins are seen as collector’s items and will usually be significantly above spot price. These coins also will require additional attentive research to know if you are getting a fair price. With gold bullion once you know the spot price and know what similar coins are selling for it can give you some idea of a fair price. Investing in gold is one of the best ways to protect your wealth against inflation or any other economic downturns a society might face.
Fiat government currencies on the other hand all have a trend of losing purchasing power over time. With inflation the number or quality of goods and services you can acquire over time with the same amount of currency is drastically diminished. This is one of the main reasons why some investors are interested in gold. If looking to invest in gold as a hedge against inflation it is recommended to invest in gold bullion. With gold bullion you will get the most physical gold for your money. Gold bullion is gold coins and bars that are usually a little above spot price.
When investing in gold as a hedge against inflation it is recommended that you stay away from numismatic or proof coins. The reason for this is these coins are seen as collector’s items and will usually be significantly above spot price. These coins also will require additional attentive research to know if you are getting a fair price. With gold bullion once you know the spot price and know what similar coins are selling for it can give you some idea of a fair price. Investing in gold is one of the best ways to protect your wealth against inflation or any other economic downturns a society might face.
Gold As A Safe Haven
Gold historically and practically has always been a safe haven from inflation or any economic downturns. The reason for this is gold is one of the best mediums to hold and protect desired work i.e. wealth. Gold unlike fiat government currency has shown to have a track record to outlast even the governments that issued them, when it comes to gold coins. Assets like stocks and bonds usually become worthless when the entity that issued them becomes insolvent. With today’s economic uncertainties physical gold and other precious metals have reclaimed their title as the last safe haven.
If you are looking to invest in gold as a safe haven it is recommended that you invest in physical gold bullion. It is also recommended that you take physical possession of any gold that you purchase. The reason I recommend this is if you invest in gold stocks or gold ETFs you are putting your trust that those businesses are solvent and practicing good accounting standards. With physical gold the price can fluctuate up and down but it will never become worthless because of human action. With most governments inflating their money supply in a futile attempt to save insolvent “too big to fail” businesses; what they are doing in reality whether they realize it or not is encouraging malinvestments and secretly taxing anyone who holds that currency through inflation.
Historically no fiat currency has lasted for more than one hundred years. With the world abandoning the gold standard with the collapse of the Bretton Woods system in 1971; I will make a bold prediction that none, not one government currency will last to see 2071 unless they become backed by some real physical assets. One of the best ways to protect your wealth from a collapsing government currency is to have real physical assets. This is why gold economically will always be a safe haven.
If you are looking to invest in gold as a safe haven it is recommended that you invest in physical gold bullion. It is also recommended that you take physical possession of any gold that you purchase. The reason I recommend this is if you invest in gold stocks or gold ETFs you are putting your trust that those businesses are solvent and practicing good accounting standards. With physical gold the price can fluctuate up and down but it will never become worthless because of human action. With most governments inflating their money supply in a futile attempt to save insolvent “too big to fail” businesses; what they are doing in reality whether they realize it or not is encouraging malinvestments and secretly taxing anyone who holds that currency through inflation.
Historically no fiat currency has lasted for more than one hundred years. With the world abandoning the gold standard with the collapse of the Bretton Woods system in 1971; I will make a bold prediction that none, not one government currency will last to see 2071 unless they become backed by some real physical assets. One of the best ways to protect your wealth from a collapsing government currency is to have real physical assets. This is why gold economically will always be a safe haven.
Where To Sell Gold Coins Or Bars
Many people who are new to investing in gold or looking to invest in gold usually have the same common questions. One of these questions is where to sell gold coins or bars. The answer to this question depends on if you are looking just to sell your gold or you are looking to try to get the highest price for your gold. If you’re looking just to sell your gold or just looking for a place to sell gold when the time comes; I would recommend selling it back to the business you bought the gold from in the first place. Most businesses that sell gold usually also buy gold, also since you bought it from them chances is that the gold you want to sell will be the kind they buy. This way you will not have to research if a business is interested in buying the kind of gold coins or bars you want to sell.
If you’re looking to get top price for your gold coins or bars you will have to do some research to see what places or sites are offering the highest price. If you do find a site it is important you understand and read the instructions about shipping gold to them. The last thing you want is some misunderstanding and end up inconvenience or worst losing your gold. It is recommended that if you do ship your gold to a company, that you only ship it through Certified Mail. With Certified Mail there will have proof of mailing and proof of delivery. Usually the person will have to sign in order to take possession of Certified Mail.
