Why do I trust silver and gold
I've been confronted quite a few times and asked: "Why do I trust silver and gold"? After all, MONEY is the paper that the government prints and you put in your wallet; isn't it? The paper money is what we use to buy groceries at the store with. That's how we pay our bills, pay for gas in our car, and any other item we want to buy. Correct? We don't buy "Things" or pay for "Things" using silver or gold. So WHY do I buy and trust silver and gold?
That is one of the best questions you should be asking if you're new to buying silver or gold. It's the question you should be asking yourself all the time. Even for the experienced silver/gold investor. Lets look at a couple of things. At one time, "money"; meaning coins, were made out of silver and gold. That was the true money. It didn't matter if you were trading between different towns or countries. Silver and gold were the one common constant when it came to Money. In time, governments got more involved in developing a "Currency". Mind you, I said a "CURRENCY",,,,, NOT MONEY. I use to live in Spain and the Netherlands. I use to do a lot of metal detecting in many of the farmer's fields. (With their permission). I found a lot of COINS (Currency) from the 1800's all the way back to the 1100's. So many in the middle of the 1600's and 1700's. All of these were made of different metals. Bronze and similar. When you're dealing with a LARGE number of citizens, a government will develop a currency. This way they can keep track of and tax appropriately their citizens. The government doesn't want a person to simply go to the creek and pan and mine for some gold or silver and have complete control over their wealth. So the government mints a currency for day to day use. That same practice has been going on for thousands of years. There was still plenty of gold and silver coins, but it wasn't for the "Common day to day trading in a society". The gold and silver was for trading OUTSIDE of the local society. Hence, why sailing/trading vessels traveling the world, would have chests of gold and silver. Do you think the native people of a distant country/society would have trust or faith in the Spanish Peso or the Dutch Guilder? No. But they would trust silver and gold. The thing was however, even though the country was printing/minting a "Currency", they backed it One-For-One with their silver and gold. So it wasn't really a problem. even the united states backed their currency with silver and gold. e.g. Silver Certificate.
Even when Judas was paid to betray Jesus, he wasn't offered a LOCAL CURRENCY. He was offered what was universally accepted as MONEY at the time. SILVER. And it hasn't changed today. The only difference today, is that the CURRENCY that the United States and most countries mint, is no longer backed by silver and gold. Instead, it is backed by the "GOOD FAITH" of the government. Basically, the same concept you heard during the bank and corporate bailouts a couple years ago. "THEY ARE TOO BIG TO FAIL". So the United States is betting on them being TOO BIG TO FAIL, that keeps their "Currency" desired and holding any value. In some respects, this is partially true. So many countries hold U.S. Debt, that they can't afford for the United States to have financial problems and not be able to pay back their debt. Also, the United States is one of the LARGEST Consumers of goods. China, Korea, and many other countries NEED the USA to keep on buying. The USA is the WORLD'S biggest customer.
So, let's move on. Basically, I have explained the MAIN REASON that I trust silver and gold. Because in the end, it is the only REAL MONEY. It's the only thing that has every been trusted at an international level. And I believe that the "Dollar" and many other currencies will not be trusted as well in the future. Does this make me sound like some of the "Preppers" or those who believe in Economic Armageddon"? It might, but I'm not that way. I believe that the current currencies may be untrustworthy, but that doesn't mean I believe there will be a total economic collaps. So what is the 2nd reason I trust silver and gold?
Even though the countries are PRINTING CURRENCY, they are buying up lots of silver and gold. There must be a reason for this. If silver and gold wasn't really worth anything as MONEY, then why are so many countries and companies buying so much of it? The main reason, is because they know that it is the only thing that actually has WORTH. They know that their currency may crash. They know that others may not want their currency. That others may not TRUST their "Good Faith". That they may not be "Too Big to Fail". Even if you don't know why..... it should be enough just to know that if the governments and companies WANT SILVER & GOLD, there must be a reason for that. And that is good enough for me. Fortunately for people like you and I, we are in the minority of private individuals buying silver and gold, and we don't pose a risk or competition to governments and large corporations. So they don't mind us buying it. When for whatever reason, the silver and gold that countries and companies purchased is used for wealth instead of currency, we'll be in the same boat benefitting from that. We may not be at their level of wealth, but we won't be in the same boat as the majority who has NO WEALTH and are servants to the government. We'll have some wealth. Again; if silver and gold wasn't so important, the governemnts, central banks, and large corporations wouldn't be buying up so much of it.
