Buy Gold Coins

Buy Gold Coins

Gold - 5 Reasons You Should Buy Gold Coins Now
By Lois G - Ezinearticles

In basic language, gold is real money. To buy gold coins is to safeguard your savings. The US dollar, the Swiss Franc along with the Yen are in actual fact simply a means of exchange, and being paper, can be printed. The more it is printed, the less value it retains. Gold is precious because there are limited sources on the planet and when something is scarce as well as desirable, its value increases.

Buying gold bullion would be a wise investment because:

1. Supply is limited. The total amount of gold in the earth is only a small measure. The earth produces around 4.3 cu m (about 14 cu ft) every year. That is, all of the gold mined internationally in one year would fit in the average person's living room!
2. A number of nations are actively encouraging possession of gold. China has declared it will double its gold requirement inside ten years and has reversed its policy outlawing its people from possessing gold; India, Russia & Asia continue to increase demand. Also, central banks have started purchasing gold, so placing added pressure on supplies.
3. Many nations are in substantial debt. The case in Greece as of May, 2010, is that its debt is equivalent to approximately 115% of its GDP. However, it is not the only one. For instance, the debt in the US is projected to reach 140 percent of its GDP in two decades. The debts, which have become substantial, are a symptom instead of a cause - that cause is actually inflation. "Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man." President Ronald Reagan.
4. The value of the dollar is diminishing. The value of the US dollar has declined 96% since 1913. In contrast, in 1980 the gold price reached around US$850/oz and adjusting for inflation, the gold price has every possibility of reaching in excess of $6,000/oz.
5. Gold is now seeing a Bull Market - it has been on a steady rise in spite of various dips and troughs along the way.

Gold plays a significant role in worldwide economics as it acts as the standard of real wealth. But in 1971, President Richard Nixon removed the gold standard that provided the US dollar its value and he replaced it with the US dollar - on its own. International currencies are gauged against the US dollar which has begun inflating. So now, virtually 40 years later, if all currencies float, and all currencies inflate, there is no such thing as a point of reference against which to ascertain true value.

In fact, gold is the point of reference, and it always has been. "In the absence of gold, there is no way to protect savings from confiscation through inflation. There is no safe store of value."Alan Greenspan - former Chairman of the US Federal Reserve. Increased worldwide demand for gold against limited availability sets the scene for a gold rush to buy gold bullion (or even nowadays to buy gold online) of major proportions.

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