If you don’t think that any place or site is offering you enough for your gold coins or bars, another option is to sell your gold yourself using an auction site. If you do decide to sell your gold this way it is important that you put a reserve price on any gold you sell. With a reserve price if no one bids up to or higher than your reserve price, you are not obligated to sell your gold. Gold is one of the easiest assets to liquidate and with the right knowledge you will always have an answer to the question, where to sell gold coins or bars.
If you’re looking to get top price for your gold coins or bars you will have to do some research to see what places or sites are offering the highest price. If you do find a site it is important you understand and read the instructions about shipping gold to them. The last thing you want is some misunderstanding and end up inconvenience or worst losing your gold. It is recommended that if you do ship your gold to a company, that you only ship it through Certified Mail. With Certified Mail there will have proof of mailing and proof of delivery. Usually the person will have to sign in order to take possession of Certified Mail.
If you don’t think that any place or site is offering you enough for your gold coins or bars, another option is to sell your gold yourself using an auction site. If you do decide to sell your gold this way it is important that you put a reserve price on any gold you sell. With a reserve price if no one bids up to or higher than your reserve price, you are not obligated to sell your gold. Gold is one of the easiest assets to liquidate and with the right knowledge you will always have an answer to the question, where to sell gold coins or bars.
The Paradox Of An Economy, Wealth And Gold
Explaining what is an economy is a paradox, the reason why I say this is it is both simple and yet complex. The simple part is describing what a true economy simply is. An economy is the trade of desired work. No matter what you produce, cultivate, or perform it takes desired work to create any good or service. If something did not take any desired work to produce, cultivate, or perform it would be virtually free or impossible to obtain. When you work for someone you are trading desired work for desired work. Your employer sees the desired work that you perform as equal or more valuable than the desired work (or medium that holds desired work) that they give you in return; and hopefully you see the desired work you perform as equal or less valuable than the desired work you get in return.
There is no real way to objectively measure the value of any given desired work. The reason why I say this is if you see an object for sale and you think the price is too high; you see the value of the amount of money it takes to buy the object as more valuable than the object. On the other hand a another person may see the same object and think it is a good deal; that person will see the value of the amount of money it takes to buy the object as less valuable than the object itself. Who is right you or the other person, there is know right or wrong; just like beauty value is in the eye of the beholder.
Now to show how gold ties in to all of this, if you are working for someone and you start to think that you are giving more in desired work than you are able to trade your money for, you will usually do one or two things. One thing you might do is ask for a raise or two look for job with better pay. With fiat currency the above scenario is more likely then if the currency was backed by something like gold. Because of inflation the amount of desired work you could trade your money for becomes less and less overtime in relation to the amount of fiat currency. With gold the price of objects can fluctuate, but history has proven the desired work you could trade it for would not have a long term downward trend like all fiat currencies.
The reason for this is gold has been proven to be one of the best mediums to hold, store, divide, and combine desired work. That is what money is a medium to hold, store, divide, and combine desired work. Since it takes desired work to mine more gold there is a limit on how much new gold that can be introduced to a system at any given time. There is no such limit when it comes to fiat currency. Without this limit fiat currency in all cases becomes less and less able to trade for desired work until it can not trade for it at all. Like I stated above money is a medium to hold, store, divide, and combine desired work. If you can not trade fiat currency for desired work it becomes useless as money. In fact all fiat currencies become useless as money in less than one hundred years. In conclusion the paradox of an economy is both simple and yet complex. Also any place you see the words desired work you can replace it with wealth because they are one and the same.
There is no real way to objectively measure the value of any given desired work. The reason why I say this is if you see an object for sale and you think the price is too high; you see the value of the amount of money it takes to buy the object as more valuable than the object. On the other hand a another person may see the same object and think it is a good deal; that person will see the value of the amount of money it takes to buy the object as less valuable than the object itself. Who is right you or the other person, there is know right or wrong; just like beauty value is in the eye of the beholder.
Now to show how gold ties in to all of this, if you are working for someone and you start to think that you are giving more in desired work than you are able to trade your money for, you will usually do one or two things. One thing you might do is ask for a raise or two look for job with better pay. With fiat currency the above scenario is more likely then if the currency was backed by something like gold. Because of inflation the amount of desired work you could trade your money for becomes less and less overtime in relation to the amount of fiat currency. With gold the price of objects can fluctuate, but history has proven the desired work you could trade it for would not have a long term downward trend like all fiat currencies.
