Gold Coin Investment

If your looking for gold coin investment then there are a few things you should know. As with all investments the price can fluctuate on a daily basis. And blindly thinking that the price of gold can only go one way is a fallacy. There are people in this world with the power to raise or depreceate the price of any commodity with the click of a button.

However all is not lost. What most folks do not realise about money, economics and inflation is the true cost of value. What i mean is - a gold coin has true intrinsic value. There is an old parable that states: 2000 years ago you could go into the local market and purchase a new suit, some sandles and a meal with a single gold coin. And 2000 years later you could take that same gold coin and go into a market and purchase a suit, some footwear and a meal. That is because the value in any gold coin investment spanning even thousands of years, still retains its inherent buying power, which gives it it's value.

The reason for this is simple yet a strange concept. When people think of money they falsely believe that money (paper money) has value. But that is wrong. Paper money only has value because the government and bankers claim it to be. They pass laws and print bank notes with denominations on and say this piece of paper has a value of say $100 bucks. And the "faith", yes that's the "blind faith" that it is redeemable at a later time for something of equal value is what gives it value. Meaning all dollar bills, pound notes, japanese jen and iraqi dinar only have value because the people have faith in the fact they can redeem it later for something of value.

However unlike a gold coin investment that retains its value. Paper money is constantly losing value due to inflation. Normal inflation runs about 2% a year. So every year you lose 2% of the buying power within the paper currency. This is the sad realisation of our current debt ridden, credit driven fractional reserve banking system. In my eyes it is nothing but a giant ponzi scheme, with the hidden stealth tax of stealing a percentage of your earnings and money year on year.

But what is inflation ?.

Inflation occurs primarily when there is too much money in the economy for the amount of goods. That means there is more money available to be spread amongst the goods. Prices will rise to reflect the amount of money in the economy that is able to purchase them. Deflation is the opposite of this scenario. Deflation occurs when there is not enough money in the system to pay for goods, so the price comes down to chase what little money there is.

The real sting in the tail is when governments start printing money and pumping it into the system like they are currently doing now with bailouts. The printing of too many paper dolllars will force the price of goods up as there will be 100's of spare dollars per goods to buy. This is the scary scenario that we now face in the economy and why i think a gold coin investment is one of the safest investments in the world today. Because 2000 years ago it had intrinsic value (buying power). Today it still has that value (buying power) and 2000 in the future i suspect it will still have that value (buying power). And paper currencies will do what they have always done throughout history - return to there inherent value. Which is just a piece of paper!.

Buy Gold Coins online today!.