I’ve Turned To Gold [and Silver]

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I’ve just bought 1kg silver bars, gold krugerrands and gold sovereigns as investment bullion.

I’m conscious that many are promoting gold and silver as the next best thing for profit and also hedging bets against the collapse of paper money. I’m not affiliated to any bullion promoter, nor am I in the USA using dollars as a currency (thank God)!  This is ‘just in case’ insurance. Make your own mind up – is it hype or is there substance?

What is also important to note is that currently all currencies around the world are now fiat currencies, which is currency that is backed by nothing except the governments decree to back them up, and if we look at all fiat currencies in the past they have all eventually been debased and gone to ZERO!!

Not one has survived and the same fate awaits the US dollar and British pounds, plus all other currencies in the near future.

If all your wealth is in these currencies then you stand to lose everything, which is a scary thought, but unfortunately a very real one. All one needs to do is look at the examples of Zimbabwe, Yugoslavia, Weimar etc…and learn from this. This again is why investing in physical silver and gold is such a wise move, as they are a good store of wealth, and a hedge again hyper inflation.

Whereas gold could offer the ultimate insurance and protection against uncertain economic times, silver is a more speculative investment. Despite gold and silver both being commonly invested precious metals, silver is an entirely different investment which can realise substantial profits despite the initial VAT outlay here in the UK.

For centuries savvy investors have been aware of the importance of gold as part of a well balanced portfolio. In addition to offering wealth diversification, gold is a world renowned safe haven for investors offering the ultimate insurance and protection against turbulent economic times.

History illustrates gold is a timeless asset, not only proving to be a successful preserver of wealth, but growing gold prices and record demand has ensured it has outperformed all other forms of investment.

In times of economic uncertainty and instability buying gold makes more sense than anything else. With confidence in the banking system and worldwide economy at an all-time low, gold bullion could be the ultimate insurance and should act as an essential part of everybody’s investment portfolio. With the famous yellow metal in greater demand than ever, there are many reasons why people should buy gold.

Owning gold could be the ultimate way to preserve your wealth, and possibly make a healthy return in these uncertain times. It’s an age old question which people have been asking for centuries – where is my money really safe? And more and more people are now choosing the oldest answer: gold.

However, having got my little stash of gold in my safe, I will be buying a few more silver coins as and when I can.

As any wise investor knows, it is always good to look at the past to see how a potentil investment has performed. If we look at the track record for silver we see a very interesting picture unfolding which is destined to repeat itself.

In 1980 the silver price was $80 an oz, and you could buy an average single family home for under 1000 oz!!  The interesting thing however is that back then Gold was at the $800 mark, and today Gold is over $1500.

The balance betweem the two metals is skewed, and a correction is on the horizon, as silver it well under valued right now, even at $40 an oz, and a great bargain right now. I also believe having a mix of gold and silver in your portfolio is a good idea.

Hey – if I don’t need to use it the kids will get a nice surprise when they open the safe when I’m dead and buried..

10 Years – gold