Is protecting your wealth through times of crisis by investing in gold coins prudent or paranoid?

January 21, 2011 – Is protecting your wealth through times of crisis by investing in gold coins prudent or paranoid? When you think about it the only difference between the two is how real the perceived threat is.

Assume it costs .5% of a home’s value annually to insure against loss by fire. Given the annual risk of fire is only about .25%, it might seem that insuring the home is a poor poker bet, but considering the magnitude of the potential loss few would suggest that it isn’t prudent.

It is argued that gold coins make a bad investment because they don’t earn interest. In terms of purchasing power, however, over time gold increases in value far better than the traditional assets held by the average investor. Regardless, as it is with insurance, the real issue is what is at risk and how great the risk is.

The first part is obvious – at risk is your wealth. And the plain truth is that America is trudging along on borrowed time. Our infrastructure is crumbling, and there are no funds to make desperately needed repairs. We are entering a period of greatly increased solar activity that puts the entire power grid in jeopardy. And local governments are being driven to default as states slash their funding.

We need look no further than Camden, NJ to see what is coming. With its police force cut nearly in half vigilantes have been called in to maintain order. A 1/3 reduction in its firefighters means more homes and lives will be lost for lack of first responders and the potential for conflagration is greatly increased.

These aren’t potential threats – they’re news. Opinions may vary on how bad things will get and how far they will spread, but without question protecting your wealth with a healthy investment in gold coins is very prudent.

Kevin Johnson

Senior Staff Writer – GoldCoin.net