Gold Will Hedge Against Inflation

Gold is a hedge against inflation and a way to preserve your wealth. The movements in gold have been huge lately. The rate of inflation is about currently about 10%, and its essential to be invested in gold coins, gold bars, and gold bullion.

To protect yourself from out of control government spending and sky high inflation your money needs to be in gold bullion, gold ingots, and gold bullion coins

The gold demand is rising steadily with no end in sight. Investors looking to put their money into hard assets increased the demand for gold in 2008 by 64 percent. Countries who have added to their gold piles include Russia, India, China, and others. The IMF recently made a sale of 200 tons of gold to India.

The amount of gold per capita on the planet is currently 23 grams. That does not even amount to a one ounce coin. The available mined gold on the planet amounts to about $3.7 trillion.

The amount of gold mined each year is 2,600 tons, and the amount of above ground gold sits at about--0,000 tons. That does not cover the demand situation and is only a 2% increase in the supply each year. The supply is actually short of demand each year by 1,400 tons due to the demand of 4,000 tons each year. Gold has been selling at or below the cost of production until this recent surge in metals prices.

Mine supplies have actually decreased by 10% due to suppressed gold prices. Since the fundamentals for the gold price put the price much higher than it has been, why has the price been suppressed?

The gold and silver mine supplies have plummeted by 10% due to the low prices. If you add up all of the fundamentals, gold should be much, much higher.

Supply and demand have not played a part in these markets since price manipulation has been occurring. Even though the price of gold has risen to current levels of $1,140/oz, the inflation adjusted price puts gold at around $7,000/oz.

Happiness can't buy money.

The answer is that there are a few factors that have caused this price suppression and they are still to blame. The central banks have been selling their gold supplies onto the open market in an attempt to suppress the price. It has worked, but central banks are running out of gold to sell.

Even though you can request physical delivery of the gold bullion on the COMEX, some investors have complained of receiving cash settlements or ETF shares instead. The COMEX does not have the gold they claim to have.

You are left holding paper rather than gold in COMEX contracts or ETF shares. These paper gold investments serve a purpose for the government, and that is to help prop up the falling dollar.

This paper gold market is a bubble waiting to burst. Steer clear of these investments if you can help it. Keep your money safe by buying American Gold Eagle Coins, American Gold Coins, and gold bars.

You have every reason to buy gold now due to the falling dollar. Just look at the gold price in the past month. The price of gold per ounce one month ago was $1,058/oz, and the current price of gold is at $1,140/oz. Smart investors are going crazy for gold coins because gold is the only safe investment right now. Educate yourself about the benefits of investing in gold and how to buy gold. You wont be sorry!