American Consequences - September 2021

You can think of inflation like a tax on your cash. As inflation rises, your cash becomes less valuable than it was in the past. So if you’re saving cash, you’re being punished. Now, don’t misunderstand us... We aren’t saying you should get rid of all of your cash. We need it for everyday transactions. You can’t fill up your car’s gas tank with gold after all. But beyond your normal expenses and emergency funds, gold is the best way to preserve your wealth. We’ve all heard stories about folks stuffing cash in their mattresses during the Great Depression because they didn’t trust the banks. And while we’ll likely never know for sure, maybe that’s why someone buried the Saddle Ridge Hoard underground, too. Owning physical gold is sort of like putting cash in your mattress – but it’s much safer... That’s because it moves a portion of your wealth outside of the financial system while PLOT OF GOLD

Bullion coins get their value from their gold content – not from their face value or collectability. Popular examples include American Gold Eagles, Canadian Maple Leafs, British Britannias, and South African Krugerrands. (You can also get bullion coins in silver.) For example, here’s what a 1-ounce American Gold Eagle looks like... Most of these coins are minted in 1-ounce sizes, but they also come in half-ounce, quarter-ounce, and tenth-ounce sizes. Keep in mind, though... As the coins get smaller in size, they will trade at a higher premium. That’s because much of the premium for a bullion coin comes from the costs associated with the minting process. So as the amount of gold in the coin drops, these costs will account for a larger portion of the coin’s total price. These bullion coins are all well-known and commonly traded around the world. It makes them highly liquid and tough to counterfeit. If you’re putting a larger amount of capital into physical gold, then bullion bars might be the best route for you. Today, a 1-kilogram bar is selling for about $60,000... Bullion bars are available in 1-ounce ingots, too. But if you’re buying by the ounce, we recommend sticking with coins... The slightly

maintaining your purchasing power. But how exactly can you do that?

EVERYTHING YOU NEED TO KNOW ABOUT BUYING PHYSICAL GOLD If you’re just getting started, we recommend buying gold bullion coins. These coins sell for a small premium over the spot price of gold. Typically, the premium is around 5% (and it’s about that today), but that can fluctuate based on supply and demand.


September 2021

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