1). Preserve and Grow Your Wealth
old and silver are extremely undervalued in today’s world dominated by fiat, or paper, currencies and other soft assets. Paper assets like the stock market have been on a 7 year bull run and are overdue for a severe correction.
When the correction comes, there’ll be a huge flight into the safety of hard assets like gold, silver, and other precious metals. Demand will crush supply and precious metal prices will skyrocket creating a whole new class of millionaires and billionaires.
Right now is one of the best times in history to take a position in precious metals and be on the winning side of the biggest wealth transfer the world has ever seen.
2). Gold and Silver Embody True Money and Wealth
overnments are quite open of the fact that the currency they create has no intrinsic value and are backed by absolutely nothing and are simply numbers printed on a pieces of paper. This is what are called “fiat currencies” and are at the foundation of today’s crippled economies. Fiat currencies are a delicate illusion based upon public faith and hold no worth in their own right.
Most people aren’t even aware of this fact…most still believe that currencies like the US dollar are backed by gold and have trouble believing or accepting that they are basically printed out of thin air and are about as valuable as Monopoly money.
True money should consist of these key features:
- Medium of exchange: Store a large amount of value in a small area.
- Unit of account: Convenient to count and keep track of and that is why paper money and coins have number amounts printed or minted on them.
- Portable: Easy to carry around.
- Durable: Doesn’t get old, worn-out quickly, and can’t be easily destroyed.
- Divisible: You can make change with it.
- Fungible or Interchangeable: A dollar or gold coin in my pocket buys the same amount in yours.
- Store of value over a long period of time and scarcity********
Fiat currencies do a pretty good job masquerading as real money and they almost pull it off except for that last, crucial bullet point… Store of Value. This is where fiat currencies fall short in a big way because governments can and regularly print more and more of it diluting the supply and transferring wealth out of your pocket to fat government coffers and the tyrannical banking system.
FACT: The US dollar has lost 95% of purchasing power since the creation of the Federal Reserve in 1913.
Gold and Silver on the other hand are real money because they truly store value over long periods of time. They are limited in supply, they are stable, reliable, maintain their purchasing power, and governments cannot print more into existence.
It doesn’t go away and you can’t make more…now that is real money!
3). Proven History of Holding Value
ver the last 5,000 years currencies have come and gone but only gold and silver have maintained their purchasing power and dominant role as true money. History has seen thousands of fiat currencies that have all eventually gone to zero. 100% failure rate… EVERY SINGLE ONE! In fact the average lifespan of government created currency is only 27 years.
Think about these old sunken ships that go down with gold and silver coins that are discovered from time to time. They have been resting at the bottom of the ocean for hundreds of years, idly storing their monetary worth, and today still hold tremendous value. Governments to this day fight vehemently for their claim to sunken treasures such as these. Would today’s fiat currencies do that? I don’t think so.
You often hear government officials speak down and marginalize the importance of gold and silver because they believe modern society has outgrown their simple traditions and don’t like the monetary restraint it holds upon them. But don’t let their rhetoric fool you, every year central banks around the globe are purchasing tons of gold bullion. If gold and silver are truly relics of the past and have no role in today’s “sophisticated” modern monetary system, then why not sell their gold and silver?
There is an old saying that still rings true today…
The Golden Rule: Whoever has the gold makes the rules.
Governments and central banks know this but its not in their best interest for common people knowing this as gold and silver are real money and compete and undermine their flawed currencies.
4). Physical Gold and Silver Cannot Go Bankrupt and Default on Promises or Obligations
ust as solid as these beautiful gold bars are, so is the financial integrity of gold and silver. Gold and silver are some of the few financial assets that are not someones else’s liability.
Once you have your hands on physical gold and silver, you don’t have to worry about their value evaporating overnight due to bad management, fraud, or any other potential risk associated with other investment assets.
When investing in physical gold and silver, everything is out in the open and it is a direct, simple transaction that even a child could understand. Unlike modern banking systems based of fractional reserve banking, swaps, etc. most bankers themselves can’t even follow how it all works.
