Enough with the festive sweaters and toys that are used once or twice and then thrown in the closet to sit and take up space. This year, if you want to give a gift that will truly be appreciated, give the gift of gold or silver. A gold or silver coin can be a treasured memento or it can be an investment for the recipient’s future. Unlike some Christmas gifts that are soon discarded, a gold or silver bullion coin will always have value. They are beautiful to look at and they will last forever.
It just so happens that gold and silver bullion coins are on sale as we enter the holiday season. Market forces have driven the precious metals down to a price where they are a bargain to buy. Now is the perfect time to buy gold or silver coins as a gift for someone special. Now is a perfect time for you to accumulate precious metals to balance, diversify and strengthen your portfolio. Gold and silver prices will not stay low for long.
An 18 Trillion Dollar National Debt
Don’t think for a minute that having total public debt equal to 101.5 percent of the Gross Domestic Product (GDP) is not going to cause inflation to return. It is not a question of if but, rather, when inflation becomes a big concern. Interest expense on the national debt for the 2014 fiscal year ending on September 30, 2014, was over $430 billion. For the most recent month, November of 2014, interest expense on the national debt was in excess of $23 billion.
Those staggering numbers have serious implications. The government essentially has an interest-only mortgage and at some point, the principal must also be paid back. To service the national debt, or at least to just be able to pay the interest due, the government needs to borrow more money by selling more treasuries and bonds.
Adding to the money supply weakens the dollar so the government needs to print more money. Printing more money leads to inflation. It is a vicious cycle and there is no easy way out of the dilemma. The president cannot solve the problem. Janet Yellen and the Fed cannot solve the problem. The only thing that is sure is a return of inflation. Anyone who holds gold and silver coins or other forms of physical precious metals will be happy they do.
Central Banks Are Buying Gold
Countries around the world have been accumulating gold because they know that their currencies are being devalued. China and India, the number one and number two gold buyers are seeing increased demand for the precious metal. In Russia, President Putin has been filling his vaults with the precious metal. As economic and political uncertainty continues to plague the world, gold demand will return. First, it is the central banks, and then it is the hedge funds and institutional investors. When the general public starts buying gold, you can be certain that prices will move much higher than they are today.
Give the Gift of Gold or Silver
Make someone’s holiday season a very special one by giving the gift of gold or silver. Whether you can afford a Gold Eagle coin or your budget only allows for a Silver American Eagle coin, your gift will make someone very happy. Happy Holidays to all!