History of Silver and Gold
Gold and silver has been a form of currency and in high demand for thousands of years, long before paper money or government-issued fiat currency. Ancient Egyptians revered it, and in the biblical story Judas is even said to have betrayed Jesus for thirty pieces of silver because he coveted the metal so much. The value of gold has never been zero, and both historically and in our contemporary times there has been no safer or dependable investment.
A Diverse Portfolio
The old saying “don’t put all your eggs in one basket” is particularly true when it comes to your investments and portfolio. Investing everything in one stock, for example, can be disastrous and lead you tolose everything if that company crashes. Similarly, investing in a single industry or type of industry makes you far more vulnerable to negative impacts in times of economic trouble. If the stock market crashes or real estate prices plummet, many people will be worth less tomorrow than today. There are many new ways to increase your wealth with gold or silver, as they are physical assets (unlike stocks and bonds), and have concrete use-value in a variety of industries. The price of gold and silver tends to go up as inflation rises and as stocks lower in value, it‘s a great inflation hedge.
Great Time For Silver
It is the perfect time to get on the silver bandwagon. The price of silver is significantly lower than that of gold, which allows first-time buyers easier entry to the market, with the ability to purchase larger amounts. It is anticipated that the value of silver will rise exponentially in the future as it is presently undervalued. Silver is not only seen as currency and jewellery, but also as a great conductor of electricity. It poses other beneficial properties that makes it more and more desired in the industrial and scientific communities according to Geology.com. This could have silver reach the price of gold one day and those who own considerable amounts of it now could see the value increase a hundredfold. This would be an unprecedented occurrence and result in massive profits for savvy investors.
The Gold Standard, Inflation, and Unstable Governments
Government paper money in the US was once backed by a gold reserve. Each bill represented an amount of gold that theoretically it could be exchanged for. The price increase in gold and government strategy has abandoned this standard and paper money or government currency is unstable as ever. With no gold backing currency, inflation, government/financial collapse, or other catastrophe can leave citizens very vulnerable. $100 has a small fraction of the buying power it did 50 years ago. In contrast gold has increased from $35 an ounce to over $1000 an ounce over past 50 years according the CBC. This astronomical rise is in part a response to concerns that currencies issued by governments are prone to fluctuation. Especially in times of financial or political uncertainty, investors have viewed gold and silver as reliable investments guaranteed not to lose value—even in the event of major geopolitical changes. After all, gold has had value for thousands of years. Why shouldn’t it continue to?