Is Investing in Gold and Silver Still a Wise Choice
Investors continue to turn to precious metals, especially considering the purchasing power of the U.S. dollar continues to decline year after year. A lot of people still don’t realize that the dollar’s decreasing value is an ongoing think and that one of the best ways to protect one’s purchasing power is holding precious metals.
Many people can’t grasp the concept of dollar devaluation, but we will go into more details about this, so you have a better idea of things.
Gold: is it a Good Investment
If you purchased $100 in gold in 1971, it would be worth around $3,000 today. Let’s discuss how much your investment would be in regards to individual purchases. That much money would allow you to buy six tickets to the Bahamas, a very good television set, a paid sports package for three decades or you could payoff your electric bill for a year or two.
The purchasing power of your 1971 dollars are maintained and it has actually increased. However, if you only saved $100 in cash, then you would still only have that amount. In today/s world, it would have only retained around 17% of its former value.
Silver as an Investment
Let’s say you bought $100 in silver in 1971, you would have over $1,000 in today’s money. Even $1,000 can buy a lot of things, such as four months worth of groceries, surround systems, a few quality cameras and weekend getaway and many other things. In short, $1,000 can go a long way in terms of purchasing things.
The government prints money out of thin air or they simply inject new dollars into the country with just a few keystrokes, and this is why real silver and gold will continue to rise in price. It’s always a good idea to invest in different types of money, especially one that is proven to stand up against time. This includes silver and gold bullion.
How To Invest In Silver
Many people are interested in buying gold and silver. In fact, a lot of people tool advantage of the falling prices of silver and gold.
This is because they wanted to add to their precious metals portfolio.
Silver: Is It A Safe Investment
Silver is a safe investment, and the longer you decide to hold onto it, the safer it becomes to hold and maintain. Unlike a company that you buy shares in, silver won’t go bankrupt. Unlike investing in bonds, silver cannot default. These are only a few examples of how it is a safe investment.
Silver has many uses, which is why it won’t ever go to zero. It has a history of being used as a form of currency, and this goes back many years. The bottom line is there will always be a market for silver coins, regardless of how much money they are worth.
Gold Or Silver
A lot of people fully understand what buy low sell high means. However, a lot of people wait until the prices of silver and gold have skyrocketed before they decide they want to invest in it. In other words, they tend to wait far too long before making a decision.
Still, many people have their own reasons for buying. Some are confident in their decision. Some people will still have questions they don’t have answers to.
One of the most common questions people ask is how can people spend their silver and gold assets in a barter-type economy. People often want to know if they can take their gold and silver to a shop or give it to a tradesman in exchange for their services. The bottom line is people want to know if they can spend silver and gold as if it were money.
Silver and gold has many advantages in regards to financial transactions. Every single deal requires a seller to make an offer, as well as a buyer to accept the offer. No deal is made unless the buyer pays the money, and the buyer has the final say in whether or not they should walk away from the deal so they can find a seller that accepts silver and gold.
There may come a time when the U.S. dollar collapses, and this can cause you to suffer tremendously, in terms of finances. Hyperinflation can send the price of the dollar to soar. If either of these happens, your silver and gold assets will still have value, which means you’d be more than likely able to use those assets to barter for services and goods.
Gold Or Silver: Which Is Better To Invest In
It’s a good idea to invest in both. Having gold and silver gives you more power to barter and trade.
Plus, you’ll have more versatility.
Gold and silver may both be precious metals, but they can perform very differently in various economic conditions. For example, when a credit crisis hits or if deflation occurs, then gold tends to fair better. Silver tends to do better than gold when inflationary upswings are occurring.
There will be times when silver will be priced better than gold and vice-versa. Silver might be the better metal to buy when the ratio for gold/silver nears the high end of the normal range. As of lately, gold tends to be more expensive, and this is why more people are buying silver. It’s all about keeping an eye on the market.
If a total breakdown occurred, then precious metals would become a main form of currency. Most people would have no problems accepting it. This goes for services and goods too.
In a financial collapse, those who hold silver and gold would be in charge of transactions involving metals, not the sellers.
Remember, you need the services and goods, but the seller needs currency.
If the seller is competing with other sellers, then you’re the one in charge, not the seller.
If a financial collapse happened, then you would be glad to own silver and/or gold.