Wednesday, December 18, 2013

Gold & Silver


History

The dollar is a paper currency with no intrinsic value. EVERY paper money ever created has ALWAYS lost its purchasing power over the years. In the time of Ancient Rome, a day of work was worth a tenth of an ounce of silver ; in the beginning of the 20th century (2,000 years later) a day of work was still paid a tenth of an ounce of silver.

Today 2/3 of the world population lives with two dollars a day (a tenth of an ounce of silver). Gold and silver have been traded for 5,000 years, and they are still here today because they are real money.

Should you buy gold or silver?

Both, but I personally prefer silver, physical silver, in coins or bars.

Investment demand

The investment demand is growing in China, India, and the Far East. Silver is the ordinary man’s real money, not gold. Everybody can buy silver because it's much cheaper than gold, and the gold/silver ratio signals much higher silver prices to come.

Should I buy coins or bars?

I prefer silver coins because they have formal monetary value and are recognized all over the world, especially these three coins:
  • Silver Philharmonic
  • Canadian Maple Leaf
  • Silver Eagle
How much of my portfolio should I invest in precious metals?

I would say the minimum should be 10%, but when you seriously look at what happened recently in Cyprus (the risk of bail-ins or bankruptcy risks all over the world), I would suggest you invest a much higher percentage.

Of course, precious metals do not have to be considered as primary vital resources like water, food, energy, or security measures.

Where should I store my gold and silver?

I wouldn't want my own savings in a bank account, so the first thing would be: don't store your precious metals in a safe in a bank!

You can store it at home, if the value is under $10,000, or with www.GoldBroker.com, for a larger investment.





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