Buy Gold or Silver? Or Both?
There’s no doubt that our Fiat currency is in major trouble. Your cash is currently decreasing in value (purchasing power) by 8.5% per year. That means what you could buy for $100 last year, is costing you $108.50 this year. Cash is “trash” as they say.
Picture:(M2 Money supply aka money printing)
Picture: (Federal Reserve Balance Sheet). They ain’t stopping.
Picture Inflation rate (CPI). It hasn’t been this high since the 80s.
Most financial geniuses recommend 10% allocation to precious metals as a hedge against inflation. In times of inflation, gold and silver is where investors and firms and even government flood to protect wealth. Gold has recently breached all time highs and forming a nice “cup and handle” which is a bullish sign.
Silver is my main precious metal holding. If you look at the chart below, it hasn’t even reached it’s all time historical high! It currently sits at around $25, but it’s reached as high as $48. Think about it. Everything else on the planet has broken it’s all time high in price or cost except…Silver. Silver also (unlike gold), has huge implications in the electronic market. Do you know why they also want your electronics for trade in or recycle them for you? They don’t refurbish them. They want the tiny amount of silver inside them, among a few other trace metals as well.
While no one can predict the future, and every investment is risky in this day in age. I know silver will never go to zero. At a minimum, it will be a fantastic thing to pass down to my kids that should hold value better than cash. At maximum, it could 10X (with continued electronic/green new deal expansion). Then we sell a big chunk and rotate into real estate, farm land or whatever is the new sexy investment at the time. If you are interested in precious metals, and my suggestion would be that everyone should at a minimum get their feet wet, you have a couple of options.
#1 Buy physical coins at a local dealer (good luck) or online dealer (super expensive). I recommend having some on hand. If the world “ends”, silver will still buy you food :). You need to bury this in your backyard or have a excellent safe if you do this.
#2 Use a holding service. Basically you pay a small fee to allocate physical metals in a bank for you. You wire money to the account and then you purchase silver or gold and pick a bank to store it for you. It’s super super cheap, and a lot better price than buying physical right now. I use GoldMoney to store mine. I really like them because of the cost, history and security (I store mine in a Swiss Bank LOL, just like the rich do). You can also click a few buttons and have your holding converted to coins and have them sent to you. I plan on using this account to sell my silver back into cash when the price reaches my targets!
#3 Invest in precious metals stocks and miners. There is a much higher risk/reward in this option, but probably one of the better times in history to invest in them. Don’t ask me which ones. Do your own research!
Hope this was helpful. Do you own any gold or silver? Have questions? Email me at drgregbarnes@icloud.com
Have fun and make money!
Dr B
Disclaimer: I am not a financial advisor. Do your own research. This is all my opinion, and my opinion only.