There is no greater relief from the stress of today’s economic uncertainty than that provided by a sound gold investment. Yet, the very nature of this financial crisis has opened the door for opportunists who wish to enhance their own lives by capitalizing on the misfortunes of others.
The Certified Gold Exchange’s own John Halloran created Buy-Gold.org to provide household investors with the secure, convenient and economical means to purchase gold. For 22 years the Certified Gold Exchange has steadfastly maintained a flawless A+ Rating with the Better Business Bureau, earning its coveted reputation as “The Professionals’ Choice in Gold.”This web site is far more than the best place you will find to buy gold, however. Buy-Gold.org is the next stage in the ongoing evolution of the world’s premier resource for gold investors.
Here you can read the latest news and opinions from some of the world’s leading gold investment authorities. You will also find helpful links to our unparalleled and authoritative knowledge base, as well as contact information to receive any advice and assistance you may need. And yes, we offer all of this free of charge with absolutely no obligation to you. After all, with the current economic and political situation in our country, you have already paid far too much.
If you are new to gold investments, your first question is likely to be, “Why buy gold?”
Why Buy Gold?
Very few Americans have been spared the sting of the current economic crisis; the sense of security their homes and retirement once afforded has been shattered. In a nutshell, buying gold can restore the peace of mind that comes from knowing that your wealth is protected for the future.
Nothing can be gained from trying to relive the past. Change is an immutable force that must be reckoned with. The future belongs to those who accept change and make the most of it.
Survival In a Changing World
A lot has changed in the 21st century. The emerging economies of the 1980s and 1990s are now maturing and redefining global economics. That should come as no surprise – it is but a reflection of America’s own rise to economic dominance.
As sovereign debt threatens to topple the old regimes, new and vibrant economies are clamoring for a more stable global reserve. Once the undisputed king of currencies, the US Dollar has fallen into disfavor and is in steady decline. That too is no surprise – it is the destiny of every fiat money that came before.
The Problem: Fiat Money
Wealth cannot be created out of nothing. When the dollar ceased to be backed by gold it became nothing more than an instrument of debt. Printing more can only increase our debt and further dilute the dollar’s worth.
Throughout history, governments have fallen prey to the allure of fiat money. Once traditional revenues have reached the maximum acceptable to the population, the government will resort to printing more money than can be justified by real economic growth. In the short term the consequent currency devaluation alleviates the debt problem, but the inflation that follows rapidly erodes the wealth of every citizen.
As a currency weakens, risk to every investment tied to that currency rises. In a free market, interest rates would rise to compensate, in turn driving up returns on secure investments. When interest rates are held artificially low, however, people are driven into ever more risky investments in hopes of just breaking even. The odds of succeeding are slim.
The Solution: Real Money
We are conditioned to measure wealth in dollars. The dollar, however, has nothing to do with America’s wealth. That lies in the hard capital assets that make us the wealthiest nation the world has ever seen. Our personal wealth is likewise not measured in the dollars or paper assets we possess, but in those things we have of enduring value.
As we embark on this voyage into an uncertain future we have to make a choice. We can cling to the past with futile wishful thinking – or we embrace the unknown and protect ourselves from whatever hazards lie ahead.
Why buy gold? Gold is real money. From the earliest days of civilization gold has preserved the wealth of empires and individuals alike through every conceivable economic calamity. Gold’s worth relative to the staples of life has carried on unchanged over millennia, and gold cannot be devalued on the whim of any government.
The reasons to buy gold are many, but not all gold investments are created equal. Knowing how to buy gold is just as important as understanding why.
How To Buy Gold
The framers of the Constitution knew that fiat money would grant the government awesome and destructive power, so they clearly stipulated that gold and silver coins were to be the only legal tender. They understood that paper money was necessary to facilitate trade, however, but that was to be only in the form of notes that could be readily exchanged for the physical metals. Of themselves, the notes would have no value.
Their plan unraveled over the years, of course. Under President Nixon the last vestiges of America’s gold standard passed into history. Recently, however, paper gold has reappeared in various forms. The most common of these is the exchange traded fund (ETF).
Paper Gold: The ETF Deception
Like the demand notes of older times, shares in ETFs purport to entitle the holder to a certain quantity physical gold. Such entitlement, however, is more illusion than fact.
The first true gold ETF, Gold Bullion Securities, appeared in the spring of 2003. It was designed to appeal to investors whose preconceptions made them uncomfortable with the physical gold market. ETFs offer a means to trade shares in gold on the stock market, just like traditional investments.
Investors are led to believe that they are getting the protection of gold with an ETF, while in fact they are only incurring more of the very risks and obligations from which they are seeking shelter.
Investors in an ETF share the fund’s liabilities and risks, including the potential for total loss. If the stock market crashes, ETFs will go down with the ship. Furthermore, the gold represented by shares in an ETF is continuously diminished as underlying assets are sold to pay for management, storage, insurance, and other expenses.
Finally, ETF shares are meant to be traded only as paper. While it is possible to redeem them for physical gold, large minimum withdrawal requirements, highly restricted windows for redemption, and substantial fees make it extremely impractical.
Another vigorously promoted alternative to physical gold investment today harkens back to the great gold rushes of the 19th century.
Paper Gold: the Myth of Mining Stocks
Shares in the gold mines themselves might seem to be an attractive investment. After all, they cut out the middlemen and carry the hope of striking it rich. Like those of the prospectors flocking to Sutter’s Mill, however, such dreams are seldom realized.
