Inflation and Gold

When inflation rises, the value of currency goes down and people tend to hold money in the form of gold.  In times when inflation remains high over a longer period, gold becomes a tool to hedge against inflationary conditions. This pushes gold prices higher in the inflationary period.

Do we have, or expect to have, inflation? Take a look at what inflation really is.

According to Wikipedia – “inflation is a sustained increase in the general price level of goods and services in an economy over a period of time”. This is generally caused by the devalue of currency.  The more of a product there is, the less it’s worth. In this case the product is the US dollar.  During the onset of covid 19 pandemic there was a 2 trillion dollar stimulus package injected into the US economy. This is money the Federal Reserve just printed and handed out. Combined with the CARES Act, the total dollars put in to the economy is closer to 4 trillion.

It is tough to say the least to get a grip on how much money a trillion dollars really is. Break it down like this: 1 trillion seconds is 31,700 years.  The answer to, “will we have inflation?” is an emphatic yes.

Here are a few facts about gold coins that are still available today. These pieces should be salted away for a hedge against other investments.

Today $20 Liberty gold pieces graded MS63 trade for around $2100.

These same $20s traded in excess of $3000.

Public auction records show some trades over $4000

I personally traded 100s of these $20 at $3200-$3500 dealer to dealer.

I believe the market is on the way back to those levels.  There are other factors contributing to the global financial picture other than the Coronavirus.

Bottom line in my opinion is, global inflation = future Bull market in gold.

Call us to secure the $20 Libs I mentioned above. Those are just one of the value US gold coins.

Hope to visit soon.

For a quantity of more than 20 coins please contact Trey Cox directly at 866.789.2646

Special arrangements available for larger orders.

American Rare Coin and Bullion