by Nathan
The Canadian Maple Leaf Gold Coin is a fantastic investment today. It is Canada’s official gold coin produced by the Royal Canadian Mint. The great thing about the Canadian maple leaf gold coin is that it is one of the purest gold coins in the world. The Canadian maple leaf was first minted in 1979. The only other gold coin around at the time was the South African Krugerrand.
The maple leaf used to be .999 pure up until 1982 when a new benchmark was set for gold coins and was raised to .9999. There is a small problem of handling marks due to the pure gold content, but still remains in high investor demand.
In today’s economy where gold is seeing rising investment demand the Canadian maple leaf gold coin is regarded as the investment of choice. It is also one of the more aesthetically looking coins with a very light yellow shine due to its high gold content.
A lot of people fall in to the trap of thinking they don’t have to buy physical gold. They prefer to buy either mining stocks or EFT’s to get leverage but with the recent problems all the investors who were highly leveraged were burned. It is only by holding physical gold and silver that you can keep your investment separate from the financial industry.
In recent news, the Treasury in the UK has ‘printed’ another £25.5 billion to help RBS. This is now a total of £45.5 billion making it the costliest bank bailout of any bank worldwide.
The International Monetary Fund announced that India has just bought 200 tons of gold. China has recently increased their gold supply by 10%. If the main growth countries are buying gold coins and bullion for investment, then so should you.
The fundamentals for gold have never looked better. Even though today gold is hitting new highs it is still, compared to the last bull market of the 70-80’s has a lot more to go. Adjusting for the recent money creation gold should be over $10,000. Great news for investors. There is a fantastic chance to increase your wealth for the people who read these types of articles and take action. The Canadian maple leaf gold coin is a fantastic asset to have.
Tags: buy gold, buy gold bullion, Canadian Maple Leaf Gold Coin, gold coin investment
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by Nathan
Hyperinflation has actually happened dozens of times before in many different great nations. During World War 1 1914-1918 in Germany, like in the US today, they went off the Gold Standard and made it illegal to redeem their currency, which was the mark, for gold. To fund the war the government had to turn up the printing presses to pay for the deficit spending. Over the 4 year period the Marks in circulation had quadupled.
The main problem was that that people kept hold of every penny that they had in the bank. So there was huge amounts of money being printed into circulation but no one was spending it.
Retail prices finally caught up and rose by 10-20 times. People who still had savings left were left confused because their money now only bought just 10% of what it did a year or two earlier.
In the 1920’s there was a lot of recovery to be done in the economy but the government never stopped printing the vast amounts of money. By 1922 prices had risen another 700%. But the German population had learn’t this time and their attitude of money had changed. Having seen the purchasing power of their currency fall 90% only a few years before.
People knew that if they held on to their money they would get burned and nobody wanted to hold on to it.
The end came when Germany had to pay back its debts to France and they put there printing presses into overdrive. In february 1923 they were printing 45 billion marks per day. By November it was 500 quadrillion. But the value of the currency fell faster than the actual currency they could print. It was the beginning of the end for Germany.
It was reported that in 1923 the purchasing power had fallen 93%. A loaf of bread that cost 1/2 a mark before the war now cost 200 billion marks. The German stock market went from 88 points at the end of the war to 26,800,000,000 points.
It was only gold that had kept the pace with inflation. At the end of the war gold was 100 marks per ounce and by 1923 it was 87 trillion marks per ounce.
People still don’t realise today that hyperinflation has happened over and over again throughout history whenever country goes through financial upheaval, a bubble, war, a market crash or a currency crisis.
It didn’t matter whether you were poor, middle class or rich, it was the people who were smart enough to buy gold that saw there wealth grow exponentially.
Tags: gold price, Hyperinflation, investing, spot price
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