For thousands of years humanity has valued precious metals like Silver and Gold, and this valuation will not end in 2021, or any time soon for that matter. In fact, for much of history, our currencies have been weighted on the value of precious metals like gold and silver. Quite literally, owning paper money gave you buying power equivalent to a flat amount of gold and silver. Today however, we don’t do this anymore. But should we?
With inflation on the rise, many are flocking to online suppliers of precious metals. The appeal is irresistible to those who are financially conservative minded, and want to preserve as much of the net worth as possible. Buying gold and silver will undoubtedly help you do this.
Mind you, they are NOT as easy to liquidate as your typical assets, like stocks or real estate, BUT, one could argue that they are (and will always be) the 1st or 2nd more secure asset available (2nd maybe only to real estate). Here is a short list of the pros and cons to owning precious metals:
- Hedge against inflation – As the USD goes down, the price of Gold and Silver goes up (you don’t have to worry about your currency losing value)
- Perfect savings account – Since it is hard to cash out on, withdrawals would be sparse, thus helping you to save more long-term
- Immune to economic collapse – Uh oh, the Dollar is now worthless! Oh wait, you still have actually physical currency (gold and silver) that you can use!
- More affordable than gold (silver). – Can’t afford gold? That’s ok! silver is a cheaper alternative that has almost just as many uses!
- Precious metals have many applicable uses – Even if the currencies of the world don’t re-weight their values on silver, silver still have a plethora of uses. Click here to see a list of them!
- Prone to theft – If left unprotected, it would be easy for someone to run off with safe in hand.
- Must be sold to profit from – to see your profit or any money that is, you will need to go through the process of selling your stock.
- There are many fakes and shady dealers – since precious metals will always be valuable, there are many shady dealers out there looking to make a quick buck. This is why you must look carefully and only invest in suppliers that have the reviews to match.
So with those pro’s and con’s in mind, question is, what do the professionals think about investing in precious metals? Well here’s a quick video we found on YouTube, where Warren Buffett explains his position…
Mr. Buffett has stated that he hasn’t made any money from buying commodities, or rather, he doesn’t owe is board success to them, but that they are good to just “let sit there”. Implying that he does in fact see them as more of a savings type of asset, opposed to another asset that can be flipped quicker like stocks, bonds, and even real estate.
This is something that we can agree with. Although there are ways to profit off of flipping precious metals online, there is need to transpose all of your assets to metals in a period where traditional money, stocks, and assets are still of significant value. If anything, investing in metals is something you ought to do to further secure your financial position. BUT, at this moment, it is not something you MUST do. Not that we say ‘at this moment’.
This because sooner or later, investing in metal WILL be a MUST. When will that happen? Most likely when confidence in traditional monetary systems begin to decline, and then we would see a rise in an alternative monetary system.
Robert Kiyosaki made a great video explaining the value of silver, and why the futures of the traditional stock market and the USD are doubtful at best. Take a look:
PREDICTION: The price of silver will surpass $50 by the end of 2022. The price of silver nearly reach $50 in mid-2011 as the economy was on its’ way back from recovering from the 2008 recessions.
Since the price of silver and other precious metals rise when the value of the USD declines, this prediction is contingent on the price of the USD dollar decline and/or a subsequent continuation of the artificial COVID-19 recession.
Want more info on Gold and Silver? Check out these helpful resources (also found in our ‘Resources’ page):