Gold coin investments, it’s time for another reality check.

October 28, 2011 – It’s time for another reality check on gold coin investment. Forget for a moment all the media hype this week and take a look at the numbers.

As of today the price of gold has risen roughly 24% since January 4. GDP, on the other hand, grew at an annual rate of 0.4% in Q1, 1.3% in Q2, and then surged to 2.5% in Q3. Better, I suppose, but also supremely misleading.

Is your income rising anywhere near the same? For most Americans the answers is ‘no, in fact it is falling.’ The GDP is also a poor reflection the increase in the true cost of living. Not to mention that millions of unemployed and homeowners hopelessly under water in their mortgages are still desperate for any ray of hope.

Since the collapse of the credit bubble people have had to come to terms with the economic realities forced upon them by the Fed’s monetary policies. They have borne the consequences of their personal fiscal recklessness, learned their lessons, and are eager to move on.

But the Fed – and its cohorts around the world – aren’t about to give in. At least not before they have squeezed every last dime out of the economy with their fiat money scam. In the meantime they keep doctoring the numbers hoping that will keep a gullible public ignorant of what they are up to. But that gullible public is waking up to what investors in gold coins have known for years.

Back to the GDP for a case in point. All the government has to do to inflate the figure is print more money and keep interest rates unrealistically low. Dollars get cheaper, prices go up and Presto! Up goes the GDP. Cheaper dollars also mean fewer imports. Nudge the GDP up a another notch.

And there’s another, even quicker way to fudge the GDP – through government spending. The neat part of that trick is that the money the government spends has already been removed from the economy in the form of taxes or has been created out of thin air through new printing or higher debt.

Like the core CPI, the GDP has little to do with life on Main Street. People don’t need to study charts and analyze endless data to know how things really are. They just have to look out the window.

Say you bought $10,000 worth of gold coins at the beginning of the year. You could sell them today and put nearly $12,400 in your pocket.

Compared to gold coin investments, how’s the economy really doing?

Kevin Johnson

Senior Staff Writer – GoldCoin.net