A few years ago virtually no one could have foreseen that a university endowment fund would be buying a billion dollars worth of bullion, actually taking physical possession of 6,673 bars. They are following the example of central banks throughout the world, investment funds, and others wanting to preserve whatever wealth they have. Those who have not yet considered this themselves might want to consider choosing to buy gold coins Fort Worth.
Universities have considerable holdings which they invest for profits. They place these funds in investments that are safe and will return a profit over the long term. Their objective is to grow the fund, here already 19.9 million dollars, or at least preserve its value. Here they expect protection against the dollar’s declining value, and provision for future university operating expense.
Many central banks have already converted considerable dollar holdings into gold bullion. This indicates they expect much more decline in the dollar’s value in the future. This causes everything denominated in dollars to go up in price. It is easily seen by shoppers that the cost of practically everything has been rising considerably in recent months. Government reports claim that inflation is moderate and controlled but these numbers have been manipulated. Food and gasoline prices are not even calculated into these inflation rates.
The cause of inflation is the printing of additional money in a fiat money system where paper has no actual value, since it is not backed by anything. The Federal Reserve and drastically increased the money supply during QE1 and QE2. Quantitative Easing is a fancy name for printing money like there is no tomorrow.
The Federal Reserve in the United States is the entity that does the money printing here. Central banks in other counties have followed suit to inflate their own money fearing that gains value in relation to the dollar will cause exports will fall off. So there is a vicious circle of inflation occurring right now.
These same central banks are the world’s largest investors in precious metals. The Federal Reserve itself possesses 22% of the world’s physical gold. They are not holding dollars because they know what is going to happen to, and control its value.
Informed individuals have also been converting dollars they may have been holding into tangible assets. The best way to protect wealth may be to buy gold coins Fort Worth. This may be the best protection against further losses due to inflation.
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