Gold Bullion - The Best Insurance Policy That You'll Ever Buy

Gold bullion is a horrible investment. It's real return is practically zero over the past 100 years. It's the investment "snuggie" of late night cable television.

I'm sure you've heard these statements before by popular investment gurus, who either don't understand or ignore the true value of investing in precious metals.

Putting aside the fact that gold has appreciated at double-digit rates on average this decade against all of the world’s currencies and tripled in price over the past six years, let's look at the metal not as an investment vehicle but as an insurance policy against loss of purchasing power.

Think about this for a moment.

You purchase an insurance policy for your home, not as an investment, but as protection against destruction. Gold bullion should be regarded in the same manner - not as an investment per se, but as a form of financial insurance. Insurance against destruction of paper currency.

On August 15th 1971, President Richard Nixon slammed the proverbial gold window shut, ending dollar convertibility into gold. Unchained from the gold standard, the dollar could now just 'float' (be printed enmasse).

Today, after 38 years of being backed by absolutely nothing but the full faith and credit of our U.S. government, our beloved dollar is worth a fraction of what used to be. If you compare the buying power of that one dollar bill in 1971 versus today, you would be able to buy only EIGHTEEN CENTS, after adjusting for inflation.

Why the Dollar will Fall Further

In response to the financial crisis of the past year, the government turned on it's printing presses to warp speed. As a result, the United States monetary base exploded from $800 billion in August of 2008 to $1.7 trillion. To put that into perspective that means there are now more than two dollars for every dollar that existed a year ago. Never in the course of history has the money supply expanded like this.

Thanks to our government's monumental spending spree in their attempt to stabilize the financial system and kick-start the economy, our federal budget deficit has now soared to a new record level of $1.42 trillion dollars!

If that wasn't bad enough, our national debt is now over $11 trillion. And unfunded liabilities such as Medicare and Social Security stand at a staggering $58 trillion.

In order to pay for all of this, the government is either going to have to cut spending (ain't going to happen), raise taxes (get ready) or crank up the printing presses some more and try to print their way out of this mess. And that deficit is projected to rise to $9.1 trillion over the next decade.

A country simply cannot partake in the unbridled printing of money in this manner without the dollar plunging in value!And the more the dollar is diluted, the higher inflation will climb.

This is why it is so, important that you own gold. As an insurance policy to protect the purchasing power of the money you worked so hard to save.

Since 1971, the purchasing power of gold has endured and increased. History books are ladened with instances of paper money whose value has been annihilated. But not gold. Gold has endured through wars, inflation, hyperinflation, recession and depression.

GOLD BULLION is the ultimate store of value and protection of wealth. The value of gold has never been ZERO. Never. It could very well be the most important insurance policy you'll ever purchase.