America’s DAYS OF DESTINY December 11-18, 2012 Due to the massive financial dangers now threatening your wealth, we are interrupting our normal editorial schedule to bring you a crucial series of articles designed to help you shore up your financial defenses before the new year begins. We will return to our regular publishing schedule on Wednesday, December 19. — The Editors |
Today’s world is as uncertain as any we’ve seen in some time. Sovereign-debt crises threaten major economies in Europe and Japan. And the fiscal state of the United States is the worst in non-wartime history!
It’s no surprise, then, that investors are becoming increasingly attracted to the safety, anonymity and purchasing-power preservation that comes with bullion ownership.
Yet, one of the most-often-overlooked benefits of bullion is its ability to help you increase your wealth across currencies. So today, I’ll show you how owning physical metals — and the most-precious of them all, gold in particular — can help you to boost your global net worth!
Governments Worldwide Keep
Printing Themselves into a Corner
Our politicians’ solution to a mountain of debt? Add more!
Ballooning deficits and crushing debt have been the result of the financial crisis of 2008, and each year those debt loads the world over have gotten bigger and bigger.
It’s not just the United States that is trying to borrow its way out of a stagnant global economy. Japan, Europe, Brazil, South Korea and many other nations are keeping interest rates ultra-low. They are also encouraging — nearly forcing — countries and individuals to borrow money.
This adds even more to the mountain of debt across the globe.
One of the only logical ways these governments will ever get out of their debt-ridden messes is to debase their respective currencies.
This might sound benign enough. But never before have we seen so many governments attempting the same thing. That is, actively depressing their currency in an attempt to boost economic activity and weasel their way out of paying back their debts.
This action by the world’s largest governments has sparked the beginnings of a currency race to the bottom, or better termed a “currency war.”
And if you think I’m exaggerating or being Pollyanna, then take the words of Bank of England Governor Mervyn King — he said just this week at a conference that one of the greatest threats to the global economy is this budding currency war!
The Currency Wars:
How to Pick the Winning Side
What he means is that, as governments actively devalue their currency, it’s causing their trade partners to do the same thing, devalue to stay competitive.
This vicious cycle plays out over and over again until all currencies have lost a significant amount of purchasing power. Meanwhile, investors who own assets in those currencies are left holding the proverbial bag!
There are certainly ways investors can protect themselves from those occurrences, but buying stocks and bonds still leaves you exposed to an area of risk — the currency those assets are priced in.
For instance, you can own U.S. Treasuries, German Bunds and Japanese bonds. But what if all those currencies decline in purchasing power simultaneously — a very real possibility in the future?
Then, your investment would suffer because the currency is declining. Your hedging of risk has provided no real benefit.
Gold bullion, however, eliminates this risk.
Bump up Your Buying Power: Long Gold Means
Being Short Every Other Currency in the World!
Gold bullion is the answer to the currency wars, because it is the only asset you can own that simultaneously lets you short every other currency in the world — all at the same time.
While most people watch the gold price in dollars, keep in mind gold is also priced in euros, yen, won and every other currency.
In fact, most people don’t realize that, while gold has had a nice run in U.S. dollar terms, gold priced in yen and euros has produced equally good returns, and at some points even-better returns than the gold price in dollars.
So, unlike insurance policies, bond holdings or other “safe” investments, gold bullion has the ability to rise in value against every currency in the world — at the same time!
Think of it this way …
Say I’m right and currency wars do erupt. It’s five years from now, and exchange rates among the major currencies are roughly where they are now.
But the currency wars have been raging. So while the euro is still 1.31 to the U.S. dollar, both currencies have declined big-time against hard assets like oil, corn, copper, steel, coal and real estate.
My gold bullion, however, is much higher than it was — not only avoiding the loss, but most likely booking a profit, too.
So, while my friends and colleagues going on vacation abroad complain about how “expensive” everything is, my gold bullion has gone up in value against the euro, yen, pound, real, and very other currency in the world — making me wealthier across the globe!
How Can the Currency Wars Help YOU
Increase Your Global Net Worth?
A European vacation at a fraction of the price thanks to my gold bullion increasing its value with the real purchasing power of the euro has declined — yes, please!
And it’s just as easy for you to do the same.
• Only by owning gold bullion can you simultaneously hedge yourself from the currency wars on the horizon.
• And only by being a savvy investor can you see the value of your investments rise across all currencies, turning the threat of simultaneous currency debasement (the currency wars) into an opportunity.
Adding gold bullion to your portfolio is the only way to truly protect yourself from potential currency debasement and preserve your purchasing power and standard of living.
Other investments simply don’t do the trick. That’s why it’s imperative you own bullion — not just for the potential increase, but also to ensure your hard-earned money holds its value the world over.
Best,
Tom Essaye
{ 1 comment }
what about taxes on sale of physical gold??