It is time to put a myth about gold and silver investment to rest.

May 18, 2011 – It is time to put a myth about gold and silver investment to rest. All of the recent market news focuses on the volatility of the market and the speculation that creates it. We are urged to steer clear of buying gold and silver because they are lumped in with every other commodity.

The commodities market certainly is the playground of high rollers. They bet on movements in price without regard to actual current value. And gold and silver prices are not immune to the whims of the speculators. But both metals have an advantage over the other commodities – an intrinsic value that has persisted over centuries.

The value of gold and silver, averaged out over the long term, has proven to be remarkably consistent in terms of the only meaningful measure – purchasing power. While speculation falls under Wall Street’s cherished definition of investment – those thing that have the potential for creating dollars out of nothing – long-term holding of the metals does not. But what good does it do to double your cash when cash is now worth half what it was when you invested? It makes even less sense when the dollar is falling faster than your gains.

True, the gold and silver markets tend to be volatile, but there is an age old method to even it out, one very familiar to most investors: averaging. Instead of making one large yearly investment, hoping to come in at the best price, you simply make equal monthly (or even weekly) purchases of gold and silver. By year’s end accumulated wealth in gold and silver will be in line with the long-term trends.

The key is consistency, regardless of what is going on in the market. When you take physical possession of the gold and silver bullion you purchase you will build a reserve that will always be under your control and won’t diminish in true value. They don’t make money because they are money.

The dollar returns on traditional investments may well become worthless, but consistent long- term investments in gold and silver will build indestructible wealth.

Shannon King

Senior Staff Writer –

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