In a recent article in Forbes Magazine, Steve Forbes wrote that gold can save us from the impending economic disaster that many believe is coming. According to Forbes, the economy that we currently have, based on fiat money, is no longer working. It’s enabling Washington to burn through our wealth instead of create more.
The Federal Reserve is printing up record numbers of dollars, and making it easier for politicians to spend without recourse. Forbes believes that a return to the gold standard could provide our currency with some stability and help avoid a catastrophe like we had in the 1930s during the Great Depression.
At some point, the economy as we know it may no longer exist. No one really knows when people will stop taking our fiat dollars. When it happens, it’s going to cause all kinds of problems for the world economy. At that point, gold is going to play a major role in the economy once again.
In the meantime, the price of gold is going to continue to skyrocket. Gold is already near record highs, and many experts believe that it is destined to go up even higher in the near future.
What does this mean to you as an investor? Investing in gold and other natural resources makes a lot of sense right now. Instead of putting your money into assets that are directly related to the value of the dollar, why not put your money into physical assets like gold and silver? CEO Charles Reed Cagle believes that investing in natural resources and in mining companies that harvest those resources is the way to go.
If you are averse to putting your money directly into gold and silver, you can always buy stocks that are issued by mining companies. These companies can provide greater returns on your investment, regardless of what the rest of the economy is doing.
While mining companies definitely can provide good returns, you cannot simply put your money into the first company that you come across and hope to do well. You’re going to need to do a little bit of research to find a company that is well managed and has a good track record of success. At that point, you can invest with confidence knowing that the value of these natural resources is going to go nowhere but up over the long-term. It may not happen tomorrow, but it will happen.