Use Gold To Hedge Against Tanking Fiat Currencies

Image by: JD Hancock
By Steven Morrison II

Gold prices continue to rise as investors convert their fiat currency based investments into precious metal reserves. And with the volatility continuing in the Euro Zone, uncertainty mounting over the dreaded fiscal cliff in the Unites States, and the potential for war to seemingly break out in the Middle East at any moment, it is probably a smart move.

Actually, it is a smart move. You should have 20% in gold right now. Go ahead and convert, we’ll wait.

As currency values behave like the coming of the tides – with the occasional hurricane – gold is your best investment choice as a rock solid portfolio nest egg that will ride out any storm. When you have a healthy pile of gold bricks safely secured in a vault, the digital data of Wall Street can come crashing down around you … and you’ll be just fine.

The Rush Is Not Over

Sure, “buy gold” hysteria has pushed the price of the shiny stuff to record highs and much of the money has already been made. But considering the political turmoil happening over the next 12 months, it seems almost certain that speculators and investors will drive up the price hundreds of dollars more.

It … could … go … all … the … way, to borrow a phrase from a famous sportscaster.

That’s why it would be wise to take a sizable chunk of your currency-based portfolio and park it over on the yellow brick road – at least until the dust settles. Follow the yellow brick road. Follow the yellow brick road.

Remember, DO NOT spend more than 10% above the spot price for gold. And really, you should be aiming in the neighborhood of 3%-5% if you want to make any real money. make sure to include shipping and storage fees in your equation.


But keep a watchful eye on those prices, there is likely to be a day of reckoning for G-O-L-D. And it will not be pretty for a lot of folks. Because when gold decides that it has climbed enough and starts heading back down to Earth, there will be a panic and prices will drop furiously fast. Don’t be one of those people.

The big boys will have gotten out long before that, of course, having left everyone else holding the bag (of gold dust). You want to be one of the big boys as they pay attention to the winds and the data. Get out at the right time and make a profit.

Bunker Buster

If you are stockpiling gold not as an investment, but as a future form of currency that can be traded for goods and services once the world “goes dark,” your best bet is to buy smaller gold coins that have been in circulation at one time. But guess what, doomsday scenario? It can cost you almost twice as much as buying a bar or standard-size one-ounce American Eagles coins, when it comes to the mark-up.

It costs extra to be crazy. Buy smart, buy bricks or Eagle ouncers.

And don’t sweat that inevitable big sell-off – the price is sure to rise again, probably even much higher than it is now.