How to Buy Gold Bullion

You’ve may have a lot of money invested in CDs, stocks, bonds, mutual funds, real estate, classic cars, and even comic books. But, are your assets holding their value compared to an investment in gold?

In 1971 when President Nixon officially took the United States off the gold standard, the dollar was valued at 1/35th of an ounce of gold. Many foreign holders of dollars requested gold in exchange for their money and a lot of gold from Fort Knox was shipped overseas.

How Much Gold Remains in Fort Knox?

While several prominent people, like Ron Paul, have requested audits of Fort Knox, no audits have been done recently. Several sources indicate that around 147.3 million ounces of gold remain in Fort Knox.

This seems like a lot, but there are a huge number of dollars (now Federal Reserve Notes) in circulation. Just what is the value of these Federal Reserve Notes in terms of gold?

How Many Dollars Are in Circulation?

The estimate of the dollars in circulation is difficult to gauge. The Federal Reserve stopped publishing the M-3 values (a close approximation to the dollars in circulation) in March 2006. The Federal Reserve Bank of New York indicated, “As of December 2007, currency in circulation—that is, U.S. coins and paper currency in the hands of the public—totaled about $829 billion dollars.”

Don’t forget that the printing presses have been running full tilt to support the excessive spending by our most free-spending liberal President in history and the liberal Congress that got elected with him. So, any estimate we make about the value of the dollar in terms of gold would be a rosy picture, indeed.

What’s the US Dollar Worth?

If we take these numbers for gold and dollars as being accurate, we find that each 5,628 dollars are now backed by an ounce of gold.

So, if gold were ever again a standard, gold should be valued at least at $5,628 per ounce. Quite a jump from $35 an ounce in 1971.

Mike Maloney on the Keiser Report

What does this mean to you?

As I write this, gold is priced at around $1,752 and ounce. From the $35 price in 1971 to today, 40 years later, that’s an average annual increase of over 10%. That is, the dollar, on average, has lost 10% of its value each year over the last 40 years. In the last decade the price of gold has been increasing at around 16% per year.

Understanding that the dollar is declining in value by about 16% per year over the last decade, the question, “Are your assets holding their value?” is a valid one.

If your investments are not growing by at least 16% per year, you are losing value.

Gold is an Investment Bargain

Compared to the real value of gold in terms of dollars, at least $5,628 per ounce, the current price of gold is a tremendous bargain.

If you thought that the price of gold was sky high, you should begin to re-think your position. The price of gold has a long way to climb before it reaches anything like an accurate, stable price in dollars.

A financial crisis brought about by Japan or China reducing their purchases of US treasury bonds or by oil producing countries demanding a currency other than dollars in exchange for their oil could set off a steep rise in the price of gold.

Are you ready for the uncertain financial future? Gold will help stabilize your investments and secure your future. If you have not thought about using gold as an investment, now is the time.

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