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Top Reasons To Own Gold
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Value
Gold is undervalued. Why? The main reason is inflation. Rising prices eat away at your income and purchasing power whether you know it or not. Gold that sold for $850 per ounce in 1980 would be worth approximately $4,000 to $5,000 today when you adjust for inflation. So Gold today is a steal by historical standards. Another way to determine the real value of Gold is to compare it to the stock market. In October of 2007, Gold was selling for roughly $750 an ounce. Meanwhile, the Dow Jones Industrial Average soared to approximately 14,000. Do the math. This means you needed 18.66 ounces of Gold to buy the Dow. Now fast forward to the present. If Gold sells for about $900 an ounce while the Dow trades around 8,000, then it only costs 8.88 ounces of Gold to buy the Dow. It’s just one more reason why Gold is cheap by historical standards -- and why Gold will continue to rise.
Protection against Inflation and Declining Currencies
Gold is a life preserver for investors when prices rise and currencies decline as well as during periods of economic crisis. With the United States and other nations now printing money to spend their way out of recession, conditions are ripe for rising inflation and a declining dollar. That’s why more and more investors are going with Gold to protect and grow their wealth.
Gold is Scarce.
Demand for Gold is growing. It’s not only because smart investors are turning to it as the best way to protect and grow their wealth. There are many other reasons as well. Demand for Gold is also rising because millions of people in China and India are buying Gold as they join the ranks of the middle class at an unprecedented rate. Meanwhile, many central banks are buying Gold as a way of reducing their exposure to a declining U.S. dollar. That’s what’s happening on the demand side. Now consider supply. Gold mines can’t dig enough of the stuff out of the ground to keep up with rising demand. It’s Economics 101. It’s supply and demand. The conditions are now in place for Gold to spike.
Gold in the Past
For more than 3,500 years, Gold has been a currency and store of wealth. Monarchs have waged war over it; explorers have searched ever corner of the globe for it. Civilizations may rise and fall, governments can come and go, but you can always rely on Gold. Why? It’s the ultimate asset. Gold has always been real money no matter where you are in the world. Unlike other currencies, it’s impossible to reproduce Gold on a printing press. This is why Gold thrives despite inflation and declining currencies everywhere. No matter what happens in the world, Gold will remain a great way to protect and grow your wealth. By historical standards, Gold remains undervalued. That’s why many experts believe the value of Gold will only grow in the years to come.
Investment Examples:
10 Oz. of Gold Using Collateral Financing (USD):
| Minimum Investment $2,250 = 25% Equity ($9,000 x 25%) |
Metal Gold |
No.of Oz 10 |
Price/Oz $900 |
Total Metal Value $9,000 |
Buy Out Option (If you wanted to convert to 100% ownership)
75% x $9,000 (Total Metal Value) = $6,750
Projected Returns On 25% Equity
If Market hits $1,200 per ounce
| Metal Gold |
No. of Oz 10 |
Prices/Oz $1,200 |
Total Metal Value $12,000 |
Buy Out Option $6750 |
Increase in Position $3,000 |
If Market hits $1,500 per ounce (We think this could happen within the next 12 months)
| Metal Gold |
No. of Oz 10 |
Prices/Oz $1,500 |
Total Metal Value $15,000 |
Buy Out Option $6750 |
Increase in Position $6,000 |
If Market hits $2,500 per ounce (We think we could see this range within 36 months)
| Metal Gold |
No. of Oz 10 |
Prices/Oz $2,500 |
Total Metal Value $25,000 |
Buy Out Option $6750 |
Increase in Position $16,000 |
*This is an approximate example, using gross figures, which does not take into consideration account fees, commissions and finance charges, or any subsequent buying and selling which may or may not increase your overall profit/loss. Please speak with an account representative to get a full understanding of how these fees may impact your overall return.