The Long Term Benefits of Gold Investing

Investing in the stock market is indeed an adventure. The market can hit the roof one day, yet tank the very next one. Unfortunately, the stock market does not like even the hint of bad economic news. Yet, bad fiscal news abounds. The United States has the fiscal cliff brewing. If congress and the president do not come to an agreement the Bush era tax cuts will expire and very painful cuts will hit the all areas of the government. Europe has been a big mess for over a year now. Greece is still fighting for bailout money and Spain could sink.

What are the central banks doing about it? They are pumping more printed money into the economy. Prices will rise. Inflation could make a comeback. No wonder the stock market is so unstable. Yet, gold continues to remain at a high price and demand for the metal continues to grow. If the economy has you worried then investing in Monex gold bars could be the relief you seek.

According to The Daily Reckoning, it appears central banks are thinking gold prices are about to hit the roof, because they continue to buy gold at a frenzied pace. There is only so much physical gold to go around, and some very large players seem intent on taking as much as possible. The fact is most investors should take the long-term view when they invest money whether it is in stocks or gold. Of course there are exceptions because volatile metals like platinum make for engaging speculative profit taking. However, taking a long view is the best way to invest in gold.

If you are just entering the gold market The Street says you should place a fixed amount of money away each month for gold investing. While there is not a whole lot of risk investing in gold, all investing does come with risk. This approach spreads the risk out over the course of time. Gold offers long-term protection against inflation, devalued currency, and global uncertainty according to The Street. All are valid concerns given the continued rocky economy.

Investing in physical gold offers the most protection. While you can invest in gold mining stocks The Street says this can be a risky endeavor. Gold mining stocks are dicey because they trade with the broader equity market. Moreover, you never actually own physical gold, only stock shares. If you really want to protect your paper investments for the long run only invest in tangible gold bullion bars or gold bullion coins like the American Gold Eagle.

Some complain that gold is too stagnant and never seems to increase in value. This is not true. One school of thought is that gold is right where it should be when compared with the dollar. That reality believes gold isn’t rising as much as some would like, because the dollar is losing its vale when compared to gold. Gold is right where it needs to be to protect your assets, and remains at historically high levels.

Investing should never be taken lightly. Only invest in tangible gold from a well-known and reliable broker like monex.com. Their 40 years of precious metals knowledge will help you reach your financial goals.

Two Platinum Coins Could Be The Answer To The Debt Ceiling Crisis

The current state of the economy is, in a word, uncertain.  The fiscal cliff looms ominously in the distance, and growing concern about a possible debt-ceiling crisis is in the air.  There have been many proposals, but few legitimate solutions.

The government is going to hit its 16.4 trillion borrowing limit by February of 2013, at latest.  This means that paying off the bills and debts that are owed will be impossible, unless Congress is able to come to an agreement that raises the limit.  There were similar problems last year, when the Republicans refused to raise the limit until the very last minute, when an agreement was finally reached that involved spending cuts.

There have been plenty of ideas offered to attempt to solve this year’s issue, but one in particular stands out as so crazy that it just might work.  Essentially, two tiny platinum tokens, worth 1 trillion dollars apiece would give the Treasury Department that extra room to breathe.  Does that sound crazy?  That’s because it is.  However, interestingly, there is some reason behind the madness.

Obviously, no platinum coin, or any coin for that matter, is worth 1 trillion dollars.  However, there is an interesting loophole in the law that says that while the U.S. Treasury is limited in the amount of paper money, gold coins, silver coins, and copper coins it can produce, there is no cut-off for platinum!  That’s not all either.  The U.S. Treasury can assign any value to these platinum coins.

Much like how paper currency is assigned a value, a platinum coin could be minted, and issued a 1 trillion dollar face value.  The fascinating proposal is that two of these trillion dollar coins are produced, deposited into the Federal Reserve, and then into the Treasury’s accounts.  The end result is that there is no reason to worry about the debt-ceiling, and existing debts can be paid, without accruing new ones.

Of course, this plan is not without its drawbacks.  Political blowback would be severe, and it would change the very face of government spending.  There would be an extensive web of litigation and red tape that would likely prevent this from actually happening, but it is certainly an interesting thought.  The fact that two simple platinum coins, similar to the ones sold by Monex, could solve this massive issue so simply is amusing food for thought.

Although the two trillion dollar platinum coin idea may seem outrageous, it is better than any of the other solutions that are currently in place, or lack thereof!  As February approaches swiftly, something is going to have to give.  Either the Congress will have to come together and raise the debt-ceiling, or some of these nontraditional methods may have to be considered.

Regardless of what happens with the fiscal cliff and possible debt-ceiling crisis, prudent citizens should be seeking out tangible additions to their financial portfolios, in order to bypass problematic issues like these.  So, is the answer to the debt-ceiling crisis two platinum coins or not?  The answer is probably not, but it is certainly something to think about.