How to Buy Gold Bullion

Personal Wealth Management

Personal wealth management is more important than ever. Most Americans are losing value in their investment portfolios even if the total number of dollars in those portfolios increase. It doesn’t matter if that investment represents a 401(k), a private investment, or a company pension fund. Sounds incredible, but it’s true.

Many investment advisers suggest bonds or other stable investment as a way of preserving wealth in bad economic times. This appears to preserve, and even increase, the number of dollars in those investments. But, there is one important factor that the average American overlooks. And, it will not benefit your investment adviser to tell you.

Value of the Dollar is Declining

The wealth you have in your investment is usually measured in dollars. You probably think of the dollar as a stable, reliable measure of wealth. It you had $10,000 last year and $10,500 this year in a particular investment you might be happy. After all, in spite of losses in many sectors, you made 5% on this investment.

There could be smiles all around. You could be smiling. Your family would be happy. And your investment advisor would be happy. What’s wrong with this picture?

Look at the diagram on the left of the rising price of gold. Over the last decade gold has risen in price about 16% each year. Gold looks like a pretty good investment, doesn’t it?

But, many people consider gold to be a standard of value. While you think of the dollar as a standard measure of wealth, others think of gold as the standard measure.

Many people say that the buying power of an ounce of gold has remained constant for hundreds, or even thousands, of years. At the time of Shakespeare an ounce of gold would buy a fine suit of clothing. In the old west during the frontier days in America an ounce of gold would buy a fine suit of clothing. Today an ounce of gold will still buy a fine suit of clothing.

It’s easy to see that gold can be considered a standard of value.

Bit, if that is so, what about the dollar?

An ounce of gold in 1800 was worth $19.39. Today, the value is approximately $1700 an ounce. What has happened?

The dollar has lost value and continues to lose value as measured by the standard of wealth: gold.

The historical increase in the price of gold of 16% per year means that the value of the dollar declines by about 16% a year. This has an important meaning for your investment portfolio.

Remember that $10,000 that grew to $10,500 in one year. You thought that was an increase in value of 5%. But, the value of those dollars declined by 16% as measured by the gold standard. This makes the real value of your current asset 11% less than it was a year ago. That is not good news!

Personal Wealth Management Strategy

Preserving your assets means getting a return on your investment of at least 16% per year. Increasing your investment value required an increase of more than 16% per year.

You probably realize that any stock or mutual fund that provided a 16% or better return last year may not perform nearly as well this year. In fact, it may be a big flop this year.

But, one thing appears pretty clear. Unless something is done to control the overspending by Congress, the borrowing by the federal government (42 cents of every dollar the federal government spends is borrowed) and the printing of new money, the dollar will continue to decline as measured by the gold standard.

One strategy used by many investors is to purchase gold bullion. Gold bullion is easy to purchase. It can be held by you personally or stored in the vault of a major gold dealer in your name. Gold is a “liquid” asset in that it can be bought or sold easily.

Read more on this site about how to buy gold bullion. It could be an excellent personal wealth management strategy for you.