Gold Investing Fundamentals

For many millennia physical gold has helped humans insulate and insure themselves against losses of their financial wealth. During times of undervaluation, gold can simultaneously provide owners a way to increase their wealth significantly via prudent gold ownership and investment portfolio allocation. World history and the rise and fall of civilizations have been dramatically shaped by the pursuit of gold itself. The precious yellow metal has a more than 5,000-year history in its use for adornment and many multiple thousand-year records as money or a reliable store of value.


1/10 Oz American Gold Eagle Coins – $159.10

from: Money Metals Exchange

In arguably the first example of the written law (in the near 4,000-year-old Code of Hammurabi), the word mĕnē is a term used to denote the weight of gold to be paid for crimes or to resolve civil conflicts. Thus, a specific mĕnē of gold (or silver) is perhaps the earliest written word for money itself. In fact, for most of written history, the term “money” has always meant a standard defined weight and purity of gold or silver. Since and following the turn of the millennium (2000 AD), the world has witnessed a pronounced increase in gold’s value priced in every single national currency issued by any government worldwide.


1/4 Oz American Gold Eagle Coins – $391.48

from: Money Metals Exchange

When you hear the term ‘Gold Rush,’ you might think 19th Century gold mining frontiersmen in the western US or Canada, perhaps also in South Africa, or in west Australia. This ongoing version is a lot different. The most prominent gold miner, gold bullion buyer, and non-exporter of physical gold is now China. The old ‘old west’ if you will, is perhaps now located in some of the world’s last remaining frontiers (e.g., in Africa, the jungles and mountains of South America). We are now in the midst of the most significant gold bull market ever. This claim is based on the sheer size of future exchange trading volumes and the total amounts of physical gold ounces actively mined, refined, bought, sold, and delivered (since the year 2000). This is indeed the first, globally participated gold rush in history.

, , , ,