Everyday the reasons why you need to own gold keep mounting. It's no wonder that gold ownership is expanding as more individuals become concerned about their financial future. Here are some of the critical reasons why you should buy gold now:
- Diminishing Gold Supply Less gold is produced each year and it is becoming more costly to find gold. The miners have to dig much deeper into the earth for each ounce of new gold. Furthermore many of the new sources of supply are located in unstable or violent countries. It is very likely that the gold mines in these countries may one day be shut down or nationalized, further disrupting the supply.
- Government Debt Without a thorough realignment of our national priorities it is unlikely we can avoid a debt crisis in the near future.
- Future Inflation The supply of Dollars has been expanding at an alarming rate. In normal times, the money supply would rise in lock step with economic growth. But since the recession began the Federal Reserve has been working overtime just to create money. Once these extra dollars work their way into the economy we can expect to see higher prices for food, energy and all products that are derived from basic commodities.
- Currency Debasement One solution to our excessive debt problem would be to monetize the debt by expanding the money supply. The Federal Reserve has stated its intentions to do just that with its policy of “quantitative easing”. When the Fed buys Treasury Bonds, it is basically “printing” the money to do it. The overall effect is currency debasement because the money used to buy something today will buy less of it tomorrow. Unlike inflation, which tends to creep up on you over a period of years, currency debasement can hit you almost overnight. As the US and other governments around the globe continue debasing their money through endless printing, gold may one day become the only reserve currency.
- More Bank Failures The too big to fail policy created by the Federal Reserve is now part of the Financial Reform legislation and will almost certainly guarantee future bailouts for the large institutions at the expense of the smaller banks and the taxpayer. So the system is rigged to favor the big banks. This will further undermine confidence in our financial system and support the conditions for higher gold.
- Deep Recession Typical recessions last about a year. The great depression started out in 1929 as a financial panic, similar to what we had in 2008. But history from the period shows that when the federal government became actively involved in providing “stimulus” to the economy, the recession grew into a full blown depression by 1934.