3. Gold is an Expression of LibertyOne of the reasons, if not the main reason, for the government’s encroachment on civil liberties is the abandonment of sound money. Decades ago, Ludwig von Mises, the great Austrian economist

2. Gold Has Universal ValueMankind has always recognized gold and silver as real wealth. Though gold and silver have always been treasured for their decorative value, precious metals have been used pragmatically in the form of weapons, semi-conductors, and much more. Gold is one of the current coinage metals and formed the basis for the gold standard used before the discontinuance of the global gold standard in 1971.

There has never been a fiat currency that retained purchasing power for a significant period of time.

1. Gold is a Liquid AssetThe liquidity of an asset is determined by the amount of time it takes to be converted to currency or other assets. Precious metals have the ability of being sold for virtually any other form of currency, without the delays associated with other hard assets. As an example, you may find it takes a lengthy period of time to sell a real estate property, but precious metals can be liquidated virtually anywhere, at any time. Not only is your investment always liquid, but it is also divisible and maintains a transparent universal value.

10 Reasons You Should Invest in Gold

10 Reasons You Should Invest in Gold

In 2001, the central banks were forced to start buying massive quantities of gold; the Fed went on a printing spree of capital to fund the economy, while our country’s debt grew massively because of 9/11, Homeland Security and the war on terrorism, as well as the devastation of Hurricanes Katrina and Rita in New Orleans and Texas. Additionally, tax incentive checks were issued two times. Then, in 2008, over $4 trillion was created and issued to bail out the banking system, while the debt of the U.S. government at least doubled in three years from $7.3 trillion to over $14.2 trillion. Since 2011 our government spending has

snowballed past manageable levels to over $17 trillion. Projections are that when Obama leaves office the debt will be around $23 trillion. Central banks operate with forward thinking, and they foresee massive inflationary pressure. According to the World Gold Council report, central banks, along with official institutions in 2011, proved that gold was a vital investment by increasing their holding 571%. The report went on to speak to the buying mindset of these institutions by

The global debt is unmanageable and countries will have no choice but to inflate.

stating, “This activity reflected a continued desire among central banks to diversify their sizeable reserves in light of credit downgrades which have brought into question the safety of holding massive amounts of U.S. dollars and euro-denominated reserves.” Central banks have moved massive amounts of money into gold. In fact, central banks have bought more gold in a recent four year span than at any previous time since 1962. This aggressive

buying of gold by central banks has caused the value of gold to increase from below $300 to where it is today. Historically, central banks have been the biggest buyers of dollars, but are

now sellers of dollars, and the biggest buyers of gold. A wise investor can learn from the central banks. As long as our debt remains unmanageable, both domestic and global, it makes prudent sense to have physical gold in your portfolio.

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wrote, “It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically it belongs in the same class with political constitutions and bills of rights.” Gold is a much sought-after commodity, which is fair value to one and all; individuals or governments can rarely manipulate its value. No one is able to substantially diminish the effect of gold on sound currency.

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4. Central Banks are Buying GoldWe now have not one but two of the largest central banks of the world injecting massive amounts of cash into their banking systems. The relentless injection of capitol by the Fed, and now the European Monetary Union, will cause the dike of inflation to eventually burst under this monetarypressure. The majority of economists see no way to avoid an inflationary season, causing the next phase in the gold market to have

a massive increase. This has led to central banks aggressively buying gold. The global debt is unmanageable, and countries will have no choice but to inflate. China, Russia, India, and Mexico

are a few, among many countries, that have recently announced their plans to increase gold reserves. From 2005 until the present, China leads the charge in gold purchases since they hold the most US dollars next to the Fed.

6. Gold is Wealth InsuranceWhen you diversify into gold, you are protecting and insuring the present and future buying power of your hard earned money. Just as you would not consider driving a car without auto insurance, it is extremely unwise to not have savings and investment money “insurance”.

