1. GOLD IS UNDERVALUED
In 1970, the price of gold continued to be suppressed at $35 an ounce. When gold ownership was legalized in 1975, the fair market price of gold went up to nearly $200 an ounce. Thirty four-years later, at its current price gold remains undervalued. This can be measured by pricing housing, automobiles, education, medical treatment, entertainment, etc. What one U.S. dollar bought in 1975 requires eight U.S. dollars to buy now. Based on this scale, gold continues to be undervalued.
2. GOLD OFFERS PRIVACY
When you store your own wealth in gold, you maintain a level of privacy that cannot be attained in most investments. Personal storage provides protection for your personal wealth from political, economic and financial insecurity.
3. GOLD OFFERS SAFETY
Gold serves as a financial safe harbor in uncertain times. Whenever there is political or social unrest around the world, people flee to tangible assets and away from government currencies. Gold ownership serves as a sense of stability and security in the face of an unsure future.
4. GOLD OFFERS GROWTH
Our government's short term fixes for the current financial crisis will translate into long term inflation and further ex post facto devaluation or actual financial devaluation of the U.S. dollar. As a result, gold will continue to appreciate and grow for the decade to come. From 2000 to 2008, gold increased at a rate of 15% or more per annum. In 2009, gold maintains its value better than any other global asset.
5. GOLD OFFERS SECURITY
Owning gold makes your wealth, portable and manageable. This provides a safeguard against the devaluation of U.S. currency and the instability of financial institutions and its ease of liquidity allows for transfer into currency in times of need.
6. GOLD OFFERS TAX DEFERMENT
Each year you make a profit on stock holdings, you pay taxes on that profit even when you do not see the profit through stock sales. When you physically own the gold for more than one year, you defer all tax consequences until you physically sell and your profit is realized. As long as you own the gold, you have an ongoing tax deferment and are given capital gains treatment.
7. GOLD OFFERS DIVERSIFICATION
Typical portfolios traditionally consist of stocks, bonds, mutual funds and money market instruments. Including gold in portfolios introduces a level of protection not found in other asset investments. Because the factors that influence the price of gold are entirely independent from those that affect the prices of these other assets, gold can help offset market fluctuations and can reduce volatility.
