Given what we know about how important gold is in the world, it’s no surprise that silver is right there behind it. There has always been a link between these two precious metals and inflation. Even during the times of Ancient Greece, the kings wanted to meddle with their finances to become richer. Read the reasons for why to Invest In Precious Metals
They started diluting their money supply in order to boost the economy, and it didn’t work. The same thing happened in Ancient Rome. Emperors wanted to create coins that were a mix of copper and gold, which didn’t work, since inflation overflooded the market, and the crash took fifty years to recover.
Our governments have diluted the money supply so much that there’s no link between it and hard forms of currency such as silver or gold. Over the course of a couple of years, you can lose a large portion of your wealth if you leave it in a savings account. Visit this page for more info.
Since precious metals are a store of value and proof of work, their growth is smooth and linear in the long run. Of course, there are small bursts of volatility, but this is the only tried and true method of protection against inflation.
It’s a strategy that has worked for millions of people around the world to retain their purchasing power in the future. Sure, there are a lot of gold and silver critics that mention a few quick instances when gold was underperforming compared to the rest of the market.
But that’s a small timeframe in the grand scheme of things. The best thing about gold and other precious metals is that they have a fixed supply that cannot be manipulated. They’re the only asset class that will always and forever hold their value, as the economist Milton Friedman stated.
How does today’s money work?
The money supply of the world increases every year. This issue is not limited to the United States alone. Every country in the world increases the currency supply to keep up with the trends of inflation. However, the quantity of gold can’t increase to such a high amount since it requires work and mining to be taken out of the ground.
Printing money can be made with the click of a button, and there’s almost zero cost to doing it. This means that over time, the value of gold will grow a lot more in comparison to paper currencies. Since it’s more valuable, it’s going to appreciate in value.
This means that it’s one of the most stable investments that you can make. On the contrary, every single paper currency in the world has lost its value over time. There are absolutely no exceptions to this rule. Some might argue that collector’s bills are now worth a lot more, but they don’t fall into the category of money.
They don’t get used in the circulating supply, which means that the argument is faulted in the first place. The past decade has seen inflation rates that have reached double digits. For anyone who knows the basics of the economy, everything over 2 percent is a nightmare. Interest rates have plummeted, and the only choice now is either stocks or bonds.
Living now is like being on a roller coaster ride. Life takes you up and down, you’re scared all of the time, and you don’t know whether you’re going to make it to the end. A lot of people have been put in a tight spot due to the pandemic and layoffs, and there are valid reasons to be angry.
However, the final responsibility falls on the individual. We’re all responsible for our own future, and the way to avoid the coming recession is to take your money away from the traditional fiscal system. That can be done by either investing in gold or putting your wealth in cryptocurrencies, which are extremely volatile and risky.
How to build a better future? – Invest In Precious Metals
The groundwork for building a better future starts by laying a brick every single day if you Invest In Precious Metals. Investing a portion of your income in precious metals can be a lifesaver in times of crisis. If you look at investment books from the 1900s, you will notice that the same principles remain true.
Anyone can live below their means. You don’t need to make a massive change in your life to start investing. Instead, take your paycheck, and put 10 percent aside. Try to make it through the month with the money you have remaining. If you can do it, then that small amount can be invested into a few ounces of silver or gold for starters. If you are wondering about silver vs gold and which precious metal is the right investment for you, there are a lot of sources online that you can check.
Then, as time goes by, your stack of silver or gold will keep increasing. Precious metals are not taxable, which means that all of that money will be completely yours. The government can’t peek at your investments if they’re metal bars that you keep at home.
When a crisis occurs, sell at the moments when the price hits an all-time high. The way to do this is simple, and it goes back to the ten percent rule. Every time gold or silver reaches an all-time high, sell 10 percent of your holdings. That way, you can catch all of the peaks and have a distributed profit margin. If you wait until the moment is right, it will pass you by.
Will something change?
Governments are used to spending way more than they make. That has been going on for so long that it’s become acceptable. The only way in which that can be reversed is if the hold of money and power shifts. Banks can’t make money if no one is taking out loans.
When more people become financially responsible, the shift of wealth will create higher interest rates, which will promote saving. The economy will start expanding, and these kinds of programs are going to become well-received. There is a lot of macroeconomic and microeconomic theory at play in that case, but the predictions are positive that it can happen.