“All fiat currencies must find their way to gold” - Alan Greenspan

5. Gold is Real Money That Retains Purchasing PowerFiat currencies (currencies without physical backing) are infllated until they are as worthless as the paper on which they are printed. Alan Greenspan, former Chairman of the Deferal Reserve once said “All fiat currencies must find their way to gold”. Gold is an asset and therefore cannot become an inherited governemnt liability as notes of promise to pay. Inflation is often a consequence of the use of paper money systems that are not redeemable in real assets such as gold and silver. The illusion of wealth is what fiat dollars represent whie the real value of gold remains. One ounce of gold, worth approximately $20 in the 1920’s, could buy a man a fine dress suit and a night on the town. An ounce of gold will still purchase the same today, whereas a $20 bill would not even be enough to pay for the suit’s alterations.

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7. Gold Diversifies Portfolios and Lowers RiskEconomist, Dr. Raymond Lombra, presented a 40-page report to U.S. Congress that demonstrated the benefits of including rare coins and gold in Individual Retirement Accounts (IRAs). The Lombra report served as the investment rationale for the legislation that

Gold coins act as insurance. As a nation we have been hurt financially by our national use of non-gold backed paper money since 1971. In addition, unlimited paper dollar printing and excessive government spending have further impacted the issue.

If you believe inflation is coming, then the most effective way to protect yourself, historically, within this environment, is to buy gold. The previous inflationary environment lasted for more than five years during the 1970s. This resulted in gold moving over 500% in the bullion markets. Currently, the debt to GDP of the United States is much greater than in the 70s. If history has any merit, it is fair to say that we should experience some sort of this kind of inflationary pressure again. Furthermore, many

economists feel it could possibly be much greater than the previous inflationary environment in length of time or severity.

In virtually any economy, gold and silver are real money!

passed in 1997 allowing the inclusion of gold in IRAs. Lombra’s report explained that over the 1974-1993 period the “inclusion of 5% gold and 5% rare coins in a diversified portfolio of financial assets would have increased portfolio performance without increasing portfolio risk”.

8. Timing and Supply Favor GoldHistorically, when any government adopts a fiat or paper monetary system and monetizes the debt, it overspends far beyond the public’s means. This practice accumulates staggering sums of debt and handicaps the primary functions of government and private enterprise. Changing the behavior of the government by the will of the voters is a very slow process. Rather than rely on the officials in Washington D.C. to fix the economy and the skyrocketing national debt, you can do something now to protect your individual wealth by purchasing physical gold and silver and/or by investing your IRA retirement funds into precious metals.

9. IRAs and other Retirement Accounts Can Own GoldThe U.S. government allows existing IRAs, 401(k)s, and other retirement investment plans to own physical gold and silver. Republic Monetary Exchange can help you roll over your existing retirement plan into a self-directed plan, invested in gold and silver, with no tax penalty. Skeptics complain that gold does not earn interest. Historically, gold is a hedge against inflation, more so than interest to be paid on fiat currencies. Even though it doesn’t earn nominal interest, gold continues to be a safe insurance against currency devaluation, inflation, and changes in currency.

10. Gold Stands the Test of TimeRegardless of domestic currencies that have evolved over time, gold has a 6,000 year track record, and will always be recognized as a dependable source of value. Our founding fathers owned gold and traded it as a medium of exchange both here and abroad. In fact, the founding fathers never intended for the country to use a currency other than gold and silver. Article 1, Section 10 of the U.S. Constitution reads, “No debt shall emit bills of credit (or) make anything but gold and silver coin a tender in payment of debts”. The founding fathers knew that if governments printed money backed by nothing, the governments would overspend and overprint, thus devaluing the currency. Today, these actions have caused inflation, and our economy is slowly deteriorating. This has been happening for decades and is now accelerating at record pace.

Fiat money has never retained purchasing power for a significant period of time. In 1971, President Nixon dropped our nation from the gold standard and converted our currency to fiat money. Our currency, which is no longer backed by gold, is largely responsible for massive inflation. When Nixon abandoned the gold standard, the price of gold was $42 per ounce, much less than the price of one ounce of gold today. Meanwhile, in 1971, a gallon of gas could be purchased for around $0.30, a new Ford car for around $3,000, and an average house for approximately $25,000. This massive devaluation of our currency is all due to the inflation of which Thomas Jefferson and the other founding fathers warned us. It is not too late to exchange a portion of our paper assets for hard assets such as gold and silver to protect your wealth from this continuing devaluation.

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