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Investing in gold coins runs counter to Wall Street’s agenda and the insiders have gone to great lengths to create a mythology designed to steer individual investors back to their gaming tables.

July 27, 2011 – Investing in gold coins runs counter to Wall Street’s agenda and the insiders have gone to great lengths to create a mythology designed to steer individual investors back to their gaming tables. In Seeking Alpha, Sam Kirtley does an admirable job of pulling back the wizard’s curtain.

For example, Kirtley cites this myth: “Unlike paper currency that is impossible to manipulate in any way, gold can be accumulated by a group of connected buyers for the sole purpose of eliminating supply from the market.” That statement is so profoundly ignorant that it begs dissection.

What exactly has the Fed been doing all of these years if not manipulating paper currency? Whenever central banks adjust their interest rate, they change their currency’s market position. And printing up fiat money has always been a great way for governments to weasel out of debt.

OK. Maybe the author meant to exclude governments and central banks in his argument. But if that were true, what mythical collaboration of buyers has the wherewithal to eliminate supply? Even the gargantuan holdings of big ETFs pale compared to the total above ground gold reserves. And it is absurd to assume that gold hungry central banks around the globe would just sit back and watch the evildoers orchestrate their scheme.

Much of modern gold mythology centers around the premise that gold does nothing but sit in a vault. For one thing, looking only at an investment’s ability to generate income is unbelievably myopic. So what if gold doesn’t produce one cent in interest when it realized capital gains of 30% in 2010? After all, dividends and interest are just cash, and way too little of it to keep pace with the dollar’s debasement at that.

Another absurd side of the do nothing argument is that gold lacks utility, other than as a decoration. I will give them that, gladly. Gold is gold, a stable time proven store of wealth and medium of exchange. It doesn’t need to multitask. Because of that gold is good hard money and in my book that’s pretty darned useful these days.

Turn that around. I can think of few commodities more ubiquitous and useful than wheat, but it would make one lousy currency. Not only is supply subject to the vagaries of the weather, the wealth you accumulate would quickly rot into worthlessness – unless, of course, you ate it first.

The point I want to make is take what you hear with a grain of salt. Consider the source. Check out the facts. Then make up your own mind whether it makes sense for you to invest in gold coins.

Kevin Johnson

Senior Staff Writer – GoldCoin.net

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