The reason for this is gold has been proven to be one of the best mediums to hold, store, divide, and combine desired work. That is what money is a medium to hold, store, divide, and combine desired work. Since it takes desired work to mine more gold there is a limit on how much new gold that can be introduced to a system at any given time. There is no such limit when it comes to fiat currency. Without this limit fiat currency in all cases becomes less and less able to trade for desired work until it can not trade for it at all. Like I stated above money is a medium to hold, store, divide, and combine desired work. If you can not trade fiat currency for desired work it becomes useless as money. In fact all fiat currencies become useless as money in less than one hundred years. In conclusion the paradox of an economy is both simple and yet complex. Also any place you see the words desired work you can replace it with wealth because they are one and the same.
Why Buy Gold
Why buy gold is a good question for any one who is not familiar with the aspects that make gold a good investment. Gold has and will always be money. The reason for this is gold has properties that other investments don’t have. If you have physical gold the cost is next to nothing to store it. Gold is an investment that does not take any money to maintain it. One other aspect of gold is that it is the same once it is pure, no matter what time or what place it was mined. Gold has the ability to be combined, separated and does not rust or tarnish.
Another aspect to answer the question why buy gold first you must know and understand what wealth is. Desired work is wealth. Any good or service takes desired work to perform, create, or cultivate. Gold has been proven throughout history to be one of the best mediums to store, combine or separate desired work i.e. wealth. Since gold takes desired work to mined, it only takes wealth to produce more gold. Also this means that there is a limit on how much gold that can be mined in any given time.
One last aspect to answer the question why buy gold, is to preserve your wealth. History has shown that if anyone had gold and passed it on to their progeny (Barring losing or spending it all) it would still be able to trade for anything that is for sale once you have enough gold. Last but not least gold will always be worth something. If you invest in the wrong stock or have the wrong government fiat currency you can lose your wealth over night. In conclusion I hope this answers the main question why buy gold.
Another aspect to answer the question why buy gold first you must know and understand what wealth is. Desired work is wealth. Any good or service takes desired work to perform, create, or cultivate. Gold has been proven throughout history to be one of the best mediums to store, combine or separate desired work i.e. wealth. Since gold takes desired work to mined, it only takes wealth to produce more gold. Also this means that there is a limit on how much gold that can be mined in any given time.
One last aspect to answer the question why buy gold, is to preserve your wealth. History has shown that if anyone had gold and passed it on to their progeny (Barring losing or spending it all) it would still be able to trade for anything that is for sale once you have enough gold. Last but not least gold will always be worth something. If you invest in the wrong stock or have the wrong government fiat currency you can lose your wealth over night. In conclusion I hope this answers the main question why buy gold.
The Gold Standard, The Great Depression And Today’s Economic Troubles
Many people who would like to rewrite history would like you to believe one of two things; the great depression happen because of the gold standard or that if we had a gold standard in place today we would not have any economic troubles. The Great Depression did not happen because of the gold standard, the great depression happened despite of it. What caused the great depression is the same thing that is causing today’s economic troubles, central economic planning.
If every nation had a gold standard in place but they still had central economic planning, having a world wide economic crisis would not be out of the question. (For an in-depth post about this I will refer to: Why The Gold Standard Is Not Enough). To believe a person or a group of people can “run” the economy and plan it to make it operate better than it normally would without intervention has been proven to be wrong over and over again. Today we are witnessing this belief being proven wrong once again (hopefully for the last time).
A group of people no matter how smart they are can not know how much currency a system needs, how to set interest rates if any or what businesses are more important than others. The gold standard is a good tool but it is not the be all and end all to today’s economic troubles. I believe the economic troubles will continue until the belief that central economic planning is some how superior to a true free market (no legal tender laws, central banks, and government manipulation). Unlike many I am optimistic that many will come to this conclusion sooner rather than later.
If every nation had a gold standard in place but they still had central economic planning, having a world wide economic crisis would not be out of the question. (For an in-depth post about this I will refer to: Why The Gold Standard Is Not Enough). To believe a person or a group of people can “run” the economy and plan it to make it operate better than it normally would without intervention has been proven to be wrong over and over again. Today we are witnessing this belief being proven wrong once again (hopefully for the last time).
