Investing In Gold And Silver For Capital Preservation And Appreciation

There are many reasons to invest in gold

If you are an investor and you've never considered gold as a real investment, you really should consider gold as one of the best possible hedging investments you could make. That basically means that gold can protect your portfolio if things turn really bad. If the value of the dollar drops dramatically or inflation comes racing back, gold will in all likelihood go up. What's more, if the US were to experience a serious monetary crisis, gold could explode in value much more quickly than people realize. That kind of protection can work wonders on the safety of your portfolio, and therefore your ability to not worry about your future.


If you are an investor and you’ve never considered gold as a real investment, you really should consider gold as one of the best possible hedging investments you could make. That basically means that gold can protect your portfolio if things turn really bad. If the value of the dollar drops dramatically or inflation comes racing back, gold will in all likelihood go up. What’s more, if the US were to experience a serious monetary crisis, gold could explode in value much more quickly than people realize. That kind of protection can work wonders on the safety of your portfolio, and therefore your ability to not worry about your future.

So what exactly is this hedging technique? Before we get to that, I first want to cover some basics. For hundreds and hundreds of years, gold has been used as a store of value, wealth, and financial wellbeing. And many currency systems that various civilizations have used have relied on gold as a baseline of value. But these days, modern currencies are no longer linked to a “hard” currency like gold. The primary currencies today, such as the pound, euro, yen, and dollar, are all what are often referred to as fiat currencies. What this means is that the currencies themselves are not really worth anything; they’re only paper, in other words. Instead, the currency has value because the government says so, which is what the term fiat refers to. Modern fiat currencies are no longer backed by gold. Instead, they are simply paper.

Why should this be important to you? It’s important because, since the currencies of the modern world are no longer linked to gold, their values can be manipulated by governments and central banks. In particular, modern central banks are able to inflate their money supplies, which means they just create more money out of thin air. This leads to a further decline in the value of the currency, which is all inflation is when it comes down to it. It’s for this reason that you continue to see prices on all kinds of things, including housing, energy, and food, increase year after year. Most people have no idea about this, but it’s true: ever since the US dollar turned into a fiat currency, the money supply of the US has been inflated by the Federal Reserve to the extent that today’s dollar is worth 96% less than when it was on the gold standard. That is a serious loss of value, and that trend will accelerate if inflation increases even more.

Here is the thing you truly need to realize: following the financial crisis of 2008, the Federal Reserve took drastic measures. These actions include a sharp increase in the money supply. What this means is that if inflation increases again, the value of your hard-earned dollars is going to drop even more. And some experts believe that the actions of the Federal Reserve have made it so the dollar could potentially collapse in the near to intermediate future. This would have devastating effects on the US economy, along with your investment portfolio, which is denominated in potentially worthless dollars.

With this worst-case scenario in mind, let’s turn back to gold. Investing in gold can give your portfolio some real protection from a serious inflationary monetary crisis like the one we just examined. After all, this is the specific purpose of a hedging investment like gold. Even if a crisis happens and part of your portfolio drops significantly in value, the hedged part of the portfolio can make up for it by increasing in value. If inflation increases dramatically or the dollar does eventually collapse, gold will not only hold on to its value, but jump much higher in value. For this reason, you really should give some thought to adding gold to your portfolio.

As uncertainty in the global economy increases, now is the perfect time to consider all of the great many reasons to make an investment in gold. Gold has the ability to protect you from serious inflation and an economic crisis. You would be wise to consider investing in gold.. Free reprint available from: There are many reasons to invest in gold.

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