Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 1% and 2% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 17 2017
By: Ira Epstein

Next-Generation Crazy: The Fed Plans For The Coming Recession
By: John Rubino

COT Gold, Silver and US Dollar Index Report - November 17, 2017
By: GoldSeek.com

Gold Miners’ Q3’17 Fundamentals
By: Adam Hamilton, CPA

Bonfire of the Absurdities
By: John Mauldin

The Social Security Inflation Lag Calendar - Partial Indexing Part 1
By: Daniel R. Amerman, CFA

Rob From The Middle Class Economics
By: Gary Christenson

GoldSeek Radio Nugget: John Williams and Chris Waltzek
By: radio.GoldSeek.com

The Metals Market Is A Mess And Will Likely Continue To Frustrate You
By: Avi Gilburt

 
Search

GoldSeek Web

 
Gold: The One Commodity Buffett and Bernanke Just Don’t Understand


 -- Published: Wednesday, 12 November 2014 | Print  | Disqus 

By Jeff D. Opdyke

The Royal Mint gets it.

Because I see such deep value in gold today, I was exploring various national mints last week, looking to buy some bullion — maybe some Austrian Philharmonics, some Canadian Maple Leafs or a few Britannia’s from the U.K.

And while reading through the bullion site for Britain’s Royal Mint, I came across some highly unexpected commentary.

While the likes of Ben Bernanke, Warren Buffett and others here in the States offer inane commentary on the uselessness of gold, the 1,100-year-old Royal Mint had this to say:

Gold is the ultimate store of value.

Gold is the original and still the most far-reaching global currency.

Gold is perhaps the ultimate form of insurance.

And, yes, the Royal Mint put those words in boldface.

That should tell you something — namely that gold bullion, at today’s lower prices, is an asset you should be adding to your portfolio.

What They’re Saying About Gold

Warren Buffett once famously said that gold “has no utility. Anyone watching from Mars would be scratching their head” over the Earthlings and their fascination with a metallic element. Meanwhile, former Fed-head Ben Bernanke once told Congress that gold is not money and it is just a precious metal — the price for which “no one really understands.”

Apparently, the Royal Mint understands.

While gold is too-often denigrated at the higher levels of American finance, those who have a long — long! — history with money, currency and metals recognize that gold is the ultimately form of money.

“Gold,” as the Royal Mint notes, “cannot be faked, printed or inflated. Over the very long run, it has historically held its worth.” Can anyone make that claim about the dollars in our wallet — or any other currency that has come along in the last few hundred years? Our buck has lost more than 95% of its value since the creation of the Federal Reserve, and is down 25% since September 2001, what I argue marks the end of the American empire as we once knew it.

I write all the time about the benefits of owning gold in a portfolio. It’s insurance against dramatic geopolitical turmoil, it’s insurance against rapid inflation, and it’s insurance against Congress or the Fed doing something that undermines the dollar’s purchasing power either overtly or, more likely, covertly.

I pound the table on the necessity to own gold — physical gold — because I believe the stories of history far more than I will ever believe the theories of Warren Buffett or any Fed official.

For Now, Gold is Cheap

Gold is down at the moment, but that doesn’t mean much beyond the obvious — “gold is cheaper than it has been in years.”

Every asset class ebbs and flows. That’s normal. But for whatever reason, gold’s decline elicits all kinds of “death of gold … I told you so” commentary for a crowd that still (wrongly) thinks of gold as just another commodity rather than the currency that it is.

Just because gold prices have come off their high does not even remotely imply that the metal’s day is done. It just means that the dollar is stronger for temporary reasons and, as a result, the world’s ultimate currency — gold — is down relative to the dollar.

That’s how it should be; every currency in the world moves relative to one another.

When the dollar’s rally concludes — and I guarantee with 100% assurance that it will — gold’s direction will reverse.

As the Royal Mint concluded, “Gold is, indeed, a unique, irreplaceable asset.”

It will insure your wealth and your purchasing power from a rash of economic, geopolitical, Congressional and financial risks that lurk just beyond the horizon.

Until next time, stay Sovereign …
Image For Gold: The One Commodity Buffett and Bernanke Just Dont Understand
Jeff D. Opdyke
Editor, Profit Seeker


| Digg This Article
 -- Published: Wednesday, 12 November 2014 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.