Ten Reasons to Buy Gold and Silver

[Y_Participant 4591]

Ten Reasons to Buy Gold and Silver

In all of human history no paper currency has survived. Paper currency is the product of a system founded on theft. When paper ultimately loses value from loss of confidence in the system the world periodically returns to real money – Gold and Silver.

At present we are running out of both as major players are stocking up in anticipation of the long-overdue devaluation of the US dollar – and every other fiat currency in the world today. This will happen whatever the Keynesians do.

Those that criticise gold and silver because they doesn’t produce income misunderstand their roles in a portfolio. It isn’t gold or silver’s job to produce income. Their function is as money and a store of value. Protection against theft.

It does not take much to prepare for that day – 10% to 15% of your wealth in gold and silver will see you through. A few gold and silver coins stored in a safe place at home no one knows about – that’s it.

You must buy physical gold and silver. Not paper forms like ETFs or futures contracts, but gold and silver bullion, like coins and bars. Do that and the following advantages are yours.

(I refer to gold but this applies almost equally to silver)

#1: Gold Is Money

Gold is not used as a currency today, but its role as money makes it superior to any currency. In fact, gold has been money longer than any currency in history. Gold has been a store of value for at least 5,000 years in India, while one of the longest currencies in history, the British Pound, is about 1,200 years old.

This is also why gold shouldn’t be viewed as just another commodity; gold don’t get “used up” like oil or corn, since almost all the gold ever dug up is still in existence.

One of the crucial promises of money is that it serve as a long-term store of value. Gold fulfills this promise better than any fiat currency. Look how much purchasing power all major government currencies have lost compared to gold.

This shows that since 1900, physical gold has been the best long-term store of value. There were periods where in the short-term currencies grew in value more than gold, but over the long term this chart demonstrates exactly why the rich have always held it.

Gold’s price fluctuates, but its value is timeless. Consider how gold will preserve your purchasing power over the next, say, 5 years compared to your currency. All paper currencies, by their very nature, lose value over time. The dollars you save in your bank or brokerage account will continue to seep purchasing power.

Investment Implication: Physical gold is one of the most ideal forms for long-term wealth preservation. It is also ideal for your heirs since it will outlast any currency they may use in the future.

#2: Gold Is a Tangible Asset

If you buy physical gold, you can hold it in your hand, something you can’t do with most any other investment. Gold cannot be duplicated – and this is why it is hated by the banksters and politicians. Gold can’t be destroyed by fire, water, or even time. And unlike other commodities, gold doesn’t need feeding, fertilizer, or maintenance.

There’s another advantage to gold being a tangible asset: it can’t be hacked or erased. Unlike brokerage accounts, bank accounts, and payment services like credit cards, gold bullion is out of reach from hackers and identity thieves.

In today’s world, it’s probably a good idea to have some of your wealth outside of digital form. If the internet isn’t available or your online world comes crashing down, those gold Eagles you possess aren’t affected. In fact, in that scenario, they could be a lifesaver.

Investment Implication: Physical gold is not subject to the risks that come with paper assets. It can’t be hacked or erased.

#3: Gold Has No Counterparty Risk

If you hold gold bullion, no paper contract is needed to make it whole. No middleman or other party is necessary to fulfill a contractual obligation. That’s because gold is the only financial asset that is not simultaneously some other entity’s liability.

This is important because gold will be the last man standing when bubbles pop or a crisis hits. That’s a powerful tool to have in your portfolio when things start to go wrong in your country or economy.

It also means gold won’t go to zero. It’s never happened in its 3,000+ year history. That’s a powerful feature, especially if you asked former shareholders of companies like Bear Stearns, Enron, or Lehman Brothers.

Gold will always have value. You can always sell it if you need currency.

Investment Implication: Physical gold cannot go bankrupt or broke. Gold bullion will never default on promises or obligations.

#4: Gold Can Be Private and Confidential

How many assets can you say that about in today’s world? If you want a little privacy, physical gold is one of the few assets that can provide it.

Note that you must still report any gain on your income taxes. Here are the basic guidelines on reporting and paying taxes on gold.

