AHG Gold IRA Review
Modern economists are going with the flow that Bitcoin is better than gold because it’s a virtual representation of money. Sure, the blockchain is cool and a step forward in the right direction, but there’s still a long way to go.
The entire sector is still filled with instability, volatility, and uncertainty. One of the most interesting examples to understand why gold is better comes from Yap Island. In that small place, people used large stones that weighed hundreds of pounds that served as money.
Everyone had a notebook, and whenever someone wanted to pay for something, the ownership was exchanged, and every citizen wrote down the new owner in their notebook. This method worked for centuries, and the stones were incredibly valuable because those pieces of rock couldn’t be mined locally. The depreciation of the money began after businessmen from the West shipwrecked on the island.
When they saw the opportunity, they quickly fled to the closest island and produced those stones cheaply and sold them to the people who lived on Yap. The citizens from the island didn’t even realize that they were deprived of their savings and that their money was completely destroyed through inflation.
Gold is something that can never suffer from the same fate. At the moment, there are more than 20 000 different cryptocurrencies that could overtake Bitcoin. How could anyone be sure that it’s going to survive the onslaught of new technology and upgraded projects? It’s like saying that the first mobile phone that was invented was the best one. Technology doesn’t work like that.
Why is gold the only answer?
Fiat currencies are inflationary by definition. When something doesn’t require effort to be created, it’s easy to mass-produce it. A hundred years ago, when gold-backed all paper currencies, banks could only create money that was already in their safes.
For a dollar to be printed, they needed to have a quantity of gold that accurately represented it. Ever since 1971, that has not been the case. The president at that time, Richard Nixon, severed the bond between gold and the dollar because the United States was becoming the biggest debtor nation at that time. In the same year, the national debt of the country exceeded half a trillion dollars.
Now, the debt of the United States is close to 30 trillion dollars. That’s a lot of zeros. When you take out a loan, the only way to get out of it is to pay it or default on it and stomp on your credit score. However, there’s a third option that only governments can do. That is inflating the entire market until the debt is easy to pay off. Since the Federal Reserve has its hands on a magic printing press that creates money at close to zero cost.
At the moment, there are a lot of things happening at the same time. Japanese deflationists, communistic capitalists, and western democracies are running the biggest experiment of our time. You can read American Hartford Gold Reviews for more info. As things are going at the moment, this is going to turn into the most massive economic bubble that the world has ever seen.
Wherever you turn, you see governments that are printing money while running enormous deficits in their fiscal policies. The term they use for this type of behavior is called quantitative easing. The quantitative easing will keep on happening until the value of the money that’s printed is equal to the cost of producing it. Every economist knows that the price of that currency is slightly above zero.
In the last century alone, there have been almost 30 cases of hyperinflation. More than 20 of them happened in 1980. The current rate of inflation is 8 percent, which is still a single digit. When the number gets into the double or triple digits, then the world will be in awe of what’s going to happen next.
The cost of producing gold is enormous, and there’s a massive demand for it. Every single culture in the world thinks of it as the only symbol of wealth. Unlike fiat currencies, gold is limited and scarce. Whenever something is scarce, it has value.
Can a financial crisis be evaded?
Ben Bernanke was one of the chairmen of the Federal Reserve. Since he was in charge of the mechanism that prints money, he’s one of the people who really know what’s going on with the monetary politics of the world. He stated that financial crises would keep on happening.
They’ve been happening for thousands of years, and it’s highly unlikely to stop them. However, that’s only true about maintaining an innovative and dynamic financial system. Taking some steps as a precaution will make them less frequent and contribute to a better global functioning economy.
Ironically, all of the crises that have happened have been due to manipulating the monetary supply. Whenever dictators, emperors, or governments want to increase the money supply without putting in enough effort, their states have crumbled to the ground, which means that the free market is the only hope for maintaining healthy money. The free market has already chosen gold as the best form of hard money. It’s time to embrace it.
How to secure your wealth?
The only way to secure your wealth is by buying precious metals or investing in a gold IRA. There’s no other way. Stocks, bonds, and real estate are all subject to bubbles. The crisis in 2008 showed that to everyone. Whenever an asset is dependent on another institution or individual, it’s filled with drawbacks. The only asset that stands alone is gold.
Of course, this includes other precious metals like silver, platinum, and palladium. China has already started to increase its gold reserves from its own domestic production. We still can’t feel the impact of their wealth because they haven’t traded on the open market. Slowly but surely, they’re becoming a monopoly. For the savvy investor, it’s wise to copy the largest players in the game and then wait until the uncertainty passes.