Why You Should Own Gold

There is a lot of turmoil in the world today. Western governments have massive debt, slowing economies, and are moving towards socialism. Governments operate at massive deficits with no cuts in spending in sight. Higher taxes, negative interest rates, and massive amounts of money creation are all tools governments are using to increase revenues. The U.S. Government has more debt than any nation in the history of mankind. The Federal Reserve is on the verge of insolvency. These aren’t just statements made by me, the numbers are out there for anyone who cares enough to look.

The Fed’s assets and liabilities are so bloated that even the slightest drop in the value of their assets will give them a negative net worth. You think their asset values won’t drop? Look at their biggest holdings. They are bonds, which are near all time highs, and mortgage backed securities, which were the toxic assets that almost brought down the banks in 2008.

What happens if the Federal Reserve fails? They are the issuer of the US Dollar. Central bank failures generally result in a currency crisis, but the US Dollar is in a unique position as the world’s dominant reserve currency. This means that the dollar may not behave exactly like other currencies in the event of a central bank collapse. But what happens when the world loses confidence in the dollar as a safe haven currency? What if the dollar loses its reserve currency status? The dollar could experience a rapid devaluation. When the dollar devalues, all hard assets valued in dollars will rise accordingly. This will mean massive inflation.

That’s why we advocate owning gold and silver. Precious metals have been regarded as a safe haven asset for thousands of years. They are the perfect currency. They’re portable, easily divisible, and can’t be created out of thin air by central banks. There are multiple ways to own precious metals but I only advocate two of them. One is physical gold and silver. Everyone should own some physical metal. Gold and silver locked away in a safe is great wealth protection, especially if no one knows you have it. If the dollar declines in value, it will maintain its purchasing power. The advantages of owning physical gold and silver are numerous and it should definitely be bought. The major disadvantage of physical metals is that in the event of a massive rise in their value, you likely won’t own enough to greatly benefit from the increase in value. That’s where futures come in. In the event of a massive increase in the price of gold, the effect having futures will have on your wealth is tremendous. At current levels of $1250 an ounce of gold, an increase to $2000 (which we saw as recently as 2011), will be a profit of $75,000 per position. Each position only requires about $10,000. The profit potential in the futures market is tremendous. Unfortunately, so is the loss potential.

This is exactly why you need someone experienced and accomplished in the futures market to navigate the environment for you. That person is Victor Sperandeo. You may have heard of him. He has been featured in the books “the New Market Wizards” and “Super Traders”. He has also written three books on trading, all of which are very highly regarded in the trading community. He has partnered with Dallas Commodity Co., Inc. to create the Precious Metals Plus Trading Program. With this program, Victor Sperandeo will manage accounts as small as $50,000 for those who meet the minimum financial requirements. If you qualify, it is a small piece of your overall wealth that could bring tremendous returns in this difficult environment.

At Dallas Commodity we’re prepared to assist you in determining the best way to participate in these markets, ranging from individual accounts to professionally managed accounts to the actual taking of physical delivery of the metals.  Now is the time to explore truly diversifying your portfolio!

For additional information and risk parameters please contact Eric Twitty @ 972-387-0080 or erict@dallascommodity.com

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