A group of people no matter how smart they are can not know how much currency a system needs, how to set interest rates if any or what businesses are more important than others. The gold standard is a good tool but it is not the be all and end all to today’s economic troubles. I believe the economic troubles will continue until the belief that central economic planning is some how superior to a true free market (no legal tender laws, central banks, and government manipulation). Unlike many I am optimistic that many will come to this conclusion sooner rather than later.
The Gold Standard, And How To Fix The Economic Crisis
I believe what we are witnessing with the economic crisis is the breakdown of something that someone who subscribes to corporatism or socialism both despise. That thing is the failure of centralization. If you believe that the government should be used to “help the poor by taxing businesses they already have more than enough” or “tax money should be used to keep businesses strong because the more jobs we have the less poor there will be”; I think will not like how I believe we could fix the economic crisis. We can fix the economic crisis not just by implementing a gold standard but to do something even more radical. I propose we look to decentralization for the answer. We should decentralize the banking system and the monetary system. For my main reasons why I propose something so radical I refer to an older post: Why The Gold Standard Is Not Enough . A gold standard can help but it also can be manipulated. I hope the economic crisis can be fixed but I have a bad feeling governments around the world think they are the ones to fix it.
How To Form A Dynasty Using Gold
This is a method that was used for centuries for a family to build and keep wealth over time. Before you implement any of these things you must assess your family members and see if your family is responsible enough to not let wealth come between them. This just like any other thing that can give you wealth or power, can be a double edge sword that can bring your family together or split them apart. I say this as a sincere warning and not hype. The first thing your family must do is save. The trick is not to save in any government currency, but to save in preferably gold bullion. Gold has had a track record for six thousand years of holding wealth; no government currency has never even come close.
Your family must pick an annual date. This date must be known and agreed upon by everyone who is participating. On this annual date everyone in the family who is old enough and capable of saving up a one troy ounce gold bullion coin should give the coins to one entrusted person. It is important that multiple people in the family keep a record on how much coins that person has entrusted to them. All records must agree. These one troy ounce gold bullion coins will belong to no one personally; it must belong to the family. Some rules should be understand and agreed upon with everyone who is participating.
For ease of description from now on I will refer to these gold bullion coins as the family pot. The family pot must only be used to acquire or build physical assets that will go up in value over time. These assets must be able to generate profits residually as soon as possible. Some examples of this are to start or buy a business, rental property, or any physical thing that can generate profits residually. The majority of the family must agree on who should borrow from the family pot.
To borrow from the family pot a person must be current on all the annual payments and must show that they will acquire or build a physical asset that will generate profits residually. That person or that persons progeny will not be able to borrow again until all the gold they borrowed is repaid to the family pot. If that person is successful in building or acquiring a physical asset that will generate profits residually, that person must share the knowledge in detail on how exactly they did it with anyone who is current in the annual payments. Also this person must share any contacts that help them accomplish their goal of building or acquiring a physical asset that generates profits residually. If anyone is to use this knowledge they must not set up a business too close to the original person to avoid the act of competing with the original person. The original person must have a say on if they think someone is setting up a business too close.
If anyone makes any improvements to a business or acquires a new contact that makes them more profits, that knowledge must be shared with anyone who is current in the annual payments if useful to them. A person can not ask for the gold they contributed to the family pot if for any reason they decide not to participate anymore. If someone passes away, half of their assets that are not part of their profit generating business must be converted to gold bullion coins and become a part of the family pot. If a business is to be sold half of the assets must be converted to gold bullion coins and become a part of the family pot. On the annual date everyone should do an audit on the family pot to make sure it matches everyone’s records.
The person entrusted with the family pot is fully responsible for any discrepancies with the family pot and everyone’s records. The person entrusted with the family pot is responsible for any amount missing even if it’s outside their fault. In the case of any amount missing from the family pot, the person entrusted with the family pot must buy back any missing gold. If the person entrusted to the family pot does not buy back the gold that person will lose the privilege of borrowing from the family pot for their self and their progeny until the gold is bought back. The person who is entrusted with the family pot will lose the role of being entrusted if any amount is missing from the family pot. Anyone who is to participate will have to agree to abide with all the rules.
If any family does these things they will not only build wealth but keep wealth; which is a genuine trait of a Dynasty. Some things you can do to keep your Dynasty strong is getting out and staying out of debt. Find the quickest way to make your business passive. If you hire a good staff to do everything you will have more free time to start up more businesses. Keep your business or businesses private, you can grow your businesses faster if you go public but you can also one day lose control of them. Keep your businesses out of debt; and last but not least, start businesses that genuinely makes people's lives better by selling goods or services that are useful to them, no matter how small or great it might be.
