So why invest in silver and gold bullion? It might seem like a strange concept to invest in metal materials instead of investing your money into a business, a house, or saving it in the bank. There are many who advocate against buying these commodities. Of course, there are many points to consider and certainly looking at both sides of the field can never hurt than those who only stare at the ‘shinier side’.
Anyone can agree on the fact that if someone is proclaiming that gold is a sure thing, they are obviously trying to sell you on a big scam with a free e-book thrown in out of good faith. Nothing is a sure thing, you are making an investment that will hopefully help you come out ahead when the times are low, but no one can predict the future. Anyone who says that what you are investing in “..can no way flop” should be strongly avoided. So why buy gold bullion?
Gold and silver has been used as an insurance currency ever since paper money has been introduced. During economic disasters and complete crashes gold has been used to help people all across the world through times of uncertainty. Gold and silver is a worldwide currency and is recognized by millions of people all across the world for its value. Before the concept of paper money was introduced, gold and silver, along with bronze, were accepted methods of income and money. To this day, the value of each material is constantly increasing.
Gold makes a great backup because paper money is not owned by the individual carrying the large sum, but to the banks. If the bank were to crash or another related economical disaster would occur, that money is simply not entitled to you whether or not you have spent huge amounts of time working for it. Gold and silver materials provide ownership, which means if the bank were to go bankrupt, you are still allowed to take your gold, or silver, out of the safety deposit box. There is nothing the bank can do to keep what is rightful yours away from you.
Gold is scarce comparing to its cash counterpart. Gold needs to be produced and money is simply printed on the fly. It can take up to 30 years from the exploration to the minting process of gold bars. This time process gives it a better estimated value because it is based on readability and not whenever the magical money-making gods deem it to be. With cash, it can be printed with little to no costs and as much as any given government chooses. As this money is no longer backed by anything and it does not even grant you proper ownership, the estimated value of what money is is often times skewed. The more money that becomes circulated within the economy – the less it is worth. This can also happen with gold, even more so with silver, but it is less likely to occur due to that fact that it is harder to obtain.
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Originally posted 2017-01-15 12:20:41.