As a financial market expert and historian, I understand the importance of owning gold and silver to protect oneself from economic collapse. In this blog, I will explain why gold and silver are valuable assets during economic uncertainty and provide historical evidence to support this claim.
Why gold and silver are valuable assets during the economic collapse
During an economic collapse, traditional investments such as stocks and bonds can become volatile and lose value rapidly. In contrast, gold and silver have been considered safe-haven assets for centuries. This is because they are tangible assets that hold their value even in times of crisis. Gold and silver are also scarce resources that cannot be easily manipulated or manufactured, which adds to their value as a means of preserving wealth.
Historical evidence supporting the importance of owning gold and silver
Throughout history, gold and silver have been used as a means of currency and as a store of value. For example, during the Great Depression in the 1930s, the US government confiscated gold bullion and coins from its citizens to stabilize the economy. This action was taken because gold was considered a safe-haven asset that people were hoarding, causing a shortage of currency in circulation. Similarly, during the 1970s, when the US dollar declined, gold prices rose significantly, reaching an all-time high in 1980.
In recent times, the 2008 financial crisis saw a surge in demand for gold and silver as investors sought refuge from the volatile stock market. Gold prices rose by over 25% between 2007 and 2008, while silver prices rose by over 60%. This surge in demand for precious metals demonstrates their value as a safe-haven asset during economic uncertainty.
How to invest in gold and silver
There are several ways to invest in gold and silver. One way is to purchase physical gold and silver bullion or coins. This can be done through a reputable dealer or online retailer. Another option is to invest in exchange-traded funds (ETFs) that track the price of gold and silver. ETFs are traded on stock exchanges, making them more accessible to investors who may not want to purchase physical gold and silver.
In conclusion, owning gold and silver can be a valuable means of protecting oneself from economic collapse. These tangible assets hold their value even during times of crisis and have been used as a store of wealth for centuries. Historical evidence supports the importance of owning gold and silver to preserve wealth. Investors can purchase physical bullion or coins or invest in ETFs that track the price of gold and silver.
In conclusion, owning gold and silver can be a valuable means of protecting oneself from economic collapse, as these tangible assets hold their value even during times of crisis. Historical evidence supports the importance of owning gold and silver to preserve wealth. Investors can purchase physical bullion or coins or invest in ETFs that track the price of gold and silver. Additionally, owning gold and silver mining stocks can be another option for investors looking to benefit from the value of these precious metals. Investing in mining stocks can provide exposure to the potential growth of the mining industry while also helping from the underlying value of gold and silver. Therefore, owning gold and silver mining stocks and physical gold, silver, and ETFs can be valuable to an investor's portfolio. It's essential to do thorough research and seek professional advice before making any investment decisions, as the value of gold and silver can be volatile and influenced by various factors.
- “Gold confiscation” https://www.investopedia.com/terms/g/gold-confiscation.asp
- “Gold prices during the 1970s” https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart
- “Gold and silver prices during the 2008 financial crisis” https://www.investopedia.com/articles/investing/092815/how-gold-silver-performed-during-2008-financial-crisis.asp
- “Investing gold mining stocks” https://www.investopedia.com/articlesstocks/08/investing-in-gold-mining-stocks.asp