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Why Should Property Investors Hold Some Gold? By Brett Le Brocque
The Greatest Wealth Transfer in the History of the World has just started. The current world banking crisis is being followed by a US Dollar crisis as the Federal Reserve has pumped and will continue to inject enormous amounts of money into the system not to mention the US National debt crisis as it now exceeds the size of the US economy.
There is no possible way to pay off this debt other than to devalue the world’s reserve currency, the US Dollar.
The good news is that Crisis means opportunity!
The price of gold went up by 25 times between 1971 and 1980, and 8.5 times between 1976 and 1980. This happened because of excessive money printing and an onslaught of inflation. This means that if you bought $20k worth of Gold in 1971, it went up to $500k in 1980.
Imagine you bought a $500k investment property with a $400k mortgage (80%LVR) in 1971, and you also put aside $20k into gold. 9 years later, the $20k gold was worth $500k. You could sell the gold (after tax) to clear the debt and own the property outright and enjoy the rent forever.
Now if you think Gold is impressive, what if I told you that during the same period, silver went up by 35 times! You do the numbers.
After a long wait of almost 30 years and with all the excessive supply of paper currency in our current money systems, many of the world’s leading investment authorities agree that the time has finally come for another major upswing of Gold & Silver prices, which could make the 1971 – 1980 Bull Run look like a warm up.
It is difficult to comprehend that any tangible assets like properties could go up 25-35 times within a few years, but Gold & Silver have done so many times throughout history. Contrary to most high return investment, the downside risk of Gold & Silver is actually quite manageable:
- Gold & Silver are internationally recognized real money. They have very limited supply and are backed by an ever increasing demand due to the lack of confidence in paper currency worldwide.
- Gold & Silver are tangible assets, they have intrinsic values because they are useful metals, just like your properties would be useful to someone.
- It is true that Gold & Silver prices have doubled in the last 6-7 years, but it is a long way from its potential of 25 times or more increases, all the signals are pointing to an imminent major upswing in the near future.
It is well known that wealthy individuals invest in Gold & Silver as their ‘insurance policy’ to protect their wealth. For example, only 10% of a person’s wealth invested in Gold & Silver going up by 20 times or more can technically protect their entire personal wealth should everything else fail.
Many smaller investors treat Gold & Silver investment as part of their savings program to enable them to acquire larger tangible assets such as properties later.
It has taken almost 30 years for Gold & Silver to get ready for another major Bull Run, most of us won’t see another one before our retirement. It is time to act now!
Investing in Gold & Silver is very similar to investing in property, you need to gather good information and find out how to go about doing it properly. Most Gold & Silver you see usually are not suitable as investment.
Our company, Investors Direct Gold & Silver, invites you to call our office on 1300 263 793 and find out more information on our up- coming 2 day Gold Boot Camp titled:
“Unleashing the Ultimate Power in Gold and Silver- How to Master the Weapon of Mass Wealth Transfer in Modern times.”
Also ask for a Gold & Silver one-on-one consultation with my team or enroll for one of our many Gold & Silver workshop presentations to understand more on this magic metal.
This article was written by Brett Le Brocque, Director, Investors Direct Gold Silver.
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