Ownership of gold has always meant different things to different people. In India for example, it is not only an important part of everyday culture, it is also where most people hold their wealth in the form of jewelry. In fact, it is estimated that Indian households own over 20,000 tons of gold, at an current value of around $950 billion.
But in the U.S. and Europe, gold ownership fell following its removal from currencies in 1971, and even the Internal Revenue Service categorizes physical gold simply as a collectible, and not as an investment or money. And the mania that drove gold prices up to $1980 just a few years ago was built on fear of the financial meltdown that occurred in 2008 when stocks, bonds, and debt threatened to collapse the entire banking system.
Yet that philosophy is now changing, and especially since early 2015. And with gold and even silver purchases exploding from hedge funds, banks, and a growing coalition of citizens, shortages have been created that have not only stabilized gold prices at a strong bottom, but have secured support to where these prices are beginning to rise despite the concerted effort of the government to depress them in the paper markets. And as falling stocks, bonds, the fear of a global recession, and the failing confidence in central banks begins to accelerate, gold is once again becoming the one asset to own as wealth protection is now more important than chasing yields, or trying to invest in chaotic markets.
The $15 trillion rout in global equity markets since May is reawakening the lure of gold for investors seeking safety.
Hedge funds and other large speculators more than doubled their net-long position in bullion last week, just three weeks after they were the most-bearish ever. Investor holdings of gold through exchange-traded products are expanding at the fastest pace in a year, and the value of the ETPs has jumped by $3 billion in 2016. - Bloomberg Business News
Ownership of precious metals have always been a mainstay of a diversified portfolio until brokers and money managers chose to eliminate this option and push investors and retirees into strictly paper based assets. But the problem today is that all that paper is tied to the dollar, and what happens if the dollar itself is the thing to collapse as many analysts are predicting will happen in the coming months or years? Because the collapse of the dollar would make all these investments and retirement accounts insolvent, worth zero, or at the very least lose 40-70% of their value as the replacing currency would have to be devalued to accommodate the massive amount of debt owned by Wall Street and the Federal government.
So how can you be assured in protecting your wealth and owning affordable physical gold in a way that protects you from all market chaos, and from any potential currency collapse?
As stocks fall into Bear market levels, and economies fall into recession, gold is moving once again