Every Details You Need To Know About Gold

Every Details You Need To Know About Gold.

The Five Law of Gold

Take for example, the five laws of gold. If you are looking to place your personal finances on a sound footing, wherever you are in life, these are for you:

Law No 1: Gold comes gladly and in increasing quantity to anyone who puts by at least a tenth of their earnings to create an estate for their future and that of their family. In other words, save 10% of your income. Minimum. Save more than that if you can. And that 10% is not for next year's holiday or a new car. It's for the long-term. Your 10% can include your pension contributions, ISAs, premium bonds or any kind of high interest/restricted access savings account. OK, interest rates for savers are at historic lows now, but who knows where they'll be in five or ten years? And compound interest means your savings will grow faster than you think.

Law No 2: Gold labours diligently and contentedly for the wise owner who finds profitable employment for it. So, if you're looking to invest rather than save, do it wisely. No crypto-currencies or pyramid schemes. We're focusing on the words "profitable" and "employment". Make your money work for you but remember the best you can hope for this side of the rainbow is steady returns over the long term, not lottery wins. In practice this is likely to mean shares in established companies offering a regular dividend and a steady upward trend in share price. You can invest directly, or through a fund manager in the form of unit trusts, but before parting with a single penny, see Laws 3, 4 and 5...

Law No 3: Gold clings to the protection of the cautious owner who invests it under the advice of those wise in handling it. Before you do anything, talk to a qualified, experienced financial adviser. If you don't know one, do some research. Check them out on the internet. What expertise do they have? What kind of clients? Read the reviews. Call them first and get a feel for what they can offer you, then decide if a face to face meeting will work. Check out their commission arrangements. Are they independent or tied to a particular company, under contract to push that company's financial products? A decent financial adviser will encourage you to get the basics in place: pension, life insurance, somewhere to live, before steering you towards investing in emerging markets and space travel. When you're satisfied that you've found an adviser you can count on, listen to them. Trust their advice. But review your relationship with them at regular intervals, say annually, and if you're not happy, look elsewhere. Chances are, if your judgment was sound in the first place, you'll stick with the same adviser for many years to come.

Law No 4: Gold slips away from the one who invests it in businesses or purposes with which they not familiar or which are not approved by those skilled in its keep. If you have a deep knowledge of food retail, by all means invest in the supermarket chain that is increasing market share. Likewise, if you work for a company that has an employee share ownership scheme, it makes sense to take advantage of it, if you're sure that your company has good prospects. But, you should never invest in any market or financial product that you don't understand (remember the Crash!) or can't fully research. If you are tempted to try your hand at currency dealing or options trading and you have a financial adviser, talk to them first. If they're not up to speed, ask them to refer you to someone who is. Best of all, steer clear of anything you're not sure about, no matter how big the potential returns.

Law No 5: Gold flees the one seeking impossible earnings or who follows the alluring advice of tricksters and schemers or who trusts his own inexperience. Again, the fifth law follows on the heels of the fourth. If you start scouring the internet for financial advice and wealth creation ideas, your inbox will soon be full of "tricksters and schemers" promising you the earth if you'll invest £999 in their "system" for turning £1 into £1XXXXXX on the Chicago Mercantile Exchange. Remember, the only one who makes money in a gold rush is the one selling shovels. Buy the wrong shovel and you'll quickly dig yourself into debt. Not only will you pay through the nose for a system that has no proven value; by following it you will probably lose a lot more than the price you paid for it. At the very least you should check genuine reviews of the product. And never buy any system, investment vehicle or financial product from any company that is not registered by a national watchdog, such as the Financial Conduct Authority for the UK.

Why should gold be the product that has this unique property? Most likely it is because of its history as the first form of money, and later as the basis of the gold standard that sets the value of all money. Because of this, gold confers familiarity. Create a sense of security as a source of money that always has value, no matter what.

The properties of gold also explain why it does not correlate with other assets. These include stocks, bonds and oil.

The gold price does not rise when other asset classes do. It does not even have an inverse relationship because stocks and bonds are mutually exclusive.

REASONS TO OWN GOLD

1. History of Holding Its Value

Unlike paper money, coins or other assets, gold has maintained its value over the centuries. People see gold as a means to transmit and maintain their wealth from one generation to another.

2. Inflation

Historically, gold has been an excellent protection against inflation, because its price tends to increase when the cost of living increases. Over the past 50 years, investors have seen gold prices soar and the stock market plummet during the years of high inflation.

3. Deflation

Deflation is the period during which prices fall, economic activity slows down and the economy is overwhelmed by an excess of debt and has not been seen worldwide. During the Great Depression of the 1930s, the relative purchasing power of gold increased while other prices fell sharply.

