Buying Gold Coins

April 3, 2009 Inflation, Physical Gold, Politics No Comments

Buying gold coins and bullion on this pullback in prices offers a great opportunity to profit. There are four rules that apply to the current world situation and once you understand them you will begin buying gold coins and bullion on the dips.

The markets are off slightly today, a possible reaction to the U.S. surrender at the G-20. It seems that if you are a rock star, you look good no matter what you are giving away, as is the case in hand, with U.S. sovereignty. The DOW is down 56 at 7,921, the NAS down 8 at 1,594, the dollar is up .16 (.21%) at 84.46 and gold is down $6.00 at $898. Gold appears hell bent on retesting the $890-$900 level for the third time, so once again we are presented with a great opportunity to buy gold coins and gold bullion. Gold is basing for the next leg up and the longer that it is kept down, the higher the spring up will be.

Check Around And Get The Best Price

There are some basic truth’s that will reprove themselves shortly. They are time honored, proven and no matter how good you think your intentions are, “hope and change” will not alter them.

1. Contrary to current world sentiment, capitalism is
good!

The U.S. was the last bastion of capitalism and the free market system and has done more good in the world than all of the socialist, fascist countries that currently make up the powers that our President Obama surrendered to yesterday.

2. You can not borrow your way out of debt!

If debt is your problem, the only way you can get out of it is to stop adding more debt and pay down the debt. The U.S. and Britain are cranking out money like it’s candy and expecting it to solve the debt crisis. It never has had that effect and it never will. Wake up people! We a are the ignorant being led by the incompetent.

3. Raising taxes hurts the economy and lowering taxes
helps the economy!

This has been proven over and over again throughout history. Any moron should be able to figure this one out and yet, we have maybe 5 to 10 out of a Congress of 535 that understand this simple concept. This begs the next question, who is stupider those we elected or those who elected them? You can answer that quietly for yourself.

4. Fiat currencies are doomed to failure!

Name one currency that has lasted forever, except gold. The answer is none. Governments cannot resist the temptation to increase the money supply, or inflate their way out of monetary crisis. They always start with small amounts of inflation, but quickly move towards hyperinflation as the situations that their bloated bureaucracies create, worsen. This time will be no different.

You Now Know What Is going On! So What Do You Do About It?

Once armed with these four simple facts of life you will quickly realize that buying gold coins provides you with the opportunity to preserve your wealth while the government attempts to tax it away with the worst tax of all, inflation. When you make the decision to buy gold coins, it is important to shop around and get the best price that you can. A quick look at two sites will show you how wide the spreads can be when buying gold coins.

Monex has the one ounce American Eagle for sale at $951.40 and the Canadian Maple Leaf for $944.30. Both are currently down $9 plus from yesterday’s price. Kitco is offering the the one ounce Eagle for $973.25 and the Maple Leaf for $958.76. These are just the first two sites that I pulled up and you can see how much the price varies. If this trend were to hold up in all of the other sites, I would buy the Maple Leaf because one ounce of .999 pure gold is one ounce of .999 pure gold, so why not pay the lowest price you can for the same thing?

The point is simple, check a lot of sources before you make a purchase and you will save money. As this retest of the $890 to $900 support level continues we are being given a great opportunity to buy gold at a discount from where it will be priced in the future. If gold breaks through support and goes to test $850, the discounts will be even better.

Look at world events in terms of the big picture and you will profit by buying gold coins on the dips!

Till next time, good luck and good trading!