With the uncertainty and turmoil in the markets, it is vital to increase your financial education and create wealth. You can see gold backed IRA companies for more information.
The prices of silver and gold continue to rise, regardless of any rhetoric from Congress, White House or the press. As I write, gold is at an all time high of $1293.5 while silver is at $21.20.
These asset prices are driven higher by the US dollar’s weakness. With an already alarming $9 trillion deficit, it is impossible to continue creating trillions or trillions of dollars. Treasury bills produce no returns, and the stock market is full uncertainty. What can one do with their hard-earned money?
The place to be is gold. The gold market is one of history’s most successful bull markets, with a sustained 10 year upward climb that has been continuous for 10 years. Gold investing outperforms virtually all other asset types and has done so continuously over the past decade.
Does this mean that silver and gold have reached their highest levels? Although no one knows for certain, most people are unaware of the current market trend, its strong fundamentals and the fact that panic has not yet hit, you will be the judge. Although you can start to see ads and commercials go up, the media doesn’t mention it as much. This could be because they don’t earn a commission for suggesting you buy silver or gold like stocks or mutual funds. Hmmm…)
CNBC is one of the most popular financial news networks. It has recently begun to address and even acknowledge gold’s undisputed performance in the last decade. Alan Greenspan also said that gold was the canary in a gold mine. This signaled that the dollar is in trouble and people needed to pay close attention. (Side note – Greenspan was originally the gold bug and had all the power to become the Fed chairman. Perhaps all those bubbles were put in place to cause the price of gold ?…).
So why invest in gold? It is the best insurance. Inflation/deflation is raging. However, even if the outcome is not favorable, gold will enable you to keep your wealth where you may otherwise lose it (or most).
Many people have taken up trading in precious metals to make more money with the rising prices of silver and gold over the last decade. It’s important to treat gold like a savings account. Put your money in gold and forget it. However, you should keep an eye on overall market because it is real money. It’s not like the US dollars which are simply currency. This belief only comes from the world’s faith in the US government’s ability manage its own affairs… but that’s another story!
Additionally, printing gold is not as easy as printing dollars. It is a rare commodity that has its own value and requires a lot more work and cost to bring it to market. It is also concerning that all of our foreign trading partners are abandoning the US dollar. In fact, Bangladesh purchased 10 million ounces gold from the International monetary Fund (to increase their holdings by 13 million). It’s quite remarkable that even a country like Bangladesh doesn’t trust the US dollar.