Why invest in gold and silver?

Investing in gold and silver

Is it worth investing in gold and silver when they are so expensive. Is there still a chance that prices will continue to rise? You will find the answers below.

Why is it worthwhile to invest in gold and silver now?

1. The government makes our money lose value because it reduces the debt of the state. The government can print money to pay off debts. Gold, silver can not be made by the government. The supply of paper money can be unlimited.

The supply of gold and silver is very limited. It is said that all the gold that had been extracted so far would fit in Madison Square Garden's basketball court. Bil Gates could buy gold extracted within a year using only his checkbook.

2. Gold, silver is great in times of international conflict. The price of silver doubled both during the First and Second World Wars. During the terrorist attack on the Word Trade Center, the price of silver rose by more than 10% in one day.

3. Gold and silver are good at bailing at the stock exchanges. The price of silver rose more than doubled during the Great Depression (the price of gold was fixed at that time). The next long period of the stock market crash occurred between 1968 and 1980 when the price of silver rose from $ 2 per ounce to more than $ 50 per ounce (ounce = 31.1g).

4. When you invest in gold and silver, you diversify your investment portfolio. Historically, gold has often been the reverse of the action. The price of gold shot up in 1970 when the shares were tragic.

5. Shares of gold mining companies do well in times of inflation and deflation. Gold investment protects against inflation - when gold gains value it loses dollars. But what many people do not understand is that stocks of these companies are doing better even in deflationary times as the government cuts interest rates and mass prints money (causing inflation) to counter deflation, leading to significant gold price rises.