Gold is one of very few investments that can be anonymous. If you choose, no one has to know you own it. Virtually any other investment you may make does not have this benefit.

Investment Implication: If you want a private or confidential form of wealth, gold is one of few assets that can offer this.

#5: Gold Is Liquid and Portable

Gold is also ideal because it is easy to sell, and can be carried in your pocket anywhere you go.

Gold is highly liquid. Virtually any bullion dealer in the world will recognize a gold Eagle and buy it from you. You can sell it to your local coin shop, a private party, or an online dealer. It can always be sold for cash or traded for goods.

The process is frequently quicker than selling a stock in your brokerage account—it usually takes 3 business days for settlement before cash can be transferred to your bank account or a check mailed. And other collectibles, like artwork, could take longer to sell, have a small customer base, and would likely entail a big commission.

This liquidity means you can take gold with you literally anywhere in the world. And if you’re uncomfortable crossing a border with it, you can buy gold you can transport.

Investment Implication: Gold is easily convertible to cash, and can go with you anywhere. (For travel with gold in and out of countries there is jewellery and other ornaments)

#6: Gold Is Easy to Store, and Comes With Low Maintenance and Carrying Costs

One question that comes up with physical gold is the cost of storing it. But while professional storage does come with a fee, vaulting charges are typically low. And compare a small storage bill to the costs and headaches of, say, real estate. Just lock your gold away until you need it—no late renter payments, calls to fix a broken toilet, or complicated tax issues.

Of course you can always hide or secure gold in your home, too. Here’s some ideas from GoldSilver’s silver storage article, which also apply to gold.

Keep in mind that gold is value dense. That means it packs a lot of value in a small space. You can hold $50,000 of gold in the palm of your hand—or store it in a small space in your home. And at any price above $1,200/ounce, you can store more value in a safe deposit box with gold than stacks of dollar bills.

Investment Implication: Gold storage is low maintenance, low-cost, and requires little storage space.

#7 Gold Requires No Specialized Knowledge

Can you spot a real diamond? Can you look at two paintings and tell which is the fake Van Gogh? What stamps, baseball cards, and antique furniture pieces are more valuable than others?

Gold bullion requires none of this. No special skills, training, or equipment needed.

You can buy rare gold coins, but this is the world of the collector, which most investors should avoid. You’re not speculating on a numismatic coin someday fetching a higher premium than what you paid; you’re investing in gold bullion to protect you against crisis and shield you from a loss in purchasing power. No rare coins needed.

Buying gold bullion is relatively straightforward. If you’re not sure what to buy, start with this easy guide.

Investment Implication: No special skills or expertise is needed to buy physical gold.

#8: Gold Can Protect Against Nefarious Politicians

You don’t have to be a conspiracy nut to understand that governments sometimes overreach. They can freeze bank accounts, garnish wages, and even confiscate funds. Talk to people who were victims of these actions and they’ll tell you they had no warning.

In an economic or financial crisis, these actions increase. The government desperately needs revenue, and they tend to be more aggressive in their enforcement. Or they simply pass news laws and regulations to suit their needs at the time. It’s happened with virtually every government in history, and it’ll happen again, especially in a crisis situation.

There are precious few ways to protect against such actions. But one of those ways is by holding physical gold offshore.

Diversifying internationally sounds complicated, but storing some physical gold outside your home jurisdiction today is not difficult. It’s as easy as opening a bank or brokerage account. And by doing so, you buy yourself some time in a worst case scenario.

Even if you never have to use this “plan B” money, it’s like an insurance policy against aggressive or unfair political actions. You could even someday use the proceeds of any sales to invest in other options that may not be available in your home country.

It’s a good idea to keep some of your wealth outside the banking system, and also outside your political jurisdiction. Professional vault storage offers you a viable and straightforward way to do just that. It’s not a panacea, but it can put a layer between you and heavy-handed bureaucratic actions. The catch is, these preparations must be put in place before anything happens.

Investment Implication: International gold storage is simple to implement and can provide financial flexibility and investment options outside your home country.

#9: Gold Hedges Your Stock Market Investments

Want to hedge the stocks you own? Do you sometimes worry the stock market might crash?

