February 7, 2010 – While attention has turned to Europe and away from the United States, the US economy is still in critical condition. Unemployment numbers refuse to drop, the economy refuses to pick up and the government refuses to stop spending. Runaway bailouts and stimulus packages are costing the country billions, but are only added to a staggering national debt at the risk of causing inflation. For these reasons, gold bullion is still an excellent option, thanks to its potential as an inflation hedge.
While trying to revive the economy, the government has been offering money that is almost interest free, with hopes that businesses will invest, jobs will be created and the economy will turn around. This has not occurred, but the addition of billions in low interest money has economists worried about inflation or even hyper-inflation. Should one of these conditions occur, gold bullion would offer investors a potential weapon to protect their wealth.
As the value of the dollar drops, the amount it takes to purchase with it rises; this translates to price increases. The dollar currently does not have a stable base to maintain its recent gains, and it is in danger of taking a serious fall as existing debt becomes due. Investors who move their wealth into gold bullion or certified coins before this anticipated drop occurs would not only benefit from today’s lower prices, but also from the higher prices that would follow.
Gold bullion has been a historical protection against inflation; the US is perilously close to flipping directly from recession to inflation due to its ill-advised policies. This combination makes gold bullion investment a potentially strong move for protecting and growing wealth.
