1. For 5,000 years, gold and silver have been the only assets that have never failed. Because they are tangible assets of inherent value their purchasing power will never fall to zero. 2. They are financial assets that can be completely private and not part of the financial system. Even real estate requires the financial system to transfer title. Gold and silver do not. 3. They are one of the few financial assets that are not simultaneously someone else’s liability. Stocks, bonds, and derivatives like futures and ETFs require the performance of the issuer or counterparty.
1. For 5,000 years, gold and silver have been the only assets that have never failed. Because they are tangible assets of inherent value their purchasing power will never fall to zero. 2. They are financial assets that can be completely private and not part of the financial system. Even real estate requires the financial system to transfer title. Gold and silver do not. 3. They are one of the few financial assets that are not simultaneously someone else’s liability. Stocks, bonds, and derivatives like futures and ETFs require the performance of the issuer or counterparty. 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. 4. 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. 5. They are safe-haven investments that rise during economic upheaval, war, terrorism, and natural disaster. 6. They have a proven track record of performing well in inflation or deflation. 7. They have a high value density. That means that, unlike copper or oil, a very small amount of gold or silver provides significant purchasing power. 8. They have a low bid/ask spread, unlike diamonds or collector coins, which can carry a 15 percent to 100 percent spread. 9. Every ounce has the same value. Every diamond or collector coi...
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