Before you go out and start investing in precious metals or start selling off your current holdings, it is wise to gain a better understanding about this alluring asset class so that you are better equipped to make wise decisions regarding your investments. There is much to know about owning precious metals, gold, silver and platinum. No better place to start by first reviewing a brief history and by addressing some basic questions like; why gold, why silver, why now?
History
For over 6,000 yrs. gold has been the most sought after form of asset protection. This is why kingdoms and governments for centuries used precious metals to back their currencies. This provided confidence in the marketplace. You have heard the expression – “it’s as good as gold” and you can now see how and why this statement came to be.
Fiat Currency
Today we have what is called “fiat” or more accurately defined as “digital fiat currency”. Fiat simply means a currency with no tangible backing (like being backed by gold and silver for example). Fiat is printed by government decree (or by the Federal Reserve as a stellar example). All currencies today are fiat currencies including the U.S. dollar. This is important to note.
Confidence (The glue is coming apart)
So what happens when governments need more money? They simply print it and today in the digital age, it’s just another keypad click to add just a few more zeros and like magic billions of dollars arrive into the system out of thin air. And since there is no tangible backing there is a lot of this printing taking place. I encourage you to read this previous blog post for a greater understanding of this. And so now I ask, do you have confidence in world governments (be it the U.S. or Canada, or Europe etc.)? Do you have confidence that this over printing and over injecting and bailing out big banks and big corporations and entitlements etc. in the long run is in anyone’s best interest? Confident that the global economy is robust?
Global markets are now and once again beginning to collapse. Economists such as Mark Faber, Gerald Celente, (Trends Research Institute), John Williams (Shadow Stats), Peter Schiff and many more forecast a pretty dismal picture expecting perhaps another 30%-50% correction in the world’s major markets. I will assert that as one studies and becomes familiar with the ruling elitists global agenda and its war on cash and more importantly understanding the end goal of this agenda, it is simply not a matter of if but when the next engineered collapse hits. Some say we are in the beginning stages of this right now and I believe we may be. And this crash (not correction) will make 1929 and 2008 collapses look like a picnic in the park. It has just begun and there is a long way to go in 2016.
Lack of confidence is the underlying root that sets the stage for rising prices in precious metals. However the metals markets are also heavily controlled and manipulated (as witnessed in the past few years) due to the paper and futures trading in the precious metals markets. But at some point this will change and that point is on the horizon. But the demand for the physical metal is tremendous and the supply for the physical metal is hard to come by. Supply and demand indicates yet another reason why the metals are beginning to shine.
Why Gold, Why Silver, Why Now?
6,000 years historical precedence
Gold bars and coins are the most liquid financial asset in the world
Timing
Supply and demand
Portable
Liquid
Private
Insurance policy and a hedge against collapsing currencies
Maintain its purchasing power over time (most important factor in my view)
I will continue to post blogs here on this site as we have not even begun to scratch the surface on this important subject of precious metals and important timing I might add. Meanwhile tic-tock-tic-tock. USA debt clock.
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John Michael Chambers has extensive experience having retired from a former career as a successful independent Financial Advisor with over fifteen years experience with seven offices in three states focusing primarily on wealth preservation. Today, John does not work for any investment, real estate, or insurance companies and does not sell investments, gold, silver, real estate or insurance of any kind. When you secure a consulting program, John is working for you as your Wealth Coach. Truly independent non-biased high valued commentary, discussion and analysis in simple to understand straightforward narrative. See Biography for more information about John.
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