Gold mining is a risky endeavor. Production costs are soaring as mines must dig ever deeper into the Earth to find new gold. When gold is found, it is in ever lower concentrations – as much as 7,000 tons of rock and soil must be excavated to extract a single ounce of gold. But unlike most industries, the mines cannot simply increase prices to cover rising expenses.
Gold mines compete with existing above-ground sources, which provide 40% of the yearly supply of new gold. Almost all of the gold used by industry can be reclaimed far more economically than new gold can be extracted and refined. Mines also compete with governments and privately held reserves of gold bullion, which combined amount to over a decade of total global mine production.
Adding to the economic risk of gold mining are those that are part and parcel with investment in any company. Poor management, natural disasters, social upheaval, environmental pressures, regulatory demands, and countless other issues can destroy a mine’s profitability overnight. And, like the ETF, mining stocks are at the mercy of the jittery and uncertain stock market.
There is but one way to secure the protection of gold free from third-party risk and liability: investment in physical gold.
Physical Gold: The Real McCoy
Investment in physical gold is quite unlike that in equities. It has to be or it couldn’t provide its proven protection when traditional investments fail. Never-the-less, gold’s detractors argue that since gold “does nothing” – it generates no income – it should not even be classified as an investment. Such an astoundingly narrow perspective begs to be examined.
When comparing equal investments over the same amount of time, the one having the greatest cumulative worth in the end is clearly superior. If one dollar were invested in both the Dow and gold in 1970, for instance, those investments today would be worth $13 and $34 respectively. In fact, gold’s 10 best years over that period produced 76% greater returns than did those in the Dow’s 10 best years – without earning one penny in interest or dividends.
For another example, consider money invested in a traditional savings or money market account. It earns interest, so by the definition it does something. But interest rates have been held well below real inflation for years. What those account do, therefore, is lose value. When gold’s wealth preservation is weighed against another investment’s wealth depletion – “earnings” not withstanding – there is no contest.
Physical gold has another distinct advantage over every other asset class: even a large investment can be personally held by the investor. In that there is power.
Physical Possession Means Total Control
Investment grade physical gold is easily handled and requires no more than a safe deposit box for secure and economical storage. Personal possession of gold puts investors in total control of their assets without the need for concern over the actions of any third party. Their investment is always at their disposal for trade or as an instant source of funds in the advent of any emergency.
Perhaps even more important, investors are free to use their gold however and whenever they choose, outside the view of the government’s all-seeing eye.
The next decision to make is which gold product is best suited to your investment goals.
What Gold To Buy
While there are numerous products available for gold investment, they all fall into two general classes: gold bullion and rare gold coins. Knowing which is best suited to your individual goals will greatly enhance the likelihood that you will achieve them.
Gold bullion is the most basic form of physical gold. Bullion is commonly available either as government minted coins or privately produced bars. Both are available in a broad range of weights ranging from 1/20 ounce to a kilogram or more.
The exceptional liquidity and extremely low premium over the spot price makes gold bullion ideal for short-term speculative investment as well as for a reserve of instantly convertible emergency funds. However, the volatility of the futures market, the inherent risk in speculation, and the potential for confiscation must be considered when the goal is to provide long-term stability and wealth protection.
For that, another element is needed, one which offers a second avenue for growth while tempering the vagaries of the commodities market and shielding investments from the threat of another government confiscation. That element can be found in rare gold coins.
Rare Gold Coins
Rare gold coins are those considered to have numismatic value, meaning they were once in circulation but are no longer in mintage. Because they are no longer being produced, the supply of rare gold coins can never increase. Demand, however, continues to grow with the population.
By itself, rising collector demand would augment the growth potential of rare gold coins. But that potential has attracted a rapidly growing number of investors, expanding the market at an unprecedented pace.
The effect has been profound. Even when the price of gold has fallen, prices of rare gold coins have continued to rise. Investments in rare gold coins not only benefit from gold’s ability to preserve wealth, they have a distinct potential for growing wealth as well. There simply is no other asset available to household investors today that can make that claim.
The final decision you will have to make for your gold investment is the most important of them all: where you will buy your gold.
Where To Buy Gold
There certainly is no lack of gold peddlers today. Who hasn’t driven by a pawn shop and seen someone dressed up like the Statue of Liberty waving a sign beckoning you to come in to buy or sell gold? How many commercials have you seen on TV featuring well known celebrities pitching golden opportunity? How many emails have made it to your inbox or been diverted to your junk mail that promise once-in-a-lifetime chances to get rich with gold?
The fact that such things exist merely attests to gold’s stellar rise over the past decade and the high probability that it will continue long into the future. Sadly, conditions exist that are ripe for hucksterism. Counterfeit gold is appearing as never before, often with apparent complicity – or at the very least, the inaction – of governments.
Caveat emptor (let the buyer beware) is the watchword of the day, but the buyer cannot be expected to have the technology necessary to thwart the sophisticated efforts of today’s fraudsters. For that investors must rely on the reputation earned by their gold dealer over years of serving their client’s needs.
Buy-Gold.org continues to build on a track record that has not once let counterfeit gold pass into a client’s hands. We have spared no expense to ensure that our security measures stay ahead of efforts by those determined to subvert gold investment only to satisfy their insatiable greed.
We believe in gold. We entrust our own future to gold and we rely on helping others do likewise to ensure that future comes to be. That is our only mission.
We invite you to join us on this journey. Click here to receive your free copy of our “2013 Gold Investment Guide,” or give North America’s premier direct gold dealer a call at 1-800-425-5672 and ask to speak with one of our friendly and knowledgeable gold investment advisors.