Escalation of the Price of Gold

 

  

Gold news, Historical Perspectives, cont.

Why Hard Money?

Gold, silver and other tangible assets have been valuable and stable instruments of wealth for centuries.  For many decades they have also provided a safe haven from inflation and other government interventions, providing individuals and families with a stable financial foundation. Throughout world history, currencies have come and gone, along with the empires that created them.  Our founding fathers of the United States created real money with gold and silver as the base metals.  They were aware of the historical lessons of what happens when a centralized government begins “creating wealth” with printing presses. 

Let’s take a look at the harsh reality:  In 1930, for example, twenty dollars could buy the best suit of clothes available in Manhattan.  Simply pay with a $20 note or a $20 gold piece and the suit was yours.  Today, you can still get the best suit in town with the $20 gold piece (valued at about $1500.00) but you can hardly buy a tie with the $20 note.  What happened here?   Inflation, the most deceptive tax levied on the American public, is the culprit.  It has eroded our currency’s value to the point that recently countries around the world have lost trust in the dollar’s stability.  The U.S dollar was the world’s reserve currency for decades, but now China, India, Japan, and even most of Europe are fleeing the dollar like never before.  They are exchanging their U.S. dollars for gold and other tangible assets.

 

Gold Facts, cont.

The Federal government began minting gold coins for commercial usage in 1795 and did so continuously until 1933, when a Confiscation Decree was issued by Congress and minting ceased.  Despite the Decree, threats of fines, imprisonment or both, it is estimated that about 1% of pre-1933 gold coins survived.  They are scarce, rare in some instances, and are highly prized by collectors and investors alike.  According to many numismatic experts, “prospects (for investment) in rare coinage are very bright…thousands of new collectors have discovered the rich history of U.S. gold coins…the sharp rise in gold bullion will probably translate into many new collectors and investors entering the market”.¹ 

 

Inflation erodes the value of your money so that prices for things we need and want continually increase. The reasons for the recent upward swing in precious metals prices are tied to the inflationary fiscal policies undertaken by the Federal Reserve.  The minting of hundreds of billions of paper dollars without a matching increase in the output of goods and services is reflected in the rising cost of commodities – gold, silver, platinum, oil, sugar, wheat, corn, and soy beans are just a few.  What’s more, recent prices seem to be anticipating more of the same for many years to come. 

Precious metals can protect your wealth against this loss of purchasing power, and is easily transferred within families from one generation to the next.  Economic instability is well-chronicled, and in our ever-shrinking world this instability is linked to energy dependence and military entanglements – there is no lack of uncertainty around us.  However, the one thing that holds true over the centuries is the economic security that is obtained through the ownership and possession of portable, recognizable, marketable wealth in the form of gold and precious metals.

Call Brighton Capital today to see how you can secure your family’s legacy with sound investments in gold, silver and precious metals.  Our Advisors are available to answer your questions and get you started.  Contact us www.brightoncapitalgold or 877.404.COIN.