Don’t take my word it, next time you’re at your bank ask them where they get their money or how they’re able to lend up to 10 times more than they have in reserve and you’ll see that they won’t be able to explain any of it.
5). Governments And Central Banks Are Printing Way Too Much Currency
overnments act very irresponsibly when it comes to monetary policy. Instead of operating within their means, it is much more convenient to fund expensive entitlement programs, wars, and other boondoggles by simply borrowing more money from their central banks and passing the buck to future generations.
Central banks essentially print, or digitally add with the click of a few numbers, more currency into existence in the form of treasury bills which expand the currency supply and contribute to inflation. Expansion of currency supply eventually results in an increase of prices for goods and services…text book definition of inflation.
The most disturbing aspect of how government debt is created, is that central banks charge an interest that is payed by hardworking taxpayers on imaginary currency that didn’t cost them a thing and that was printed out of thin air!
So when prices go up year after year, in most cases it’s not that the goods and services are changing or becoming more valuable, but the currency supply is changing due to government central banks printing more and more funny money into existence each and every day.
This sort of monetary policy not only erodes purchasing power and robes you of hard earned money, but also creates unnatural and harmful distortions in the economy like that seen in the huge real estate bubble of 2007 which caused the financial crash of 2008 and then followed by the Great Recession.
When prices skyrocket up, so do assets like gold and silver making them powerful hedges against the destruction of artificial inflation.
This chart below shows the True Money Supply for the US dollar since the beginning of the 20th century.
6). In Times of Crisis and Uncertainty, Gold & Silver Tend to Increase in Value
hen you know what hits the fan and people start to loose confidence in governments and are uncertain about the geopolitical future, gold and silver are great investments to have as they tend to increase sharply in value during times of crisis.
7). Invest With Privacy & Anonymity
hysical gold and silver are some of the few investment-class assets that you can buy and sell in complete privacy and anonymity. In a time where most financial and even personal transactions are monitored by governments or large corporations, it is comforting to know that you can stack your silver and gold as high as you want without anyone knowing.
Gold ans silver are investments you can keep to yourself…it doesn’t have to go on the books and isn’t taxed in their physical forms. Most physical gold and silver transactions are discrete, and if under $10,000 cannot be traced back to buyer or seller.
8). Portfolio Diversification
old and silver investments aren’t just for “gold bugs” and agents of Doom and Gloom, they are also proven diversification vehicles for all investors whether your’e a professional hedge fund manager or a small-scale day trader.
Most investors think diversification means owning 50 different stocks as compared to just 10…but that’s not true diversification, that’s just one asset class.
Gold and silver investments are unique asset classes that all smart investors should hold at all times to help mitigate risk. Doesn’t have to be a lot, but 10-20% of total investments is a good place to start.
9). Supply Constraints
t is insanely time consuming, complicated, and outrageously expensive to extract gold and silver from the Earth’s crust which certainly contribute to their scarcity. In addition… because of falling metal prices in recent years, many mines have been closed down and it can take from five to ten years to bring a new mine into production.
I’m sure you’ve heard how rare gold and silver are but visualizing it really puts in into perspective. Check out these images below that are a little shocking if you haven’t seen before and you can see what I’m talking about…
10). Gold and Silver Are Rare Freaks Of Cosmic Origin
lchemist throughout history, even quite famous ones such as Father of modern physics Sir Isaac Newton, have sought out to discover miracle methods to synthetically produce rare earth elements like gold and silver never to realize the futility in their attempts.
Gold and silver are named precious metals for a reason…they were made in the interior of massive stars billions of year ago. When these stars ended their lives, they exploded with incredible energy producing SUPERNOVAS! During these enormous explosions heavy elements, like gold and silver, were made in mili-seconds and blasted into space eventually resting in rare corners of the universe.
It is amazing to realize that gold and silver were formed billions of years ago, billions of miles away, never changing their composition, and eventually becoming rare objects of desire that they are today. Very cool!
Watch video below for a quick summary of this post…
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