4. Geopolitical Fears/Factors

Gold retains its value not only in times of financial uncertainty but also in times of geopolitical uncertainty. It is also often referred to as "crisis commodity" because people flee to their relative safety as global tensions increase. During these times gold outperforms any other investment.

THE HISTORY OF GOLD AND CURRENCIES

All world currencies are backed up by precious metals. One of these being gold playing the major role is support the value of all the currencies of the world. The bottom line is Gold is money and currencies are just papers that can wake up valueless because governments have the overruling power to decide on the value of any country's currency.

The Future Of Currencies We Are At The Tipping Point

WHY SMART INVESTORS ARE INVESTING IN GOLD?

1. The markets are now much more volatile after the Brexit and Trump elections. Defying all odds, the United States chose Donald Trump as its new president and no one can predict what the next four years will be. As commander-in-chief, Trump now has the power to declare a nuclear war and no one can legally stop him. Britain has left the EU and other European countries want to do the same. Wherever you are in the Western world, uncertainty is in the air like never before.

2. The government of the United States is monitoring the provision of retirement. In 2010, Portugal confiscated assets from the retirement account to cover public deficits and debts. Ireland and France acted in the same way in 2011 as Poland did in 2013. The US government. He has observed. Since 2011, the Ministry of Finance has taken four times money from the pension funds of government employees to compensate for budget deficits. The legend of multimillionaire investor Jim Rogers believes that private accounts will continue as government attacks.

3. The top 5 US banks are now larger than before the crisis. They have heard about the five largest banks in the United States and their systemic importance since the current financial crisis threatens to break them. Lawmakers and regulators promised that they would solve this problem as soon as the crisis was contained. More than five years after the end of the crisis, the five largest banks are even more important and critical to the system than before the crisis. The government has aggravated the problem by forcing some of these so-called "oversized banks to fail" to absorb the breaches. Any of these sponsors would fail now, it would be absolutely catastrophic.

4. The danger of derivatives now threatens banks more than in 2007/2008. The derivatives that collapsed the banks in 2008 did not disappear as promised by the regulators. Today, the derivatives exposure of the five largest US banks is 45% higher than before the economic collapse of 2008. The inferred bubble exceeded $ 273 billion, compared to $ 187 billion in 2008.

5. US interest rates are already at an abnormal level, leaving the Fed with little room to cut interest rates. Even after an annual increase in the interest rate, the key interest rate remains between ¼ and ½ percent. Keep in mind that before the crisis that broke out in August 2007, interest rates on federal funds were 5.25%. In the next crisis, the Fed will have less than half a percentage point, can cut interest rates to boost the economy.

6. US banks are not the safest place for your money. Global Finance magazine publishes an annual list of the world's 50 safest banks. Only 5 of them are based in the United States. UU The first position of a US bank order is only # 39.

7. The Fed's overall balance sheet deficit is still rising relative to the 2008 financial crisis: the US Federal Reserve still has about $ 1.8 trillion worth of mortgage-backed securities in its 2008 financial crisis, more than double the $ 1 trillion US dollar. I had before the crisis started. When mortgage-backed securities become bad again, the Federal Reserve has much less leeway to absorb the bad assets than before.

8. The FDIC recognizes that it has no reserves to cover another banking crisis. The most recent annual report of the FDIC shows that they will not have enough reserves to adequately insure the country's bank deposits for at least another five years. This amazing revelation admits that they can cover only 1.01% of bank deposits in the United States, or from $ 1 to $ 100 of their bank deposits.

9. Long-term unemployment is even higher than before the Great Recession. The unemployment rate was 4.4% in early 2007 before the start of the last crisis. Finally, while the unemployment rate reached the level of 4.7% observed when the financial crisis began to destroy the US economy, long-term unemployment remains high and participation in the labor market is significantly reduced five years after its end. the previous crisis. Unemployment could be much higher as a result of the coming crisis.

10. US companies fail at a record pace. At the beginning of 2016, Jim Clifton, CEO of Gallup, announced that the commercial failures of the United States are larger than the start-ups that began for the first time in more than three decades. The shortage of medium and small companies has a great impact on an economy that for a long time has been driven by the private sector. The larger companies are not immune to the problems either. Even heavyweights in the US economy such as Microsoft (which has reduced 18,000 jobs) and McDonald's (which shut down 700 stores during the year) are suffering this terrible trend.

Why smart investors add physical gold to their retirement accounts?

• Ensuring inflation and deflation.
• Limited delivery Demand up
• A safe haven in times of geopolitical, economic and financial turbulence.
• Diversification and portfolio protection.
• Stock value.

Cover against the decline of the printing policy of dollars and money.

