Page 11 - Introduction to investing in Gold

The Beginner's Guide to Investing in Gold
Liquidity – easily convertible to cash in any currency.
Portable – you can carry coins in your pocket.
Divisible – splitting up diamonds changes their value, but the same cannot be said for gold.
Consistent – gold is gold, wherever you are. The same cannot be said for real estate or farmland.
Convenient – other coins of sufficient value (such as copper or lead) would be too bulky and heavy.
Value dense – high value held in a small quantity.
Rare – gold can’t be printed!
Private and confidential – you control who knows you own it.
Gold has been considered valuable for thousands of years and will always have value. No matter what the social, political, or financial climate is in the world, gold has never gone to zero or defrauded an investor. It is the ultimate form of money.
We need to remember that fiat currencies are essentially backed by the governments that issue them. The logic is compelling, but if you print too much money, the purchasing power goes down, and you invariably get hyperinflation – that decimates the currency. Imagine you’ve got a cake...it doesn’t matter how many times you slice it – it doesn’t get any bigger!
Here’s another way to think about it – printing money might work at first... you print lots of money, and it takes time for the inflation to take hold. But it will. It’s a bit like eating your favourite sweets. Initially, it’s great. But after a few weeks, you’ll probably start to gain weight, and your teeth might begin to rot. There are consequences. You don’t get them immediately, but you DO get them.
Here are some examples of hyperinflation, and if you’re interested in finding out more about fiat currencies, watch this. The video also gives you some other ideas that may be of interest (please speak to a financial adviser before making any investments).
There are several well-regarded investors who believe that fiat currencies will go to Zero, which is a sobering thought.
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