While we are not “Washington Insiders” located within the Beltway, it seems apparent that there are at least two reasons why our government policy would not look favorably upon investments in physical gold by its citizens.
- Lack of Confidence in the Government and It’s Monetary Policies
This may be the most truthful, yet intangible reason for the U.S. Government’s aversion to our investing in gold. The investment in gold is reflective of an investor’s confidence in the promises of the U.S. Government. If investors had “full faith and credit” in the Government investment in U.S. Treasury Bills, Bonds and Notes would be unbeatable. However, many people do not believe the increase in the amounts of paper or fiat money issued by the Government make for a viable and/or sustainable currency. Those people prefer tangible or “hard” assets to preserve and increase their wealth. Therefore, as more people question the monetary policies of the Government and place their personal wealth into gold, the price of gold has incentive to increase. This is a direct reflection of the individual’s (and the entire world’s) confidence in the U.S. economic and monetary policies.
Remember, these are politicians in power in the U.S. Government and increased investment in gold is a slap in their collective face.
- Undermining of the Capital Markets
The capital markets exist for the buying and selling equity and debt instruments or stocks and bonds. The capital markets are critical in providing capital to the users of capital such as businesses and Government. A healthy, functioning capital market is necessary for an economy, since capital is a critical component for generating economic output. When a gold investor puts money into gold, they are taking money out of the capital money. With less investment in the capital markets by “retail investors” there is a need for more Government investment or intervention. The easiest way for the Government to intervene is through the creation of more dollars. This strategy ultimately leads to inflationary pressures and the revelation of the failure of the Government’s policies.
Consequently, the U.S. Government has nothing to gain by your investment in gold. Instead, through the increase in the price of gold due to increased demand (and increased lack of confidence in the governmental policies) and the drain of funding from the capital markets, the U.S. Government is not supportive of this wealth management approach.
Many investors have reached “the point of no return” when it comes to defying the Government’s silent requests to buy dollars instead of gold. Some believe that the U.S. Government, through its non-stop printing of currency, has abandoned its post and its responsibility to protect U.S. citizens. If you believe that it is each individual’s responsibility to protect himself and his loved ones, then you might consider taking a position in the physical gold market. For more information on the U.S. Government’s gold buying rules or to request a free information kit, call us today at (800) 300-0715 and let “America’s Trusted Source For Gold” help you set a course for personal financial independence.