Perhaps thats why a number of main banks around the world have dramatically stepped up their purchases of gold bullion.For circumstances, in 2011, Turkeys main bank owned about 100 tons of gold, according to World Gold Council figures. People in other countries facing major economic difficulties are quickly recognizing golds value as an insurance coverage policy.For circumstances, the U.S. Mint sold a record 47 million ounces of American Eagle silver coins in 2015, while gold coin sales leaped by more than half. Japans biggest gold merchant just recently said it saw a considerable boost in gold purchases from common individuals. “Many clients are wagering that its better to turn their cost savings to gold as a safe possession,” stated Takahiro Ito, the gold retailers chief manager.Of course, thats exactly what Ive been saying for quite some time now.
I get this concern all the time from individuals: Why should I bother owning physical gold or any other valuable metal like silver or platinum?Whats my response? I inform them owning rare-earth elements is an insurance coverage, plain and simple. And with central banks doing what they do finest – dropping interest rates down to no and putting the cash printing presses into overdrive – boy, do we need some insurance these days.Think about it. Lets utilize another kind of wealth protection – fire insurance coverage – as an example.Records from the National Fire Protection Association inform us that, back in 1977, there were more than 723,000 home fires. A decade later, thanks to the increasing usage of smoke alarms and flame-retardant building materials, the occurrence of such blazes fell by 25% to 536,000 home fires. Nearly 4 years later, and the number of home fires continues to decrease by almost 50%. We continue buying fire insurance for our houses (and renters insurance coverage if were leasing). Why? After all, the chances of having a fire are lower now than theyve ever been.Our reason can be boiled down to three words: Just in case.Gold Is Wealth InsuranceWe dont know when a stove might be left ignored just enough time for a grease fire to begin. We do not know when a bit of electrical circuitry might short out, sparking a blaze inside of a wall.Thats what insurance coverage is for. Our houses are a valuable property, and we wish to protect them.But what about protecting the rest of our wealth-related assets?Thats why precious metals like platinum, gold and silver command our attention in these unsure times. Perhaps thats why a number of reserve banks around the world have sharply stepped up their purchases of gold bullion.For instance, in 2011, Turkeys main bank owned about 100 lots of gold, according to World Gold Council figures. Today, the bank owns nearly 500 heaps. India, Russia and China have all stepped up their purchases over the last few years, too.Likewise, federal spending plan deficits remain a severe problem. In 2016, the Congressional Budget Office mentioned flatly that the U.S. government deals with a severe problem in coming years due to the fact that the economy simply can not grow quick enough to keep up all the financial guarantees made to Americans. No one understands precisely how such obstacles will be solved or how quickly.Blue Light Special on Precious MetalsIts not a surprise either that sales of gold, silver and platinum coins achieved high-volume sales records over the last few years. Citizens in other countries facing major financial obstacles are quickly understanding golds value as an insurance coverage policy.For circumstances, the U.S. Mint sold a record 47 million ounces of American Eagle silver coins in 2015, while gold coin sales leaped by more than half. Austrias nationwide mint published its third best year of sales ever. The Royal Canadian Mint broke its own sales record for silver bullion coins for the third year in a row. Japans biggest gold merchant recently said it saw a significant boost in gold purchases from regular individuals. “Many customers are wagering that its better to turn their savings to gold as a safe property,” stated Takahiro Ito, the gold merchants chief manager.Of course, thats exactly what Ive been stating for rather some time now. Clearly, with the rising sales and popularity of owning physical rare-earth elements, more investors recognize they need some to counter the continuing imbalance in the international financial system, and to make certain their wealth is prepared for all contingencies.