Is Gold A Risky Investment?

by Peter Degraff

Those of you with money in the bank are sliding backwards, every day of the week!
Figure it out for yourselves. The bank pays you let’s say 4% per year. At the end of the year you pay the government 1% of that in taxes. So you think you are ahead by 3%?

The official rate of price inflation is about 4% per year. However the actual rate of
price inflation in Canada and the USA is about 8%, and it is rising! Think of petroleum,natural gas, heating oil, wheat, corn, medical costs, education etc. With the rising price of corn and wheat comes higher prices for all kinds of meat products, as cattle eat grains!

So at the end of the year, unless you are earning at least 10% per year with your
money, to cover the rate of price inflation and taxes, you are sliding backwards!

Facts are facts!

The worldwide gold supply is increasing by 1.5% per year. It is inelastic. Gold is hard to find, and difficult and costly to extract.

As long as money supply in the country in which you reside is increasing by more than
1.5% per year, (currently rising by 12% per year in Canada and the USA), gold will rise!

It’s a ‘slam-dunk’! A ‘no-brainer’!

Problem is most of you won’t believe me until you read about it in the papers, or see it on the nightly news. When that happens we are usually near a temporary top, and the price then slides back down for a spell, and everybody goes back to sleep again.

Don’t listen to your ‘advisor’ who tells you that gold is ‘risky’! Gold is the only commodity that for 5,000 years has not been ‘risky’!