I've been reading up a lot on this global financial crisis and the general consensus is to keep stacking physical gold and silver so you can maintain your purchasing power. Some people think they will get extremely rich by investing in these 2 precious metals. But I can only see everyone else getting poor and gold and silver investors maintaining their wealth. I recently purchased a bunch of silver and only a little gold based on advice from a few trusted friends. The more I read about it, I'm not sure why I bought any silver. I am told silver is meant to follow gold but it doesn't seem like it. I'm starting to feel gold is a much safer investment. Anyway, I keep hearing that paper money is not wealth. This is most definitely true when it comes to American dollars but my money is in Canadian dollars. Research shows me that the safest currencies are those tied to commodities, such as the Canadian dollar (CAD) and Canada is not reckless with their currencies and national resources. So is there any point in investing in gold and silver if I am not an American? Any insight would be greatly appreciated.
G&S or a Better Currency?
Gold and silver have thousands of years of use as money.
No paper currency has more than a handful of decades.....including the Canadian Dollar.
Silver is on sale right now. That's why it's low.
Silver is as important as gold for two reasons: silver has traditionally been a precious metal and money, and will be again, when paper currencies fail. Silver is a C-R-I-T-I-C-A-L industrial metal with so many uses it would take pages to list them all, and as long as the industrial world holds together, silver will be in demand. Look up the world stats on production, and use, and make your own judgment as to where price is going.
Gold, I would agree, over time, should simply retain purchasing power....the increase in price is merely a reflection of how crappy paper currencies are getting, not a true indication of an increase in purchasing power for REAL goods.
Silver, on the other hand, due to the fact it is "used up", and basically scattered to the winds as not economically recoverable in most cases, is becoming more rare.....some estimates claim above ground stocks of gold now exceed silver.....and thus silver does have the potential to explode to the upside due to scarcity. My own holdings are 30:1 silver to gold.
In any case, I wouldn't buy the first ounce of either until I had a year's worth of food put up, a reliable water source, and enough firearms to keep somebody from taking it all.
I'm not familiar with the history of the Canadian dollar, but I'd bet it hasn't been around in it's current form since 1858......just as the American dollar has been "around" since 1790....but it went to hell in a handbasket in 1913 and 1933, and up until 1971, Canada could still redeem US dollars in gold.....so just because the name stuck doesn't mean the money is the same.
As to food and water, I always love it when folks tell me what they "could" do if they had to, as if it's no trick.....tell me what you ARE doing, and I'll be far more impressed. On guns/ammo, well, again.....study history. Almost all conflicts are resource related. "you got it, we want it". If you come to a forum of being prepared, and don't think that is a possibility of coming to a location near you, I think you're the one that is nuts.
Is where you need to focus. No one knows if and when this will happen, this is a LONG term play, as things are now the chances of a collapse are better than they ever have been. As the US holding the reserve currency all currency's will fall in a domino effect unless some type of miracle were to occur.
I hold , not for future Wealth but for holding onto the living standards I now have and surviving during and after if a collapse occurs, if I come out better then so be it, I took the risk.
If you want to make today's fiat off of buying and selling PM's then go for it, otherwise hold until you need it and hope you never will.
I get aggravated seeing people who have bought PM's gripe about the rise and fall in fiat price, for those.........you bought for the wrong reason's and you need to sell out.