Reasons Why You Must Own Gold
Austin Rare Coins & Bullion is the place you can trust to buy your gold, silver, or other precious metals. We care about your experience and want to help you gain the knowledge to make informed decisions that are up-to-date and reliable.
Reasons to own include:
- Earning 28% average annual gains for the past 10 years
- As a hedge against coming inflation
- For insurance against Stock/Bond crashes
- To escape the decline of the US Dollar
Investors buy gold during uncertain economic times while others investments are paying poor returns. The past 20 years gold has increased in value by 502%*
* (Gold Price.org - May 13, 2021)
We can also look at the stock market by adding up the annual returns from the years in the most recent 20-year period, ending on November 18, 2020:
- DJIA: 6.23%**
- S&P 500: 6.67%**
** (Finance Buzz - May 13, 2021)
Parking money on the sidelines, in the bank, the best rate to be found today will earn only .75% in a two year Bank CD and as little as 0.45% in an average Bank Money Market fund.
1. Gold is the Ultimate Hedge Against Inflation - Inflation is the excessive creation of new Dollars by the Federal Reserve. The Government's exorbitant spending and $1.5 Trillion Dollar deficit for two years in a row are being paid for by the Federal Reserve's QE1 and QE2 program. Ultimately, a loss of buying power for the U.S. Dollar is virtually guaranteed as prices have already begun to rise for food, commodities, oil, gas, etc. Gold, commodities, and precious metals are investments whose value can, and have, multiplied in value dramatically in anticipation of inflation and during periods of double digit U.S. inflation.
2. For the Long-Term Profits - The price of gold has increased in value since 2001. The average annual gains since 2001 have exceeded 45%.
3. Gold As Crisis Insurance - Gold performs extraordinarily well as a safe-haven investment against any economic, political or social crisis. In the past, we've recommended a conservative core holding of 5% of liquid assets in precious metals at all times.
4. Gold is Stock Market Crash Protection - During the Sub-Prime Mortgage crisis and Stock Crash of 2008, even the world's best known Stocks like General Electric, General Motors, Chrysler, and A.I.G. suddenly became dramatically worthless.
5. Gold Provides Honest Diversification - During the Sub-Prime Mortgage driven Stock Crash of 2008, the U.S. Stock Market plummeted from a DOW high of 14,164 to touch a low in 2009 of 6,547. Few investors escaped unharmed when Stocks fell 53%. Yet, Gold protected investors, actually ending 2008 up 4.32%. It went on to gain 25% in 2009 and 29% in 2010 and helped many people avoid a total wipe out.
6. Gold is the Anti-Dollar - In a world filled with fiat paper currency thanks to Washington spending, we have a burgeoning national debt crisis. Added to that are massive state and local debts, the risk of a Bond defaults, currency defaults for the Euro, and the U.S. Dollar. As the anti-Dollar investment, Gold rises in value long-term as the value of the US Dollar continues to decline.
7. The Gold Bull Market Continues - Until Federal Government spending is brought under control or until the Federal Reserve stops printing money, the Gold Bull Market will, in our opinion, continue. Only an immediate and rapid reversal of policy can put Americans back to work, and get the country on the right track. Until then, we recommend you consider a core holding of up to 25% of your immediately liquid assets in gold, silver, platinum, and other inflation fighting commodities.
8. Look at Euro Gold - Low Premiums - High Quality....