Capitalizing on Fiat Currency Devaluation: Gold and Silver Investing

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If there is one thing that will insure that the value of precious metals like gold and silver it is that they will rise in difficult times. Because of inflation and falling stock prices, people tend to look for tangible assets that do not lose their value. This has been something that society has done for thousands of years. Almost from the beginning of recorded history, people have used itΒ as currency to trade for the commodities that we need on a daily basis, or want as a luxury item. And when the economy begins to slide, the value of precious metalsΒ begins to increase. This is as true in 2015 as it was it at any other point in our past.

Smart investors put their money in precious metals in difficult economic times because it retains its value. This was exactly the case in 2008, as the demand for gold quickly drove up prices. You can rest assured when you invest in them that it will be worth as much down the road as it is now, and will more than likely be worth more. Very rarely will you see it go down in value. This is a good thing to know in times of financial crisis because it means that you will not be completely wiped out. It is also handy to have when inflation is on the rise. Because inflation tends to devalue fiat currency, which is paper money that is not backed by physical gold, it means that your gold will bring you more money should you need to cash it in. That will allow you to keep the things you need to survive.

If you want further prove of this phenomenon, here are some statistics. When the financial crisis began in the summer of 2008, you could purchase gold at $799.70 per ounce, an already fantastic sum. Towards the end of what some, probably misguided, economic crisis, the same substance was trading at $1917.90 per ounce. In other words, it rose in value by over 100 percent in just three years. The fact that it more than doubled is something rare, particularly in light of how quickly it did so. Stocks typically do not do that, no matter how anticipated their opening on the markets. Further, they did not guarantee a return on an investment on their return as does gold.

Many people needlessly suffered losses as a result of the 2008 Financial Crisis. Like the very money we spend, our government has a vested interest in making sure that people stay invested in the stock market, which is why so many of those companies took bailouts. Because they took bailouts, we basically are spending our money twice on the products that they sell. When the government decided to take our money off the gold standard, it initially tried to control the supply, thus making it more incumbent upon us to invest in Wall Street. However, we have retained the freedom to invest in precious metals and help us ensure, as individuals, that we will not go broke because of the mistakes of others.

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