Gold/Silver bullion and coin dealer explains the inherit stability of investing in precious metals like gold, silver, platinum and palladium bullion and coins
Investing in gold and silver bullion is a novel concept to most people. Throughout human history however, precious metals like gold, silver, platinum and palladium have served numerous purposes from industrial applications to stores of wealth and even the basis for a nation’s currency.
In fact, the United States’ currency was based entirely on gold up until 1913 and remained somewhat linked to gold until 1971. As a result, the nation’s economy as a whole and the value of its currency remained relatively stable.
Historically, precious metals like gold and silver bullion have not suffered the boom and bust cycle prevalent in many other forms of investment. If you own a home or invest in the stock market, you know what we’re talking about here.
And that’s the #1 reason among many others to consider investing in precious metals – stability.
There are a multitude of reasons why precious metals like gold and silver bullion bars and coins, platinum and palladium remain stable while other items fluctuate wildly. First, precious metals have intrinsic value, meaning that they contain something people find value in. Regardless of the general economic condition, people will always find value in precious metals.
Consider investing in American Gold Eagles, the official gold bullion coin of the United States. Gold used in making the Gold Eagles must be mined in the US, according to the Gold Bullion Act of 1985. Each American Gold Eagle is guaranteed for weight, purity and content by the US Government.
Also, many modern industrial processes utilize metals like gold, silver and platinum to manufacture electronics and because their conductivity is unrivaled.
But why is now a good time to invest in gold and silver bullion?
With the U.S. economy still vulnerable after the worst recession in a generation, gold and silver bullion and coins offer a refuge from the turbulence of equity markets and other forms of investment based in U.S. dollars.
Since the U.S. dollar is a complete fiat currency backed by nothing, it has no intrinsic value. The only thing that gives it value is people’s willingness to continue to use it as a medium of exchange. But since the U.S. dollar is essentially worthless paper or digits on a computer, the central bank can create as many dollars they see fit which in the process, devalues every other dollar in circulation.
Gold and silver bullion is one of the few investments that offer a refuge from any potential devaluation in the U.S. dollar. In fact, the price of gold and the U.S. dollar share an inverse relationship…when one goes up, the other goes down.
And not only is gold and silver bullion an excellent investment vehicle to preserve wealth, bullion bars and coins are unmatched in their beauty and offer collectors not just a coveted item that’s shiny but a great hedge for dealing with economic turbulence.
So if you’re interested in learning more, contact gold and silver bullion dealers at Provident Metals to learn how you can take steps to preserve your wealth with one of the most stable assets in all of human history – in short, gold and silver bullion is the most valuable form of money that will never lose its purchasing power.
Bookmark and check back often with our gold and silver bullion knowledge center to learn more on how you can invest in gold and silver bullion, how you can store your metals, different gold/silver bullion, platinum and palladium investment options and more.