Gold Retains Value
Gold does not move up or down in terms of real value - the price of paper (fiat) currency is what changes. One ounce of gold during the Great Depression of the 1930s would buy a very nice man's suit. The same is true today - one ounce of gold will sill buy a very nice man's suit. Our paper money is what changes in value and is rapidly becoming more worthless every day, through inflation. The ONLY way to keep up with inflation is to have some of your assets in gold and silver. Put your money in real money.
The REAL VALUE of GOLD will NEVER GO TO ZERO; not so with fiat currency.
Paper money eventually returns to it intrinsic value - zero. ~ Voltaire
In contrast to political money, gold is honest money that survived the ages and and will live on long after the political fiats of today have gone the way of all paper ~ Hans F. Sennholtz
GOLD is a Hedge Against Inflation
Charles Goyette, author of the book, The Dollar Meltdown: Surviving the Impending Currency Crisis with Gold, Oil, and Other Unconventional Investments, suggests converting some of your dollars into tangible assets (such as gold and silver) it will help offset a loss in value of your currency regardless of what happens geopolitically or on Wall Street. He is not alone in the belief that America is headed toward high inflation and devaluation of the dollar, and has some good advice on where to buy gold and silver, for physical possession...
Where to Do Business
There are two kinds of places to buy gold and silver: precious metals and coin shops.
.... it's better to do business with a good, reputable coin shop that provides good service with fair prices than a brokerage house that pressures you to make the wrong investments. ~ Charles Goyette
GOLD is Wealth insurance
Gold and silver investments are valuable because they function as 'wealth insurance' for the protection of your investment portfolio. Paper currencies, throughout history, have always been unsustainable. Precious metals in the form of gold coins or gold and silver bullion, are better 'protected' assets in that nobody but the marketplace impacts their value during times of inflation, hyper-inflation, or even deflationary periods. Yes, gold can go down during periods of deflation or depression, but the value of paper currencies is likely to drop even more.
O Gold! I still prefer thee unto paper, which makes bank credits like a bank of vapor. ~ Lord Byron, Don Juan
Heartland Coin Gallery Pays You Well, and Promptly, for Gold & Silver - Come in for a FREE Estimate
Heartland Coin Gallery is located in Wichita, Kansas, and our goal is to serve you well and honestly, in the comfort and privacy of our showroom/gallery in NE Wichita. We are family-owned and have been doing business in Wichita for 54 years. We buy/sell/trade gold and silver bullion for investment and numismatic collectible coins and currencies for collectors.
Heartland Coin Gallery PAYS FAIR MARKET VALUE when you sell us your gold, silver, or platinum jewelry, scrap metals, and for sterling silver silverware and flatware, should you decide to cash in your items of gold and silver. We are willing to schedule in-home appointments for appraisals at your convenience, if your sterling items (or coin collections) are too large to carry into the showroom... call for in-home appointment: (316) 858-3050
NO APPOINTMENT NECESSARY IF you stop by our showroom, Monday - Saturday between our regular business hours of 10am-4pm.
DOW/GOLD Ratio Going to 1:1 ?
On August 4, 2011 the DOW/Gold ratio slipped below the 7:1 ratio threshold for the third time in modern economic history. The last two times that happened (in 1933 and again in 1980) the DOW/Gold ratio proceeded to the levels of 1:1. The DJIA closed down about 512 points to 11384 while gold closed in NY at $1,666. /oz. For the third time in the past century, the DOW closed 278 points below the 7:1 ratio level (1,666 x 7 = 11662 - 11384 = 278). Historically, breaking this threshold 7:1 ratio foreshadows a steep adjustment in DOW/Gold ratio to levels of 1:1.
Because financial and economic conditions today are far worse than in 1980 and arguably as bad as they were in the early 1930s, it is probable that the DOW/Gold ratio will again reach a low around the 1:1 in the near future.
When the price of one ounce of gold reaches its inflation adjusted high in 1980 of $2,400/oz., the Dow Jones may fall to as low as 2,400... or the 1:1 ratio. Given the massive amount of money printing and credit creation together with ongoing inflation-creep, it could be at a much higher level (e.g. the DJIA at 6000 and gold at $6,000/oz.) as well, depending upon the rate of possible hyperinflation.
