The Precious Metals Market Solution to the Debt Crisis

The Precious Metals Market Solution to the Debt Crisis 5.00/5 (100.00%) 1 vote

Both at the level of government and in personal finance, there is no bigger economic problem than debt, but the precious metals market holds the solution. Debt is caused by the continuing devaluation of money. But while gold prices may go up and own, it always has value. Of all the metals available for purchase, none is more sought after and therefore assured of lasting value than gold.

The Golden Parachute
Look anywhere in the world economic scene and nothing but dark clouds appear, or so it seems. Individuals who only want to secure their future and those of their families feel like they’re at the mercy of powerful forces like governments and big banks that are way beyond any person’s ability to control. Fortunately, this is not a frightening time to enter the precious metals market. In fact, it’s a good time.

Gold is the best way to insure a lasting supply of wealth, but the U.S. government long ago abandoned gold as the basis of the national treasury. Now, there’s nothing in the government vaults but paper. As a society, we agree that this paper has a certain value. But every time the government prints new money, that value goes down.

Gold, on the other hand, is a real, tangible entity with a limited supply, in addition to being perhaps the most sought-after substance in the history of human civilization. That is why gold is the best source of real value and wealth. When the U.S. Federal Reserve introduced its policy of “quantitative easing,” which is really just a fancy way of saying that the government is printing more money, the value of American dollars has been dropping. Compared to gold, the dollar is a very poor bet for the future. The precious metals market offers the safest escape from the coming economic downturn.

How to Go For the Gold
The simplest way to get gold is to buy it. In other words, venture into the precious metals market and trade in paper dollars for real, physical gold. The U.S. government would rather not have individual citizens in control of large supplies of gold and historically, governments will seize gold in times of deep economic crisis. But there are ways to legally obtain gold while flying under the watchful eye of the government.

The precious metals market isn’t only about buying gold bars, or trading sophisticated instruments like mining stocks and commodities futures. Gold is used to make jewelry, watches, wooden watches,  and other luxury items. An investor can seek out these items and buy them just like any other consumer would. Except, rather than parading around in a gold watch and cufflinks, with a gold chain around one’s neck, the smart investor holds on to his gold-manufactured items, store them prudently until the time is right.

Then, no different from gold bars or bullion, these items can be exchanged for goods and services or other forms of money.

A Good Time to Get Into Gold
While the price of gold is subject to the same fluctuations as any other commodity on the precious metals market, physical gold is not primarily a speculative investment. Actually, gold serves as a form of insurance against the uncertain fortunes of speculative investment. On the stock and commodities market, an investor can lose everything overnight with a few poor choices.

But while gold may drop in price, an investment in gold will always have significant value and when it drops in price, the nature of the precious metals market is that it will go back up again at some point. The craziness that seems to govern short-term speculative markets does not affect gold, which had inherent value beyond the arbitrary value that speculators dictate.