How To Protect Your Wealth From the US Government, Fiscal Cliff, and Falling American Dollar
How to buy gold and silver is a topic that many ponder.
How to protect your wealth against economic uncertainty such as the fiscal cliff, the falling American Dollar, the US government, and inflation are even more in vogue.
Both silver and gold are considered to be valuable metals that can be used by investors to hedge against economic uncertainties that are caused by incidences such as fluctuations in the value of the currencies.
Reasons for investing in Gold
Gold is considered to be relatively stable. For this reason, investors consider Gold as a means of hedging against inflation. Additionally, gold has been used for the long term as an asset for storing wealth, and in some cases as a form of currency.
Another aspect which endears gold to the investors is that it is very rare. This aspect helps to preserve the value of gold against the extreme fluctuations in value, which are experienced by the other assets. It has also been adduced that it is very difficult to develop a counterfeit of gold. Whenever there has been widespread economic turbulence, gold has been found to be a much safer way of preserving the value of the wealth of the investors. Additionally, gold provides a means of increasing the wealth of the investor. Moreover, gold is considered to be very portable. This further endears it as a valuable asset, and it is sometimes used as a form of currency.
Reasons for investing in silver
It is postulated that there is less high quality silver in the world today as compared to gold. This implies that the quantities of such silver are very small. This serves to heighten its value as an asset. For this reason, silver can be used to preserve the wealth of the investors in times of economic upheavals. In addition, silver is considered to be a very important commodity in the world. In fact, it is considered to be second to oil in terms of importance. One of the ways in which silver is used is in minting coins, which are used as a medium of exchange among many other roles. Silver has many other characteristics which serve to enhance its value as a precious metal. These characteristics include the fact that it is a good conductor of electricity and it is a good conductor of heat. In addition, silver is also known to be a very good reflector.
Like gold, silver is very scarce in the world. This can be attributed to the fact that the world's demand for silver far outstrips the rate at which it is mined.
Prudent ways of investing in silver and gold
The investor should set a target as to how much silver and gold he intend to invest in at any particular period. This will help the investor to ensure that he has enough cash that can be used to take care of his other immediate needs. For those investors who are risk averse, an investment in gold will provide the much needed means of hedging against risks, since it is considered to be a relatively safer investment.
For those investors who would want to hedge against occurrences such as hyperinflation, they should consider investing in physical gold and silver. However, those investors who would prefer to actively trade in their stocks of gold and silver, they should consider investing in forms which can enable such trade. In this regard, there are silver and gold equivalents that are referred to as valuable metals electronic funds.
The investor should also decide on what proportion of gold and silver to invest in. It must be borne in mind that gold is considered to be more stable than silver. However, one of the drawbacks of gold is that it is very expensive. On the other hand, silver is considered to be more volatile that gold, hence its value keeps on fluctuating from time to time.
Generally, investments are considered to be risky. For this reason, the investors are supposed to ensure that their investment in gold and silver carries very minimal risk as it is practically possible. In this regard, the investor must ensure that their stocks of gold and silver are stored in a safe place that cannot be accessed by thieves.
Additionally, the investors should keep track of the price of silver and gold to help them to make good decisions regarding what to buy at any given time. This will also help them to decide when to dispose off their assets to forestall possible losses, or to take advantage of any gains that may have been made.
In conclusion, if you want to protect your wealth from economic uncertainty including Uncle Sam, inflation and the fiscal cliff, you need to concentrate on buying gold.
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