July 12, 2009 – Gold And Silver Investments
In many an investor’s mind, it seems that there would be just a bit of confusion regarding gold and silver investments. For lack of a better term, you could say that there are a few common myths regarding this form of investment.
Firstly is the idea that gold and silver investments are only useful during a recession. This is, of course, simply not true. Gold and silver investments almost invariably perform better during a recession, that’s when they truly shine, but saying that gold and silver investments are only useful during a recession is like saying that car insurance is only useful if you get into an accident. True, that’s when you are most glad to have insurance, but that doesn’t mean that you never want to be without insurance, that you should just skip it until you get in an accident and then buy insurance. Rather, you always want to have insurance just in case. Likewise, it’s a good idea to always hold gold and silver investments just in case.
Second is the misconception that gold and silver investments are only an option for the incredibly, incredibly wealthy. Look, the wealthy, the moderately wealthy, the middle class and even those just making ends meet have the option of investing in precious metals. The gold and silver investments grade coins from the US Mint make it incredibly easy for literally anyone to start investing in metals. There are more than a few investor coins available right now for less than the money you have in your pocket at this moment.
This leads us into another misconception: That you cannot make real money on metals. Not true. Sceptics will be quick to point out that, during times of relative ease, that gold and silver investments tend to be lower, experiencing very small gains over time. True, but not entirely relevant.
The whole point of gold and silver investments is not to get rich overnight, but to protect what assets you do have and to ensure positive growth over time. It would be nice if there was such thing as a zero risk investment that is guaranteed to make you rich in a matter of weeks with very little work on your part, but that’s simply not the case.
Financial independence requires quite a bit of hard work along with patience, the capacity to learn from your mistakes and the mistakes of others, and, of course, a solid backbone for all of your investments.
That last point is, of course, where gold and silver investments come in. You won’t get rich overnight on the metals, but you won’t go broke overnight, either. Unlike stocks, which are volatile, and real estate, which is risky, the growth and decline of gold and silver tends to be steady and relatively predictable.
The point of metals investing is not to put all your eggs in one basket, don’t touch’ em, and hope for the best, but to put a solid foundation into something reliable.
The bottom line is this: By building significant investments in metals, you can then go on to take any risks you like with the rest of your money, knowing full well that you’re protected in the event that things don’t go your way.
Jul 12, 2009