I'm a gold bug and enjoy seeing gold hit $860. I also have a large percentage of my stock portfolio in an oil stock and it's great to see oil hitting $100. The rally in oil has sent my stock up over 300 percent since I originally started buying 5 years ago. On the other hand, I'm very concerned about our economy overall. Gold at $860 and oil at $100 can only mean one thing: inflation. Inflation means every dollar that I don't have invested in either foreign stocks or hedges against inflation such as gold, silver, and oil is a dollar that will be worth less tomorrow (and a lot less a year or two years from now).
©iStockphoto.com – 7nuit
Ron Paul Knows The Answer
Our current government does not "get it" at all. Interest rates are kept at ridiculously low levels to protect greedy banks that mislead consumers into unrealistic mortgage loans with teaser rates. The Federal Reserve tells the public that inflation is not a problem but they never reference the price of oil and gold in their talks. The fact that gold and oil have risen so much can mean nothing else than a huge inflation problem. Unless we "clean house" and get rid of our current way of thinking we will only see our problems get worse.
But there is hope. His name is Ron Paul. Out of all the political candidates I have ever followed, Ron Paul is the only person who has ever mentioned the importance of reverting to the gold standard. I urge you to register to vote for Ron Paul. If we move towards ending our war, reducing the size of the government, and backing our dollars with real assets (gold), this inflation problem can be solved. Otherwise, I fear that we are headed for much worse times. To learn more about Ron Paul, please visit Ron Paul's official site.
A Gold Investor's Interpretation
There are two ways that gold can appreciate. The first is a byproduct of inflation. Gold is a store of wealth and will appreciate against a currency that is inflating like the US dollar. The second is a byproduct of supply. According to Galmarley, all the gold ever mined is only worth $1.8 trillion. This sounds like a lot but really is not when you consider it's only a fraction of the US national debt. Combine that fact with the growing economies of India and China which both value gold really highly and we have a major gold shortage My interpretation: We don't need inflation at all for gold to appreciate. Gold will continue to appreciate even in the absence of inflation.
So why has gold appreciated so far: Inflation or shortage? This one is easy: Inflation caused by government mismanagement. Our national debt and war is out of hand. Interest rates are too low and the Fed is making major mistakes and ignoring the long term. We need to vote for Ron Paul to start a large change toward economic stability. Once our economic situation is in order, I believe gold will continue to rally for a completely different reason, a global shortage of the metal. The conversion of these events is the best possible thing that can happen for our country and also the gold investor. On the other hand, if we don't elect Ron Paul, I'm very fearful that gold will continue to rise due to inflation in addition to the global shortage. This will rocket gold to unthinkable heights and probably cause another government confiscation of gold like in 1933. A gold confiscation is my worst nightmare. Take this gold bug's advice and vote for our friend Ron Paul!
Buy Gold American Eagle Coins on eBay
Related Gold Articles
Why Did I Create Gold Why?
Why Buy Gold Bullion Coins?
Why Buy Tacoma Copper Bars?
Why Collect Maui Trade Dollars?
Why Gold Coins Bring Good Luck?
Why Own and Wear Gold Jewelry?
Why Buy Gibraltar Dog Gold Coins?
Why Buy Coins From Pennies.com?
Why Buy Isle of Man Cat Gold Coins?
Why Be Careful Buying Coins Online?
Why Buy Silver Strike Casino Tokens?
Why Buy Johnson Matthey Gold Bars?
Why Buy Gold From Creative Sources?
Why Buy Bullion From Joliet Metal Mint?
Why Give Gold Coins For The Holidays?
Why Buy Fractional Silver Bullion Coins?
Exclusive Interview With River City Coins
Exclusive Interview With Market Harmony
Why Buy Silver Vacation Souvenir Coins?
Exclusive Interview With E Cohen Minting
Why Buy 1/20 Ounce Gold Bullion Coins?
Why Buy Gold and Silver Bullion on Ebay?
Exclusive Interview With The Copper Cave
Why Hide Your Gold Coins In A Safe Place?
Why Buy Exotic Bullion From Jetco Minting?
Why Participate In The Gold Why Giveaway?
Why Pay Yourself First In Gold Bullion Coins?
Why Buy 25 Dollar Boxes of Copper Pennies?
Beginner's Guide To Investing In Gold Jewelry
Why Buy Gold and Silver From GovMint.com?
Why It's Not The Right Time For Gold Stocks?
Why Diversify Within Your Gold Coin Portfolio?
Why Collect Spare Change From The Ground?
Why Invest In Shares of Gold Mining Companies?
Why Buy Physical Gold Coins Versus Gold ETFs?
Why Store Gold Bullion In Your Safe Deposit Box?
Why Buy Copper Bullion Bars From The Metal Mint?
Why Buy Gold Bullion From Well Known Gold Shops?
Why Am I Hoarding One Dollar (and Five Dollar) Bills?
Why Buy Gold, Silver, and Copper From E Cohen Mint?
Why Buy Gold Versus Silver? Why Buy Silver Vs. Gold?
Why Have There Been No Updates To Gold Why Lately?
Why Buy Gold and Silver From The eBay Bullion Center?
Why Complement Your Gold Portfolio With Other Metals?
Why Protect Yourself Against The Next Gold Confiscation?
Why Subscribe To Gold Why's Exclusive Email Newsletter?
Why Watch The Coolest Gold Collection Ever On YouTube?
Why Gold Is An Important Investment In Our Bad Economy?
Why Buy Gold Bullion Coins From Blanchard and Company?
Why Buy Coins From Shop NBC? Review of The Coin Shoppe
Why Buy Copper Bullion From The Copper Cave by Susquehanna Hobbies?