Your family must pick an annual date. This date must be known and agreed upon by everyone who is participating. On this annual date everyone in the family who is old enough and capable of saving up a one troy ounce gold bullion coin should give the coins to one entrusted person. It is important that multiple people in the family keep a record on how much coins that person has entrusted to them. All records must agree. These one troy ounce gold bullion coins will belong to no one personally; it must belong to the family. Some rules should be understand and agreed upon with everyone who is participating.
For ease of description from now on I will refer to these gold bullion coins as the family pot. The family pot must only be used to acquire or build physical assets that will go up in value over time. These assets must be able to generate profits residually as soon as possible. Some examples of this are to start or buy a business, rental property, or any physical thing that can generate profits residually. The majority of the family must agree on who should borrow from the family pot.
To borrow from the family pot a person must be current on all the annual payments and must show that they will acquire or build a physical asset that will generate profits residually. That person or that persons progeny will not be able to borrow again until all the gold they borrowed is repaid to the family pot. If that person is successful in building or acquiring a physical asset that will generate profits residually, that person must share the knowledge in detail on how exactly they did it with anyone who is current in the annual payments. Also this person must share any contacts that help them accomplish their goal of building or acquiring a physical asset that generates profits residually. If anyone is to use this knowledge they must not set up a business too close to the original person to avoid the act of competing with the original person. The original person must have a say on if they think someone is setting up a business too close.
If anyone makes any improvements to a business or acquires a new contact that makes them more profits, that knowledge must be shared with anyone who is current in the annual payments if useful to them. A person can not ask for the gold they contributed to the family pot if for any reason they decide not to participate anymore. If someone passes away, half of their assets that are not part of their profit generating business must be converted to gold bullion coins and become a part of the family pot. If a business is to be sold half of the assets must be converted to gold bullion coins and become a part of the family pot. On the annual date everyone should do an audit on the family pot to make sure it matches everyone’s records.
The person entrusted with the family pot is fully responsible for any discrepancies with the family pot and everyone’s records. The person entrusted with the family pot is responsible for any amount missing even if it’s outside their fault. In the case of any amount missing from the family pot, the person entrusted with the family pot must buy back any missing gold. If the person entrusted to the family pot does not buy back the gold that person will lose the privilege of borrowing from the family pot for their self and their progeny until the gold is bought back. The person who is entrusted with the family pot will lose the role of being entrusted if any amount is missing from the family pot. Anyone who is to participate will have to agree to abide with all the rules.
If any family does these things they will not only build wealth but keep wealth; which is a genuine trait of a Dynasty. Some things you can do to keep your Dynasty strong is getting out and staying out of debt. Find the quickest way to make your business passive. If you hire a good staff to do everything you will have more free time to start up more businesses. Keep your business or businesses private, you can grow your businesses faster if you go public but you can also one day lose control of them. Keep your businesses out of debt; and last but not least, start businesses that genuinely makes people's lives better by selling goods or services that are useful to them, no matter how small or great it might be.
Is Gold A Good Investment
To answer the question is gold a good investment, it is important to know what you are looking for in an investment. If you’re looking for an investment where the risk of losing all of you’re money is low and it does not take any additional funds to maintain, gold may be the best investment for you. Also it is important to know if you are looking to invest long term or short term. If you a looking to invest in a long term basis; physical gold would be a good investment for you. Gold is an ideal investment if your main reason for investing is to preserve your wealth. Gold is unique when it comes to portability and ease of storage.
If your main goal of investing is wealth preservation, I would recommend gold bullion. Gold bullion consists of gold coins or gold bars that are usually a little above spot price. If your main goal of investing is building wealth over a long period of time, I would recommend numismatic coins. Before investing in numismatic coins it is important to do your research and know witch coins tend to build numismatic value over time.
If you are looking for something that can make you money investing in gold without having to store physical gold, you can invest in gold stocks or gold ETFs. The downside to this is if you invest in the wrong stocks you can lose money even if physical gold goes up in price. My recommendation is if you want to invest in gold it is best to take possession of the physical metal. The best answer to the question is gold a good investment can only be answered by knowing what a person is looking for in an investment.
If your main goal of investing is wealth preservation, I would recommend gold bullion. Gold bullion consists of gold coins or gold bars that are usually a little above spot price. If your main goal of investing is building wealth over a long period of time, I would recommend numismatic coins. Before investing in numismatic coins it is important to do your research and know witch coins tend to build numismatic value over time.
