There is one truth about currency issued by nations throughout history: Every currency not based upon precious metals has failed.
When I use the term “failed,” I mean that the value of the currency decreased over time until it became worthless.
Contrary to all that you hear from investment analysts, stock brokers, economists, college professors or government spokesmen, there is only ONE WAY to create inflation. That is, when a bank or government issues currency that is not backed by precious metals.
Price increases do not cause inflation. Inflation causes price increases.
In these days of recession and perhaps depression, there are few investments one can choose that will not be eaten up by inflation. So, where can one look to find investment safety?
Stocks? Hardly…they are extremely volatile now, with wild fluctuations daily.
Bonds? No way…bond yields are historically low.
Government securities? Are you kidding? The American Federal Government is trillions of dollars in debt, with no honest way of ever paying off the debt. What is a US Savings Bond going to be worth if the government fails?
Other securities? Just as volatile as stocks.
Real Estate? Perhaps, if you are looking for rental properties. With the massive number of foreclosures today, homes can be bought for pennies on the dollar. And, those folks who left those foreclosed homes will still need a place to live. So, rental properties can be a good investment for those who buy smartly and operate wisely.
I recommend buying gold and silver coins right now for these reasons:
1. Gold and silver hold their value.
2. Gold and silver should not be bought for the investment appreciation, but as a store of value.
3. If or when the US dollar fails, all people will be seeking a mode of currency. Gold and silver coins come in many denominations, which will facilitate even the smallest commercial transactions. For example, if you own silver nickels, dimes and quarters, the silver value will allow you to make small purchases, rather than trying to split up a one ounce bar of silver.
4. Gold and silver coins should be bought for their purity and value, not for their intrinsic value. Said another way, don’t load up on collector coins, but buy coins like the one tenth or one twentieth ounce of pure gold or junk silver.
5. Put your coins in a home safe or a bank safety deposit box, and consider them off-limits until catastrophic economic events occur.
6. If you have to sell them, there is always a market for gold and silver.
Disclaimer: I am not a financial advisor. The views expressed here are my own personal opinions. You should discuss all financial decisions with your own trusted advisors and legal counsel.