Gold Bullion and Credit Cards

There are few things in the world that could be considered more different than gold bullion and credit cards.

Although gold has come to symbolize many credit cards since the 1970s, this is actually quite improper since credit cards epitomize everything that is irresponsible in the financial world and gold is the very embodiment of fiscal and monetary discipline and responsibility. Unfortunately, gold (and now platinum) credit cards have come to symbolize wealth and status in the minds of many Americans. The reality is that credit cards destroy wealth and reduce Americans to pauper status when they are misused.

And it is no wonder that Americans misuse credit cards. After all, our federal government and elected officials have set an example for excessive credit and its potential aftereffects.

America: Drowning in a Sea of Red Ink

America and its citizens have become absolutely awash in debt and red ink over the past 3 decades, in more ways than one.

Consumer debt, principally credit card debt, has mushroomed to the point that America now has a negative savings rate. At the height of the go-go day-trading years in the 1990s, Americans were paying for basic living expenses with credit cards while they were taking their cash assets and trading stocks online as if they were playing a slot machine or video poker. The eventual result was a stock market bubble that inevitably burst and saw hundreds of billions of dollars in phony wealth disintegrate almost overnight right before our very eyes.

Spending Like Crazy

Debt has also surrounded our nation and its institutions like a python and it is suffocating us in the same way. Our national debt and deficits have grown to gargantuan proportions in the past 2 years alone as congress and the Obama administration have seen fit to spend like crazy—all on credit. Each day it seems that a new government program is started, despite the fact that we don’t have the money to pay for the millions of existing government programs already on the books.

A Shameful Legacy for Our Children and Grandchildren

Who will pay the bill? We will and our children and their children will pay our debts too. They are inheriting a mountain of personal and national debt that the world has never seen. Ominously, that debt continues to grow. Just the interest on the national debt adds billions of dollars to our liabilities each and every day.

In a futile attempt to offset all of this fiscal irresponsibility, our government is matching it with monetary irresponsibility by printing money at an unprecedented rate. This will inevitably undermine the value of the US dollar and make us all poorer.

A Solid Store of Value and Trusted Medium of Exchange

There is a refuge from this fiscal and monetary storm of red ink: GOLD.

As the value of the dollar is eroded as a result of all of America’s red ink, the one asset that will most benefit and thus protect wealth is gold. Gold is the one investment that is not dependent upon anyone’s promises to repay. When runaway hyperinflation and depreciation of the dollar take their toll on America’s wealth and financial markets, gold will be the one asset that stands solid as a safe store of value and trusted medium of exchange, just as it has for 5,000 years.

Gold: A Better Way

So, the next time you think about charging something else on your credit card, consider taking that same amount of money and buying gold with it instead. Rather than eroding your personal wealth and jeopardizing your family’s financial future, you will be adding to your long-term personal wealth and safeguarding your family’s future.