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Why I Just Started Buying Gold Coins Again

This week I bought more American Eagles.

My wife and I keep lockboxes – one for each of my three children – in secure places, and every month I buy and throw a few more gold coins in each one.

That strategy may look old-fashioned. But soon it will look smart.

In fact, I view these boxes as the single most "sure" asset I own. And now's the moment to fill them up.

I'm sure it's no surprise to you that I like gold. But here's the key to how valuable gold really is – it's something a lot of investors are missing…

Gold: The Last Currency Standing

Gold has had a rough year. It's trading around $1,090 an ounce today, about the same price as 2010 – and 43% below its all-time high of $1,900 set in 2011. Year to date, the gold price is down 7.4%.gold coins

For me and you, that's actually a good thing.

Low gold prices give those of us who understand that central banks are destroying the global financial system a chance to buy more before it rises sharply in price.

Gold should no longer be thought of as just a commodity in a monetary system driven to ruin by central bankers printing tens of trillions of dollars in a desperate attempt to stave off the insolvency of bankrupt governments whose politicians don't have the guts to cut spending and adopt pro-growth fiscal policies.

Instead, gold is the anti-paper currency. When central banks are done destroying the value of paper money, gold will be the last currency standing.

The financial world, which basically consists of wits and wags, is holding its breath right now waiting to see if the Fed will raise interest rates by a measly 25 basis points for the first time in nine years! This is pathetic – but it is also a warning sign that paper currencies are being epically mismanaged by so-called monetary authorities that actually have no idea what they are doing.

Just look around. The United States is considered the strongest economy in the world. Yet we haven't managed to grow our economy faster than 2% a year since the financial crisis.

Moreover, we did that with the Federal Reserve buying $4 trillion of government debt, which is now sitting on its bloated balance sheet, while it lowered interest rates to zero.

Anyone who believes that has changed, or the reason for owning gold has disappeared, is not paying attention. Investors should continue to own gold and save themselves.

Here are a few ways to stock up today…

Join the conversation. Click here to jump to comments…

About the Author

Prominent money manager. Has built  top-ranked credit and hedge funds, managed billions for institutional and high-net-worth clients. 29-year career.

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  1. leroy marsh | November 13, 2015

    Good morning….

    What do you expect to happen if a new president actually gets our country back on the right track? Will gold go down in value?

    • Pal | November 15, 2015

      I'm more than a little shocked by your question. Please stop and think what a new president can do to turn around a country that is still racking up over $1.5 billion in new public debt every 24 hours every day of the year. If and I mean IF the government actually started to live within it's means it would not change the fact that the USA stands with over 19 trillion dollars in debt to pay, more debt than all the countries of the world for all of recorded history put together ourside of China. The USA now has conservatively 100 trillion dollars in future liabilities to pay and there has not been a true reduction in debt in the USA in thirty years. What country and what president are you talking about? There is NO turning this ship around. Duh. It's a matter of when not if catastrophe comes.

      This does not even address the fact that private debt in the USA is higher than public debt.

    • Cashflow | November 18, 2015

      That would be great if it was possible but it's not. The Government can never pay back or down the 18+ Trillion national debt and that is a fact. Gold and paper currencies has a 6000 year track record. Paper has always lost value and Gold has always maintain purchasing power over long periods of time.

  2. John Ellis | November 13, 2015

    you seem to know what your talking about.

  3. lsdkfjdsfjei | November 13, 2015

    I wonder how much of his portfolio he's investing in gold? Recent years have seen more posts / articles / advertisements like this one suggesting one purchase gold than there are ounces of gold in existence. Maybe some day gold will be in favor again, but odds are many opportunities for profitable investment will have come and gone between now and then.

  4. Wm. Spenceley | November 14, 2015

    Please.

  5. Farah Bazzrea | November 14, 2015

    Michael, we're in total agreement. I love to read skeptics' comments to the contrary because the American sheeple's lack of vision continues to keep prices low–less buyers–while I stock up. Unfortunately, those darn Chinese and Indians know the safe-haven status of PMs and keep buying too. With the Shanghai gold exchange heating up and India's government floating schemes attempting to "steal" their citizens' private stashes, I suspect time is not on our side. And when the "big move" in price discovery occurs like a thief in the night, those unprepared will only then become aware of their folly. But I wish gold WOULD go down to some of the Harry Dent-level predictions until my stack is sufficiently vertical but alas, I fear global central banks et al, shall hammer the value of fiat currencies downward into oblivion before my anti-hyperinflationary poverty defenses are satisfactorily shored. However, daily developments of affirmation around the globe are visible to those without blinders. So much so that denial is ludicrous and only entertained by those refusing to see what is before them. Anyway, thanks for sharing your thoughts, Michael. I enjoy your articles. Keep on stackin'!

  6. Jeff | November 16, 2015

    As much as I'd like to buy gold, it's not very liquid… there's no exchange where it's traded (like stocks). How does someone sell their gold? What are typical sales commissions charged?

    • jr | November 17, 2015

      you can buy online from jm bullion ,gold money,ASI,miles franklin, or from brokers sprott physical fund or central fund of Canada. go to a jewelers and buy rounds or coins,order from online or buy gold jewelry. buy the miners . etc buy bars or rounds for least mrkup .coins for beauty and recognizable wealth the same dealers will buy it back . Very easy! markups depend on whats popular now.

  7. Stephen Brown | December 1, 2015

    I love how you call gold coins and bars the "anti-paper" currency. I just read an article the other day that suggested that central banks start flooding the markets with extra cash. It seems like banks as a whole aren't opposed to experimenting with the market. In times of financial uncertainty, it makes a lot of sense to buy a tangible asset such as gold.

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