Tip 1/7: A silver or gold investment is for everyone – Individuals and investors globally are accumulating
Tips to increase your wealth by investing in Gold & Silver
Tip 1: Gold & Silver is for everyone. People globally are accumulating it. You too should invest in gold and silver, it’s more simple & more valuable than you think.
Gold and Silver have a long history. Already more than 5.000 years ago, gold was used as a form of money in the Egyptian culture. Since then, people have used gold in several ways, both in the monetary system and as a luxury product. Over the years, the usage of gold and silver has changed (follow the hyperlink for more info), depending on the cultural and economic context.
Fast forward to the end of the 20th century and beginning of the 21st century. In the Western world individuals are using gold & silver mainly in jewelry and in several industries (as a raw material in many consumer goods). In Eastern countries like India and China, gold & silver carry an important value for individuals: it’s an elementary wedding gift which supports young families to build a solid financial base.
Protect against the debt crisis & currency devaluation with a silver or gold investment
One major trend we are witnessing right now, is that an increasing amount of individuals and investors globally are owning gold & silver in order to protect themselves financially. At the same time, central banks around the world are accumulating gold on a large scale: they became net buyers of gold since 2008 (by coincidence the year where the financial crisis spun out of control).
What can you learn from this trend? The main theme here is that we are moving back to one of the fundamental usages of gold & silver: the precious metals protect your wealth and your purchasing power. With one ounce of gold for example, you will be able to buy the same amount of goods (or probably even more) in let’s say 5 years. The currency you are owning will probably lose a considerable part of its value, which means you will be able to buy less of the same product in 5 years.
Not convinced that your money is losing its value ? Then have a look at the charts on the site PricedInGold.com and feel free to draw your own conclusions.
Anno 2012, we are witnessing a severe crisis in government debt mainly in the United States, Europe, Japan. Central banks of those regions are responding to that problem with massive money printing. Yes indeed, you read it correctly: the problem is being solved by … doing more of the same that caused the problem. The most logic outcome of this will be big inflation in the years ahead, which results in a declining value of money. Right, people will lose purchasing power when holding money. Do you see the fundamental benefit and even necessity of holding gold & silver?
How to invest in gold and silver
It’s very simple to own precious metals like gold & silver, probably it’s simpler than you ever thought. No matter if you are an individual, family, investor, company or other type of organization. The number of ways to own gold & silver has grown dramatically over the past few years. Here is a short overview of recommended actions to consider if you want to invest in gold & silver:
- Nowadays there are trusted online programs which allow you to buy and store gold & silver bullion. That’s a huge advantage as you avoid the risk of possessing the precious metal at home. We like Hard Assets Alliance. For US and Canadian citizens, there is an attractive silver savings program SilverSaver.com. Another program we very much like is GlobalGold.ch, a Swiss buy & store service, with the huge benefit of operating 100% outside the banking system. Please find here background info on these vaulted gold programs.
- You can buy gold and silver bullion in the form of 100g bars, 250g bars, 500g or 1kg bars and store it in a safe vault.
- You can buy gold and silver coins like the South African Kruegerrand, the Australian Kangaroo, the Swiss Vreneli, the Canadian Maple Leaf or the American Eagle. Avoid “exotic” or rare coins as you will have difficulties to sell them later. The coins can be stored in a safe vault.
- It’s easier than ever to buy Exchange Traded Funds (ETF’s) on the stock markets, but make sure you only buy the ETF’s that are backed with physical gold and silver (eg Sprott Physical Trust or Central Fund of Canada as two well-known examples)
- You can buy shares of gold and silver mining companies, which is however the most risky way to profit from the current gold & silver uptrend and which requires thorough analysis (professional advice is required).
One tip we can give when buying gold or silver: avoid paper gold. You can think about ETF’s or similar financial instruments, that are very easy to buy but which are not backed by physical bullion. You are simply NOT buying gold or silver when doing so. Be careful, because if we’ll see a banking collapse, these kind of financial instruments run an extremely high risk.
Read all the articles in the seven-part series “7 tips to increase your wealth by investing in Gold & Silver“
Tip 1: Gold and Silver is for everyone
Beginners’ Guide – All Articles
INTRODUCTION TO THE WORLDS OF GOLD & SILVER
7 TIPS TO INCREASE YOUR WEALTH WITH GOLD & SILVER
IS NOW THE TIME TO BE BUYING GOLD & SILVER?
THE BEST GOLD & SILVER INFOGRAPHICS