If you are looking for something that can make you money investing in gold without having to store physical gold, you can invest in gold stocks or gold ETFs. The downside to this is if you invest in the wrong stocks you can lose money even if physical gold goes up in price. My recommendation is if you want to invest in gold it is best to take possession of the physical metal. The best answer to the question is gold a good investment can only be answered by knowing what a person is looking for in an investment.
The Coming Gold Jubilee?
I am almost reluctant to write about this, but this is a scenario that has been popping up in my head from time to time. What is the gold jubilee you may ask; it is one of the scenarios that can play out with a worldwide financial and currency collapse. If you know or understand how most governments (counterfeit) “create” money by selling government securities to its central bank, you will know these securities or bonds are back by tax revenue. What happens when because of inflation or deflation that the tax revenue is not enough to sell and governments don’t have enough to function? The securities and the currency become worthless.
Now that securities and the currency in this scenario are worthless anything that is back by securities and that currency that does not have real assets backing it be comes worthless. At this point you may think I am just rambling on but I must show how the dominoes in this scenario falls one after each other. Most governments use other nation securities to back some of there own currency. If a significant amount of those securities become worthless then that nation’s currency becomes worthless. Now for the big domino the derivatives market which is almost 65 trillion dollars.
Wealth which I stated many times before is desired work and can not be destroyed only if real goods (things that took desired work to make or cultivate) and services (actions and tools that takes desired work to perform) are destroyed. Since a financial and currency worldwide collapse will not destroy real tangible assets; all the preserved wealth that was in debt instruments like fiat currency, derivatives, bonds, and securities will rush into gold coins, gold bars or any real tangible asset. A scenario like this may be unlikely but not impossible to occur. The gold jubilee part comes in when people come to the realization that any debt they had is denominated in a currency that is now virtually worthless and their tangible assets can pay it off a hundred times fold.
Now that securities and the currency in this scenario are worthless anything that is back by securities and that currency that does not have real assets backing it be comes worthless. At this point you may think I am just rambling on but I must show how the dominoes in this scenario falls one after each other. Most governments use other nation securities to back some of there own currency. If a significant amount of those securities become worthless then that nation’s currency becomes worthless. Now for the big domino the derivatives market which is almost 65 trillion dollars.
Wealth which I stated many times before is desired work and can not be destroyed only if real goods (things that took desired work to make or cultivate) and services (actions and tools that takes desired work to perform) are destroyed. Since a financial and currency worldwide collapse will not destroy real tangible assets; all the preserved wealth that was in debt instruments like fiat currency, derivatives, bonds, and securities will rush into gold coins, gold bars or any real tangible asset. A scenario like this may be unlikely but not impossible to occur. The gold jubilee part comes in when people come to the realization that any debt they had is denominated in a currency that is now virtually worthless and their tangible assets can pay it off a hundred times fold.
Invest In Physical Gold Or Paper Gold
I am an advocate of investing in physical gold. The main reason for this preference is my goal of investing in gold is wealth preservation. If my investment in physical gold gives me a return then that’s a bonus. I know some people who invest usually invest for the highest return. Investing in gold is like any other investment when it comes to the aspect of risk to reward. Usually the more risk you take the more reward you will have a chance of getting. Investing in physical gold (gold that you have in your possession) is less risky than paper gold (gold stocks, ETFs, mining stocks, anything that the physical metal is not in your possession).
The only way to know if to invest in physical gold or paper gold is to know your main reason of investing and how much risk you are willing to take. The good thing about physical gold is even if gold goes down significantly, you will never lose all your money overnight. Physical gold will always have value to it. The downside is if physical gold goes up and your main goal was getting the highest return, chances is you would probably of gotten a higher return if you invested in the right forms of paper gold.
Paper gold can usually give you a higher rate of return compared to physical gold. The downside to this is if you invest in the wrong companies you can lose money even if physical gold goes up. The true answer to the question, invest in physical gold or paper gold is up to the individual. If you can’t make up your mind you can always invest in both. The most important part is that you do your research and know if your investments coincide with your main reason of investing in the first place.
The only way to know if to invest in physical gold or paper gold is to know your main reason of investing and how much risk you are willing to take. The good thing about physical gold is even if gold goes down significantly, you will never lose all your money overnight. Physical gold will always have value to it. The downside is if physical gold goes up and your main goal was getting the highest return, chances is you would probably of gotten a higher return if you invested in the right forms of paper gold.