Gold may have an answer for you. This chart shows gold’s correlation to other common asset classes since 1975. The zero line means gold does the opposite of that investment half of the time. If it’s below zero gold moves in the opposite direction of that investment more often than with it (and vice versa if above zero).

This inverse correlation holds true even when the stock market has crashed. Check out how gold performed in the 8 biggest stock market declines over the past 4 decades.

Dates of Slump —————S&P 500–Gold

Sep 21, 1976 – Mar 06, 1978 -19.4%….53.8%
Nov 28, 1980 – Aug 12, 1982 -27.1%…-46.0%
Aug 25, 1987 – Dec 04, 1987 -33.5%….06.2%
Jul 16, 1990 – Oct 11, 1990….. -19.9%….06.8%
Jul 17, 1998 – Aug 31, 1998….. -19.3%….05.0%
Mar 27, 2000 – Oct 09, 2002 -49.0%….12.4%
Oct 09, 2007 – Mar 09, 2009 -56.8%….25.5%
May 10, 2011 – Oct 03, 2011….. -19.0%….09.4%

You can see that in most cases, gold rose when the S&P crashed (gold’s only significant selloff, -46% in the early 1980s, occurred just after its biggest bull market in modern history.)

It’s true the gold price initially fell in the shock of the 2008 financial crisis. But while the S&P continued to decline, gold sharply rebounded and ended the year up 5.5%. Over the total 18-month stock market selloff, gold rose over 25%. Gold doesn’t automatically rise with every downtick in the stock market, but history shows it is sought as a safe haven in big stock market declines.

This insight has a practical application:

Investment Implication: If you want an asset that will rise when most financial assets fall, gold is likely to do that more often than not. The more common stocks you own, the more gold you need.

#10: Gold Will Protect Your Portfolio in Times of Crisis

One of gold’s strongest advantages is that it can protect your investments—even your standard of living—during periods of economic, monetary, or geopolitical crisis. And depending on the nature of the crisis, gold can move from a defensive tool to an offensive profit machine.

Check out how the gold price has responded to various crises.

When a crisis strikes and drives fear higher—whether it’s from investors worried about the stock market or a full-blown event affecting the livelihood of all citizens—gold is a natural safe haven. Fear is what drives people in a crisis, so the greater the worry the more gold is sought and the higher its price goes.

A lot could be written about the various crises that are possible today, but the point is that the level of risk in our economic, fiscal, and monetary systems is elevated. There are so many risks, in fact, that the gold price is likely to make new all-time highs in response to some of these crises playing out.

Here’s the kind of potential gold has… the second half of the 1970s was a troubling period—it included interest rates over 15%, high unemployment, a 14% inflation rate, an energy crisis including an oil embargo, the Soviet invasion of Afghanistan, cold war tensions, and recessions at both the beginning and end of that period. How did gold respond to all this? From its low in August 1976 to its January 1980 high, gold rose a whopping 721%!

Gold is usually about defense, but in addition to its staying power, gold offers massive profit potential given the precarious nature of our economic, financial, and monetary systems today. The core reason for this is due to the growing supply of fiat currencies and mounting debts around the world. This tells us that the fallout could be much worse than usual—and the greater the fallout, the higher gold will go.

Investment Implication: In a world of elevated risks on multiple fronts, gold offers lower risk, greater safety, and bigger upside than any other investment.

Gold and silver are affected by several cross currents at any given time from all over the world. One does not look at short – term gains. Gold and Silver are like fire insurance. Their function is to protect your long-term wealth regardless of the way markets and governments behave.

Citation
https://goldsilver.com/blog/why-own-gold-top-10-reasons/

[narrow road travelerParticipant 1680]

Gold and silver are good at preserving value.

Mans innovation makes value real. Discover your innovation and you’ll never experience poverty.

The supreme art of war is to subdue the enemy without fighting. --Sun Tsu

[Anonymous 42]

That’s fine and dandy if you have any money left over after the latest economic debacle, I had to cash out my silver and some gold just to continue to float with the tax Parana eating through my ribs, I see infaltion is taking off like an Obama rocket. (the only rocket program he knew)

My property in VT is still on the market @ 60% below the assessors fork and knife assessment.