Are you currently wondering how to purchase gold? A lot of people want to invest, nonetheless they don't realize how to begin. The simple truth is there are many techniques for getting started with investing in gold. Here are some of the more common ways to purchase gold, as well as the positives and negatives for each and tips :-

1. Physical Gold

Undoubtedly, buying physical gold is one of the most frequent ways people spend money on gold. With regards to how to invest in gold, there are many things to understand about buying physical gold. Here's a few:

How To Accomplish It?

Buying psychical gold is actually simple as it is the best way it sounds. You acquire gold items, like jewelry, coins, collectibles and just about other things. The purpose of most investors is usually to hold onto their psychical gold after which sell it into a gold dealer or other kind of buyer.

People have a number of options in relation to where they may buy physical gold. They are able to purchase them at the store or online. Whenever they find the gold, they will have to store it whilst keeping it until they are ready to market it for a higher price. When gold prices increase, then investors can consider selling their pieces.

The Benefits

First pro is that physical gold can be a tangible asset, and history indicates that gold tends to increase in value as time goes by. Very few investments are tangible and also have a high probability of going up in price, even though the economy isn't doing too well. If you want a great investment you can easily hold, see whilst keeping within your possession, then look no further than investing in physical gold.

Second pro is physical gold can not be hacked or erased. Nowadays, folks have countless assets that they can invest in and are generally held online. A gold piece with your hand doesn't need the internet or any electricity to operate or anything like this. It really is a foolproof investment in relation to protecting it from hackers.

Your third advantage of buying physical gold is that you simply don't have to be a professional. Perform quick research on the price tag on gold then research gold dealers. Then you can find the gold items you wish to keep and then sell them off when you're ready. It's as easy as that.

The Cons

First, buying psychical gold can be expensive. According to in which you purchase it from, you might want to pay commission fees. Even when you buy it coming from a private seller, you can bet how the gold will likely be expensive. If spending large amounts of cash upfront isn't for you, then you might like to think twice about buying gold, but generally gold is generally definitely worth the investment.

Second con is storing the gold. It doesn't matter what kind of gold pieces you get, if you purchased it directly, then you're in charge of storing it. You should be careful with how its stored, otherwise you may well be putting your gold in danger of getting stolen, damaged and even lost.

The past major con that the physical gold, when stored by yourself, won't gain interest. You must secure the gold up until you decide it's a chance to sell it off. If you're looking to gain a little bit of interest in your gold items, then buying physical gold and storing it all by yourself is probably not the best option.

Tips

Buying physical gold is quite easy. It's also straightforward. Just be sure you need to do just as much research as is possible into gold dealers before deciding what type to do business with, and make sure you research current gold prices because you need to try to find good deals on gold pieces. This can all could be seen as commonsense advice, but trust us once we say it comes in handy when the time concerns purchase gold.

Gold Futures

Gold futures are contracts which were standardized and they are generally traded on specific exchanges. Gold futures allow investors to get a unique number of gold (for example 100 Troy ounces) at a price that has already been predetermine. However, the delivery transpires in a future date.

How To Buy Gold Futures?

The first thing you need to do is open a brokerage account. You will find brokers that specifically cope with futures trading, so take some time when picking one. Next, you can trade gold futures and just how it functions is you'll must deposit the absolute minimum money so that you can open a situation. When the price goes into the proper direction, then you'll stand to generate a profit, but you'll generate losses when it goes in an unacceptable direction.

The Benefits

First, you simply will not have to store anything. As previously mentioned, you have to find storage space when you purchase physical gold. With gold futures, this isn't a challenge.

Secondly, lower amounts come to mind with golds future. During the time of making a deal, you'll only be asked to pay a certain amount of cash. The others pays as soon as the agreement is signed.

Another great thing is there exists a good amount of liquidity. In addition to that, however, you can day trade gold futures. This means there's a prospective to produce and withdrawal profits regularly.

The Cons

There's only some cons. One includes that there is a major risk to trading anything, and gold is no different. Default risk can leave the most experienced traders inside the trenches.

Also, gold prices can greatly fluctuate daily. It is simple to gain money, but you can easily as easily lose it. Remember, the price of gold can be appealing at the time of signing the agreement, but they can drop as soon as delivery is made.

One third con is the volatile from the marketplace. One day the markets may be good and then the next it could crash. In no time, there may be a phase as soon as the markets don't move much whatsoever.

Tips

Regarding tips, it's all about opening a merchant account with a great broker. You can find dozens and many brokerage accounts, so compare as many as possible. Find one that will provide you with good advice on gold futures trading then one that doesn't charge a number of fees. The greater number of brokers you compare, the more effective.

Also, research gold prices for a couple of weeks before making an investment in gold via futures. If the prices appears to be stable, then go ahead. If there's an excessive amount of volatile from the markets for these couple of weeks, then consider waiting until everything grows more steady.

Gold ETFs

Gold ETFs are a fantastic replacement for gold futures. You won't own contracts, but rather you'll be buying shares of any ETF. In turn, you'll be open to gold, hence why they may be called gold ETFs.

