Why Gold?

1. Gold and silver are, as Jay Taylor notes, “honest money.” Unlike “fiat” currency, no government entity can make more gold on a policy whim, thus devaluing it.

2. Governments and central banks have been suppressing the price of gold by lending and selling their gold. This can not be kept up indefinably, slowly driving the price of gold up.

3. Due to the pressure of enormous debt, the US will be tempted to inflate the US dollar so much that it will be almost worthless, thus gold will gain as the falling US dollar destroys trust in fiat currencies.

4. The demand for gold is sentimental, meaning the demand for consumer products are consistent, yet as the consumer power of the developing world increases so will their desire to own gold. In example the Indian wedding season puts significant strain on the gold supply.

5. The human desire to hold physical gold to hedge against times of economic and political instability is increasing.

6. As the price of goal rises, gold in the ground becomes increasingly economical to mine, therefore increasing share price in mining companies.

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