Why Buy Gold and Silver
To put it simply, gold and silver succeed where paper money fails. Our US Dollar was once fully backed by precious metals. Under the gold standard, a unit of cash was merely a “receipt” redeemable for gold. For every $20 bill in circulation, there was a $20 gold piece (approximately 1 oz.) held at the Treasury on its behalf.
At any time, citizens could exchange their paper receipts for physical gold. This system was designed to prevent overprinting; the government could only circulate enough cash to cover its gold reserves.
Additionally, the system gave citizens the option to “cash out” of U.S. paper currency, should they lose trust in the government’s management of the country’s money. Every dollar bill spent once represented a vote of confidence in our government. However, by 1971 all dollar-to-gold convertibility had been canceled.
With no fixed standard and no way to prevent the government from overprinting, the value of our dollar has plummeted ever since. The negative effects of this mass devaluation are all around us … now more than ever. While our money loses value with each new batch printed, gold and silver remain steadfast; safe from government mismanagement and overprinting.
Why Precious Metals?
Protection – Precious metals are wealth preservers that you are able to physically hold in your possession. By owning hard assets, you control your own financial destiny. In times of crisis, do you want a certificate or bank statement representing your assets, or do you want your actual wealth on-hand and ready to go?
Privacy – In today’s markets, finding assets that offer privacy can be a difficult task. Precious metals that are considered collectables allow for purchase and sale without 1099-B reporting requirements, unlike bullion metals. These collectables are a haven for those who value the benefits of privacy.
Profit Potential – Overall, precious metals have performed exceedingly well over the years due to increasing demand and decreasing supply. An incredible opportunity exists right now to buy metals at 3-year lows, before the price rebounds back to the highs of 2011 and beyond.
Liquidity – Precious Metals are the most liquid investment on the planet. When you hold physical metals in your possession, you have universal money that can be liquidated immediately, at millions of locations, in any country in the world. No other type of money offers this degree of universal acceptance and recognition.
Falling value of US dollar The value of the U.S. dollar has plummeted 95% since the 1950s and 35% since 2000, yet the American public continues to put their faith and savings into a failing currency. The politicians in Washington endlessly borrow money and increase the national debt, while the Federal Reserve continuously prints more dollars. The rest of the world is paying attention and the confidence in the U.S.’s ability to manage debt is fading. Gold has always moved inversely to the dollar and is a perfect hedge against these downside risks.
Rising inflation risk: The U.S. government and the Federal Reserve’s current Consumer Price Index show inflation between 2-3% a year. However, other indexes, such as the original CPI equation, show a rate that is more than double that amount. If you calculate the increase in money supply, asset inflation in stocks and housing, and price inflation on everyday cost-of-living goods, the result is an inflation rate much higher than what the Fed is reporting. Inflation is a tax that can be imposed without legislation. This scheme to reduce the real value of our country’s debt will also reduce the real value of the savings held by the American public. Precious metals have always held their value in times of high inflation.
Growing demand for physical metals worldwide: The demand for physical metals worldwide has never been larger. Domestic demand for physical silver and gold is at record highs, causing a backlog of orders at the U.S. Mint. Smart investors are rushing to buy physical metals. Now is the time to secure your metal, before supply shortages create a difficult situation for buyers.
The Current State of the World: The threat of global economic instability has never been greater than today. The Middle east and many other regions are explosive and volatile. A trigger event could send global commodities like gold, silver and oil to new heights. Owning portable wealth that is liquid and universally accepted is key to navigating a global crisis. Precious metals are the safest haven during times of global uncertainty.
Fiat Currency Always Fail: The U.S. dollar has been the global reserve currency since 1944, meaning all other currencies are tied to ours. After severing all ties to gold in 1971, the dollar – along with all other currencies – became fiat currency; not backed by tangible assets. A fiat currency bases its value solely on the faith of the people. In reality, it is nothing more than a piece of paper with no intrinsic value. Any worth that paper has in the marketplace hinges solely on consumer confidence.
Throughout history, no currency has been able to hold onto that confidence once the asset backing it was removed. Today, countries are printing this worthless paper money at an extraordinary pace, and therefore devaluing the worth of all fiat currencies. When the citizens of the world realize that their hard earned savings are being devalued, they will quickly move their currency in to physical assets that will protect the value of their wealth. The people who will benefit most from this massive wealth transfer are the ones who have the foresight to do it first.
The United States National Debt: has been growing at a record pace, and currently sits at more than 28 trillion dollars. With a population of over 330 million, debt per U.S. citizen averages out to more than 84 thousand dollars per person. Something has to change. If we continue to increase our debt, our currency will lose all credibility and value worldwide, causing great economic pain to anyone whose wealth is in U.S. dollars. The solution is to diversify your holdings to include physical precious metals, which increase in value as our debt level rises.
Unique Properties of Gold:
Gold is the most liquid and mobile asset in the world. You can easily carry millions of dollars worth of gold on your person and exchange it for paper currencies or goods and services in any country in the world. – Gold has been a basis for trade and money since the beginning of civilization. It has the power to back a currency and a large supply of gold can change the landscape of a countries economy. Therefore it is recognized and valued by every culture around the world.
Unique Properties of Silver:
Silver is known for its use in jewelry and coins, but it is also mostly used in industry. New technologies are continually emerging to take advantage of silver’s unique properties, whether in mobile phones or solar panels. The most common use of silver in industry is in electronics. Since silver has the highest thermal and electrical conductivity of any metal, it cannot be easily substituted by less costly materials. In electrical switches, small amounts of silver are used as contacts.
By using a traditional switch to turn on a bedroom light or a microwave, the result is the same: current can only move through when the contacts are joined. Market products, like automobiles, have a plethora of contacts that monitor electronic functions. Silver ions function as a catalyst in medicine, absorbing oxygen and killing bacteria by interfering with their respiration. Silver has played an important role in medicine for thousands of years due to its antibiotic properties and lack of toxicity.
Silver foil was wrapped around wounds before the widespread use of antibiotics, and colloidal silver and silver protein complexes were swallowed or used topically to combat the disease. Silver has also been used to treat and avoid infection in eye drops and dental hygiene. Solar panels printed onto photovoltaic cells are made with silver paste, which absorbs and carries electrical current. When the sun’s energy strikes the cell’s semiconducting layer, this current is produced.
One of the fastest-growing applications for silver is photovoltaic cells. Silver’s reflectivity allows it to play a different role in solar energy. It reflects solar energy into collectors that produce electricity using salts. Silver is also used in nuclear power. The white metal is often used in control rods in nuclear reactors to absorb neutrons and slow the rate of fission. Find a reputable gold investment company here.