How To Do It?

You may get a brokerage account via a broker that permits you to trade gold ETFs. Then you'll be able to select the gold product you want to purchase. It's as elementary as that.

The Pros

One of the best reasons for gold ETFs could it be acts like a hedge against inflation. Normally, this is the truth with a lot of gold-based investments. Should you own gold ETFs, then they are utilized to safeguard your assets up against the inflation and fluctuation of currencies. Gold is definitely a safe investment and if you buy the proper ETFs, then you'll do your major favor.

Second, it is extremely an easy task to trade gold ETFs. You will be only required to invest in a single unit of gold, that is with regards to a gram of gold in weight. Furthermore, it is possible to trade ETFs via your ETF fund manager or even your stockbroker.

Third benefit is that you can take a look at stock exchanges and learn just how much gold is selling for. This can be done at any given time. If you believe prices are great, then go ahead and buy something, otherwise you can hold off until prices be a little more appealing.

Another benefit may be the tax side of things. The sole taxes you spend is either short or long term capital gains tax. Long term is gold that is held for any year or longer, while short-term is under a year.

The Cons

One con is the fact ETFs can be expensive. Actually, they could be more pricey than other styles of investing, but they are often more lucrative. It's your decision to make a decision whether or not purchasing gold ETFs makes it worth while. That is actually the only major con related to buying gold ETFs.

Tips

If you can, consider investing large sums of capital or enter into the habit of trading regularly. The reason being ETFs tend to be profitable than other types of gold-investing. Basically you can end up building a lot if you are prepared to trade regularly or invest large sums of money.

Another helpful tip is usually to never choose a fund manager or ETF product since the fees are alone. Do a bit of research to learn precisely what the performance has looked like over the last few years. If everything looks good, then choose that fund, otherwise keep seeking another fund manager.

Purchase Gold Mining Businesses!

This can be the best way it may sound. It requires purchasing mining businesses that mine gold. You happen to be essentially buying stocks into gold mining companies.

How To Make It Happen?

You can get a stockbroker or investing firm. They may take your funds and invest it into gold companies of your choice. A different way to get it done would be to join an internet stock trading platform and spend money on gold businesses that are listed on the platform. You purchase a particular amount of shares and then sell them when you've made a profit.

The Pros

First, buying shares into gold mining companies is straightforward and thus is selling them. All that you do is purchase the amount of shares you would like then sell them off when you're prepared to. Also, you may invest into several companies and increase your chances of making profits frequently.

Second, the retail price swings may be huge, but they do typically take awhile to take place. When you are patient, then you can definitely sell when these swings happen. Remember, in case a company is doing well and doing things right, then their stock could go up of course, if the price of gold is high too, then you might end up doing adequately.

Third, buying stocks is beginner-friendly. It doesn't take a great deal of knowledge to shell out, nevertheless it usually takes some research into gold mining companies. Just do a great deal of research into several companies and discover what kind of financial reputation they already have prior to invest into them.

The Cons

The risk is about the high side because gold mining companies carry plenty of risk, that may cause their stock to lower, whether or not the price of gold is high. Also, remember that gold miners put themselves in danger and stuff they generally do also can impact the cost of the company's stock. Investing in gold mining companies is as risky as buying almost every other type of stocks.

Tips

There's only one really specific tip to remember. You need to research various stock trading platforms and make sure the ones you utilize have gold mining companies' shares available. Better yet, research gold mining companies and create a set of them prior to search for stock trading platforms. Then you could find out if those platforms offer shares in those companies.

That is how to spend money on gold. As you can see, you can find advantages and disadvantages to every single form of investing method, so you may want to consider all the various methods to invest. Then you can certainly choose which technique to try.

Main points to be kept in mind while selling gold

World has plenty of gold, which is mined. The mining activity gave the result to hundreds and thousands of gold ounces. The deposits of gold are usually at shallow depths. You can buy or sell it in the markets. You can also sell silver, gems or scrap gold in the markets. It is considered that the jewelry buyers are experienced and very well trained. They are believed to give a fair price for the gold which you want to sell.

Being Aware of the Scams

You should know about the quality and try to make more cash out of your gold. Educate yourself on all the terms and specifications so that you can keep a good bargain. There are places which prey on their customers for more money and to get the money quickly out of them. They convince the people to sell at lower rates than the normal market rate. They make their money while it becomes too late for you to realize that you have been fooled. Do not sell if the buyer pressurizes you. Do not sell to the people who are not ready to weigh it in front of you.

What to Ask the Refinery?

The first and foremost point is that if the buyer weighs the gold in pennyweights then you should ask him to weigh in grams. The one weighed in pennyweights can give you a poor amount. All the calculations should be carried in grams strictly for your ease and also today's market weighs the gold in grams.