Paper gold can usually give you a higher rate of return compared to physical gold. The downside to this is if you invest in the wrong companies you can lose money even if physical gold goes up. The true answer to the question, invest in physical gold or paper gold is up to the individual. If you can’t make up your mind you can always invest in both. The most important part is that you do your research and know if your investments coincide with your main reason of investing in the first place.
What Kind Of Gold Coins To Buy
What kind of gold coins to buy is the kind of question that can only be answered if you know the main reason you are buying gold coins. If your main reason for buying gold coins is to protect your wealth and not to collect rear or numismatic coins, I have some tips and suggestions for you. When wealth preservation from inflation is your main gold it is recommended to stick to gold bullion. It is also recommended to buy gold bullion coins that are minted in, or if not a close by country that you intend to liquidate. Bullion coins are coins that are usually a little above spot price (if they are one troy ounce coins). The reason they are above spot price is because of the cost of manufacturing the coin. Bullion coins will always have the amount of gold it contains stated on it. It is also recommended that you stay away from proof coins. The reason for this is proof coins are considered collectibles and will have a higher mark up than its generic counterpart. Proof coins are coins that are struck with specially treated dies and will have a more polish mirror like finish.
Here is a list of bullion coins, the country of origin and the purity of the coin. These are the only coins that I know to be considered as bullion coins, so if you’re looking to buy a coin that is not on the list chances is it’s not considered as a bullion coin.
South African Krugerrand, 22 karat, pure .9167
Canadian Gold Maple Leaf, 24 karat, pure .999
American Gold Eagle, 22 karat, pure .9167
American Buffalo, 24 karat, pure .9999
Mexican Gold Libertad, 24 karat, pure .999
Austrian Vienna Philharmonic, 24 karat, pure .999
Australian Nugget Kangaroo, 24 karat, pure .999
Here is a list of bullion coins, the country of origin and the purity of the coin. These are the only coins that I know to be considered as bullion coins, so if you’re looking to buy a coin that is not on the list chances is it’s not considered as a bullion coin.
South African Krugerrand, 22 karat, pure .9167
Canadian Gold Maple Leaf, 24 karat, pure .999
American Gold Eagle, 22 karat, pure .9167
American Buffalo, 24 karat, pure .9999
Mexican Gold Libertad, 24 karat, pure .999
Austrian Vienna Philharmonic, 24 karat, pure .999
Australian Nugget Kangaroo, 24 karat, pure .999
Why Gold Is Money
Gold has been used as money throughout history for many reasons. Some of these reasons are gold’s ability to preserve, store, combine, and divide wealth. As I have stated in my previous post wealth is desired work. In order for money to serve its intended purpose it must be the best if not one of the best mediums of storing, preserving, combining, and dividing desired work i.e. wealth. This medium must also take desired work to obtain it in the first place. The reason why gold is money, is because gold possesses all five of these criteria. This is where fiat currency fails.
Since it doesn’t take desired work to create more fiat currency there is no limit on the amount that can be created at any given time. This is why no fiat currency ever lasted for more than one hundred years. Gold on the other hand has a natural built in process to regulate it if there is too much or too little gold in circulation. If there is too little gold in circulation the purchasing power of gold will go up and mining will be more profitable. This will in turn cause more gold to be mined. If there is too much gold in circulation the purchasing power will go down and mining will be less profitable; causing less gold to be mined. If there is a population boom there will be more people to do desired work, which in turn means the purchasing power of gold will go up and mining will be more profitable. If there is a population bust the opposite will occur.
This natural regulation causes the gold supply to in real time correct itself and seek an ever changing and unknowable equilibrium. This is what makes gold more sophisticated and more resilient than fiat currency and central banking. No matter what information a central bank may have it will never be able to mimic the natural regulation of the gold supply, it is just too sophisticated. These are some of the reasons why gold is, and barring an act of God will always be money.
Since it doesn’t take desired work to create more fiat currency there is no limit on the amount that can be created at any given time. This is why no fiat currency ever lasted for more than one hundred years. Gold on the other hand has a natural built in process to regulate it if there is too much or too little gold in circulation. If there is too little gold in circulation the purchasing power of gold will go up and mining will be more profitable. This will in turn cause more gold to be mined. If there is too much gold in circulation the purchasing power will go down and mining will be less profitable; causing less gold to be mined. If there is a population boom there will be more people to do desired work, which in turn means the purchasing power of gold will go up and mining will be more profitable. If there is a population bust the opposite will occur.
