Silver - How And When To Buy - Will It increase In worth?
Added: (Sat Apr 08 2017)
Pressbox (Press Release) -
Unfortunately, the dollar is what makes the world go 'round. You can say "I don't like cash, since it's unreliable", but how are you going to pay bills? We don't really have a choice but to go along with the same crazy notion that everyone else has to buy into; that paper money actually has any value whatsoever.
First of all, Mutual Funds often charge some form of M.E.R. - a.k.a. Management Expense Ratio. This is an amount that is charged to you whether your Mutual Fund makes money or not. If you win on the market, your Mutual Fund and it's salespeople do too. If you lose in the market, guess what - your Mutual Fund and it's representative still get paid! Obviously losing money to this M.E.R. impacts your profits significantly.
When big hedge fund managers use Exchange Traded Funds to buy gold, bonds, or real estate, pay attention. They have access to the best of everything - and these sophisticated investors are using Exchange Traded Funds (ETFs) to get access to the markets they want.
Looking back in history, when the New World was discovered by Spain, special mints were created to produce Spanish gold and silver coins. In the 1800s, gold was traded at $20 an ounce. In the early 1930s the price increased to $35 per ounce. Former US President Franklin Delano Roosevelt restricted the ownership of gold coins so they were melted into bars. In the mid 70s, it became legal to purchase gold again so its price jumped to $200 per ounce. In the 80s, gold is priced at $800 per ounce and later reached the $1000 level.
Gold and Silver have also been used for currencies for centuries. We can date this back way before the Roman Empire but will use them in the illustrations so that we can understanding the significance of the metals. We have all heard of the great Roman Empire that eventually fell underneath its own weight. Well the Roman Empire used a currency to trade with surrounding nations and to pay taxes. Paying taxes is what allows the government to finance wars and pay civil service employees. After a while Rome began to expand its reach by conquering nearby areas and going to war with other countries. This war was fueled by the items that needed money and the major form of currency was silver and gold.
But the main point would be that the longer the gold and silver investing was held on to, the more profits that would be returned. And even in the worst of economic depressions precious metals still perform well compared to other investments. Historically, gold and silver have consistently increased in value. spot gold price So, even if the currency that bought the gold went for flat broke, the gold and silver would still float a higher price.
Those who pulled out their gold from the goldsmith first were very lucky. Go to the bank today and try to trade your $20 bill for a gold ounce. You will get laughed at because paper dollars are no longer redeemable for real value. Our dollars are not backed by anything except for the faith we put into it.
That's right - the biggest hedge fund manager in the world uses Exchange Traded Funds. He uses the same products you can trade in your own stock account. Here is a typical article explaining what he's doing with gold.