Why I Just Started Buying Gold Coins Again

Money Morning Contributor
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This week I bought more American Eagles.

My wife and I keep lockboxes – one for each of my three children – in secure places, and every month I buy and throw a few more gold coins in each one.

That strategy may look old-fashioned. But soon it will look smart.

In fact, I view these boxes as the single most “sure” asset I own. And now’s the moment to fill them up.

I’m sure it’s no surprise to you that I like gold. But here’s the key to how valuable gold really is – it’s something a lot of investors are missing…

Gold: The Last Currency Standing

Gold has had a rough year. It’s trading around $1,090 an ounce today, about the same price as 2010 – and 43% below its all-time high of $1,900 set in 2011. Year to date, the gold price is down 7.4%.gold coins

For me and you, that’s actually a good thing.

Low gold prices give those of us who understand that central banks are destroying the global financial system a chance to buy more before it rises sharply in price.

Gold should no longer be thought of as just a commodity in a monetary system driven to ruin by central bankers printing tens of trillions of dollars in a desperate attempt to stave off the insolvency of bankrupt governments whose politicians don’t have the guts to cut spending and adopt pro-growth fiscal policies.

Instead, gold is the anti-paper currency. When central banks are done destroying the value of paper money, gold will be the last currency standing.

The financial world, which basically consists of wits and wags, is holding its breath right now waiting to see if the Fed will raise interest rates by a measly 25 basis points for the first time in nine years! This is pathetic – but it is also a warning sign that paper currencies are being epically mismanaged by so-called monetary authorities that actually have no idea what they are doing.

Just look around. The United States is considered the strongest economy in the world. Yet we haven’t managed to grow our economy faster than 2% a year since the financial crisis.

Moreover, we did that with the Federal Reserve buying $4 trillion of government debt, which is now sitting on its bloated balance sheet, while it lowered interest rates to zero.

Anyone who believes that has changed, or the reason for owning gold has disappeared, is not paying attention. Investors should continue to own gold and save themselves.

Here are a few ways to stock up today…

Buy Physical Gold and Select Gold Stocks

Buy Gold Coins and Bars: My view is that if you want to invest in gold, invest in gold. I prefer to buy gold coins, which can be done with any number of reputable dealers. I like the one-ounce American Eagles, stored within reach.buying gold coins

Buy Gold Securities: If you want to own it in the form of a security for any reason, I recommend the Central Fund of Canada Ltd. (NYSE: CEF) or the Sprott Physical Gold Trust ETV (NYSE Arca: PHYS). Both funds own both gold and silver and give you an opportunity to buy these precious metals at a discount to their spot price. The SPDR Gold Trust ETF (NYSE Arca: GLD) is a third way to own gold but tends to attract more speculative fund flows than the other two.

Gold miners are best avoided unless you can take a very long-term view. They are a leveraged play on gold on the way up and the way down, and right now gold is going down.

But not forever.

Years from now, gold will be trading at thousands of dollars an ounce, which will be a reflection of the demise of the dollar more than any rise in the inherent value of gold. Gold is a hedge against monetary disorder and policy incompetence, both of which are in huge supply.

Save yourself and start buying some.

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To get Michael Lewitt’s specific gold-buying recommendations, follow along with his free Sure Money service. In Sure Money, Michael helps you see what’s going up, what’s going down, and how to profit. Sign up now by clicking here, and you’ll get instant access to all of Michael’s investing tips, including his 2015 Super Crash Report: Your Complete Guide to the $200 Trillion Credit Collapse.

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