Why Buy Gold?

Gold has been hitting record highs this year. It's a massive bull market for gold.

With the current state of inflation and our economy, many analysts believe gold will continue to rise. So the question isn't whether or not to buy gold. It's whether or not you have time to catch (and ride) this wave before it peaks.

There is both investor demand and significant institutional demand right now.

For those with the means to invest, it serves both as a hedge against the inflation and a way to protect wealth by having a tangible asset instead of only paper (or digital) money, in case of economic upheaval.

But gold will always have some intrinsic value.

U.S. dollars used to be "backed by gold" and this was inconvenient in some ways. 

President Nixon changed things on August 15, 1971 when he took the U.S. off of the "gold standard" for international transactions and allowed even more paper money to be printed but without the banks having the previously required fractional amount in gold stores.

The U.S. had came off the gold standard for domestic transactions in 1933 during Franklin Roosevelt's presidency but the removal of the requirement even for international transactions made it official.

According to StLouisFed.org, "The U.S. came off the gold standard for domestic transactions in 1933 under President Franklin Roosevelt and ended international convertibility of the dollar to gold in 1971 under President Richard Nixon, effectively ending the gold standard in the U.S."

(*https://www.stlouisfed.org/open-vault/2017/november/why-us-no-longer-follows-gold-standard)

Some have been sounding the alarm for decades, about the perceived danger of relying on fiat money in our economy, and many have also dismissed the idea as anything meaningful. But it's never felt more real than it does now.

Everyone seems worried about what may be coming next for our country and our planet, and with good reason.

Even if things get better eventually, gold will still be considered one of the surest safeguards of wealth as it will always hold some amount of value.

But what if you can't afford to buy gold right now? It doesn't fit the "buy low" imperative right now. Well, there are other assets that are really good to have - for example: friend, family and/or neighborly connections so that we can help each other whenever things get tough.

And also, as the old saying goes, "All that glitters isn't gold". See next article: "All That Glitters".

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 September 7, 2026