Why gold and silver, and when should I buy gold and silver?

written bySteven Jackson
posted on

Why buy gold and silver? Gold and silver are the ultimate stores of value because they have stood the test of time and have been recognized since antiquity as money that governments and central banks cannot debase. Gold and silver have intrinsic value with industrial uses, making them hard assets in addition to being stores of value. These assets are precious during inflationary times. However, unlike paper currencies printed at will by central banks, gold and silver cannot be arbitrarily created by governments or banks. This article explains why and when you should buy gold and silver, the importance of physical metal ownership, safe storage, how to buy gold and silver, and much more!

What do we mean by inflation?

Inflation is an increase in the prices of goods and services or a decrease in the currency's value. It occurs when more money is circulating in an economy than there are goods to spend it on, thereby increasing demand for those goods. Prices rise because buyers can offer more money for fewer goods, but that's not necessarily good news: It means your purchasing power has fallen. To understand how inflation works, let's simplify things. In 1980, for example, a movie ticket cost on average $2.89. By 2019, the average price of a movie ticket had risen to $9.16. Another example of inflation is in the figure below.

Example of inflation with coffee

How does gold protect against inflation? Gold is unique among assets in that its price tends to move opposite of most other asset classes during times of high inflation. When investors fear the rapid depreciation of their national currency, they often seek tangible assets like gold as a hedge against future price increases. So how does silver protect against inflation? Silver is also an excellent investment choice for the same reasons gold is. Silver has been just as effective a hedge against inflation as gold. Because of its lower perceived value, it's sometimes easier to acquire more significant quantities of silver for a given budget. So what are some indicators that inflation is coming?

The most important indicator of inflation is a significant increase in the money supply. If there are more dollars in circulation, then it stands to reason that prices will rise. (80% of US Dollars were printed in the last 22

months https://techstartups.com/2021/12/18/80-us-dollars-existence-printed-january-2020-october-2021/ ) Other inflation indicators include rising costs for labor, raw materials, energy, or other key factors necessary for business growth. We can also look at interest rates. When interest rates go up, it's usually an indication that inflation is on its way. This occurs because higher interest rates make investments less attractive (because returns on investments like bonds will be lower), which leads investors to seek alternatives such as real estate and stocks. And with more people looking to invest in these assets, demand increases while supply stays constant, so prices rise.

Inflation happens slowly over time but can be triggered by external events, including political changes or natural disasters. Moreover, specific industries tend to feel its effects sooner than others; consumer goods and services may inflate before housing prices increase. Central Banks and international organizations use two primary measures of inflation: CPI (consumer price index) and PPI (producer price index). While both show how much individual products cost consumers, PPI also shows how much companies pay for their inputs. How do we know if we have deflation? Now a good sign that you have deflation is when price decreases outpace economic output; some economists call negative deflation inflation because prices are dropping faster than average. These signs indicate that you might want to invest in precious metals. This leads us to our next question how do gold and silver protect you from inflation.  

How does buying physical gold and silver protect you from inflation?

The Federal Reserve is in complete control of inflation, and its inflationary policies can wreak havoc on your hard-earned money. And because gold and silver are traditionally considered to be hedges against inflation, buying precious physical metals is a natural fit for protecting you from rising prices. But what exactly does that mean? How does buying physical gold and silver protect you from inflation? Gold and silver metals offer protection against inflation by giving you actual ownership of tangible assets—and not just through paper claims on future value. These tangible assets have been used as an inflation hedge since ancient times. Today, they serve as a solid defense against central banks' monetary policy decisions that affect currency values worldwide.

Why choose gold and silver over other investment vehicles? Physical gold and silver are liquid assets that can be bought, sold, stored, and moved quickly. You don't need unique credentials or licensing to trade them; they don't require third-party intermediaries, and you don't need any complicated paperwork (or pay fees) to move them around—you can hold them in your hand. So how much do I need to invest in gold and silver? Start small if you want to reap some benefit from investing in precious metals.

A good rule of thumb is that 1%–2% of your overall portfolio is a good start. So, how do I start investing in gold and silver? Here's a link to a video guide to show you how to get started https://www.smartsoundmoney.com/wealth.

Are there downsides to buying gold and silver? No investment vehicle is perfect, so let's talk about some things you might not know about owning physical gold and silver. It takes time: With many organizations, once you've decided to buy physical gold or silver, expect a delay between your purchase date and the delivery date of anywhere from three days up to two weeks. This may occur because many organizations may not have the precious metal in stock. However, with 7K, this is never the case, in this video link it talks about the different, unique, and unusual benefits of 7K  https://www.smartsoundmoney.com/about7k.

Also, there are no minimums or maximums on the number of precious metals you choose to purchase. You can also buy in fractional amounts meaning you can use as little as $1 if that's your budget to buy partial amounts of precious metals until you can build up to a total ounce of gold or silver. This is a game-changer because many people may have meager incomes; however, with the ability to purchase in fractional amounts, they can acquire wealth and build a future for themselves and their families. Also, they provide free vault storage of your physical gold and silver for up to $25,000.00 then there are minimal fees.

How can investing in physical gold and silver protect your assets better than cash or other assets?

Now that we have talked about why to buy gold and silver and when should you buy gold and silver, we've also talked about inflation and how buying physical gold and silver protects you from inflation; we are now going to discuss how investing in physical gold and silver can protect your assets better than cash or other assets. In addition to its intrinsic value, gold is an excellent inflation hedge. Governments can quickly debase the value of the paper currency, but that's far more difficult to do with gold. Silver can protect against a crash in paper currency because it's more liquid than gold. So while you can convert your cash into physical metals and have them delivered to your door within days, many have found gold and silver attractive investments. You might consider investing in precious metals especially, if you expect severe inflation.

