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Monetary Policy Urges Gold Coin Investment

An investment in gold coins has been one of the best-yielding assets of the decade. Though gold has gained 600 percent in the past ten years, the market is still relatively small and relatively unsaturated. This means, in terms of fundamentals, that most people simply do not understand fiscal policy or the role of gold in determining the value of money.

The generations of Americans retiring in the next ten years are probably more sensitive to inflation, or the inevitable loss of purchasing power in a currency. Currencies, such as the US dollar, normally lose purchasing power at a predictable rate over their lifespan. The US dollar, however, even as the reserve currency of the world, has been losing more value much quicker than we can be comfortable with when investing our money for our retirement.

To get a gauge of how much value the dollar has lost, simply look at a calendar of inflation. The Minneapolis Federal Reserve offers an official inflation calculator on their website. Or you could ask yourself how much you paid for a gallon of milk twenty-five years ago. The milk itself has not changed. The means by which the milk is produced have not changed. The value of the money with which you buy the milk has changed a great deal.

There have been two rounds of so-called Quantitative Easing in the US since the 2008 crisis and the Fed, the central bank in the United States, undertook these measures themselves as official policy. What Quantitative Easing means is deliberate inflation. It is a short-term stimulant, which is good for an ailing economy, but it vastly waters down the value of the currency over the months and years.

Gold is the anti-inflation instrument. It has been the historic store of wealth for thousands of years, prized in Eastern and Western countries alike. It has a time-honored place as money. The current inflationary policy that has been pumped out of Washington at an ever-increasing rate will continue, threatening the retirements of generations to come, but gold will retain its value. This makes gold coin investment one of the easiest and wisest decisions to make when considering retirement.

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