Philip Diehl, president of US Money Reserve, recently expressed his opinions on investing in gold on an internet podcast. Diehl sees no reason for investors to purchase gold in bars or other forms in lieu of bullion coins. This is for several reasons, but the most important is that with other forms of gold you are never sure exactly what you are getting. Recently there have been gold rounds coming in from overseas distributors that turned out to be complex counterfeits. Bullion coins, on the other hand, are backed by the United States government for both their weight and purity. This helps give investors the peace of mind that they need to be confident in their investments. A further benefit provided by bullion coins is that they are legal tender, whereas gold bars and other forms of the precious metal are not.
Diehl sees plenty of opportunities for buying gold in the coming years. he believes demand is set to rise worldwide thanks to a combination of factors. The rapid growth of the middle class, especially in BRIC countries, will add millions of investors with disposable income to invest. Due to the political turmoil seen in many of these countries a significant amount of investors will likely look to gold as a way to safeguard their wealth.
Another major factor that could help fuel gold purchases in the coming years is the value of the dollar. Diehl thinks it is impossible for the dollar to continue its reign as the top currency indefinitely. When the dollar’s value begins to falter it will bring the price of gold down in other countries and present an extremely attractive buying opportunity. Although Diehl does not say when this will happen he believes that the value of the dollar peaked during 2015.
Overall, investors who are looking for a way to preserve and store their wealth should look no further than bullion coins. During the 2008 financial collapse investors lost billions of dollars as the stock market plummeted. This sent hoards of investors running to gold. Instead of rushing to gold in a panic it would make much more financial sense to for investors to store some of their wealth there to begin with. Gold has been used to accomplish this for thousands of years, a practice which Diehl believes will continue far in to the future.