Reasons for selling your gold now

By selling you can also contribute to the benefits of the environment by reducing the mining activities and markets can use the gold which is already mined. The scrap gold will be recycled by the refineries.

Selling Gold to Buyers

The gold should be measured in grams and you should know that 1 pennyweight = 1.555 grams. This can put you at a loss by convincing you that they pay more money than the other buyers. You always need to know the price you are paid for per gram of gold. If the buyers are bluffing about giving you higher rates than the market rates, you should not fall for this trick as the buyer tells about his best rate at the beginning itself. Search for the professional buyers only so that they give you the best rates. Selling in the markets can help you incredibly to sell at a good price if you are willing to start your business on that money.

Predicting The Price Of Gold Is A Fool's Game 

It is frustrating at times to see the attention focused on predictions for the price of gold. The more sensational and spectacular the price forecast, the greater the cacophony.

It is worth taking a look back at a few of these predictions to help put things in perspective.

Gold did not see the 'signal' since its current price is nearly identical to its price on the day the prediction appeared in print just after the elections last November.

Gold, in 1913, was $20.00 per ounce. Currently it is $1260.00 per ounce. That is an increase of more that sixty-fold. But it does not represent a profit. Because the general price level of goods and services today - generally speaking - is sixty times higher than it was in 1913.

There are times when you can profit from sharp moves in gold in short-term situations. Generally, these are just before major movements in its U.S dollar price that reflect a realization of the cumulative decline in purchasing power of the dollar. And, to a lesser extent, recognizing when the expectations of others take the gold price well beyond equilibrium vs. the U.S dollar.

In 1999/2000 gold hit price lows of $250-275.00 per ounce. Soon thereafter it embarked on a decade long run culminating in a peak price of close to $1900.00 per ounce in 2011.

After its peak in 2011, gold declined over the next five years to a low of just above $1000.00 per ounce. A short-lived rebound in early 2016 brought it back to near current levels ($1250-1350.00) where it has generally remained without breaking either up or down to any significant degree.

Where were all these 'experts' in 1999/2000 and what were they predicting then?

And since 2011/2012? They have been saying pretty much the same thing over and over again. Buy now! Buy more! Before it's too late!

One day, it will be too late. But it is more a matter of financial survival now than ever before. The obsession with profits, predicting and trading has obscured the real fundamentals.

And one way or another, most people's profits are likely to go up in smoke before they do anything meaningful with them.

Gold - physical gold - is real money. It is real money because it is a store of value. And its value is constant. The U.S. dollar's value continues to decline over time. The constantly declining value of the U.S. dollar and people's perception of it, as well as their expectations for it, determine the price of gold.

Inflation is an insidious threat to our financial and economic security. It has been foisted upon us to the point that we are in danger of losing much more than the value of our money. The capital markets are facing risks of immensely greater proportion than those of 2008-09. Economic activity is primarily financed by credit and we are hooked on the drug of money and higher prices - for everything. We are told often that inflation is spontaneous and that we must learn to mange its effects. That is not true.

Inflation is intentional and practiced by governments and central banks the world over. And its effects are unpredictable and destructive. In addition, the effects of inflation are cumulative; hence, they tend to be more volatile, ongoing. And buried underneath all of the surface weaknesses is the specter of fractional-reserve banking. It is the legalized version of Ponzi scheme.

How much is gold really worth?

How much is gold really worth? The answer we get depends on who we ask and what their opinion is.

Everyone has an opinion as to what something is worth, whether the object of consideration is their home, a late grandfather's pocket watch, or a specific stock. In that respect, gold is no different.

The price of a specific item or asset at any given time is a reflection of all those varying opinions. Some are based on fundamentals, some are based on technical factors. But the combination of all the opinions, and the resulting expectations (some expect the price to go up, others expect it to go down or remain the same), plus all of the other known factors at the time that might possibly impact the price, provide us with the clearest possible indication of current value for the item in question: its market price.

If we believe that gold is money, then we likely will have a different opinion or expectation than someone who sees gold as an investment; or someone else who deems gold to have no useful value.

If we don't believe that gold is money, then we are saying that something else is. That something else, practically speaking, is fiat, paper currency issued by a government or central bank (dollars, euros, yen, etc.)

With that in mind let's rephrase our original question. In other words, "How much is money worth?" In the simplest of terms, money is worth whatever it can be exchanged for. The value of money is in its purchasing power.

With that fundamental understood, then the logic is reasonably simple. Gold (or any other money) is worth what we can buy with it.

So, what can we buy with it? And how do we know that the value of our gold/money is realistically priced?

With gold currently priced at $1240.00 per ounce, the value of gold today is what we can buy with twelve hundred forty dollars.