Physical gold and silver could be attractive investments if there's significant upward pressure on prices, as these commodities tend to hold their value better than stocks or real estate. Buy now while they're cheap. If you expect significant changes in interest rates, economy, or in currencies, now might be a good time to move before prices rise further. If concerned about financial markets, gold tends to perform well during periods of market stress like recessions and financial crises, while silver can also provide some protection from extreme volatility in those times. For several reasons, investing in physical gold and silver can be advantageous over owning stocks or other investments. First, it protects against economic uncertainty since you own something tangible rather than stock certificates or bank accounts denominated in devaluing fiat money. Second, gold has been used as a form of money for thousands of years, so its value isn't tied to any particular government or economy. Third Unlike stocks and bonds, which are subject to default risk (where you lose part or all of your investment), physical gold and silver do not come with such risks.

When you buy gold and silver, you usually buy them in bullion. Bullion is non-collectable gold and silver. Bullion involves purchasing actual bars, coins, or ingots made of pure gold or silver. As mentioned above, one benefit of buying gold and silver bullion is that it offers a hedge against rising prices caused by monetary inflation. Most goods typically rise along with consumer price index measures published by governments, but not always—and even when they do, gold and silver will retain much of their value compared to falling currencies. Historically, the value of gold and silver has proven to be pretty stable when measured against the dollar. Additionally, with gold and silver, you have a material asset that is recognized throughout the world for its store of value. When you own physical gold or silver, you're diversifying your portfolio outside of stocks, bonds, and mutual funds—something every investor should be doing.

Where should I buy precious metals from – online dealers or local dealers?

Buying online is generally cheaper than buying from a local dealer. Some dealers charge high premiums over spot value. They profit from you on other aspects of their business, like storage or insurance. This makes it difficult for people to make the right choice in dealers; even if they knew the right dealer, they would not know what to ask for and how to get started. For this reason, we at Peoples Depot have developed a collaboration with 7K, a company that will not only give you the best dealer direct pricing but also educates you on how to start investing in gold and silver; visit this link https://www.smartsoundmoney.com/wealth and learn more.

7K Metals is a company that sells gold and silver products. They also provide customers with an opportunity to develop their own business if they choose to buy selling products from their gold and silver site (Here's an example of what the product page on your site will look like, click here https://www.7kmetals.com/ceosteven/products ) or offer subscriptions to like-minded people that see the need to invest in gold and silver like yourself. Many people that offer subscriptions to others make as much as $500.00 to $7000.00 per week. Visit this site to see how you can do the same https://www.smartsoundmoney.com/compensation

7K Metals is a company founded in 2016 by four men: Roger Ball, Richard Hansen, Zach Davis, and Josh Anderson. It sells gold and silver at wholesale prices without any markup to provide its customers with financial security against emergencies like wars or disasters. They believe everyone should have access to high-quality products at fair prices. Its mission is to provide its customers with the best possible experience when buying gold and silver. They want you to know how much they appreciate your interest in their company, so please feel free to ask any questions about anything!

How do I go about investing in gold and silver and how much do I need?

You don’t need much money to invest in physical gold and silver. For example, you can usually find bullion coins for under $100 and 1-ounce rounds for under $50. But, of course, you could purchase in incremental amounts depending on your budget. Unfortunately most people have difficulty knowing where to start and what should be purchased. 7K has created and excellent system for that as well and it is called the auto-saver program. This video will explain the program's benefits and how easy it is to get started https://www.smartsoundmoney.com/autosaver.

Can I make a living by investing in gold and silver? While it is possible to make a living trading precious metals, most investors choose to use their metals as insurance against rising prices and increasing inflation. However, 7K makes it possible to earn a living with gold and silver in more ways than one. In addition, they offer a compensation plan for those that would like to create a business by inviting others to participate in their compensation plan. In addition, since many buyers will pay premiums for collectible coins, you may be able to turn a profit from your purchase after all expenses have been paid.

Many 7K members use the Stack-n-Sell platform to flip coins and make a sizeable profit. This is easy to do because many of the coins you receive from 7K have equity already in them by the time they come to your doorstep. The image below is an example of a coin that I received on 6/30/22. If you look closely at the circled price, you will see the $98.00 dollar amount of equity in the coin; see below:

Keep in mind that 7K does not only sell gold and silver, but they mint coins as well, and because of the eloquent designs and details, the coins are pretty attractive and increase in value very quickly; click here to see an example of their coins. Why should we get both gold and silver? A growing number of investors are choosing to own both gold and silver because they see both precious metals as having unique attributes that appeal to different types of investors. So when is a good time to sell my precious metals? This depends on what type of investor you are. For example, if you plan on using your investment as insurance against inflation, selling too soon would mean losing out on potential gains. However, if you plan on holding onto your investment for decades (or longer), there’s no rush to sell.

Like any other investment, some risks associated with owning precious metals. First, it’s difficult to predict how high prices will go. So while you might think that investing now means locking in lower prices, those same lower prices might lead others to start hoarding gold and silver before they rise again. Once everyone starts buying, those lower prices won’t last forever. Second, while rare, it is possible to lose money by investing in precious metals. If you buy too soon and prices drop, you’ll lose out on profits that could have been made had you waited until later.

On top of that, storing large amounts of precious metals requires extra security measures (such as safes), which can increase your costs. Unlike paper assets, precious metals don’t rely on third parties such as banks or governments to keep them safe. Because you hold the keys yourself, you always maintain control of your wealth. Keep in mind with 7K; they do offer free vault storage for up to $25,000.00.