The Economist Publishes Hit Piece On Gold
The Economist recently published a big hit article on the gold market, misleading the reader about why one buys gold and what its uses are. Moreover, the article does little to truly examine the pre-1933 gold market, which United Coin & Precious Metals specializes in, and discuss its art-type aspects and otherwise.
The Economist reports well on many, many different economic related stories, but they have the story here all wrong, and its a shame. They are misleading readers away an important means of protecting their savings.
The article even argues that gold is an unethical and argues that it is a dead market, attempting to steer investors into shares and bitcoin. It even included an obituary for gold.
The article does not talk about gold as an antifragile investment, and the article does not even go over that gold has been historically money.
UNCERTAINTY is supposed to lift the gold price. But neither upheaval in the Middle East, nor the travails of the euro zone, nor startlingly loose monetary policy in the rich world is brightening the spirits of those who swear by bullion. After a big rally during the financial crisis, the price has sagged to about $1,200 an ounce, a third below its peak in 2011. Little seems likely to turn it round. “We’ve seen everything gold bugs could hope for: endless money printing, 0% interest rates (both short-term and long-term adjusted for inflation), rising debt and debt ratios in the public and private sectors…So where’s the damn hyperinflation?” asks Harry Dent, a newsletter publisher, in a recent blog post.
The biggest pressure on the gold price comes from the expectation that interest rates in America will rise later this year. Matthew Turner of Macquarie, a bank, says that low interest rates cut the opportunity cost of owning gold. Higher interest rates, by contrast, raise the cost of holding non-interest-bearing assets. Mr Turner thinks expectations of rising rates are already built into the gold price; if they do not materialise as quickly as expected, there could even be a rally.
As you can see, this article is out in left field. It makes no sense from an academic perspective looking at gold. Gold must not make them money.
There is one simple fact about gold. It can do wonders to help one diversify their overall portfolio, and in a world where governments are buying gold and printing fiat currencies in order to posture around a failing dollar, gold can go a long way. In San Diego, Calif. United Coin & Precious Metals does everything it can to bring gold to the people who need it.
Located in beautiful La Jolla, California, United Coin & Precious Metals offers a long list of potential coins, from American Gold Eagles, American Gold Buffalo and numerous other coins.