Chances are high you have seen more and more We Buy Gold ads on TV, the internet, and even in your neighborhoods.
Why are there now more gold buyers than ever?
What do gold refiners and bullion buyers know that the public has yet to realize?
WE BELIEVE AND INVEST IN PHYSICAL GOLD BULLION BECAUSE:
- The world at large has yet to relearn the fact that gold is mankind's money. It transcends all banking institutions, governments, and monetary systems.
- Gold is a long term store of value; it will never be worthless.
- Gold is a safe haven in troubled times, a tangible monetary asset you can wholly own with virtually nonexistent counter-party risks.
- Gold's price (in terms of paper currencies like the US dollar, the euro, yen, franc, etc) is heading much higher in the years ahead. Most importantly gold's true value, the amount of real world things the yellow precious metal can buy, is set to increase dramatically too.
By all means laugh, but don't be
fooled into selling away your gold!
Since 2005, operating locally here in Santa Monica, California, we have been educating the world about physical gold and silver ownership.
Our company's founder and CEO penned the #1 book on the subject of gold and silver investing. Mike Maloney's book is currently available in over 8 languages worldwide:
How can an investor make an educated guess on how high the price of gold could go?
We look to past gold bull markets to garner an understanding of where today's gold bull market may go.
The Recent Past -> August 15, 1971
In 1971, Richard Nixon officially ended the Bretton Woods System (the final ties of the US dollar to gold). From that point onwards, the United States would no longer redeem gold for our paper dollar currency but would instead back the dollar with the full faith of the United States and its economy.
At this point in time every economy in the world allowed a huge monetary mistake to happen. The world henceforth moved to a full fiat currency system, meaning the paper notes in our pockets have no real, tangible value other than the value of the paper they are printed upon. History proves, not one fiat currency has ever survived, their average lifespan's run 40 years. Today's dollar, euro, pound, peso, or yen are no exception to this historic rule.
Look at the graph below. The green line is the US monetary base, or all the US dollars both physical and digital currently in circulation.
As the graph shows, just prior to 1971 the monetary base started to pull away from the price of gold as more currency was borrowed into existence with no more gold to back it up.
Then look at what happened from 1971 onwards, as the price of gold was unleashed, and the will of the public and the free markets drove the price of gold to where the value of the United States gold reserves accounted for the value of the monetary base and revolving credit in 1980. This was very similar to what occurred in 1934 as well.
We believe this same mechanism is in process again... but now look at the scale of this natural, cyclic revaluation in our modern, global economy:
So, what does this mean?
The graph demonstrates that the current value of the United States gold reserves versus the dollar's monetary base and revolving credit are nowhere near each other yet.
In order for this natural correction to again occur as it has in the past, the current value of the United States' gold reserves must rise to match the monetary base and revolving outstanding credit as it did in 1980 and in 1934.
We are a long way from that point today, and that is why we believe that, years from now, gold at $1600 an ounce will seem cheap.
Given the current global economic situation, we believe there are 3 possible outcomes:
(1) The monetary base and revolving credit are going to drop through the floor.
(2) The price of gold will increase substantially
(3) The monetary base and revolving credit will meet somewhere in the middle.
Which of those three scenarios is most likely?
The Federal Reserve has been drastically expanding the dollar supply with quantitative easing programs, or what is called QE, QE 1, QE 2, or QE 3... etc. The Federal Reserve's QE "printing press" program makes it extremely likely that the price, and more importantly the value of gold, will only continue to rise over the long haul.
How should the WORLD react in this time of quantitative easing (QE1, QE2, QE3, etc) or rampant monetary expansionism?
Investors really only have 1 of 2 options:
Option 1 - Sit back and do nothing and watch the value of your savings vanish away.
Option 2 - Invest and hold physical gold and silver bullion and actually benefit from the inevitable outcome of the current monetary debasement (the United States dollar's devaluation, the loss of our currency's purchasing power).
We pity the fools who sell their gold today!
As investors, we believe we are on the cusp of witnessing the Greatest Wealth Transfer of all times thanks to the Federal Reserve and its actions.
Though we may not be able to change the system or the course we are currently on, we can prepare for its inevitable end with physical silver and gold bullion helping us transfer our wealth into a new brighter day. We would like to help you do the same.
We urge you to hold on to your gold. Please join us to learn more: