Gold Investing Tips For Our Bad Economy

Home >> Why Gold Is An Important Investment In Our Bad Economy?

Author: Gold Why Webmaster
Date: February, 2009

500 Gram Silver Bullion Bar
©iStockphoto.com – rammekens

There's no doubt about it, we're in the middle of a very bad economy. We're facing rough times. In my most recent article about gold coins bringing good luck, I mention how I just got laid off (but fortunately got a new job quickly). Many people are in the same boat. The purpose of this article is to take a look at our current economy and how you can leverage gold to your advantage. We'll talk about some of the obvious points and also touch on some more advanced gold strategies that I am leveraging myself to improve my overall life during these difficult times. After this article, I truly hope to have conveyed at least a few useful tips to help you through these crazy times, potentially even profiting from them (financially, mentally, and spiritually)!

Gold Is One of The Only Real Assets

Gold bullion coins and bars are physical assets. Once you own the gold, it's yours free and clear. You can hold it in your hand, you don't have to pay taxes on it (unless you sell), and it will always contain intrinsic value. I touch on a lot of these points in my top 10 reasons to buy gold coins. What I really want to highlight in this particular article is the fact that many of your other "assets" are not really assets. Let's look at stocks. They are just pieces of paper representing ownership in companies. Many of these companies are flat out lies. We have seen many household name companies simply disappear. I have personally owned stock in companies that have lost most of their value and I consider myself a very smart investor. When these companies go bankrupt, what happens to your paper asset? It disappears! Bond holders have first right to any money left over and the common stock holders are often left with nothing. Let's now look at your cash in the bank. The government has reduced the interest rate to 0 percent. They are printing more money daily to get us out of this bad economy, but also diluting the value of your dollars (inflation). At the end of the day, all fiat currencies come to an end. Could the time be coming for the US dollar? I certainly hope not, but we could be at the beginning of the end. Now, let's look at a really interesting one, your house. Let's say you "own" your house. You have paid the mortgage off. However, what happens if you don't pay your property taxes? What happens if the government raises the property taxes so much you can't afford them anymore? Your asset is no longer yours and the government will take it from you. Taking a step back and looking now at gold bullion coins, they are always yours (unless they get stolen of course, a whole other topic). When you own gold bullion coins, there is no management fee, no risk of them becoming worthless, no other people involved (including an irresponsible government or corporate executives). Gold is one of the only real assets out there. Gold coins will not lie to you, cheat you, or steal your money, they are honest real assets. This is one of the fundamental reasons to own gold bullion coins and bars during our bad economy. When you own real assets, everything can disappear around you, but you will still maintain that portion of your wealth forever. Again, another story, but please take a look at our suggestions for hiding your gold coins and storing your gold in your safe deposit box. Attention to storing your gold safely is even more important than ever in our current economic times.

Gold Brings Good Luck, Something You Might Really Need In This Bad Economy

Again, the topic of a whole other article, but wanted to draw your attention to my recent article about gold bringing luck. I highly recommend checking out that article. With our unemployment rate surging, I advise working as hard as possible. However, things aren't always fair. I have been paying attention to a lot of companies and it seems like the honest person usually gets the short stick and the corporate executive ends up winning. I don't like it but that's the world we live in. No matter how hard your work, you are at risk in this economy. To improve your chances of success, I highly recommend buying gold bullion coins as a form of spiritual currency, it will bring you good luck. Planning any large life changing events? Make sure to stock up on gold bullion.

What If Things Get Really Bad? Gold, Silver, and Copper Could Save You and Your Family

I hate talking about the doomsday scenario because I don't think it's that likely. However, an article like this would be incomplete without it. What if things get really bad? What if every "asset" you have disappears and you are on your own? What if the government is gone and there is no order? Gold coins will be your secret weapon to get through the mess. No matter what, they are always worth money. You will be able to use your gold coins to barter and get yourself and your family to safety. Of course, it will be the wild west and you will need to fend for yourself and avoid getting taken advantage of (and your gold stolen) but if you're savvy, it's better to have gold on your side than nothing. Of course, in this case, it's unlikely you will be able to get to your safe deposit box and that's why I recommend being smart about hiding some gold, silver, and copper bullion in your home and on your person. Also, let's say the shutdown is temporary. In the short run, the US Dollar will still most likely have buying power. This is one of the main reasons I'm hoarding one and five dollar bills and I suggest you do the same. Just remember, don't get too carried away. I still strongly advise storing the lion share of you gold holdings in your safe deposit box so you can sleep at night and not worry about a robbery or fire taking away your life savings!

Profiting From Gold In This Recession?

I know I'm jumping all over the place here, but totally intend for this article to give a bunch of different tips all related to investing in gold during our current recession. Realizing the last point is a little de-motivating (I personally dislike doomsday talk, but do think it has its place in an article like this one), I wanted to transition into a more empowering note. I truly believe that smart gold investors can benefit from owning gold during these unprecedented economic times. First, let me address the initial thoughts going through your head. Profit? But isn't it wrong of me to profit at the expense of others? I would certainly say that it is not wrong to profit and that you are not doing it at the expense of others. Here's how I look at it. I hate working. I wish I was free to write all day about gold and investing, helping out thousands of people. I feel that I could help more people if I had full control of my life but I don't. Therefore, I'm stuck working in a job which adds less value to society that I otherwise could be. Let's say the price of gold goes from its current $900 per ounce range to $10,000 or more per ounce (totally possible in my opinion). If this were to happen, one could use their profits to achieve financial freedom. With their free time, they could help educate and add more value to society. Thus, a smart investment in gold not only helps you profit and live a better lower stress life, but others too. From the gold bugs I have met, I see a lot of great people who are true helpers.

Use the Recession To Pay Off Your House With Gold

This one ties into my last point, but deserves a paragraph of its own. I'm trying to achieve financial freedom. I define freedom as living the same lifestyle that I do now but not having to work a traditional job. Rather, I could spend all day writing articles like this one and sharing my knowledge and thoughts online to help out others. I'm building up a position in gold coins, bars, and stocks to profit from the long term gold price rally that I expect. As the recession gets worse, the price of gold could get high enough where my profits are enough to pay off my house. Thinking about this philosophically, I am using the ultimate real asset, gold, to pay off debts I owe in fiat currency. Owning gold could actually help you take advantage of our current economic climate. If you have a fixed rate mortgage like me (I suggest locking a fixed rate), an inflationary economy can actually help you pay off your house sooner if you invest in physical assets that appreciate and hold their value against inflation. You could pay off your house in gold! (Side note: Even without the current recession, I'm a believer in the long term value of gold. Even in a good economy, the price of gold bullion is so undervalued it baffles me. Again a whole other topic but I don't want to put out the idea that gold is only a good investment in a bad economy. The bad economy just helps the price of gold rise faster because people are forced to see the truth.)

The Practical Side of Investing In Gold, Silver, and Copper During This Bad Economy

Realizing a lot of the talk so far has been a little more "out there" in scope and also length of time, let's look at a shorter term and more practical reason to buy gold, silver, and copper in this bad economy: It's a great way to save money. Precious metals are physical assets. You buy them and then store them (I recommend storing most of your holdings in your safe deposit box). Thus, once you own the asset, it's not that quick to sell. Conversely, let's say you "save" money in your savings account. If you get in a money pinch, it's so easy to transfer that money into your checking account to pay your bills. I like buying gold in this economy because it's forced permanent savings. You can't easily withdraw the savings and spend it. You can't easily lose money like stocks in this economy. It's a steady way to simply focus on savings. Rather than going to the movies, why not go to your coin shop and pick up a Silver American Eagle? You're having fun while saving money in a physical asset.

Gold Is A Good Way Of Life In This Recession

This one builds on the last paragraph a bit. Spiritually and mentally, you want to prepare yourself for the recession. Getting through these times requires a bit of a different approach. It's a shift in thinking. As you start buying gold, silver, and copper (coins, bars, stocks), your attitude will shift. You will start thinking differently about life and money in general. Things will click and you will "get it." It's hard to explain but one way I have seen this all manifest in my own life is picking up dirty coins and pennies from the ground. Instead of going to the mall and spending money, I now find myself taking long, healthy walks on the weekend. During these walks, I'm not only exercising my body and mind, but I'm picking up any pennies or objects of value I can find, I'm a scavenger. I would have never done this before I became a gold bug. Overall, I'm thinking more clearly and doing things to better my entire life for myself and my family. Buy gold coins in this recession, and your life could improve! I truly wish you the absolute best of luck and hope these tips help you through some difficult times.

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