With all the talk about Gold at an all time high, I thought I would illustrate how investing in gold vs. saving cash has and will continue to secure your wealth against inflation and higher living costs such as the price of gasoline.
Five years ago a $20,000 investment in gold eagles would have bought you 37 one ounce coins. Today those 37 coins are worth just over $53,000 dollars!

If you put $20,000 in a money market fund averaging 2.5%, it would be worth $22,628.00.
Mean while the price of gas is currently 33% higher than it was 5 years ago! At $2.315 per gallon 5 years ago, your $20,000 bought 8,639 gallons of gas. At $3.09(Jan, 2011 numbers), your $20,000 which is now worth $22,628 from your money market would only buy you 7,323 gallons of gas. This equates to a reduction in purchasing power of your $20,000 by 17% over the last 5 years.
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
2001 1.472 1.484 1.447 1.564 1.729 1.640 1.482 1.427 1.531 1.362 1.263 1.131
2002 1.139 1.130 1.241 1.407 1.421 1.404 1.412 1.423 1.422 1.449 1.448 1.394
2003 1.473 1.641 1.748 1.659 1.542 1.514 1.524 1.628 1.728 1.603 1.535 1.494
2004 1.592 1.672 1.766 1.833 2.009 2.041 1.939 1.898 1.891 2.029 2.010 1.882
2005 1.823 1.918 2.065 2.283 2.216 2.176 2.316 2.506 2.927 2.785 2.343 2.186
2006 2.315 2.310 2.401 2.757 2.947 2.917 2.999 2.985 2.589 2.272 2.241 2.334
2007 2.274 2.285 2.592 2.860 3.130 3.052 2.961 2.782 2.789 2.793 3.069 3.020
2008 3.047 3.033 3.258 3.441 3.764 4.065 4.090 3.786 3.698 3.173 2.151 1.689
2009 1.787 1.928 1.949 2.056 2.265 2.631 2.543 2.627 2.574 2.561 2.660 2.621
2010 2.731 2.659 2.780 2.858 2.869 2.736 2.736 2.745 2.704 2.795 2.852 2.985
2011 3.091
http://data.bls.gov/cgi-bin/surveymost

Had you invested in gold, your $20,000 which is now worth $53,000 would buy you 17,152 gallons in January of 2011 at $3.09. This represents and increase in your $20,000’s purchasing power of 98%

All of the fundamentals that helped push gold higher over the past 10 years are still present and getting stronger. Global physical demand is growing as many governments are decreasing their holdings in U.S dollar denominated debt and increasing their physical gold holdings. The dollar is getting weaker and with the recent unrest in the middle East, you can bet that the price of gas will continue to increase.

If you or someone you know is holding large quantities of cash, please forward this and encourage them to put their savings in gold. It is a great way to protect yourself from inflation and the continued decrease of the U.S. dollar.
Call now to learn how to invest in physical gold American Eagles.

This entry was posted on Tuesday, March 1st, 2011 at 2:43 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.