Tips for Investing in Precious Metals

Let’s face it, most currencies in the world are not backed by anything. Poor decision making by leaders, unforeseen disasters, or good old fashioned economic downturns can decimate a countries currency and your savings. We have seen it before countless times in every corner of the globe.

Inflation eats your savings. It would cost you $289.00 today to buy what would cost you $100.00 in 1980. Did the cost of things go up, or did the value of that $100 bill go down? There are resources that we use every day, and have used every day for all of history. Is the loaf of bread you buy today for five dollars more valuable then the loaf of bread your grandparents bought for a nickel? Or is the value of currency different?

Investing in Precious Metals is always a good idea. Weather you are expecting an economic collapse, or just looking for a sound investment, precious metals have continued to climb in value. Just beware that prices of precious metals spike in poor economic times, and level off in good times. So if you are going to invest in precious metals, do so when the economy is doing well.

What can you do to protect your savings?

A while back, I read an article about a catalog from an old west general store that was found. In the catalog, general contractors where advertised to come out to your homestead and work for an ounce of gold a week. At the time, an ounce of gold was 20 dollars. Today, gold is going for around $1,200 an ounce. That means that at 8 hrs a day, 6 days a week, that general contractor was making 25 dollars an hour in todays gold exchange rates. That sounds about right. That is why you should invest in resources like gold. You see, no matter what happens with inflation, the economy, or political maneuvering, resources hold their value.

But why Precious Metals?

silver-bullionUnlike most resources, precious metals don’t have a shelf life. The gold in your ring may very well be the same gold that once adorned a Pharaohs tomb, or maybe it was mined in the California gold rush of the 1850’s. either way, it is still just as valuable.

Now I am not saying you should take all your savings and put it into gold or silver, but I am saying you should have a decent amount there. When I was in college in the mid 1990’s an ounce of gold cost $350. As I said earlier, today it is worth $1,200. That is a good investment.

Should I buy Gold or Silver?

The simple answer is: that depends on how much you are buying. If you have 50 grand+ sitting in your savings, then buy gold. It will take up less space. However, if your assets are not very liquid right now, you may want to pick up a couple hundred dollars of silver here and there as finances permit.

Tips for buying Metals

As with any investment opportunity, you can’t rush out and buy as soon as you finish reading this. Gold and silver prices fluctuate. Keep an eye on the prices, and determine when you should buy. (A quick tip: prices of precious metals surge in economic downturns as people prepare for the economy to collapse).

For your convenience, we have added a live precious metal ticker so you can keep an eye on the current prices of Gold and Silver here.