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Buying Gold To Save For Kids College Fund
Pinnacle Digest writes: In his latest article, Axel Merk breaks down exactly how one should prepare for the coming crisis.
Reflecting back on his book titled ‘Sustainable Wealth’ which was written in 2009, Merk explains how his editor wanted him to refer to the crisis in the past tense. He was adamant not to do so as he believes the crisis is just in its infancy. And given his belief that the crisis is still young, a theory we strongly agree with, his latest article addresses how we must prepare for the top to blow-off.
Merk argues that gold is the number one protection asset. Before you bunch him in with all the rest of the gold bugs in the investment community, it’s important to note that he is not a gold bug and makes a point of letting his readers know that.
Merk explains his wealth protection strategy by using an example from his own life. He has two young children and explains that he is saving for their post-secondary education by purchasing gold (and has been doing so since 2003).
Axel Merk states “While anyone can argue that deploying gold to save for college isn’t particularly diversified – and my plan should not be considered investment advice for others - it’s the discipline in pursuing a plan, any plan, that is key to success. It helps that the price of tuition has been going down every year since we started the plan – that is, when college tuition is priced in gold.”
Merk believes that gold protects his children’s college fund the best of any asset class. And given that his children are still well over a decade away from entering college, he clearly believes the indebted governments of the West will remain highly leveraged for a long time to come. He states that “in the absence of some miraculous reform of entitlement programs such as Social Security, odds would be high that policymakers would nominally keep their promises, but erode the purchasing power of the dollar.”
Merk points to a recent forecast by the CBO (Congressional Budget office) warning of a 199% debt-to-GDP ratio by 2037 in the US. And with the Fed policies creating a skewed view of how the world ranks US debt, politicians feel their current budget plans to be on the safe side - when in reality, they are slowly driving future generations into unsustainable debt.
Click here to read Axel Merk’s latest article.