Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold, Wealth You Can Wear

Commodities / Gold and Silver 2010 Dec 02, 2010 - 01:23 PM GMT

By: Jeff_Clark

Commodities

Best Financial Markets Analysis ArticleJeff Clark, Senior Editor, BIG GOLD writes: In 1975, as Saigon was falling, South Vietnamese refugees were air-evacuated into Guam and the U.S. The company Deak-Perera was hired by the State Department to serve as the official "money changer" for the refugee camps, and it quickly became apparent to the employees that even the most prominent of Vietnamese citizens arrived with nothing but the clothes on their backs and whatever belongings they could carry. It was a somber scene.


The problem facing the refugees was that the banks in their home country had been nationalized (along with most everything else in the economy), meaning they couldn't write a check that was cashable. This presented obvious financial roadblocks for many of them, who were already dejected about their circumstances and insecure about the future.

Perhaps the most dramatic example was a successful Vietnamese businessman and his family who had been uprooted by the war. Though his suit was haggard, it was readily apparent the man had been wealthy back in his home country. He approached the exchange desk with two large suitcases full of piasters, the paper money issued by the Republic of Vietnam. The Deak-Perera worker, Michael Checkan, gulped and, with as much empathy as he could muster, explained to the refugee that piasters no longer existed. They were worthless, and the employee could not give him any money.

The reality of the situation visibly struck the man, and his face suddenly looked like he'd been told he had 30 days to live. He protested, but there was nothing the company or Michael could do. The currency simply wasn't worth anything. The man was broke, in spite of suitcases full of his country's money. As he trembled, his wife began crying and the children became frightened. They shuffled away, hopeless.

Later that day, Michael had another well-dressed refugee approach the exchange table with his family. He carried a ragged satchel, and explained that he had been a banker in Vietnam. As the man began pouring the contents of the bag onto the table, Michael braced himself, knowing he would have to explain that piasters could not be exchanged for anything of value.

His mouth dropped open, however, when he looked down and saw, gleaming in the sunlight, stacks of 24-karat gold TAELs, a form of gold bullion indigenous to South East Asia. They looked like wafers, thin sheets of gold delicately wrapped in paper. Each TAEL was .9999 pure gold and weighed 1.2 ounces. The man had dozens and dozens of them.

Michael peered back up at the man; he was brimming with hope. The employee calculated the bullion's value and moments later bought the gold TAELs, issuing the refugee a traveler's check for a large amount. The family hugged as they walked away.

As an American, you may not have to flee your country due to a military conflict. But there is something far more likely; you may have to flee your currency. There are many threats to your hard-earned wealth, and the most insidious is a weakening of the U.S. dollar.

For the United States, the invoices are piling up. Out-of-control government spending, rising healthcare costs, increasing entitlement programs, burgeoning military expenditures, etc., all add up to a number well in excess of revenue. The only politically acceptable solution is to print more money and devalue the dollar. The money you use for everyday life will buy less and less over this decade. Remember, as gold rises, it essentially means the dollar is losing value, eroding the purchasing power of every greenback in your wallet.

If you own any form of gold, you are already well aware of those facts. But have you considered the implications of traveling with that gold? Sure, coming from Vietnam in 1975, you probably got barely a sideways glance for carrying gold TAELs, or even a suitcase full of cash. But today, in the age of TSA "love tap" pat-downs and full-body x-ray scanners, and when you must declare any amount of cash over $10,000 on your way in or out of America, leaving the country with a stack of gold bullion is probably going to raise a few eyebrows - if not land you in a TSA backroom somewhere.

That's why it is important not just to own gold, but to consider owning it in various forms that give you both discretion and portability. There is no substitute for gold bullion, but there are far more portable alternatives, and which are far less likely to raise eyebrows (sure, numismatics are collectibles, but good luck explaining to customs the difference between a Gold Eagle and a Saint Gaudens).

Take 24-karat gold jewelry, for instance. To the casual observer, or the TSA agent, it's not unlike any other necklace or bracelet. To you, it is a portable store of wealth. A "money belt" customs will ignore. And a great insurance policy should you find yourself in need of money on the road.

Not only does 24K gold jewelry make moving with your money simpler, it also makes giving wealth to heirs or as a gift simpler. In fact, there are a number of advantages that are frequently overlooked: it's significantly cheaper than most numismatics and carries far lower premiums than traditional gold jewelry; it's subject to less of the complexities of taxes; it's more accessible than gold stored in a vault or certificates that take time to redeem; and as jewelry, it would avoid confiscation if that ever came to pass again.

Unfortunately, you are not likely to find real 24K gold jewelry of any significance in your local mall's jewelry store. Instead, they are probably selling 14K gold, and at premiums of 100% or more to the value of the precious metal. It's simply not practical to use designer jewelry as a store of wealth - you won't find a numismatic-like resale market for that Tiffany necklace.

Instead, you need to find a dealer that can provide you with pure, certified 24K gold jewelry that was designed specifically for use in passing down or traveling with your wealth, and at a reasonable markup. It helps if the jewelry uses a common unit of measure as well - each piece being an ounce or in some way easily divisible. That way you can quickly account for how much you have, and if the time ever came where you needed to sell it for emergency cash like our Vietnamese friend above, you could easily do so.

At Casey Research, we've found just such a partner with First Collector's Guild, which specializes in 24K gold jewelry.

If you own bullion or any other form of gold, consider how portable it really is. A little forethought and you may just realize it's not all available the moment you need it. If that's the case, a little bit of portable wealth protection might be in order. 24K jewelry is not an investment, but in the right circumstances it can be a great form of insurance.

But don't mistake it for just bullion; this is beautiful jewelry:

These pieces are very elegant and sophisticated. It's something you can enjoy for many years and generations to come. And they're perfect for gifts.

If you want attractive, wearable bullion that allows you to store value safely, then 24K jewelry is it. And it might be just the right way to sneak some gold into a loved one's stocking this year.

But hurry - since every one of the beautiful necklaces and bracelets is custom-made, you have to order by December 10 for delivery by December 25. To see all the different choices you have and learn more about Heirloom jewelry, click here

© 2010 Copyright Casey Research - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in