Once the tax demands and the capital gains EATS all that investment I’m going to make a video explaining how we were raped by the assessors to pay for all the liberal programs for them to sit on their asses and collect, collect, collect. We’ll hand them a hand full of the ashes they created and publish the video and the tax rape details on U-Tube, It will be a monument to tax oppression, I’ll even send the president a copy so he can see the real damages while he stares at his gold ceilings.

This Republic is Deceased…

narrow road traveler wrote:

Mans innovation makes value real. Discover your innovation and you’ll never experience poverty.

No so after the socialist and communist revolution we’ve been forced through.

My brother and I developed the best damn chemical compound fertilizer money can buy, offering at a much lower price than the mass produced garbage and only one sale (C-Pig) mostly because we’re chasing the economic fires that has set our ship on fire.

This Republic is Deceased, only politicians can survive, for the meantime while the rest of us are on the economic slide.

I smell violent revolt in the air, I’ll be the first to take up arms and start FIRING BACK! MOTHERF~~~ERS!

[Anonymous 11]

Make sure you do not buy any Tungsten fakes so buy from reputable sources. My coin dealer has been seeing them.

[Freeman_KParticipant 3524]

Great read.

For thousands of years worker monthly salary was 1 oz of silver and annual salary was 1 oz of gold. Then during last century in the midst of exponential growth humans came up with abolishment of gold standard and with printing of fiat money and we have now +200 trillion usd global debt at 325% of world GDP. LOL. No need to be Einstein to guess that once the world hits the wall we will return to the core store of value – gold and silver.

The choices we make, not the chances we take, determine our destiny

[Anonymous 0]

Another epic article, Yumbo
I sometimes marvel at how the very persons that are insurance poor just will NOT see the value in holding gold and silver.

[Anonymous 42]

Anonymous wrote:

Make sure you do not buy any Tungsten fakes so buy from reputable sources. My coin dealer has been seeing them.

I got F~~~ED for two of those, and the same dealer wouldn’t take them back! F~~~ING SLEAZEBALL SHOULD BE SHOT!

[narrow road travelerParticipant 1680]

Anonymous wrote:

That’s fine and dandy if you have any money left over after the latest economic debacle, I had to cash out my silver and some gold just to continue to float with the tax Parana eating through my ribs, I see infaltion is taking off like an Obama rocket. (the only rocket program he knew)

My property in VT is still on the market @ 60% below the assessors fork and knife assessment.

Once the tax demands and the capital gains EATS all that investment I’m going to make a video explaining how we were raped by the assessors to pay for all the liberal programs for them to sit on their asses and collect, collect, collect. We’ll hand them a hand full of the ashes they created and publish the video and the tax rape details on U-Tube, It will be a monument to tax oppression, I’ll even send the president a copy so he can see the real damages while he stares at his gold ceilings.

This Republic is Deceased…

I don’t know you from Adam brother. I know you’re sharp. You can make a lot happen because you have no encumbrances.

No one can steal from you, because they don’t know what you value. Hold your value tight. You and God will be the only ones to reap the harvest. God Bless

The supreme art of war is to subdue the enemy without fighting. --Sun Tsu

[Anonymous 42]

narrow road traveler wrote:

MG-ɹǝʍoʇ wrote:

That’s fine and dandy if you have any money left over after the latest economic debacle, I had to cash out my silver and some gold just to continue to float with the tax Parana eating through my ribs, I see infaltion is taking off like an Obama rocket. (the only rocket program he knew)

My property in VT is still on the market @ 60% below the assessors fork and knife assessment.

Once the tax demands and the capital gains EATS all that investment I’m going to make a video explaining how we were raped by the assessors to pay for all the liberal programs for them to sit on their asses and collect, collect, collect. We’ll hand them a hand full of the ashes they created and publish the video and the tax rape details on U-Tube, It will be a monument to tax oppression, I’ll even send the president a copy so he can see the real damages while he stares at his gold ceilings.

This Republic is Deceased…

I don’t know you from Adam brother. I know you’re sharp. You can make a lot happen because you have no encumbrances.

