Ever wondered how your $100 now could buy much lesser stuff compared to 5 or 10 years ago? Or have you realized how prices of everything has been ever increasing over the years? People called this inflation. But have you thought of how inflation is happening? And ever cross your mind that, if there is anything you can do about it?
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Since 1971, the U.S. Dollar stopped being money as the abolishment of the Bretton Woods agreement severed the tie between the U.S. Dollar and the Gold Standard. As the Federal Reserve continues printing more and more U.S. Dollar fiat currency, the value of the dollar continues free-falling, resulting in higher prices of goods and services worldwide, making Gold and Silver being one of the best hedges against inflation.
The Trend of Gold and Silver
When the Bretton Woods agreement was abolished in 1971 by President Nixon, the price of Gold was USD $35 to an ounce. Today, the price of Gold is still increasing against the Dollar, priced at over $1700 to an ounce. In other words, the value of the U.S. Dollar has never stopped depreciating.
This ‘trend’ is expected to continue as long as the value of the U.S. Dollar continues depreciating due to the nature of the Federal Reserve continuously increasing the money supply in the economy. In time to come, the U.S. Dollar will reach a state where it will virtually have no value.
Throughout history, people have always ‘shifted’ their wealth towards Gold and Silver to preserve their wealth against currency depreciation. This is because unlike fiat currency such as the U.S. Dollar, the value of Gold and Silver is intrinsic and their ‘true value’ lies in their weight. An ounce of Gold and Silver never changes, unlike fiat currency.
Which should I invest in?
Physical Gold and Silver come in several forms such as bars, bullion, and coins. Although their different forms, their true intrinsic value still lie in their weight respectively. For instance, 1 ounce of Gold in Feb 2012 is apprxomiately $1700 to an ounce against the Dollar.
“Should I invest in Gold or Silver?” are one of the most commonly asked questions by many. Due to the nature of Gold being more expensive than Silver, people have turned to physical Silver as a more affordable alternative to investing in physical Gold.
“What about gold and silver investment schemes that the banks are offering?”
As the true value of gold and silver lie in their weight, it is always recommended that people invest their money in physical forms of gold and silver. Gold and silver ‘certificates’ are no different from fiat currency as their value was merely determined by the issuing bank/financial institution and can be revoked at anytime.
[excerpt from www.srdcglobal.com]
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Having the knowledge of this is ain’t good enough. Put it into practice! Or you will just see the money you have worked hard for disappear subtly as time passes by. I’m here to help if you need any. And do share to people you know about this. They deserved to be educated too.
