We should buy gold is because gold is true money. As more and more people are losing confidence in fiat money, they will begin to convert the paper currencies they have on hand or in their banks into tangible asset such as gold. Central banks are quietly accumulating gold today in view of the financial instability they see around the world, in particular Europe and US. Here is an excerpt by Jack Farchy in his article Central bank gold buying at 40-year high,
"As a group, they (central banks) became net buyers of gold last year after two decades of heavy selling – a reversal that has helped propel the price of bullion to a high of $1,920.30 a troy ounce, up 600 per cent in a decade."
In particular, China is buying gold in huge quantity. It has been estimated that China purchased approximately 490 tons of gold in 2011 - double the estimated 245 tons purchased a year earlier in 2010. Watch Marc Faber explained why it is not surprising for China to do so in this 8-min audio clip.
Why is China Buying Gold ?
Hence, if the central bankers are buying gold as a form of protection against the backdrop of global financial and political instability, shouldn't you be doing so? After all, buying gold will preserve your purchasing power. Hence, gold is not really an investment because it does not generate cash flow. To buy gold is to protect your wealth today. Watch James Turk explained why gold is not an investment in this 2-min video clip:
Why Gold is not an Investment ?
Where To Buy Gold Online
After doing your own research, if you are convinced to buy gold, I would personally recommend GoldMoney.com founded by James Turk. It is an online platform that enables anyone of any income group to buy gold and store them in secure vaults overseas. This is not paper gold but real physical gold that you can own under your name. You can open a free holding account to buy and sell gold in gold grams. As of today, gold is priced around USD1640 per ounce. This is not easily affordable by middle or lower income people.
But GoldMoney.com allows you to buy in gold gram (instead of ounces) which means that if you only have $300 to save each month into gold, you can simply exchange the $300 for a few gold grams of gold. Selling the gold is also easy as it takes only 2 hours to get your returns to be either held in the holding account or transferred directly into your bank account via SWIFT transfer in a variety of currencies. Personally I am a regular saver with GoldMoney.com. I simply perform an online remittance transfer from my local bank (DBS Pte Ltd) via the SWIFT transfer into my holding account so that I can carry out precious metal purchase.