Inflation Hedge - 3 Reasons Banks Don't Want You Owning Gold

The global economy is in a pretty shaky state right now with tumbling oil prices, a weak US dollar, and a falling Canadian loonie, it's ever more important to educate yourself so that you can better protect yourself, your family and your assets. The government and central banks know that owning physical gold is a good thing but they'll never tell you that and for that very reason you should consider owning some!

A few reasons why...

1.   Gold Is A Hedge Against Inflation. Hedge is a term used in finances meaning 'to protect or offset any potential losses'. No matter what amount of money you put into gold today, continuous money printing pursued by central banks will cause inflation and as a result will always drive golds value up long-term. In 1933 gold was $20.67USD per ounce. Today, one ounce of gold is $1100.00USD. So, as inflation goes up so does the value of gold. And as the value of gold goes up so does the money you have saved in gold.

2.   Gold Maintains Your Purchasing Power. Everything that $20.67USD could purchase in 1933, can still be purchased today with $1100.00USD plus much more! Banks have been misleading us for quite some time now encouraging us to entrust our money with them. But think about it, that $20.67USD sitting in that savings account for the past 82 years, even at 10% interest (which we know the banks won't offer), wouldn't even equate to 50% of today's gold price! You do the math, it doesn't even come close!

3.   Gold Is Financial Insurance. I'm not a dooms day type of guy nor am I a so-called "gold bug" but I am a realist. And the reality is that if we should suffer another economy crash like we did in 2008 (I hope we don't but if we did), to HAVE gold would be better than to not have gold. History is a great teacher but it won't come looking for you; you have to search for and study history. And history teaches that governments and central banks have been settling their debts for decades with gold. Even some states across the US today accept gold bullion as money!

Let's consider a very simple example: imagine your ancestors had two savings accounts for you: in one account they saved $100 cash and, in the other account one ounce of pure currency grade gold. Which account would you rather cash in today?

Are there other assets that you can own that will protect you long-term? Sure there is; just be sure that it is not debt-based. The bottom line is this: own something. However, when considering how to diversify ask yourself this: what could the shortfall be to owning some gold? In the eyes of many, on a long-term basis there is none.

So, what now?

While many people believe that education is power, I tend to go right when everyone else is going left so I do not subscribe to that theory. Education alone is not power rather, the application of the education you gain is power.

To learn more about protecting yourself and your money apply this education!

Source : articlesbase.com