“In times of economic instability and uncertainty, gold is a safe haven asset that stands outside of the usual ‘paper-based’ financial system.”
THE BENEFITS OF INVESTING
In Precious Metals
Precious metals such as silver and gold coins have been coveted stores of wealth throughout human history.
Whether a king and an ordinary person, gold has always been seen as an asset that transcends borders, languages and the ever-changing tides of fiat currencies.
Gold and silver are finite resources that are not controlled by a single government or financial institution. Experts believe that they will always hold inherent value.
Precious metals cannot be printed by a government, but governments can print cash until their currencies fail. History shows that paper currencies are invariably printed and printed until their value is completely debased.
EXPLORE THE BENEFITS OF GOLD AND SILVER
From private investors to hedge funds to central banks and governments, the demand for precious metals continues to rise. Central banks alone purchased almost 600 tons of gold in 2015. Numerous industries consume precious metals in various applications including electronic and medical practices.
Mining exploration has continued to prove more difficult for precious metals in recent years. At the end of 2013 if all available gold that existed above ground were placed next to each other the resulting block of pure gold would measure a mere 21 meters in any direction. According to a recent article by Goldman Sachs, the world has about 20 years of minable gold reserves. This could prove very positive for the price of gold.
GOLD TO SILVER RATIO
For years the ratio of gold to silver was approximately 16 to 1 meaning it took 16 ounces of silver to purchase 1 ounce of gold. Today that number is closer to 70 to 1. Some experts predict that the gold to silver ratio will return to its previous average resulting in a great upside potential for silver.
Precious metals offer a unique benefit not found in many other investment vehicles. When acquiring precious metals, your information is not stored nor shared with any private or public entity. What you do with your gold and where you store your gold is your business.
Precious metals offer the owner instant liquidity: you can convert your metals into the currency of your choice. Today, gold can be converted to cash instantly in any country and is truly the international currency standard.
Many families were financially devastated by the crash of 2008 and most have not fully recovered. Diversification can help: if these families had gold as a portion of their portfolios, they would have offset many of their losses. Not putting all of your eggs in any one basket is a strategy recommended by many investment professionals.
HEDGE AGAINST INFLATION
During inflationary times, precious metals act as protection of your purchasing power. In 1933 one ounce of gold had a value of $35. For $35 you could have purchased a men’s 3 piece suit, a dress shirt and a tie. Today with the price of gold well over $1,000 you could still purchase a men’s 3 piece suit, a dress shirt and a tie, you’d still have plenty left over for a pair of shoes. That is protection of purchasing power.
HEDGE AGAINST THE DOLLAR
The value of the dollar today is worth only 5% of what it was in the early 20th century due to the continued debasement of currency by the Federal Reserve. The US “officially” owes $18 trillion in debt. If you include unfunded liabilities that amount jumps to $100 trillion. These are promises the US has made and the value of the US Dollar is based on the belief that the US will honor these promises.