Should I buy gold and silver?

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People frequently ask me, ” Should I buy gold and silver ?” The honest answer is, in my opinion: Gold and silver need to be a part of every investor’s collection. Whether or not you believe gold is going to appreciate in the near future or not is a matter for speculators, but smart investors who desire a diversified portfolio may wish to own gold for its defensive qualities. Gold is a fantastic diversifier, and it offers protection against many adverse events in the marketplace, as we will discuss below.
Why must I Buy Gold?

Gold adds another level to a portfolio filled with stocks and bonds. Gold is a totally different asset class than stocks are. Even the ETF that trades like a stock behaves like gold since it is tied to the price of bullion. If compared to the stock market, gold has behaved in a roughly inverse fashion to the stock market since 1971 once the gold standard was abandoned. For traditional buy and hold investors, gold can provide returns in the event the stock market underperforms.

Gold Offers Protection of Value

Gold shields against inflation. Inflation happens when the money supply is increased, causing each unit of currency to be worth less. Then of course prices for goods and services will rise. This will cause the price of gold to increase as well, since it will take more of the dollars (which are each worth less due to inflation) to buy an ounce of gold. The stronger the inflation, the faster gold will rise. Many people keep some gold in their portfolio for just this reason.

Gold Investors are Prepared for Disasters

Considering that the economy of every nation (and the worldwide economy) is based on trust, it can collapse when that trust is eroded. Think about this: the paper that money is printed on is not worth anything. It is worth value because of the trust that people have in the government and the economic system. The moment a country defaults on its debt, the money becomes worthless-it is literally not worth the paper on which it is printed. Gold, however, will always be worth something. In this way, it is currency. many people like to have gold around as a protection against a bank failure, a war, civil unrest, or significant political climate changes or any other catastrophe that might cause a currency decline or failure. Indeed, history shows that when a nation is experiencing war, monetary or governmental uncertainty, or a financial crisis, the demand for gold rises sharply.

Knowing Where to Buy Gold

Acquiring gold has never been easier than it is today. Once you know what you want and how much you want, you can have the precious metals items shipped to your house in as little as a month. There are tons of places to buy gold and silver on the net but depending on what you are looking for, you may be limited to certain companies. I have been buying all my gold and silver through the American Gold Reserve. They are hooked up directly with the mint so they tend to be able to offer extremely competitive pricing. They also allow you to buy smaller quantities, in case you are on a budget so you can build you gold and silver collection a little at a time.

How certain are you that your dollar has value?

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With all the turmoil and uncertainty in the markets nowadays, its more important than ever to be increasing your financial training for creating wealth, and specifically in terms of precious metals. ie. gold and silver bullion

You may or may not be informed, but the prices of precious metals are continuing to go up higher and higher in spite of the rhetoric received from Congress, the White House or the press. While I type this article, gold is at an all-time high of over $1500 and silver as well at $25.

The primary reason driving these asset prices higher is definitely the weakness and value in the United States dollar. We can’t continue to produce trillions and trillions of dollars with an already staggering $9 trillion debt. Treasury bills are creating no returns, the stock market is loaded with skepticism including the housing market so what is a person to do with their hard earned income?

Rare metals could be precisely the place you want to store your cash! With one of the greatest bull markets of all time – a ten year orderly continual upward climb – gold investing continues to out perform virtually all other asset classes and has consistently done so for the last decade.

Does that mean the precious metals markets have reached their peak? No person knows for certain, but when you realize that so many people are still not aware of this current market trend and its strong fundamentals, the fast hysteria hasn’t hit yet, you be the judge. You may even see commercials and various advertisements telling you to buy gold. Or even worst, telling you to sell your gold. Thats when you should realize that gold is actually worth something.

One of the more well-known financial news networks, CNBC has only recently begun to address or simply acknowledge gold’s undeniable overall performance throughout the last decade. Alan Greenspan too has mentioned that gold is the canary in the gold mine, signaling a warning that the dollar or economy is in trouble and people need to be paying close attention! Greenspan himself has always had strong interest in gold. He was also the chairman of the Federal Reserve and had insight into this market that no others could.
Exactly why should you buy gold? Gold is the ultimate insurance. It is the best form of asset protection and is known as the “Kings Money”. With the big inflation/deflation debate taking place, no matter the outcome – or even if we enter stagflation or especially if we enter a hyper-inflationary environment – gold allows you to sustain your wealth where you might otherwise lose it (or most of it) if you keep it in the greenbacks. .

With the price of gold and silver rising during the last decade, some people have gotten involved to generate income by trading precious metals. The main thing is always to treat gold like savings. Park your hard earned dollars in gold and then forget about it – keeping an eye on the overall market of course because it’s real money – not like the US dollar which is simply currency, backed only by the faith of the world in the US government’s capacity to manage it’s own matters… that’s a topic for the next article!

Furthermore, you can’t hit a button and just print gold like you can dollars or any other currency not insured by a real physical asset (like gold and silver). Gold has and constantly retains its value because it’s a rare commodity and there is a genuine cost and work required to bring it to market (among all kinds of other reasons). Just as concerning, our foreign trading companions are all abandoning the dollar; even Bangladesh of all places just bought 10 million ounces of gold from the international monetary fund (to raise their holdings to 13 million – quite a large increase!). That’s really saying something when even a region like Bangladesh doesn’t trust the US greenback!

One more reason to buy gold and silver: tax benefits. The maximum charge for income tax on gold revenue gis 28%; compare that to 35% for regular earned income (always check with a qualified income tax professional for your particular situation).

So here’s what you need to do: Buy as much gold and silver as you can, at the right price. -

So when is it time to sell? There is no exact time to sell but the signs will be there. Uneducated people always come in to the market later than they should – that’s the time to get out! As soon as your grocery-bagger begins telling you about buying gold and silver, you know it’s time to get out! Study what the masses are doing and do the eopposite!

In order to preserve your wealth, you must save gold and silver – not money (or more particularly not currency, ie, US Dollars). Inflation and other measures coming may drastically drain or wipe out any accumulated wealth or assets you might have if kept in US dollars. Precious metals run on a 20 year cycle generally (this cycle started close to 2000) and goes against the equities.

However, these are just predictions, no one knows for sure. Gold and Silver is going up, could go up… but no one knows for sure. So be careful with using any leverage in this market (not recommended at all) and don’t bet the house so-to-speak.

Continue your financial educational journey and read more about buying gold and silver. Once you have gold in your hand, you just want more!

The price for an ounce of gold is almost to $1500, again

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If you have been following the prices of gold and silver lately, you may be a little shocked to find out that the price of gold per ounce has dropped considerably this past week.  Just two weeks ago we were at $1700 and today we are almost down to $1500 for an ounce of gold.

This means BUY BUY BUY!!!

I can’t tell you how exciting this is to see the prices for gold drop.  Anybody who was looking at buying gold will probably never see a better opportunity again.  Of course I can’t predict the future but I am also pretty sure I know the reasons for the drop, and it has to do with several European countries finding confidence in our U.S. dollar, only to soon find out that our currency is just another illusion, like their currency.  And will inevitably decline in value, forcing the dollar to shoot through the roof.

If you have not been paying attention to gold and silver prices, make sure to check out the gold price chart here

You can also see past gold price history on the site.

Make sure to keep checking out because I anticipate their to be a lot of movement in the markets.  Whether it goes any lower or starts to skyrocket is beyond me.

Leave a comment below and let me know what you think is happening. Do you think gold and silver prices are going to continue dropping or are we about to see an enormous jump in price?  I am curious to know your thoughts.