Finally, one of the main reasons I trust silver and gold is because it's also a USEFUL PRODUCT. We live in a technology world. And until a NEW ELEMENT is discovered; very unlikely; silver is still the best conductor of electricity. As such, there is a great need to have it for industrial purposes. Gold to a smaller extent, but silver is definitely needed. And it is a FINITE element. There isn't an unlimited supply of it. And because it's used in such small individual qualtities, it isn't easily recycled. For instance; there is approximately $12-$15 worth of silver used in making a refridgerator. That isn't much silver, but it's necessary. They need it to make the refridgerator. And a refridgerator is a necessity. Same with cars, computers, cell phones, solar panels, electronics, etc. In previous years, silver was used a lot in photography developing. It was used in large amounts. It was worth recycling it. But in most applications, it costs more to recycle it than to buy more. But because there is a limited amount, there will come a time where they will have to recycle. And because of that, silver is going to be worth so much more. 10X, 20X, 50X what it is now. Granted, it's possible that technology will advance to the point that electrical connections are no longer needed, but I don't see that day coming for quite a long time. You will still need copper for wiring and you'll need the silver for connecting and for intricate electronics.
So in the end, the reason I "TRUST" silver and gold is because:
1. It is the only REAL MONEY. It's the only thing trusted between nations and societies when the man made currency is no longer backed and trusted.
2. Governments, the Central Banks, and large corporations are buying LOTS OF Silver and Gold. There are many reasons; but suffice it to say, if they are buying a lot of it, there must be a reason why, and therefor a good reason why I should buy some too.
3. Industrial needs. We NEED Silver and to a smaller extent Gold, for our industry. We live in a world of technology, and that technology must have Silver. It's a limited resource and the value will go up.
Remember, Silver and Gold IS NOT Valued in Dollars and Currencies. Currencies and the Dollar are valued in Silver and Gold. That's how it's always been. Just because the united states and many other countries took their currencies OFF of the Gold Standard, (Where their currency was BACKED by gold), doesn't mean that the value isn't still there. This is why I believe governements, the central banks, and large corporations are buying up so much silver and gold. They understand that it is the only true MONEY that actually has VALUE.
CYA: SE:
That is one of the best questions you should be asking if you're new to buying silver or gold. It's the question you should be asking yourself all the time. Even for the experienced silver/gold investor. Lets look at a couple of things. At one time, "money"; meaning coins, were made out of silver and gold. That was the true money. It didn't matter if you were trading between different towns or countries. Silver and gold were the one common constant when it came to Money. In time, governments got more involved in developing a "Currency". Mind you, I said a "CURRENCY",,,,, NOT MONEY. I use to live in Spain and the Netherlands. I use to do a lot of metal detecting in many of the farmer's fields. (With their permission). I found a lot of COINS (Currency) from the 1800's all the way back to the 1100's. So many in the middle of the 1600's and 1700's. All of these were made of different metals. Bronze and similar. When you're dealing with a LARGE number of citizens, a government will develop a currency. This way they can keep track of and tax appropriately their citizens. The government doesn't want a person to simply go to the creek and pan and mine for some gold or silver and have complete control over their wealth. So the government mints a currency for day to day use. That same practice has been going on for thousands of years. There was still plenty of gold and silver coins, but it wasn't for the "Common day to day trading in a society". The gold and silver was for trading OUTSIDE of the local society. Hence, why sailing/trading vessels traveling the world, would have chests of gold and silver. Do you think the native people of a distant country/society would have trust or faith in the Spanish Peso or the Dutch Guilder? No. But they would trust silver and gold. The thing was however, even though the country was printing/minting a "Currency", they backed it One-For-One with their silver and gold. So it wasn't really a problem. even the united states backed their currency with silver and gold. e.g. Silver Certificate.