But is $1240.00 per ounce today realistic? Or rather, are there reasons why we might expect that price to rise or decline to any substantial degree that would influence our choice to hold money in gold vs. U.S. dollars?

In order to answer that question, we need to do some research.

And, in order to diffuse any arguments about whether or not gold is money (and to set aside - as much as possible - any biases) let's go back to a time when the U.S. dollar and gold were both money and equal in value.

In 1913, both gold and U.S. dollars were legal tender, and interchangeable. Either was convertible into the other at a fixed price. A one ounce (.97 ounces) gold coin was equal to twenty U.S. Dollars and vice-versa. (note: the official gold price was $20.67 per ounce, which multiplied by.97 ounce of gold in a gold coin equals $20.00).

On the surface, it would seem that one ounce of gold over the past one hundred and four years has increased in 'value' by fifty-nine hundred percent ($20.67 in 1913 vs $1240.00 today). By extension, that would mean that we can buy sixty times as much with one ounce of gold today as we could in 1913. Not so.

We said earlier that the value of money is what we can buy with it, or we can acquire in exchange for it, but what should be obvious by now is that even though the 'price' of gold increased by fifty-nine hundred percent, we don't know whether there was an increase in actual 'value', or possibly a decrease if gold was unable to maintain its original purchasing power.

We can still, however, draw some conclusions about relative performance. The specifics are that gold gained in value by fifty-nine hundred percent 'relative' to the U.S. dollar. The corollary is that the U.S. dollar declined by more than ninety-eight percent 'relative' to gold.

Now we need to know how both gold and the U.S. dollar fared in absolute terms regarding purchasing power.

And the results are clear. Gold has maintained its value, and even increased its purchasing power in absolute terms, over the century-long period under consideration. Also, the results corroborate the current market price for gold of $1240.00 per ounce.

What we don't know is the extent to which the current price of $1240.00 per ounce reflects accurately the effects of policies which have led to our current situation. More specifically, exactly how much value has the U.S. dollar lost since 1913? Is it ninety-eight percent, or less; ninety-nine, or more?

The current market price for gold of $1240.00 per ounce indicates a fairly specific loss of ninety-eight and 1/4 percent. A ninety-eight percent decline in the value of the U.S. dollar translates to a gold price of approximately $1000.00 per ounce. And if the decline is closer to ninety-nine percent, then the gold price should be closer to $2,000.00 per ounce.

In August 2011, gold traded at about $1900.00 per ounce. That would indicate a decline in value of the U.S. dollar of closer to ninety-nine percent since 1913.

But nearly four and one-half years later, in January 2016, gold traded as low as $1040.00 per ounce. That price indicates a decline in U.S. dollar value closer to ninety-eight percent. In fact, it is nearly exactly equivalent to that mark. A ninety-eight percent decline in U.S. dollar value equates to a fifty fold increase in the gold price since 1913 (100 percent minus 98 percent = 2 percent; 100 percent divided by 2 percent = 50; $20.67 per ounce times 50 = $1033.50 per ounce).

Between 1999 and 2011, gold increased in price from $275.00 per ounce to $1900.00 per ounce. And during that same period, the U.S. dollar declined in value by a commensurate amount.

Between August 2011 and January 2016, the U.S. dollar was in a clearly defined uptrend. And that uptrend was mirrored by a similar percentage decline in gold.

Since January 2016, both gold and the U.S. dollar reversed direction for about six to nine months and then stabilized, generally, at levels close to where they are now.

CONCLUSIONS:

Gold, in U.S. dollars, is worth somewhere between $1000.00 and $2000.00 per ounce. Furthermore, and to be more specific, the current price of $1240.00 per ounce is a reasonably accurate reflection of gold's current worth.

Any consequential variance exceeding $1100.00 per ounce on the downside and $1300.00 per ounce on the upside WILL BE accompanied by similar, inverse changes in the value of the U.S. dollar.

The U.S. dollar is the only barometer you need to watch. The elements of surprise and timing are critical. Most especially so, if you are short-term oriented in your thinking.

Items for consideration that could have a substantial impact on the U.S. dollar include 1) new and unexpected actions by the Federal Reserve 2) a clearer picture of the enormity of the Fed's balance sheet 3) accelerated, delayed effects of inflation previously created by the Fed 4) a credit implosion 5) the Fed's reaction to a credit implosion.

We live in an impatient age, and when it comes to money we want more of it now, today, not tomorrow. Whether it's a deposit for a mortgage or clearing those credit cards that sap our energy long after we stopped enjoying what we bought with them, the sooner the better. When it comes to investing, we want easy pickings and quick returns. Hence the current mania for crypto-currencies. Why invest in nanotechnology or machine learning when Ethereum is locked in an endless upward spiral and Bitcoin is the gift that keeps on giving?

