Why Purchase Gold?

Due to record high U.S. trade and budget deficits and declining investor confidence in U.S. bonds, stocks and currency, the dollar has been losing value, weakening its status as the world's major currency. A long-term factor behind the weakening Dollar is the widening U.S. current account deficit and many market watchers say that the Dollar is just beginning to catch up with the fact that the United States is deep in debt, a significant chunk of which is held by China and Japan. Both the Asian powers are beginning to review their entrenched positions in regard to the value of their own currencies and the mix of their foreign reserves and holdings. They are both now slowly selling off their Dollars to buy Gold.