Why is Investing In Gold And Silver Important For Wealth Protection And Capital Appreciation?

Investing In Gold And Silver

Compelling Arguments For Investing in Gold And Silver

Even though no one can predict the future nor were prices of gold and silver will be, history, current geopolitical and financial events and current policy of central banks leads one to believe that Gold and Silver will continue higher. It is more than that these precious metals offer one of the few available alternatives to protect ones wealth and purchasing power. Many pundits on television and other mediums are saying that Gold and Silver are in a bubble. These are the same individuals that that were saying it $400, $ 600 and even at $1000, and yet the prices continues higher as demand does. What these pundits’ are missing is that individuals are not investing Gold and Silver as a means of speculation, but a longer-term strategy for wealth protection and maintenance of one purchasing power. We have seen from news events that the financial chaos is far from over and European nations are struggling with unmanageable debt and central banks around the world are in at virtual war over currency devaluation and are racing against each other to print money. Here in the United States the Federal Reserve has been printing money non stop since 2008 and will soon announce Quantitative Easing 2, which simply translates in printing more money.

Added to this the federal budget deficit is out of control and for the previous fiscal year nearly approached $1.5 trillion dollars. This means additional borrowings and in the absence of real buyers will result in additional money printing. The stock market has been on a roller coaster ride and overnight ones wealth can disappear. One must remember that stocks are simply a piece of paper that has value because someone is willing to pay a certain amount for it. When there is no bid for that paper it becomes worthless. The same can be said for bonds, which are backed by the good faith of the government or companies that issue them. As we have seen many times does not mean much. So what does all mean for Investing in Gold and Silver? That with economic uncertainty it will continue to fo well. A 1913-dollar is worth a mere penny today, but gold has the same purchasing power as it did then. Of course Gold and Silver will go up and down over the short tem, predicting short-term price movements is very difficult, if not impossible. However, over the long run one must make those investments that will protect his purchasing power from political and financial events. With current events even more uncertain, it is wise to protect ones wealth.

Top Reasons for Investing in Gold And Silver

1) Wealth Protection Investing and Gold and Silver offers wealth protection against the ravages of inflation and consequent loss of purchasing power.

2) Capital appreciation – As demand increases and supplies continues to dwindle it will increase the value of both Gold and Silver. Gold has averaged over 17% return for the last nine years.

3) Transferability – It easy to sell gold and silver in its many forms and there is always a market for the precious metals.

4) The ultimate diversification tool
-One thing about precious metals is that they provide the best way to diversify your portfolio.

5) Central Banks policies – With continued money printing by central banks around the world, purchasing power of paper currency is sure to erode.

6) Fiscal Irresponsibility – The United State budget deficit will approximate $ 1.5 dollars in the current fiscal year and there does not seem that it will decrease in the near future. Deficits are projected to stay above $1 trillion over the next ten years.

7) Unfunded Government Liabilities – Some estimate that when you include Medicare, Medicaid and social security the unfunded liabilities of the U.S government are in excess of $100 trillion.

8) Low return of other assets – Bonds yields are at all time lows, Certificate of Deposits are paying minuscule interest and the stock market has had a negative return for the last ten years when adjusted for inflation. Additionally these paper assets have higher inherent risk than owning physical gold and silver

9) Purchases of gold by governments China and India have recently doubled their positions in gold and other governments have been accumulating as well.

10) Flexibility in ownership – There are many ways to own gold and silver including jewelry, bullion, ETF’s and other methods.

11) Privacy – Depending on the way you own gold it can be private and away from prying eyes.

The above list is not meant to be all-inclusive, but it gives one considerable amount of information to contemplate. Gold and silver are increasing in popularity as investment an and will continue to do because of the advantages and benefits its gives. Investing in gold and silver should be part on everyone’s portfolio that is concerned with capital preservation and appreciation. It is evident that many are making the smart choice of protecting their capital by investing in gold and silver.

Gold and Silver Are Sounding The Alarm