My Precious: Why Gold has Always Been Coveted

By Michael Bishop
Monday, February 25, 2013 - 10:29am

I just read that a group of archaeologists believe they have uncovered the fabled gold mine of the Queen of Sheba. The site of the ancient mine is located in the high plains of Northern Ethiopia, where the Queen reigned.  Written about in the Bible, the Queen of Sheba was reputed to possess legendary beauty and intelligence. She became interested in King Solomon, and when she visited him, she is said to have taken 120 talents, the equivalent of 4 1/2 tons, of gold as a gift for him. As beautiful as she was, the Queen was wise enough to realize that she needed the opulence of pure gold to win over King Solomon.

Gold has provided a safe haven from the storms of economic and political turmoil throughout history. Owning gold coins or bullion is a time honored way to offset the inflation that can overtake paper currency. It is possible to buy precious metal coins and gold bullion from dealers. There are many excellent gold coin and bullion dealers around, and U.S. Money Reserve is one to add to your list to check out.

The debt here in the United States has reached approximately 101% of our Gross Domestic Product. Because of this fact, many economists fear that runaway inflation may lie ahead for us. The only proven strategy to lessen the painful impact of inflation is to make gold coins and bullion part of your portfolio. Even gold stocks may not be as good an investment as bullion or coins because the gold stocks are part of the larger stock portfolios traded by brokers.

There is a definite risk element in owning gold stocks. The question is often asked: is gold a better investment than stocks and bonds?  The consensus seems to be that gold is a better investment, as gold will never lose its intrinsic value. Stocks and bonds tend to rise and fall in value based on many variables. Most coin dealers advise buying U.S. gold coins in the highest grade you can afford, and then holding the coins for the long term.

All investors seek to profit from their outlays, and gold certainly does seem to provide a long term profit. The fact is, though, that your portfolio containing gold coins and bullion will ultimately do much more than just return a profit. Owning gold can provide a solid and stable foundation for your children and grandchildren to build wealth. An inheritance of gold coins and bullion is the ultimate gift; it can provide a springboard for future generations, and it can provide a cushion like no other when times get tough.

The wise investor must always look to balance any investment portfolio.  Stock and bond ownership can provide high returns, but also great losses, and as we have seen, even real estate is no longer a safe investment. In the end, nothing can even come close to the security and stability of owning some gold. It could be said that buying gold coins and bullion is the investment that will never fail you.