Over the past five years gold has succeeded to outperform the S&P by a long shot. The biggest reason for S&P's decline in value, measured by it's worth in currency or dollars is because the green back itself is not real money.

It's important to note, smart people have been collecting gold. Regardless if these people have collected gold for the long-term or are just now starting. These investors all have the same philosophy. Hang on to your gold, keep collecting it and do not sell an ounce. Because at some point gold's value will exceed rising inflation and save you. What the government has done of course in its attempts to shore up falling home prices within American is actually destroying the dollar and increasing gold's value.

The way the government has been doing this has been to put a lid on interest rates by keeping them artificially low. This in conjunction with running their printing presses at maximum capacity is combined craziness, which is de-basing the US dollar. At present there really are only a handful of people out of the 311 million plus people in America, that understand the US dollar is being de-based, losing its purchasing power, or plain just becoming worthless. These people are being forced out of stocks, out of dollars and into the safety of gold or real money.

When it comes to mortgage loans, why are people taking them out in the first place? The reason is because people can still get money with practically no down payment. The government itself is both creating and insuring 96 percent of all new loans. These days, no other outside entity would be caught dead loaning out this money for the simple fact, no one can pay it back and all these other financial institutions know it.

Bottom line home prices are still too high and out of reach for most Americans, they simply cannot afford them. Another reality is that the government cannot allow home prices to naturally fall back to where they need to be. If this were to happen, all the financial institutions who originally loaned out the remaining mortgages out there would go bankrupt. If that happens you can be assured these banks and mortgage companies will be lining up once again for another government bailout. This of course, would be backed by no one, other than you, Joe taxpayer.

At some point most likely within this decade all the damage central banks world-wide have created through excessive money creation, to inflate currency supplies will come to a head. Also we must take into account all the out of control government debt problems in Europe, America and the rest of the world where at the end of the day no government will be able to pay back its debts. Throughout all of this madness, eventually their will come a global reset of the financial system. The reset will most likely happen after massive hyperinflation occurs. At this point gold will once again surface as real money, leaving just about everything else in the wake of hyperinflation.

Physical gold is real money it has been used around the world as money ever since the days of Aristotle. By investing at least part of your assets today into physical gold you will insure yours and your family's financial survivability well into the future. Gold is one of the greatest natural assets to own for hedging inflation. Physical gold will protect your assets from any major economic event including inflation, deflation or the destruction of paper money through hyperinflation.

Tom Genot -