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July 19, 2020
Because they are tangible assets of inherent value their purchasing power will never fall to zero.
Even real estate requires the financial system to transfer title. Gold and silver do not.
Even cash requires the performance of the government that issues it to have value. If a government fails, so does its currency. Gold and silver never fail.
They can be wholly owned. You can never really own real estate for instance; if you think you can, just try not paying your property taxes for a few years.
They are safe-haven investments that rise during economic upheaval, war, terrorism, and natural disaster.
They have a proven track record of performing well in inflation or deflation.
They have a high value density.
They have a low bid/ask spread, unlike diamonds or collector coins, which can carry a 15 percent to 100 percent spread.
It is my recommendation that you establish a core physical position of gold- and silver-before you ever diversify into mining stocks, futures, options, ETFs, or any other gold- and silver-related investment. Every precious metals investor should have a core position of physical gold and silver that they do not trade. A core position can be held many ways. The size of your core position will be a major factor in determining the different ways it is held.
Now that I own a substantial amount of government-minted coins, my tactic is to get the most gold and silver for my currency.
