Gold: A Trustworthy Financial instrument

Thinking about the reality that gold cannot be constructed or developed instantly at will by governments around the world, it can’t be devalued as speedily as the paper currencies that may be printed as needed all the time.

Make no mistake, a major currency crisis is coming. Rather than sitting back and letting it happen, protect yourself and profit from an economic upset that could basically render your dollars about as worthless as the paper they’re printed on.

We have seen a prelude of this type of problem not too long ago. In early 2006 a foreign exchange crisis started an avalanche of selling in overseas markets from Brazil to Indonesia. The Icelandic krona lost almost one tenth of its value within just forty eight hours, dragging down Icelandic shares and bonds with it and subsequently extending to Brazil, Mexico, Poland and Turkey.

Preface to this event was the crash of Asian currencies of 1997, which sent local stock markets into a free fall. Financial institutions, insurance firms, even real estate and debt instruments also fled the scene. The only true sensible option nonetheless remaining was gold.

Going forward to another potential major currency crisis in the not so distant future, gold will become the currency of choice and its value will probably be increased at least ten folds from its present monetary worth.

How is this possible? Simple: Since gold cannot be made or printed at the whim of greedy politicos, it can’t be devalued as quickly as the paper money that is printed whenever need arises.

When a currency is backed by gold, $1 in paper money has to be backed by approximately one dollar’s worth of gold. Once a currency is no longer backed by gold, governments can print as much as needed. Naturally, most world governments have gone off the gold standard and that is why paper money has no intrinsic value.

Subsequently, many key trading companies speculate only temporary in individuals currencies and their associated values in shares or bonds, then they quickly transform their financial gain into gold. This is the reason some trading companies prefer focusing on worldwide investing and diversification into gold assets for their clients.

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