Cash for Gold - Is it wise to trade in your scrap gold for cash?

If you look back through American history, you'll find that the definition of money wasn't what it is today.  Federal Reserve notes (the American dollar) were merely receipts to be used to redeem actual money (GOLD).  

Today, however, these receipts (the United States Dollar) have become the valuable item, even though it's worthless paper.  Gold was confiscated from the American people by the U.S. government, with the promise of returning it (which never happened), and since then the Federal Reserve notes have been the only form of money.

However, with the economy in the tank, the U.S. dollar has become more useless than ever before.  The printing of currency out of thin air has increased inflation, as there is nothing of value (Gold) to back up each and every note in circulation throughout the country and the world.

I'm sure you've seen different commercials by companies offering you cash for your scrap gold.  They say that the value of gold is at it's highest in decades, but did you know that the value of gold goes up only because of the value of the dollar has gone down?  So what does that mean?  It means that gold is no more valuable than it was yesterday or last year or in the last 20 years.  All it means is that the dollar is worth less...or even worthless.

What many people think about in this regard is that, if they sell their gold now and receive the cash, when the economy improves, their money will be worth more than what their gold is worth.  This is incredibly deceptive, and a real pitfall in the idea of gold investments.

The truth is that gold shouldn't really be considered an investment, but rather an insurance policy.  Why do we get insurance policies on our homes, cars and health?  We don't do it in the hopes of making money, we do it in the hopes that if something, God forbid, awful were to happen, the policy is a kind of back up plan to prevent us from losing everything.

Gold, in my opinion, should be viewed the same way.  Because the American dollar is so horribly useless, gold is the only thing of real value in this country to be called money.   So, if the dollar goes straight down the tank, will you have thousands of dollars of worthless Federal Reserve notes in your pocket, or some valuable gold in your safe?

Don't take my word for it. Do the research. There is one undeniable fact, though.  Many "experts" will disagree as to whether to look at gold as an investment or an insurance policy.  In the end, it's really your own choice.  You must make the best decision for your own circumstances and based on your own research.




Cash for Gold - Is it wise to trade in your scrap gold for cash?