It’s no secret that gold, silver, and other precious metals are viewed as the embodiment of wealth. After all, these precious metals have been used by man for thousands of years to facilitate exchange, back paper currency, and protect assets.
Not too long ago, the United States and other parts of the world were on the gold standard in which every unit of currency had to be “backed up” by gold.
Could a return to a gold standard be seen? Could gold simply become a world currency in and of itself? We think so.
It’s a fact that fiat eventually loses value. History has shown this time and time again, and you can choose to learn from the past or ignore it. In fact, the average lifespan of paper currency is only several decades.
Essentially, once you are dependent on paper money, it’s a safe bet you will lose purchasing power as time passes.
While the U.S. Dollar has maintained its position as the global reserve currency of choice for decades now, its position is looking far more precarious than ever before.
The fact is, many nations are already in the midst of moving away from the dollar. We suspect this will continue until the greenback loses its place as the reserve currency of choice.
What might take its place? How about the Chinese Yuan? How about gold?
It’s no secret that China has been buying up massive quantities of gold. And while no one knows for sure just how much gold the country has amassed, some estimates put its holdings around 3000 metric tons or higher.
Why is China adding gold to its reserves?
Simple. Because China is looking to establish credibility for its currency, the yuan. The yuan was recently admitted to the IMF’s special drawing rights, representing a huge step forward for China. Looking to cement its place among the economic elite, China understands the power of gold.
A currency backed by gold symbolizes power and stability. Gold gives the yuan credibility among other global reserve currencies such as the yen and euro.
And while we may not utilize actual pieces of gold for exchange, a currency backed by gold is for all practical purposes the same thing.
Gold may continue to play an increasingly important role in global trade. Central banks and governments are looking to add to their holdings, and some significant changes in the global monetary system are already under way.
Given gold’s importance to the global monetary system, shouldn’t you be looking to acquire gold as well?
History has shown the role this essential precious metal plays. Ignoring it may put your financial future at risk.
Explore physical gold ownership today. It has never been easier to acquire and hold physical gold than it is today. An Advantage Gold account executive can answer your questions and discuss your options. We can even show you just how easy it is to add physical gold to an existing or new IRA account. Don’t wait for your dollar to buy less. Call us today at 1-800-341-8584.Tags: advantage gold, backed by gold, chinese yuan, global currency, gold, precious metals, us dollar, world currency