Have you ever seen or held a gold bar? Unless you are an extremely rare individual your answer would probably be no. How about a gold coin? A little more likely but still probably no. Are you familiar with the history of gold as money? Again the answer is probably no. Most people have probably never thought about it much. Today everyone thinks that paper bills are money and have value. The truth is that they only have value to the extent that people believe they have value. When the system of paper (or electronic X's and O's in a bank account) is not backed by anything of real value it is called a fiat money system.
Our money used to be backed by gold or silver. You could take it to the bank and exchange it for the actual precious metal that it represented. In 1971 President Richard Nixon changed the system. He removed the dollar from the gold standard. Now, paper money is nothing more than an IOU from the Federal Reserve Bank. Since the Federal Reserve Bank was created in 1913 the value of our money has declined by a factor of about thirty depending on who's inflation figures you believe, in reality probably more. In other words, the amount of goods or services that one dollar would buy in 1913 would cost you about thirty dollars today. On the other hand, one ounce of gold will currently buy you about double what it did in 1913.
Today the worldwide fiat money system is in the midst of a major collapse. This has always happen to every fiat money system that has ever been tried in history. The best way to preserve your wealth in these uncertain financial times is to put it into precious metals. Gold, silver and other precious metals are the real money that has held its value throughout the 5000 years of recorded history. Got gold?
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