A century ago, the American writer George S Clason took a different approach. In The Richest Man in Babylon he gave the world a treasure trove - literally - of financial principles based on things that might seem old-fashioned today: caution, prudence and wisdom. Clason used the wise men of the ancient city of Babylon as the spokesmen for his financial advice, but that advice is as relevant today as it was a century ago, when the Wall Street Crash and the Great Depression were looming.

The Five Law of Gold

Take for example, the five laws of gold. If you are looking to place your personal finances on a sound footing, wherever you are in life, these are for you:

Law No 1: Gold comes gladly and in increasing quantity to anyone who puts by at least a tenth of their earnings to create an estate for their future and that of their family. In other words, save 10% of your income. Minimum. Save more than that if you can. And that 10% is not for next year's holiday or a new car. It's for the long-term. Your 10% can include your pension contributions, ISAs, premium bonds or any kind of high interest/restricted access savings account. OK, interest rates for savers are at historic lows now, but who knows where they'll be in five or ten years? And compound interest means your savings will grow faster than you think.

Law No 2: Gold labours diligently and contentedly for the wise owner who finds profitable employment for it. So, if you're looking to invest rather than save, do it wisely. No crypto-currencies or pyramid schemes. We're focusing on the words "profitable" and "employment". Make your money work for you but remember the best you can hope for this side of the rainbow is steady returns over the long term, not lottery wins. In practice this is likely to mean shares in established companies offering a regular dividend and a steady upward trend in share price. You can invest directly, or through a fund manager in the form of unit trusts, but before parting with a single penny, see Laws 3, 4 and 5...

Law No 3: Gold clings to the protection of the cautious owner who invests it under the advice of those wise in handling it. Before you do anything, talk to a qualified, experienced financial adviser. If you don't know one, do some research. Check them out on the internet. What expertise do they have? What kind of clients? Read the reviews. Call them first and get a feel for what they can offer you, then decide if a face to face meeting will work. Check out their commission arrangements. Are they independent or tied to a particular company, under contract to push that company's financial products? A decent financial adviser will encourage you to get the basics in place: pension, life insurance, somewhere to live, before steering you towards investing in emerging markets and space travel. When you're satisfied that you've found an adviser you can count on, listen to them. Trust their advice. But review your relationship with them at regular intervals, say annually, and if you're not happy, look elsewhere. Chances are, if your judgment was sound in the first place, you'll stick with the same adviser for many years to come.

Law No 4: Gold slips away from the one who invests it in businesses or purposes with which they not familiar or which are not approved by those skilled in its keep. If you have a deep knowledge of food retail, by all means invest in the supermarket chain that is increasing market share. Likewise, if you work for a company that has an employee share ownership scheme, it makes sense to take advantage of it, if you're sure that your company has good prospects. But, you should never invest in any market or financial product that you don't understand (remember the Crash!) or can't fully research. If you are tempted to try your hand at currency dealing or options trading and you have a financial adviser, talk to them first. If they're not up to speed, ask them to refer you to someone who is. Best of all, steer clear of anything you're not sure about, no matter how big the potential returns.

Law No 5: Gold flees the one seeking impossible earnings or who follows the alluring advice of tricksters and schemers or who trusts his own inexperience. Again, the fifth law follows on the heels of the fourth. If you start scouring the internet for financial advice and wealth creation ideas, your inbox will soon be full of "tricksters and schemers" promising you the earth if you'll invest £999 in their "system" for turning £1 into £1XXXXXX on the Chicago Mercantile Exchange. Remember, the only one who makes money in a gold rush is the one selling shovels. Buy the wrong shovel and you'll quickly dig yourself into debt. Not only will you pay through the nose for a system that has no proven value; by following it you will probably lose a lot more than the price you paid for it. At the very least you should check genuine reviews of the product. And never buy any system, investment vehicle or financial product from any company that is not registered by a national watchdog, such as the Financial Conduct Authority for the UK.

Why should gold be the product that has this unique property? Most likely it is because of its history as the first form of money, and later as the basis of the gold standard that sets the value of all money. Because of this, gold confers familiarity. Create a sense of security as a source of money that always has value, no matter what.

The properties of gold also explain why it does not correlate with other assets. These include stocks, bonds and oil.

The gold price does not rise when other asset classes do. It does not even have an inverse relationship because stocks and bonds are mutually exclusive.

REASONS TO OWN GOLD

1. History of Holding Its Value

Unlike paper money, coins or other assets, gold has maintained its value over the centuries. People see gold as a means to transmit and maintain their wealth from one generation to another.

2. Inflation

Historically, gold has been an excellent protection against inflation, because its price tends to increase when the cost of living increases. Over the past 50 years, investors have seen gold prices soar and the stock market plummet during the years of high inflation.

