With all the turmoil and uncertainty in the markets these days, its more important than ever to be increasing your financial education for creating wealth, and specifically with regards to Gold and Silver.
As you are no doubt aware, the prices of gold and silver are continuing to climb higher and higher regardless of the rhetoric coming from Congress, the White House or the press. As I type this, gold is at an all-time high of $1293.5 and silver as well at $21.20.
The biggest reason driving these asset prices higher is the weakness in the US dollar. We can’t continue to create trillions and trillions of dollars with an already staggering $9 trillion deficit. Treasury bills are producing no returns, the stock market is full of uncertainty including the housing market so what is someone to do with their hard earned income?
Gold could be just the place! With one of the greatest bull markets in history – a 10 year orderly sustained upward climb – gold investing continues to out perform virtually all other asset classes and has continually done so for the last 10 years.
Does that mean the gold and silver markets have reached their tops? No one knows for sure, but when you realize that most people are still unaware of this current market trend and its strong fundamentals, the fast that hysteria hasn’t hit yet, you be the judge. Yes, you are starting to see the commercials and ads go up but the media makes almost no mention of it (could that be due to the fact that they don’t receive a commission for recommending you buy gold or silver like they do stocks or mutual funds? Hmmm…)
One of the more well-known financial news networks CNBC has only recently begun to address or even acknowledge gold’s undeniable performance over the last decade. Alan Greenspan too has commented 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! (Side note: Greenspan was the original gold bug until all the power of being Trusted Dollar Buy Sell In Bangladesh the Fed chairman went to his head – maybe all those bubbles were created to get the price of gold to rise?…)
So why gold investing? Gold is the ultimate insurance. With the big inflation/deflation debate going on, regardless of the outcome – or even if we enter stagflation or especially if we enter a hyper-inflationary environment – gold will allow you to preserve your wealth where you might otherwise lose it (or most of it).
With the price of gold and silver rising over the past decade, some people have gotten involved to make money trading the precious metal. The important thing is to treat gold like savings. Park your money in gold and 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 ability to manage it’s own affairs… that’s a topic for another time!
In addition, you can’t hit a button and just print gold like you can dollars or any other currency not backed by a real tangible asset (like gold and silver). Gold has and always retain its value because it’s a rare commodity and there is a true cost and work involved to bring it to market (among many other reasons). Just as concerning, our foreign trading partners are all abandoning the dollar; even Bangladesh of all places just bought 10 million ounces of gold from the international monetary fund (to increase their holdings to 13 million – quite a large increase!). That’s really saying something when even a country like Bangladesh doesn’t trust the US dollar!