This natural regulation causes the gold supply to in real time correct itself and seek an ever changing and unknowable equilibrium. This is what makes gold more sophisticated and more resilient than fiat currency and central banking. No matter what information a central bank may have it will never be able to mimic the natural regulation of the gold supply, it is just too sophisticated. These are some of the reasons why gold is, and barring an act of God will always be money.
Where is Gold Found
Gold is found in a lot of places around the world, but the top four nations to the question where is gold found is South Africa , Australia, China and the United States. In South Africa the place that has the most concentrate of gold is The Witwatersrand Basin also known as the Rand. The Rand has the world’s largest reserves of gold. More than 30% of the world’s gold came from the Rand. The place in Australia that has the most concentrate of gold is Western Australia, The nation's largest state. The place in China that has the most concentrate of gold is Shandong, which names means east of the mountain. The place in the United States that has the most concentrate of gold is Nevada, the seventh largest state in the United States. These places can change overtime when gold mines become depleted or if new or more productive mines are found. Some things that can affect the production of gold mines are the price of gold. If the price of gold becomes too low some mining companies will stop producing new mines or shut down old ones that are not profitable. If gold prices are too high mining companies will produce new mines or scale up production in older mines. This is one way how gold relative purchasing power stays constant throughout so many millennia because of this unknowable equilibrium in gold production.
Where is Gold Found Top 10 Nations
1. China
2. South Africa
3. United States
4. Australia
5. Indonesia
6. Peru
7. Russia
8. Canada
9. Papau New Guinea
10. Ghana
Where is Gold Found Top 10 Nations
1. China
2. South Africa
3. United States
4. Australia
5. Indonesia
6. Peru
7. Russia
8. Canada
9. Papau New Guinea
10. Ghana
Value of gold coins, What is wealth
From time to time I see many who are opposed to gold as an investment or money, challenge the value of gold coins or gold for that matter. They make statements like "what gives gold value because it’s shiny?" or "in the 80s gold was like $800 an ounce and that is about what it is right now, if you would of own the Dow you would of made more money." There are many flaws in these two statements. The reason for this is because a lot of people don’t know what wealth is. I don’t fault them because there are many so call economist with a PhD that don’t know the same.
When I say wealth I don’t mean the things that wealth can get you or the things that hold wealth, but wealth itself. What is wealth? You ask; work that is desired is wealth. If a person has money and for some reason can’t use that money to get people to do desired work or get people to trade objects that took desired work to produce; and that’s all that person has that person does not have any wealth. On the other hand if a person has no money but for some reason can get people to willingly do desired work or get people to willingly give them objects that took desired work to produce; As long as that person can get people to willingly do these things, that person has wealth.
Now for the two statements gold has value because it is one of the best ways to store desired work i.e. wealth; and if a stock trades for lower than a dollar for a significant amount of time it is delisted from the Dow. If you owned one of those delisted stocks I bet you would see why parking your money in the Dow is not all its cracked up to be. Some of the value of gold coins comes from the properties of gold. It takes desired work to get gold out of the ground. Some aspects of that desired work is finding it because it is rare, mining it, transporting it, and shaping it. That desired work and gold’s ability to store, preserve, combine, and divide desired work gives gold and gold coins its timeless value.
When I say wealth I don’t mean the things that wealth can get you or the things that hold wealth, but wealth itself. What is wealth? You ask; work that is desired is wealth. If a person has money and for some reason can’t use that money to get people to do desired work or get people to trade objects that took desired work to produce; and that’s all that person has that person does not have any wealth. On the other hand if a person has no money but for some reason can get people to willingly do desired work or get people to willingly give them objects that took desired work to produce; As long as that person can get people to willingly do these things, that person has wealth.
Now for the two statements gold has value because it is one of the best ways to store desired work i.e. wealth; and if a stock trades for lower than a dollar for a significant amount of time it is delisted from the Dow. If you owned one of those delisted stocks I bet you would see why parking your money in the Dow is not all its cracked up to be. Some of the value of gold coins comes from the properties of gold. It takes desired work to get gold out of the ground. Some aspects of that desired work is finding it because it is rare, mining it, transporting it, and shaping it. That desired work and gold’s ability to store, preserve, combine, and divide desired work gives gold and gold coins its timeless value.
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