Russia invades Ukraine and Justin Trudeau freezes Canadian bank and crypto accounts. These are two recent headlines that highlight why gold is good. If you own precious metals, you can protect yourself from uncertainties like war or political crackdowns.
On top of this, precious metals are now something of an overlooked asset. Everyone wants crypto or NFTs, and the demand for gold has fallen. Many profitable gold miners are trading cheaply, with share prices under $5.
This means you could skip a cup of coffee a day and use that money to buy into a successful mining business that pays you quarterly dividends.
Think about that for a minute.
Owning profitable gold miners is a good Warren Buffett like value play, but physical gold has advantages too.
Going back to Russia and the Ukraine, both countries are freezing bank accounts and limiting withdrawals to $20.
If you were a Russian or Ukrainian and you wanted to flee your country, tough luck. But by owning gold or some type of valuable (like art or an expensive watch), you have a physical item that you can take with you and use as barter.
Wealthy Russians, and Ukrainians (as well as the Chinese and many Latin American moguls) keep precious metals to fund spur-of-the-moment getaways. I’m sure there are plenty of rich Eastern Europeans who used their gold this week to get out of the current warzone and into a nice, Caribbean island resort.
Of course, precious metals have other benefits as well…
3 Reasons Why Gold Is Good
1. Precious Metals Are A Store Of Value
Paper money loses value. This is a process called inflation, and it’s why everything is always getting more expensive. While gold and silver won’t make you rich, like certain stocks will, they will keep you from being poor.
2. Gold Is A No-Brainer
I like stocks and real estate and crypto. However, a lot of these markets are volatile and require close attention. What’s popular today is junk tomorrow. GE was one of the best preforming stocks for decades. Now, the company is struggling and investors are out billions of dollars. Gold and silver are very much “buy-and-forget” assets, because they always retain value.
In 1992, a gallon of milk cost $1.13 and an ounce of silver cost $3.95. Today, an ounce of silver is worth about $24.37. And a gallon of milk costs $3.88. That one ounce of silver would have bought three gallons of milk in 1992. But now it buys six.
Had you bought one ounce of silver in 1992 and thrown it into a desk drawer, your net worth and buying power would have increased drastically.
All without you ever having to look at, or think about, your investment.
3. It’s Something Valuable That You Can Hold
Gold is good because it’s a physical asset. Cash loses value, so people have to keep their money in the bank or stock market.
And if a situation like the Ukraine happens, you can’t access your funds when you need them most. Why? Because your “wealth” is entirely electronic and being handled by a banking computer that’s potentially thousands of miles away.
Since gold and silver retain (and even gain) value, you can keep your precious metals in a desk or safe – giving you easy access to your money during an emergency. When bad things happen, you can grab your precious metals and get out of dodge. It’s a good way to ensure that you are never helpless.
Where To Buy Silver And Gold?
There are many different places to buy gold and silver.
Personally, I have ordered through Buy Gold and Silver Bullion Coins before, and think the site is fantastic. You can buy precious metal coins or bars, and have them delivered directly to your home.
The site also offers a wide variety of different gold and silver items.
You can buy anything from huge boxes of gold coins, to a single roll of 90% silver “Roosevelt Dimes.”
There are a lot of great choices here, and most orders ship the following business day.
So if you want a good, no-brainer hedge against inflation and uncertainty, check out Buy Gold and Silver Bullion Coins.