Gold's High 'Liquidity' Value
Gold and silver bullion, collectible coins, gold bars, and gold jewelry, are universally valued world wide and therefore are not at the mercy of exchange rates, stock market values or any other outside influences. In essence, gold and silver bullion = money and give you much more purchasing power in any economic climate. The appropriate time to sell your gold or silver is when you need the cash.
'Private' gold in amounts under $10k can be bought/sold/traded without reporting your social security number to the IRS or submitting a 1099 form. The IRS classifies precious metals (bullion, coins, or even ETFs) as "collectibles" and the tax rate is 28% vs the 15% for most long-term capital gains. Contact a tax advisor for details.
With the exception of the period of the gold standard, practically al governments of history have used their exclusive power to issue money to defraud and plunder the people. ~ F. A. Hayek
Non-Confiscatable Gold Debate
In that we are no longer on a 'gold' standard, and because gold no longer is a large part of our monetary reserves, a future confiscation of gold makes little sense.
When gold was confiscated by FDR, all pre-1934 gold coins were NOT exempt as some assume. It was illegal for Americans to HOARD gold coins that were in wide circulation for everyday trade and commerce. Paul Volcker was responsible for defining 'rare coins' for purposes of the IRS / Treasury in 1969, and later in 1975 Nixon made gold coins legal to own, once again.
From Richard Smith's article, "Confiscate This!":
On April 22, 1969, the Treasury (over the signature of Paul Volcker, then Under Secretary for Monetary Affairs, and later head of the Federal Reserve Board) issued rules and regulations (Title 31, Money and Finance: Treasury, Chapter I - Monetary Offices, Department of the Treasury, Part 54, Gold Regulations, "Gold Medals for Public Display and Antique Gold Medals.") that eliminated all licensing requirements for the importation of gold coins produced prior to 1934. This 1969 ruling defined "rare coins" (gold) in the following statement:
"(b) Gold coins made prior to 1934 is considered to be or recognized special value to collectors of rare and unusual coin."
Under the section headed "Rare coin," it amended the regulations to read that "(a) Gold coin of recognized special value to collectors of rare and unusual coin may be acquired, held, and transported within the United States without the necessity of holding a license therefor." This was in 1969, remember, after the ‘recall’ of gold coins was but a distant memory.
Another viewpoint on gold confiscation by FDR's EO 6102...
A MYTH CONCERNING GOLD CONFISCATION
Roland Watson - Gold-Eagle.com
Gold confiscation is a subject that divides gold investors. Some say it won't happen again and others say it will happen again. The one thing they tend to agree on is that they don't want it to happen again.
.... from EO 6102
"All persons are hereby required to deliver on or before May 1, 1933, to a Federal Reserve bank or a branch or agency thereof or to any member bank of the Federal Reserve System all gold coin, gold bullion, and gold certificates now owned by them or coming into their ownership on or before April 28, 1933, except the following:
(b) Gold coin and gold certificates in an amount not exceeding in the aggregate $100.00 belonging to any one person; and gold coins having recognized special value to collectors of rare and unusual coins."
Heartland Coin Gallery - Wichita, KS
Gold & Silver - News and Opinion
We believe keeping you well informed with timely news and opinion is an important part of our relationship with you, our visitors and customer. The Headline News and Opinion Articles on our News page, updated weekdays, will keep you abreast of the latest financial, economic and geopolitical news and trends that dynamically shape our world today. It pays to be well informed with news, from the U.S.A. and around the world, which is critical for your investment decisions. We think you'll agree that our custom collection of news & opinion articles is the BEST you'll find.
FYI - Gold and Travel: Warning!
Recently, a news article came to our attention stating that problems can arise when gold and silver coins are transported from the U.S. to other countries, or in the reverse. Legal documentation and dollar amount of gold may impact your travel abroad, especially if you plan to travel with more than $2,500. in tangible commodities (i.e. gold or silver). You may also be subject to asset seizure without two government documents / declarations if you get on an airplane. A U.S. Treasure document is also required when transporting currency or negotiable instruments worth $10,000 or more. Please read the article below for details:
Government Takes Away Gold and Our Rights
by Bob Bauman, The Sovereign Investor
It is a sad indictment of the dictatorial policies of the U.S. government when an honest citizen has to fear confiscation of his or her private property, but that is today’s reality in Police State America.
An official policy continues of wanton confiscation of gold and gold coins by U.S. government agents, not only from innocent travelers, but in lawsuits against legitimate gold coin owners.