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.

To read more about his topic, click here. (Issue # 2 – The Federal Reserve Casino)

1) 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.

2) Why Now?

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.

To read more about this topic, click here. (Issue #10 – More Americans Taking Risks Just To Retire)

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.

To read more about this topic, click here. (Issue #4 – The Middle Class: America’s Weakening Backbone)

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. China no longer exports any physical metal, and has increased its imports every year for the past 5 years. China and India alone are consuming 90% of the worldwide mined supply in 2014. With prices currently at a 3-year low, demand is at an all-time high. 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.
http://www.metal.com/newscontent/61435_indian-chinese-central-banks-on-track-to-absorb-90-of-gold-mine-output

To read more about this topic, click here. (Issue #3 – China’s Bold New Strategy)

The Current State of the Globe

After the tragic events of September 11th, 2001, our world became an ideological, political and economic battlefield. The threat of global economic instability has never been greater than today. Iran, Iraq, Afghanistan, Syria 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.

To read more about this topic, click here. (Issue #11 – Economic War With Russia Will Sink the Dollar)

All World Currencies are Fiat, and Fiat Currency Always Fails

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; unbacked 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.

Read more: Less Than Zero: When Interest Rates Go Negative

To read more about this topic, click here. (Issue #1 – QE: Off the Map Since 2008)

 

The Expanding U.S. National Debt

 

The United States National debt has been growing at a record pace, and currently sits at more than 17 trillion dollars. That number grows by an additional 2.5 billion PER DAY. With a population of over 300 million, debt per U.S. citizen averages out to more than 50 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.

 

To read more about this topic, click here. (Issue #6 – The Fed: Numbing the Pain, Ignoring the Injury)

 

Political instability in Washington

Our current leadership in Washington has set records for futility and public disapproval. Our country is facing a mountain of economic challenges, and yet the representatives in our capitol seem perfectly content to continue the reckless and irresponsible financial practices that got us here. Without cuts to spending and numerous other major reforms, our country is heading for bankruptcy.

It starts with the bankruptcy of debt-ridden cities like Detroit, Chicago, San Francisco and Los Angeles. The first dominos have already tipped over, and the resulting ripple effect can’t be stopped. Ask yourself this: how much faith do you have in our current Congress to fix our broken monetary system and get us back on track? If you’re worried, like we are, protect yourself today by taking possession of your wealth.

To read more about this topic, click here. (Issue #9 – The Sinking Dollar: Don’t Go Down With the Ship)

3) 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.

4) Unique Properties of Silver:

Silver has a reputation for its use in jewelry and coins, but today, silver’s primary use is industrial. In cell phones or solar panels, new innovations are constantly emerging to take advantage of silver’s unique properties.

The number one use of silver in industry is in electronics. Silver’s unsurpassed thermal and electrical conductivity among metals means it cannot easily be replaced by less expensive materials. Small quantities of silver are used as contacts in electrical switches. Whether turning on a bedroom light using a conventional switch or turning on a microwave the result is the same: the current can pass through only when the contacts are joined. Automobiles are full of contacts that control electronic features, and so are consumer appliances.

In medicine, Silver ions act as a catalyst by absorbing oxygen, which kills bacteria by interfering with their respiration. This antibiotic property, along with its non-toxicity, has given silver an essential role in medicine for thousands of years. Before widespread use of antibiotics, silver foil was wrapped around wounds to help them heal, and colloidal silver and silver-protein complexes were ingested or applied topically to fight illness. Silver has also been used in eye drops and in dental hygiene to cure and prevent infection.

Silver paste is used to make solar panels printed onto photovoltaic cells it captures and carries electrical current. This current is produced when energy from the sun impacts the semiconducting layer of the cell. Photovoltaic cells are one of the fastest growing uses of silver. Silver’s reflectivity gives it another role in solar energy. It reflects solar energy into collectors that use salts to generate electricity. Nuclear energy also uses silver. The white metal is often employed in control rods to capture neutrons and slow the rate of fission in nuclear reactors.

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