Consider gold coin investment the way the IMF compares economies – in terms of purchasing power parities (PPP).

April 27, 2011 – Consider gold coin investment the way the IMF compares economies – in terms of purchasing power parities (PPP). PPP levels the playing field against all forms of economic manipulation, such as we are bound to hear from Bernanke in the first ever post OMC meeting press conference midweek. Think of what you could buy today with the money it takes to buy one gold eagle, and write that down. Then in five years revisit that note and see what that one gold coin would buy.

Why five years? That’s when the IMF predicts China’s economy will surpass our own, in real terms of PPP. With China as the new world economic leader things will be very different than they have been any time in our lives. Don’t expect a benevolent despot. The country is bent on global domination and they are achieving that goal with the cold efficiency of state-driven economics.

Ralph Gomory, research professor at NYU’s Stern business school, explains in MarketWatch what is behind this watershed shift in global economics: “What we have done is traded jobs for profit. The jobs have moved to China. The capability erodes in the U.S. and grows in China. That’s very destructive. That is a big reason why the U.S. is becoming more and more polarized between a small, very rich class and an eroding middle class. The people who get the profits are very different from the people who lost the wages.”

We let it happen. We smugly proclaimed victory over communism as the Soviet Union collapsed, but all the while China was learning how to turn capitalism against itself. The markets are simply not equipped to operate under the new world order. “Where they are most likely to fail … is in correctly anticipating and pricing big, revolutionary, paradigm shifts — whether a rise of disruptive technologies or revolutionary changes in geopolitics. We are living through one now,” said Brett Arends in MarketWatch.

Fortunately, however, one asset’s value is known to endure through the greatest geopolitical upheavals – gold. If you find yourself torn between buying gold coins or a new car, ask yourself which you would rather have in 2016.

Kevin Johnson

Senior Staff Writer – GoldCoin.net