“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.”
– Norm Franz
Is Gold and Silver a Good Investment?
As with any investing advice, I cannot tell you what you should or should not buy. Investing can be filled with people trying to influence others for personal gain. These influencers want everyone to buy X so that the prices go up and they can make money. They will tell you how perfect the investment is and that you’re nuts for not buying it. These influencers are out for personal gain. I am going to try my best to be neutral in this article. My desire is to provide you with the pros and cons of precious metal investing so that you can answer the question “Is gold and silver a good investment” for yourself.
I do want to start by disclosing that I am a believer that precious metals are worthy to invest in. However, I have no agenda to influence your decision about the topic. I believe that investing should be a personal activity where you develop your own style based on your own personality, interests, desires, and goals. Please look at the information you receive here and question if gold and silver fit those 4 attributes. If the answer is yes, then gold and silver is probably a good investment for you. If investing in gold and silver does not fit your personality, interests, desires, and goals, then it’s not for you.
Gold and Silver: the Beauty of It
Precious metal investing and precious metal collecting has a very easy to understand benefit. It’s the first thing that we all witness when we look at it. Precious metals are beautiful and when you touch them, they feel special. We all know this to be true. It’s undeniable. We use gold and silver for jewelry. Why? Because it’s pretty. Also, Child also instinctively love the look of gold and silver. They make gold and silver coins for children to play with. Even adults realize the value of gold and silver. Why do you think a lot of our coins minted by the government are gold and silver in color?
I will be the first to admit that this is not a good reason to invest in precious metals. However, this is a valid emotional argument that we can all agree on, even if we disagree on everything else. Also, the beauty of precious metals is enough for people to begin collecting them even if they don’t collect them for investment purposes. I think we can all agree that gold and silver have a certain beauty to them.
“As good as gold.”
— Charles Dickens
Precious Metals are Global and Represents Freedom
The price of gold and silver are not reliant on any government, country, region, cost of living, company, or any other location based thing. Gold and silver are global. This means that you can go anywhere in the world and the price will be the same. This means that gold and silver are outside of government control. This means that no matter what your government does financially, your gold will be unaffected.
Many gold and silver investors choose to invest in gold and silver because they want protection against their fiat currency. Fiat currency is basically any paper money that is not backed by gold. Surprise! Paper money is not back by gold anymore. All fiat currencies will eventually go to 0. So having gold and silver is a way to save your money if your fiat currency collapses. This may not happen in your lifetime. It may not happen in your kid’s lifetime. No one knows when, but all fiat currencies ever created have ended badly. This leads us to our next benefit.
“Gold is valuable everywhere in the world and is not dependent on political systems, any specific government policy, or set of policies.”
– Roy Sebag
Gold and silver for Estate Planning
Gold and silver is a tool used by some to help with estate planning. Items such as gold and silver can pass from generation to generation without taxation and probate fees much easier than cash. So anyone that desires to create generational wealth for their family may see value in collecting gold and silver.
Gold and Silver is probably not the only estate planning tool that you will want to use, however it can definitely play a role. As with everything in investing, it’s a good idea to use several different tools to help achieve your goals in the best way. In this case, gold and silver is a valuable estate planning tool.
Easy and Slow Way to Invest
Gold and Silver investing is not difficult to learn. You can understand the basics of it fairly quickly, and the basics is all you really need to know. The precious metals financial market is a phenomenal place for people to begin investing. You can use the information that you learn and apply it to other financial markets, so it’s a wonderful way to get your feet wet investing.
Gold and silver investing is not about speed. You will not be rushed through anything. It’s a very slow way to invest. This is perfect for new investors, investors that don’t like feeling rushed, or people that live busy lives. For a busy professional, investing in gold and silver is great because they can easily invest around their work schedules. For retired folks that don’t want to add additional stress to their lives, gold and silver is a slow investment that they will love. For adrenaline seekers that want to feel cool by being a day trader, gold and silver is probably too simple and slow for you.
The Profits are excellent
Any financial market is going to be vulnerable to the ups and downs that come with investing. That’s just how things work in this world. There is not a single straight line in nature. A straight line is a concept created by man. As such, the financial markets follow the rules of nature and cannot have a straight line upward. However, if we analyze the averages, we do see that on average, gold and silver continue to go up in price year after year.
Over the last 50 years, Silver has averaged a 21% increase per year. This is incredible. Most investing experts say that the average investor increases in the ranges of 7 to 12% year after year. So if gold and silver continue to perform like they have been over the last 50 years, you’ll be making double the returns of the typical investor. With these returns combined with passing it on to your ancestors creating generational wealth, you could change the future of your family.
It’s Not All Good
Gold and silver have a very serious issue. When you first begin investing, you will likely need to put some money into storage. This automatically puts you in the negative. Also, every time you buy or sell gold and silver, you will need to pay a small fee to the dealer. All of this means that you will be at a loss when you first enter the market. It will take time to break even before you begin to make a profit. If you want fast financial gains, you won’t find it here. This style of investing is definitely a long term strategy.
Another issue that may arise, although proper storage would likely prevent this, is the possibility of losing your assets, destroying your assets, or having them stolen. You never know what could happen, but as previously stated, proper storage should dramatically minimize this risk.
Gold and Silver Investing: Is Gold and Silver a Good Investment?
I gave you some pros and cons of investing in precious metals in this article, however I cannot determine if Gold and Silver is a good investment for you. Is Gold and Silver a Good Investment for you? To find out, you need to know yourself. Does gold and silver investing fit your personality? Does it interest you? Does it satisfy your deep desires? Will it allow your to reach your goals? Only you can answer these questions.
Resources
Top 10 Reasons to Buy Silver by GoldSilver.com
Get Connected
-
- If you have enjoyed this article, you can get alerted to new articles and exclusive information by joining our email list. You can access this through the pop up on our home page. (You’ll also get a bunch of free stuff.)
- If you would like to keep learning, check out more of our articles!