It is now more compelling than ever to own at least some Gold and Silver in your own possession.

Here are my reasons to have at least some precious metal!

1. Gold is real money and a store of value almost anywhere in the world.

It would be hard to find a country that you couldnt find someone to part with local currency for your pure gold which is why we say that gold has no boarders. And because it maintains purchasing power it will buy roughly the same goods and services regardless of the exchange rate. Visit this page for why gold and silver makes for good money .

2. No Counterparty risk.

Counterparty risk is more real now than ever. We have very short memories but let us remember just a few:

• Greece (along with other parts of Europe. Spain and Portugal)
• Iceland
• Argentina (has just defaulted on its debt again)
• Cyprus
• Northern Rock (UK)
• Bear Sterns & Lehman Brothers (US)

• The finance companies of NZ. ei. Hanover, Blue Chip and the rest.
• These names are just scratching the surface of failed institutions and struggling countries.

If you dont have it in your hand, then maybe you dont have it at all. Counterparty risk is a clear and present danger we all face if we are trusting someone else to give back what is or perceive to be ours. It can be a game of music chairs and who knows when the music may stop.

3. Limited Supply.

Unlike paper, gold and silver only come out of the ground at a certain rate. Yes, money invested in exploration and mining will lift those rates but only marginally. Its also true that just like oil, all the easy to reach stuff has been mined leaving the more capital intense and hard to reach precious metal still to be mined. This means that no new supply other than what is already mined can flood the market.

4. Increased Demand.

Central banks, governments, hedge funds, and some wealthy individuals are buying gold and silver in large quantities. Demand for gold in China overtook India and is expected to grow by 25% as the population in China get wealthier. The amount of Gold that China holds is unknown and a new  Shanghai Gold Exchange means we dont know how much is flowing into China either.

5. Gold can still be held  anonymously.

You can still buy some gold and silver with cash and store it away and forget about it if you want to. Investment jewellery may be an option if our government ever decided we had to report purchases of gold.

6. Gold is the ultimate insurance in times of global financial stress.

When a country is under financial stress you want to be owning gold and silver and other hard assets. Paper is slowly becoming worthless!

You have to choose between trusting to the natural stability of gold and the natural stability and intelligence of the members of government. And with all due respect to these gentlemen, I advise you, as long as the capitalist system lasts, to vote for gold.

George Bernard Shaw

GoldSilver is affiliated with Silver Gold Bull and would receive a small commission should you decide to make a purchase though the link above. You will not pay more or less than the going rate.