Gold and Silver are not an investment! Let me repeat that. Gold and silver are not an investment! Gold and silver are (excuse the pun) the most “solid” form of money you can possess. Yes, these two precious metals are money!…Don’t fear owning gold my friends. Fear not owning gold and silver, especially if you are a saver. [Let me explain.]
The comments above & below are edited ([ ]) and abridged (…) excerpts from the original article written H. Pelham (retirefund.blogspot.ca)
Gold & Silver Hold Their Purchasing Power Over Time[Gold and silver] have been money for about 4,000 years. Right up until 1964, silver was used in U.S. denominated coins. That is why in 1964 a U.S. quarter would buy you a gallon of gas. That is why today, the exact same U.S. quarter (dated 1964 or before) will still buy you a gallon of gas. It is because of that silver content.
During the Roman Empire circa 2,000 years ago, an ounce [troy] of gold would buy you approximately the same value of goods as it will buy you today. ( I know that “goods” are interpreted in different ways, but “food” and “clothing” are goods and that comparison can still be made.) This is money that has kept it’s value for thousands of years, and continues to keep it’s value…
Fiat Currencies are Being Aggressively Devalued
How will the U.S. pay down its $23 trillion debt? Well, you make the 23T worth a lot less, that is the only way. You “inflate” it away. You print money, and you print money and you print money – and it works, “until it doesn’t work anymore”! Just ask the blue collar savers who have been squirreling cash away for a rainy day. Against gold, they have lost over 500% in the past 10 years.
Yes, I know, the famous Oracle of Omaha once said that “gold has no value”… but, if Warren Buffett could have sold all of his shares in Berkshire 10 years ago, and just bought physical gold, he would be 500% richer today (give or take a percentage point). How is that for maintaining value?
There is now a race to devalue currency, by almost every major central bank in the world. The only “currency” they cannot devalue, is gold and silver, though they try and try, by using the fear factor. Don’t fear owning gold my friends. Fear not owning gold and silver, especially if you are a saver…
Both Gold and Silver Have Major Upside Price Potential
Now here is another fact to consider. As the money printing continues over the next decade, or as hyper-inflation begins to rear its ugly head from all that money printing of the last many years, and we can draw any conclusions from the previous decade, then gold will reach (in U.S. dollar terms) approx. $8,300 per [troy] oz. by 2022 (or before). Now, does today’s gold purchase price of approx. $1250 sound like a bargain to you? It certainly does to me! Also,……the Silver/Gold ratio is historically 16:1 so at today’s gold rate…silver [should be] over $100 per oz…. [and at a future price for gold of $8,300 price, silver would rise into the neighbourhood of $500/ozt.]
Savers should be buying physical silver and gold right now if they haven’t already been accumulating. Your savings depend on it.
Where to Invest in Precious Metals
Personally, I have invested in both physical silver and gold and I am investing in mid-tier gold miners that have been beaten down over the past year. Do your own homework, but look for mid-tier miners (ones that could be attractive to the senior miners, who can only increase production by scooping up smaller names) who have solid management, producing mines, increasing production, increasing reserves and where production costs do not exceed $800 per oz. (the lower the better).
You don’t need good luck with your savings. You only need good currency…[and that means owning gold and silver,] the most “solid” form of money you can possess!
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It would seem that there is a considerable lack of understanding about what the term “safe haven” actually means when it comes to gold. Let me explain just what it means – and does not mean. Words: 740
Comments I have made that “when this [financial crisis] finally ends the big winners are apt to be the ones who have lost the least purchasing power. Keeping score in nominal dollars is likely to be meaningless. Gold tends to hold its purchasing power regardless of what happens to fiat currency.” have prompted questions about a) how to achieve such purchasing power with physical gold when this stage is reached, b) how to go about buying things with gold coins and c) how gold would be utilized under the assumption that a barter system would develop when dollars become worthless. [Let me explain.] Words: 700
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If you concur with the 159 analysts (see below) that maintain that physical gold is going to go parabolic in price in the next few years to $3,000, $5,000 or even $10,000 or more then you should seriously consider buying physical silver. Why? Because the historical gold:silver ratio is so way out of wack that silver should appreciate much more than gold as it goes parabolic in the years to come. Indeed, silver could easily reach $100 – $200 per troy ounce, maybe even $300 and conceivably in excess of $400 depending on how high gold goes. The aforementioned may be hard to believe but an analysis below of the historical price relationship between silver and gold suggests that such will most likely occur if gold does, indeed, go parabolic. Take a look. Words: 1423
People get confused about the nature of mass inflation, hyperinflation, and what causes both. [Let me clarify the nature and causes of each.] Words: 930