Why Invest in Precious Metals: Benefits of Gold and Silver Investment
Gold has been valued as money and as a store of wealth for over 6000 years. In the last 100 years the government of the United States has moved away from using gold and silver as money changing to our current fiat paper monetary system-the dollar. Yet gold has remained the most effective store of wealth while the dollar continues to decline year after year. Until 1933, a $20 bill and a $20 gold coin were both money and interchangeable. At that time either would buy 400 loaves of bread or a brand-new man’s suit.
Today, a $20 bill, which is no longer backed by gold, will buy a few loaves of bread, and not even a man’s tie. But the same $20 gold coin, when you convert it to dollars, you still can buy more than 400 loaves of bread or a brand-new man’s suit and a very nice one at that!
Over the last decade Washington has continued to raise the debt to unmanageable levels and implement policies of overspending, causing the dollar to decline. Confidence in the United States to pay its debt comes into question. The Federal Reserve creates more dollars and lowers interest rates. Central Banks all over the world, hold more dollars than any other currency. They need to protect themselves so they buy gold.
According to the World Gold Council, Central Banks have purchased more gold from 2009 to 2013 than they did in the previous 46 years between 1962 and 2008. Just recently from 2022-2025 Central Banks have support their currency instead of the U.S. Dollar. They have purchased the most gold in history. Why have they done this? They must see on the near horizon serious inflation, and a devaluation of the U.S. Dollar. They need to own gold to protect their assets against an upcoming massive devaluation.
Prudent investors also see this in gold and silver. Owning precious metals gives investors certain investment benefits:
Certainty during uncertain times
Protection against the declining dollar
A hedge against inflation
Growth
Diversification
Privacy
Liquidity
Protection against government intrusion in their finances.
Protecting their retirements
The ability to pass down wealth privately to their heirs.
No other asset classes offer all of these investment benefits. Contact us to learn more about the benefits of owning precious metals in your portfolio.