Even when Judas was paid to betray Jesus, he wasn't offered a LOCAL CURRENCY. He was offered what was universally accepted as MONEY at the time. SILVER. And it hasn't changed today. The only difference today, is that the CURRENCY that the United States and most countries mint, is no longer backed by silver and gold. Instead, it is backed by the "GOOD FAITH" of the government. Basically, the same concept you heard during the bank and corporate bailouts a couple years ago. "THEY ARE TOO BIG TO FAIL". So the United States is betting on them being TOO BIG TO FAIL, that keeps their "Currency" desired and holding any value. In some respects, this is partially true. So many countries hold U.S. Debt, that they can't afford for the United States to have financial problems and not be able to pay back their debt. Also, the United States is one of the LARGEST Consumers of goods. China, Korea, and many other countries NEED the USA to keep on buying. The USA is the WORLD'S biggest customer.
So, let's move on. Basically, I have explained the MAIN REASON that I trust silver and gold. Because in the end, it is the only REAL MONEY. It's the only thing that has every been trusted at an international level. And I believe that the "Dollar" and many other currencies will not be trusted as well in the future. Does this make me sound like some of the "Preppers" or those who believe in Economic Armageddon"? It might, but I'm not that way. I believe that the current currencies may be untrustworthy, but that doesn't mean I believe there will be a total economic collaps. So what is the 2nd reason I trust silver and gold?
Even though the countries are PRINTING CURRENCY, they are buying up lots of silver and gold. There must be a reason for this. If silver and gold wasn't really worth anything as MONEY, then why are so many countries and companies buying so much of it? The main reason, is because they know that it is the only thing that actually has WORTH. They know that their currency may crash. They know that others may not want their currency. That others may not TRUST their "Good Faith". That they may not be "Too Big to Fail". Even if you don't know why..... it should be enough just to know that if the governments and companies WANT SILVER & GOLD, there must be a reason for that. And that is good enough for me. Fortunately for people like you and I, we are in the minority of private individuals buying silver and gold, and we don't pose a risk or competition to governments and large corporations. So they don't mind us buying it. When for whatever reason, the silver and gold that countries and companies purchased is used for wealth instead of currency, we'll be in the same boat benefitting from that. We may not be at their level of wealth, but we won't be in the same boat as the majority who has NO WEALTH and are servants to the government. We'll have some wealth. Again; if silver and gold wasn't so important, the governemnts, central banks, and large corporations wouldn't be buying up so much of it.
Finally, one of the main reasons I trust silver and gold is because it's also a USEFUL PRODUCT. We live in a technology world. And until a NEW ELEMENT is discovered; very unlikely; silver is still the best conductor of electricity. As such, there is a great need to have it for industrial purposes. Gold to a smaller extent, but silver is definitely needed. And it is a FINITE element. There isn't an unlimited supply of it. And because it's used in such small individual qualtities, it isn't easily recycled. For instance; there is approximately $12-$15 worth of silver used in making a refridgerator. That isn't much silver, but it's necessary. They need it to make the refridgerator. And a refridgerator is a necessity. Same with cars, computers, cell phones, solar panels, electronics, etc. In previous years, silver was used a lot in photography developing. It was used in large amounts. It was worth recycling it. But in most applications, it costs more to recycle it than to buy more. But because there is a limited amount, there will come a time where they will have to recycle. And because of that, silver is going to be worth so much more. 10X, 20X, 50X what it is now. Granted, it's possible that technology will advance to the point that electrical connections are no longer needed, but I don't see that day coming for quite a long time. You will still need copper for wiring and you'll need the silver for connecting and for intricate electronics.
So in the end, the reason I "TRUST" silver and gold is because:
1. It is the only REAL MONEY. It's the only thing trusted between nations and societies when the man made currency is no longer backed and trusted.
2. Governments, the Central Banks, and large corporations are buying LOTS OF Silver and Gold. There are many reasons; but suffice it to say, if they are buying a lot of it, there must be a reason why, and therefor a good reason why I should buy some too.
3. Industrial needs. We NEED Silver and to a smaller extent Gold, for our industry. We live in a world of technology, and that technology must have Silver. It's a limited resource and the value will go up.
Remember, Silver and Gold IS NOT Valued in Dollars and Currencies. Currencies and the Dollar are valued in Silver and Gold. That's how it's always been. Just because the united states and many other countries took their currencies OFF of the Gold Standard, (Where their currency was BACKED by gold), doesn't mean that the value isn't still there. This is why I believe governements, the central banks, and large corporations are buying up so much silver and gold. They understand that it is the only true MONEY that actually has VALUE.
CYA: SE:
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