Bullion

After the recent financial troubles it must be tempting to think that we never should've dumped the gold standard.

In the old days gold was the standard by which all monies were measured. After the Second World War America dropped the gold standard and make the dollar the standard. And the dollar hasn't been that healthy of late.

Some people have said the Euro could be the standard of the future but after Greece needed to be bailed out by the rest of the Euro zone it showed the weaknesses in the pan-European currency.

For all that people say the gold standard should not have been dropped we have to realise there are physical limitations. Look at it this way, all the gold that has ever been mined has been estimated at around 142,000 metric tons. At US$1,000 per ounce the total value of all the gold ever mined would be around $4.5 trillion. That's less than the value of circulating money in the U.S. so you see that problem. And quantitative easing isn't possible under those restrictions.

However, the limitation on the amount of gold is a plus point if you think about gold as an investment. While supply is restricted and demand if free to grow the price will tend to increase. A quick look at the gold price shows is has been on the up for the last two weeks without a break.

With all this in mind it may be time to buy gold bullion. If you want to see more have a look at the www.usgoldbureau.com website.