Experts claim that gold is increasingly headed higher. This is because of low levels of the precious metal’s supply/inventory at both the wholesale and retail levels. Additionally, the mining of precious metals is decreasing year-on-year.
Insufficient supplies have been indicated by the three most important mints: the United States, Canadian and Australian mint. They have also hinted at the chances of temporarily cutting down sales in the near future to the public.
This is why many financial analysts emphasize investing in physical gold and silver. Paper forms of the metals, including futures contracts and ETFs might not be able to procure the same benefits. They are rather similar to the fiat currency that you are trying to protect against. The real benefits lie in silver and gold bullion e.g, bars, coins, and jewelry.
So why do experts think that it is so important to own precious metals:
Here are some reasons to own gold and silver.
Firstly, physical gold is not meant to provide immediate benefits to the investor. Instead, it is used as an insurance policy and protection against both a breaking financial system and depreciating currencies. Ultimately, gold is money that will outlast all fiat currencies. It has been a store of value for about 3000 years. Silver, along with being a store of value has also been used for coins for centuries now. Both these metals have a proven track record in acting as long-term stores of value that will protect you when paper currencies fail.
Gold, like many other commodities, follows certain patterns. Many believe that the gold market is manipulated (i.e, purposeful efforts to sway gold prices in financial markets by the Bank of International Settlements.) However, one needs to look at the reason behind this manipulation. If the BIS is issuing gold swaps to manipulate bullion, the objective is to help protect the “paper” shorting scam. These swaps will help ensure that critical physical shortcomings can be accounted for with paper gold. This frenzied manipulation by the BIS is believed to be a dire attempt at veiling critical shortages in the physical market.
Gold and silver are set to be designated as “must-have” investments in the anticipated upcoming bear market for currencies (where less liquid currencies are sold by investors) and the bull market for precious metals. Therefore these two metals are more liquid than any other investments.
Financial analysts believe that in the next several years inflation will begin to rise, and consequently so will interest rates. This will keep the real interest rates low (or even at a negative level) that will only boost gold’s price. This happened during the 1970s crisis.
Finally, instead of buying for speculative purposes, gold and silver should be bought as an insurance policy to protect against the looming monetary periods of currency collapse. Except of course, if you have gold and silver as an umbrella.