Why do I think silver and gold are a good buy?
Many have asked why I think it's time to buy silver; and gold. Some have asked about the timing, price, quantity, etc. But I had a reader recently ask me to show some sort of proof of WHY I thought silver and gold was what they should be buying and not real estate, stocks, bonds, etc.
EXCELLENT QUESTION
Don't get me wrong, I definitely INVEST in stocks, bonds, the market, etc. But for silver and gold, they are basically part of my LIQUID assets. Just like having some cash on hand, at home, in the bank, etc. This is what my silver and gold is part of.
So; WHAT is the proof that silver and gold should be part of my liquid assets?
Proof? COUNTRIES!!!
Huh? What do I mean?
Currently, the Russian Central Bank has been ranked sixth in the world in terms of bullion reserves. The top five are the United States (8,133.5 tons), Germany (3,373.7), Italy (2,451.8 tons), France (2,435.9) and China (1,842.6).
Why in the world, would COUNTRIES/GOVERNMENTS have gold reserves; and to an extent silver, if there wasn't some TRUE PHYSICAL VALUE to it? Why not simply put their extra tax dollars into infrastructure? Or at least invest in the economy and stock market. All we hear about with governments is that they have DEBT. That they are spending more than they are taking in in taxes. So how can the USA have more than 8,000 TONS of gold? How can China have almost 2,000 TONS of gold? Why is Russia EXPANDING their gold reserves at RECORD PASS?
If I told you NOTHING ELSE; the fact that COUNTRIES are stocking PHYSICAL GOLD, should be enough to tell you that YOU SHOULD ALSO have PHYSICAL Metals in reserve. Not ETF's. Not Mining Stocks. Not PAPER GOLD/SILVER. But PHYSICAL.There's obviously reasons that countries/governments believe they should have something of physical value on hand; like gold. Their currency is not longer BACKED by the Gold Standard. That ended for the USA in the 70's. So why STILL HAVE gold and silver reserves. There must be something important about it.
I could probably stop right here and that would be enough reason / proof of why YOU should have silver and gold.
Now; the United States has been reducing their hold on gold. In 1950 the USA had 20,000 tons of gold; now they only have a little over 8,000 tons. At today's price, that 8,000 tons is only worth about $850 Billion Dollars. That's not even 1/20th of our debt. But governments need DEBT in order to increase their GDP. So while they PRINT more debt, they don't talk about WHY they have gold reserves at all. Why not sell all the gold at today's price and reduce the debt by 5%?
And WHY would Russia and China be INCREASING their gold reserves? Could it be to protect their economy/country against recession; or embargos; trade wars; etc.
The bottom line: Countries talk down Gold and Silver. They, especially the USA, want you to have their "FIAT CURRENCY". They want you to have dollars. They want the dollar to remain as the "Reserve Currency". All countries want you to put your money in the economy and their currency. YET..... They ALL have Gold reserves. Some; like Russia and China (And others) are INCREASING their reserves. Even those who aren't increasing, have a substantial amount of gold vs their economy/currency. WHY do they still have gold. If THEY think they should still have gold, then why don't YOU THINK YOU SHOULD HAVE SILVER AND GOLD.
Think about it!!!
CYA: SE:
EXCELLENT QUESTION
Don't get me wrong, I definitely INVEST in stocks, bonds, the market, etc. But for silver and gold, they are basically part of my LIQUID assets. Just like having some cash on hand, at home, in the bank, etc. This is what my silver and gold is part of.
So; WHAT is the proof that silver and gold should be part of my liquid assets?
Proof? COUNTRIES!!!
Huh? What do I mean?
Currently, the Russian Central Bank has been ranked sixth in the world in terms of bullion reserves. The top five are the United States (8,133.5 tons), Germany (3,373.7), Italy (2,451.8 tons), France (2,435.9) and China (1,842.6).
Why in the world, would COUNTRIES/GOVERNMENTS have gold reserves; and to an extent silver, if there wasn't some TRUE PHYSICAL VALUE to it? Why not simply put their extra tax dollars into infrastructure? Or at least invest in the economy and stock market. All we hear about with governments is that they have DEBT. That they are spending more than they are taking in in taxes. So how can the USA have more than 8,000 TONS of gold? How can China have almost 2,000 TONS of gold? Why is Russia EXPANDING their gold reserves at RECORD PASS?
If I told you NOTHING ELSE; the fact that COUNTRIES are stocking PHYSICAL GOLD, should be enough to tell you that YOU SHOULD ALSO have PHYSICAL Metals in reserve. Not ETF's. Not Mining Stocks. Not PAPER GOLD/SILVER. But PHYSICAL.There's obviously reasons that countries/governments believe they should have something of physical value on hand; like gold. Their currency is not longer BACKED by the Gold Standard. That ended for the USA in the 70's. So why STILL HAVE gold and silver reserves. There must be something important about it.
I could probably stop right here and that would be enough reason / proof of why YOU should have silver and gold.
Now; the United States has been reducing their hold on gold. In 1950 the USA had 20,000 tons of gold; now they only have a little over 8,000 tons. At today's price, that 8,000 tons is only worth about $850 Billion Dollars. That's not even 1/20th of our debt. But governments need DEBT in order to increase their GDP. So while they PRINT more debt, they don't talk about WHY they have gold reserves at all. Why not sell all the gold at today's price and reduce the debt by 5%?
And WHY would Russia and China be INCREASING their gold reserves? Could it be to protect their economy/country against recession; or embargos; trade wars; etc.
The bottom line: Countries talk down Gold and Silver. They, especially the USA, want you to have their "FIAT CURRENCY". They want you to have dollars. They want the dollar to remain as the "Reserve Currency". All countries want you to put your money in the economy and their currency. YET..... They ALL have Gold reserves. Some; like Russia and China (And others) are INCREASING their reserves. Even those who aren't increasing, have a substantial amount of gold vs their economy/currency. WHY do they still have gold. If THEY think they should still have gold, then why don't YOU THINK YOU SHOULD HAVE SILVER AND GOLD.
Think about it!!!
CYA: SE:
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