Silver & Gold: Real Money With Intrinsic Value
Let's talk a little bit about money, but not the kind that is counted in dollars and cents, the kind that is counted in grams & ounces. I'm talking about precious metals, specifically gold and silver. I'm talking about a tangible, physical asset that does not need to be "backed" by a government or regulatory body to have value like the Dollar or the Euro. As a finite resource found only in nature, gold & silver have an intrinsic value that paper currency can never have.
A few years back I inherited a small amount of money from my aunt, as I shopped around for potential investments ( and believe me, I shopped for months) I found only two that made any sense to me. Cryptocurrency and precious metals.
I could not find the value in, say, a ten-year Certificate of Deposit that would return 2.5% per year while the bank takes my cash and makes two to four times as much on it.
"Oh, what's that? You say you will give me a piece of paper that says you will give me my money back in ten years but if I want it sooner I will pay a penalty that is likely greater than the value of the deposit? Hmm, that sounds reasonable" :|
I am not really going to go into this here as I think a large percentage of the folks on STEEM already value crypto and realize it's current value and potential value.
Colorful stock photo to liven up all these words :)
I believe holding silver and/or gold is the safest way to protect your wealth. When I say wealth I am not only talking about investments of discretional income but savings as well. That rainy day fund, the vacation fund, any type of savings that one might keep in the back is the type of wealth that should, in my opinion, be held in precious metals. And, as always, I am talking about physically holding that silver or gold either in your house in a safe or at offsite storage that you have 24-hour access to.
If you don't hold it, you don't own it
As I said, I feel one really has to hold their wealth to own it. Sure, the bank promises to hold on to your money and give it back when you ask but what if half the people that had accounts at the local bank go and try to withdraw all their savings at the same time? Do you think everyone will walk out of there with their cash in their pockets? I don't. Banks don't keep all the money that they hold "on paper" lying around at the branch in case you need it. In fact, not only do they NOT have everyone's cash available at all times, they take and lend out the value of your account and make money off of your money!
I don't know about you but I find that very disconcerting. I mean, I don't know who they are lending to or how they are using my money. What if one of the ventures they sink a bunch of other folks money in disappears? I don't know but you can bet that somewhere in the fine print they have protected themselves from that and you will be left holding.........NOTHING!
twenty20 provided this stock photo that represents the bank losing your money leaving you with nothing.
Silver and gold bullion is real money. If you hold it you can easily take it down to your local coin shop or bullion dealer and trade it for cash to fund your vacation to Philly or a new roof for your house. If you hold it you know exactly how much you have at all times. If you hold your wealth in precious metals ONLY YOU hold your wealth, no one else, and this is key to securing that wealth and having it handy for when it is needed.