3. Deflation

Deflation is the period during which prices fall, economic activity slows down and the economy is overwhelmed by an excess of debt and has not been seen worldwide. During the Great Depression of the 1930s, the relative purchasing power of gold increased while other prices fell sharply.

4. Geopolitical Fears/Factors

Gold retains its value not only in times of financial uncertainty but also in times of geopolitical uncertainty. It is also often referred to as "crisis commodity" because people flee to their relative safety as global tensions increase. During these times gold outperforms any other investment.

THE HISTORY OF GOLD AND CURRENCIES

All world currencies are backed up by precious metals. One of these being gold playing the major role is support the value of all the currencies of the world. The bottom line is Gold is money and currencies are just papers that can wake up valueless because governments have the overruling power to decide on the value of any country's currency.

The Future Of Currencies We Are At The Tipping Point

WHY SMART INVESTORS ARE INVESTING IN GOLD?

1. The markets are now much more volatile after the Brexit and Trump elections. Defying all odds, the United States chose Donald Trump as its new president and no one can predict what the next four years will be. As commander-in-chief, Trump now has the power to declare a nuclear war and no one can legally stop him. Britain has left the EU and other European countries want to do the same. Wherever you are in the Western world, uncertainty is in the air like never before.

2. The government of the United States is monitoring the provision of retirement. In 2010, Portugal confiscated assets from the retirement account to cover public deficits and debts. Ireland and France acted in the same way in 2011 as Poland did in 2013. The US government. He has observed. Since 2011, the Ministry of Finance has taken four times money from the pension funds of government employees to compensate for budget deficits. The legend of multimillionaire investor Jim Rogers believes that private accounts will continue as government attacks.

3. The top 5 US banks are now larger than before the crisis. They have heard about the five largest banks in the United States and their systemic importance since the current financial crisis threatens to break them. Lawmakers and regulators promised that they would solve this problem as soon as the crisis was contained. More than five years after the end of the crisis, the five largest banks are even more important and critical to the system than before the crisis. The government has aggravated the problem by forcing some of these so-called "oversized banks to fail" to absorb the breaches. Any of these sponsors would fail now, it would be absolutely catastrophic.

4. The danger of derivatives now threatens banks more than in 2007/2008. The derivatives that collapsed the banks in 2008 did not disappear as promised by the regulators. Today, the derivatives exposure of the five largest US banks is 45% higher than before the economic collapse of 2008. The inferred bubble exceeded $ 273 billion, compared to $ 187 billion in 2008.

5. US interest rates are already at an abnormal level, leaving the Fed with little room to cut interest rates. Even after an annual increase in the interest rate, the key interest rate remains between ¼ and ½ percent. Keep in mind that before the crisis that broke out in August 2007, interest rates on federal funds were 5.25%. In the next crisis, the Fed will have less than half a percentage point, can cut interest rates to boost the economy.

6. US banks are not the safest place for your money. Global Finance magazine publishes an annual list of the world's 50 safest banks. Only 5 of them are based in the United States. UU The first position of a US bank order is only # 39.

7. The Fed's overall balance sheet deficit is still rising relative to the 2008 financial crisis: the US Federal Reserve still has about $ 1.8 trillion worth of mortgage-backed securities in its 2008 financial crisis, more than double the $ 1 trillion US dollar. I had before the crisis started. When mortgage-backed securities become bad again, the Federal Reserve has much less leeway to absorb the bad assets than before.

8. The FDIC recognizes that it has no reserves to cover another banking crisis. The most recent annual report of the FDIC shows that they will not have enough reserves to adequately insure the country's bank deposits for at least another five years. This amazing revelation admits that they can cover only 1.01% of bank deposits in the United States, or from $ 1 to $ 100 of their bank deposits.

9. Long-term unemployment is even higher than before the Great Recession. The unemployment rate was 4.4% in early 2007 before the start of the last crisis. Finally, while the unemployment rate reached the level of 4.7% observed when the financial crisis began to destroy the US economy, long-term unemployment remains high and participation in the labor market is significantly reduced five years after its end. the previous crisis. Unemployment could be much higher as a result of the coming crisis.

10. US companies fail at a record pace. At the beginning of 2016, Jim Clifton, CEO of Gallup, announced that the commercial failures of the United States are larger than the start-ups that began for the first time in more than three decades. The shortage of medium and small companies has a great impact on an economy that for a long time has been driven by the private sector. The larger companies are not immune to the problems either. Even heavyweights in the US economy such as Microsoft (which has reduced 18,000 jobs) and McDonald's (which shut down 700 stores during the year) are suffering this terrible trend.

Why smart investors add physical gold to their retirement accounts?

• Ensuring inflation and deflation.
• Limited delivery Demand up
• A safe haven in times of geopolitical, economic and financial turbulence.
• Diversification and portfolio protection.
• Stock value.
• Cover against the decline of the printing policy of dollars and money