No one can steal from you, because they don’t know what you value. Hold your value tight. You and God will be the only ones to reap the harvest. God Bless

Thank-you McDuncie, I needed that! Sometimes only a word or two from a brother sets your mind straight again!

[Anonymous 11]

Anonymous wrote:

I got F~~~ED for two of those,

Damn that sucks, man, and sorry about that. There is a handheld Xray device that can spot the fakes. My guy said he paid about $900 for it. Every coin that enters that shop gets scanned. You used to not have to worry about Tungsten.

The atomic weights are pretty close, but the densities are literally right on top of each other. It’s next to impossible to use calipers and a balance to differentiate them.

[Y_Participant 4591]

Anonymous wrote:

I got F~~~ED for two of those, and the same dealer wouldn’t take them back! F~~~ING SLEAZEBALL SHOULD BE SHOT!

Bro Tower

Really sorry to hear that man. That really sucks. Stay strong man. We need you on this site. Always look up what MG_T is upto when I get on!!

As for those bastards they can fry in hell. Hope you reported them.

Always go to the big reputable dealers – they may cost slightly more but you will get the good stuff. Make sure any store has buyback – if the are the major retailers they will do it. Silver is also good and a steal at the current spot price of $17/oz.

Stay away from small time shops. You can also order mail – Mile Maloney at GoldSilver is ok.

Hope you are ok bro.

Anonymous wrote:

Damn that sucks, man, and sorry about that. There is a handheld Xray device that can spot the fakes. My guy said he paid about $900 for it. Every coin that enters that shop gets scanned. You used to not have to worry about Tungsten.

The gold / silver coins make a very distinctive ping when struck with a hammer or another coin. These vids may help

If you buy from a reputable dealer you can ask for a test.

[Y_Participant 4591]

Anonymous wrote:

Another epic article, Yumbo
I sometimes marvel at how the very persons that are insurance poor just will NOT see the value in holding gold and silver.

Thank you Bro M52. Hope you are well.

We have all been conditioned since young by the politicians and banksters to trust in King Dollar. I hope the good men here will take the necessary precautions.

I am researching my next article on Trump and what I found about the world economy and the reserve currency upset me a lot more than usual. Things are going to happen very fast and I wanted to get this message out while there is still time to grab gold and silver. Just a few coins may save someone’s life.

We need to prep just in case. That’s essential for at least a couple months. No one knows what can actually happen.

Peace.

[Y_Participant 4591]

Freeman_K wrote:

For thousands of years worker monthly salary was 1 oz of silver and annual salary was 1 oz of gold. Then during last century in the midst of exponential growth humans came up with abolishment of gold standard and with printing of fiat money and we have now +200 trillion usd global debt at 325% of world GDP. LOL. No need to be Einstein to guess that once the world hits the wall we will return to the core store of value – gold and silver

Thank you. Paper money is specifically designed for one purpose only – to steal your wealth through printing as much as is possible. What should be yours is now taken by the banks at an increasing rate. The endgame is coming soon. Watch for it.

[Freeman_KParticipant 3524]

Y_ wrote:

Paper money is specifically designed for one purpose only – to steal your wealth through printing as much as is possible. What should be yours is now taken by the banks at an increasing rate. The endgame is coming soon. Watch for it.

What surprised me the most is how fast hyperinflation in Weimar republic came, it took just 2-3 years to go from stable currency to burning useless fiat cash in the winter to keep warm.

My internal defcon meter went berserk when Trump said USA cannot default because they can print money, while having 20 trillion government debt. Could still take a lot of time but i would not be surprised to see a massive shft event in my lifetyme.

The choices we make, not the chances we take, determine our destiny

[narrow road travelerParticipant 1680]

Anonymous wrote:

McDuncie wrote:

MG-ɹǝʍoʇ wrote:

That’s fine and dandy if you have any money left over after the latest economic debacle, I had to cash out my silver and some gold just to continue to float with the tax Parana eating through my ribs, I see infaltion is taking off like an Obama rocket. (the only rocket program he knew)

My property in VT is still on the market @ 60% below the assessors fork and knife assessment.

