If you watch the Investing Gold and Silver Bullion exchange rates, they sometimes seem to only change a few pennies a day plus or minus and hover sometimes a few months within three to four dollars per ounce over or under the starting price. Gold and silver don’t move fast on a regular basis like stocks do, and are instead considered a buy and hold investment much like bonds.
Like Bonds, the value of your investment isn’t rapidly lost in an economic downturn. In fact, Gold and Silver Bullion actually tend to rise as investors jump out of stocks and look for a secure place to land when the economy is bad. Gold and Silver investing is a fantastic way to protect your starting investment funds but what kind of future does one have if they buy and hold Gold or Silver instead of spending money on stocks or bonds?
Stock Investments are at high risk.
Even the major firms and companies can see massive losses. Don’t take my word for it though, ask anyone who bought Facebook Stock too early or LinkedIn and saw the speculation bubbles burst as neither company had the physical assets or fluid income to support such high prices. Many investors hit these bubbles and lost tens of thousands or even millions in some rare cases because they bought in late on the IPO and paid too much for where the price would sit just a few days later after being largely devalued by experts.
Bond Investments, especially municipal bonds are a solid investment.
A bond works like borrowing money and paying it back with interest. There is less than a 1 in a million chance of a City, Town, or State filing for bankruptcy protection and leaving investors out in the cold. This public debt is insured by taxpayer money and the interest rates are fixed for the investor at a set percentage per annum or year. Bonds are virtually guaranteed to grow and only those for commercial bonding such as bonded insurance and bank financing or savings bonds have a chance at minor losses in a bad economy.
Investing Gold and Silver Bullion Instead of Bonds
When looking at Gold and Silver Bullion you are looking at supply and demand economics on a rare commodity. The fact is that especially since the technology boom metals like Gold, Silver, Platinum, and Titanium have seen massive increases in demand for their technology applications alone. They are often commonly used in medical and dental procedures and every year our planet’s population grows by tens of millions of new patients. A growing number of these patients have some form of medical insurance and in most countries, you are guaranteed a minimum of emergency medical care at the Government’s cost if you can’t afford to pay.
There are people of wealth buying Gold and Silver for status and style.
Every few hours someone new becomes a millionaire. The percentage of people who are wealthy by world standards may not grow by much but the sheer number of people able to afford Gold and Silver wedding bands, jewelry, and even such extravagance as rims for their car or the car itself being plated in pure gold increases this demand.
Steady supply is soon to be a thing of the past for Gold and Silver Bullion.
Investing Gold and Silver Bullion has a finite amount available to us with little hope for enough new discovery to keep pace with demand. Silver alone has been projected to only be able to keep up with current production for another 30 years and is already considered in short supply. Several of the world’s biggest silver mines are anticipated to run out of available ore within the next 15-50 years.
What this lack of supply means to you is a guarantee that Gold and Silver prices will continue to rise as this massive shortfall deadline approaches. When manufacturing is forced to compete with investors for usable supplies it is always good for investors so not only do you have security but you also have guaranteed growth of your portfolio and it will be massive but then again gold and silver for investment have been massive for over 200 years.
If I had invested 20 years ago in Gold and Silver what would I have earned per ounce?
I was born in 1974 and by 1994 I was old enough to start thinking about investments and played with penny stocks and sought jobs with a 401K but ignored Gold and Silver because every time I was checking prices I saw pennies here and pennies there and stocks were jumping $200 a share overnight. The dot com boom was famous for massive market movements and I was star struck. I invested in mostly stocks so when the bubble burst it burst my bubble and I was lucky to have had a share of my investments in mutual funds that largely held bonds and commodities instead of stock.
In 1994 I could buy Gold for $384 an ounce, current Gold Prices as of this writing are 1,182.78 per oz. Which is a massive 309% growth. Silver has moved about the same in that time frame. In 1994 Silver was around $5.20 per Troy Oz. And is trading today at $17.13 per ounce for a 329% Return on Investment.
Summary reasons to buy gold and silver for investment.
Gold and Silver Bullion didn’t have a banking collapse or a housing bubble, and the .com boom was more of a firecracker than a 50mm cannon ball sinking your battleship That 300% ROI on a 20 year investment with added security is only the tip of the iceberg as we head into looming shortages with no relief in sight. The demand grows daily, supply is steady, new exploration is meeting environmental challenges, and mining is being rocked by over-regulation, excess taxation, and worker shortages.
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Proud Father of 7, husband of 1, and professional blogger. I have been working from home the last 7 years due to mental and physical health issues and am looking at an early retirement to just me, my family, and my BLOGS.