Why Buy Gold

The global audience demanding gold (and silver) continues to grow and my task is to assist in expanding that audience. Tradition and history tell us that over the centuries it is the already wealthy; the titans of industry, conservative bankers, along with the aristocratic Europeans and Asians who keep a significant percentage of their wealth in physical gold. But thanks to the on-going global financial crisis a wider cross section of European and recently, North American investors are flocking to gold and silver. And why should they not, as gold's strength in early 2010 comes on the heels of a bull market that has been increasing over the last decade.

Just this weekend, Barron's reported the performance of gold compared to the world's top currencies. Every investor is aware of how gold has appreciated versus the over-printed US dollar - it's nearly 15% annualized gain showcases perfectly the strength of the yellow metal against the impotent dollar. But note: against the stronger Australian and Canadian dollars, gold has an annualized gain of over 11% over the past decade.

For those who consider the US dollar as a long-term safe haven for wealth preservation, note: The Euro is losing value every day thanks to crippling debt loads of the PIGS (Portugal, Ireland, Greece and Spain). The worth of the Euro has tumbled just on the possibility that Greece will default. But there is more rot in the European Union than just Greece.

But what about right here in North America and more to the point...what about California? It is not a matter of 'if' but of 'when' the most populous state in the union defaults. What do you think that will do to the value of the US dollar?

Rather than try to repeat information contained in dozens of previous Larry Myles Reports why not simply let the two charts tell the story why you and everyone else you care about should own hard gold and silver.

Let us dispense with the majority of those 'thousand words' and rely on the visual evidence found within the picture; or in this case, a pair of charts to silence any remaining debate offered by the few remaining anti-gold denier.

I would like you to consider what has happened to the price of an ounce of gold since 1974:

It should be noted that over the last decade, gold 'bottomed' in 2001 to $255 per ounce but has since increased in value by over 300%. While overall the worth of an ounce of gold has clearly gained in value over the last four decades, look at what has happened to the purchasing power of those shabby little pieces of paper (US Dollar) in your wallet:

Arguably there remains the notion the US dollar is the only currency worth owning. I could not disagree more. From my perspective, holding any faith-backed fiat currency is a sap's game; as eventually every currency will fall to gold (and silver).

I have mentioned on many occasions that the beginning of the end for the US dollar began in 1971 when Richard Nixon signed America off the gold standard. Individuals and mega-companies exited the US; taking jobs and capital with them.

By the mid-1970's inflation had devastated the American family as their paper money, no longer backed by gold, lost value. Thank you Big Government, Wall Street and the Bankers for ending decades of sound and prudent monetary policy; and ushering in corporate socialism! Decades later, a growing number of Americans from every walk of life have joined the horde of knowledgeable global investors; turning a deaf ear to government propaganda - and are seizing control of their own financial destiny and becoming aware of the business of gold and putting their trust in the guaranteed security of owning gold and silver. And by 'security of owning gold and silver' - I mean owning and holding the metals, not holding yet another piece of paper (ETF) promising you the exchange of that piece of paper for gold and silver. Reason: If things get hairy, that piece of paper will be totally, 100% worthless.

News out of Britain thanks to one of my long-time readers; a successful currency trader who also has not neglected taking personal ownership of gold bullion let me know that many in the UK consider gold bullion a preferred option; due to high performance of the precious metal over the last two decades. He was also kind enough to provide a quote from Financial Times, gold has soared, recognized as the premier investment prospect by nearly 300% over the last decade. My reader also went on to mention that common wisdom has recognized the yellow metal has proven hands-down to be a better investment than stocks, cash, real estate, bonds and other commodities during this time period.

Kirsty Hogg is an active member of the community helping ordinary people to get informed on concepts of inflation and wealth preservation. Kirsty is an authorized Affiliate for Anglo Far East and I am in her debt for alerting me to Millennium Money.

But more than that, Kirsty is typical of a growing number of people who are quietly taking personal responsibility for their own financial future - and in so doing, recognize the importance of not only networking...but becoming truly involved in the business of gold.

Last word: Continue to buy gold on the dips, do your due diligence on anything the government tries to tell you....and in general, work at becoming more informed.