Once the tax demands and the capital gains EATS all that investment I’m going to make a video explaining how we were raped by the assessors to pay for all the liberal programs for them to sit on their asses and collect, collect, collect. We’ll hand them a hand full of the ashes they created and publish the video and the tax rape details on U-Tube, It will be a monument to tax oppression, I’ll even send the president a copy so he can see the real damages while he stares at his gold ceilings.

This Republic is Deceased…

I don’t know you from Adam brother. I know you’re sharp. You can make a lot happen because you have no encumbrances.

No one can steal from you, because they don’t know what you value. Hold your value tight. You and God will be the only ones to reap the harvest. God Bless

Thank-you McDuncie, I needed that! Sometimes only a word or two from a brother sets your mind straight again!

Craigslist gigs are a viable way to make extra money. I checked the Boston metro area a lot of services are advertised.

Personally if I have to go grey market. My services will be acquired on craigslist or it’s clone.

As long as I can convert skills, to value, to currency, back to value. I’ll do pretty well.

You’ve got a good handle on living outside the box. That’s a boon no matter what human society throws at you.

The supreme art of war is to subdue the enemy without fighting. --Sun Tsu

[Y_Participant 4591]

Freeman_K wrote:

What surprised me the most is how fast hyperinflation in Weimar republic came, it took just 2-3 years to go from stable currency to burning useless fiat cash in the winter to keep warm.

You know your money! The problem was that the inflation in the Weimar republic was repressed from the start of when the money was actually printed due to the hoarding tactics of the people that reduced currency velocity and actually caused a mild deflation at the beginning – just like now!!

When the people start spending all that hoarded up money and the banks start lending out the 4 trillion in QE assets they are holding now – then you will see inflation possibly go berserk under Trump.

Mike Maloney’s Hidden Secrets of Money explains what happened to the Weimar Republic

[RoyDalParticipant]

There are other items, besides precious metals, that hold their value no matter what the economy is doing in its ups and downs.

* Entertainment.
* Firearms and ammunition.
* Shelter. Better yet, shelter with electricity and water.
* Clothing.
* Food. (Latch on to some of Stealthy’s recipes.)
* Water.
* Air.

You will observe these are in reverse order.

Society asks MGTOWs: Why are you not making more tax-slaves?

[Faust For ScienceParticipant 22521]

Anonymous wrote:

This Republic is Deceased…

I agree. The Republic has been dead for a while, but no one realized it.

Anonymous wrote:

No so after the socialist and communist revolution we’ve been forced through.

The interesting part is right now we are seeing two very different communist revolutions conflict with each other in the U.S.

On one side we have the Stalinist progressives that want a complete police state and enslave all those they hate, which are nationalists.

On the other side we have the nationalist workers party that elected Donald Trump as president. These individuals want nationalism and government to work for them. They want to have the whole pie of government funding and printing of money through national work projects. They want the abolishment of foreign aid and cutting government funding to the progressives whom hate them so much.

You have all the gold and silver you want. If you do not have the guns, ammo, and support to back up you wealth, when the collapse happened either the raiding hordes or the government para-military is going to role right over you. If that happens, pray the hordes do it, they will just kill you. The para-military forces will imprison you in a gulag to be worked to death as a slave for the rest of your very painful life.

[RoyDalParticipant]

Faust For Science wrote:

On one side we have the Stalinist progressives that want a complete police state and enslave all those they hate, which are nationalists.

My observation, based on WWII history, is that the Nazi form of socialism made more people (people like me) materially comfortable than did the Communist form.

If that’s my Hobson’s choice — really I’d like a few more alternatives, most of them with “capitalism” in the description — then I’ll pick Nazi oppressive totalitarian bastards over communist oppressive totalitarian bastards any and every day.

Society asks MGTOWs: Why are you not making more tax-slaves?

[Y_Participant 4591]

RoyDal wrote:

There are other items, besides precious metals, that hold their value no matter what the economy is doing in its ups and downs.

* Entertainment.
* Firearms and ammunition.
* Shelter. Better yet, shelter with electricity and water.
* Clothing.
* Food. (Latch on to some of Stealthy’s recipes.)
* Water.
* Air.

You will observe these are in reverse order.

Thanks Roy – absolutely prep first and foremost.

[Author]

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