Investing in Gold is BORING! Or...maybe not...

Imagine a star that’s a third of the size Rhode Island but with the same mass as our Sun. Just a teaspoon of the mass from such a star would weigh hundreds of billions of tons.

These tiny giants are known to astronomers as neutron stars, and they’re increasingly rare in the universe today.

When two of these tiny powerhouses smashed together, it resulted in an explosion that’s beyond imagination or description.

Never before or since has the universe seen so much mass and compression exerted in a single event. And it’s estimated that just one in a million of the resulting particles turned out to be gold.

This was the only time in history during which gold was formed.

That’s right. Gold was a one-in-a-million creation that came from a one-in-a-million type of event during a very limited time in the universe’s history. And that’s it.

The resulting gold particles were spread throughout the universe. And they can be found in relatively minuscule quantities throughout the universe...making gold a very scarce resource

Case in point; the entire world’s supply of gold would fit inside a 50’ by 50’ cube that would itself fit neatly under the Eiffel tower. The average amount of gold mined annually by the entire world would only fill the average family’s living room.

Add to this the fact that gold is highly valued across almost all of the world’s civilizations, and you’ve found an incredibly stable store of value and medium for exchange.

The gold supply cannot really be manipulated, nor can it be subjected to rapid or micromanaged inflation (to do so would suggest an intimate control over the whole world’s mining facilities). Gold cannot be duplicated, it cannot be pulled out of thin air, and it cannot be conjured up by the witchcraft of fractional reserve banking.


“I Will Maintain…”

Truth be told, we were simply fascinated by the origin story of gold…the most “boring” investment out there…and one that’s started to regain popularity in the last year.

As the global financial system started to come tumbling down and most of the world’s “experts” were exposed for who they really are, the world’s wealthy – and not-so-wealthy – are flocking to the reliable, tangible value of gold.

Because the value of gold isn’t about governments, promises or trust. Instead of the classic “In God we Trust,” prayer you see on most money, some gold coins were actually minted with “I Will Maintain Purchasing Power…”

But why is gold so boring?

Because – at the very least – it’s maintained its value for thousands of years.

Except – of course – during crisis. When gold is giving to spiking in value…sometimes even doubling overnight.

As Bill Bonner puts it, “Gold buys [at least] as much bread in 2009 as it did in AD 9.” To quote Ernst, one of our Austrian banking contacts, “In ancient Rome, an ounce of gold would buy a man a tunic. Today, an ounce of gold buys you a nice suit. See, not so much has changed.”

So, gold tends to be “boring” (as in stable) at least for most of the time.

But you’re wondering about those “crises” mentioned above. I highly recommend checking out ICA, at http://www.mcalvany.com for more information. International Collectors Associates (ICA), has grown into one of the largest full-service precious metals dealers in the United States.