It truly is of no surprise that tons of people are now seeking for a reliable place in which they are able to invest their hard-earned cash. Treasury Bonds, CDs or Certificate of Deposits which were previously one of the most safe and effective methods to generate income, can no longer assure you a huge return on investment. To make matters worse, these investments may also lead you to an unfavorable return on your money.
Over the past 10 years or so, precious metals including gold have risen in worth quite significantly. Despite the fact that silver and gold did not increase in their overall selling price during the past few years, gold was still able to increase its value to approximately 400% over the past 10 years.
Gold and silver have both been valuable pretty much from the beginning of the human race, and have never lost their true worth, in spite of the rise and fall of governing bodies and paper currencies. Hence, it is of no doubt that precious metals deserve to be on top of your priority list when searching for a smart investment.
Provided all the financial chaos of recent years, lots of people have started to really doubt the stock trading game and the currencies these investments reside in. This distrust is quite apparent in the current situation of the Euro as well as the USD.
The US has experienced difficulty funding its huge federal debts in recent years. To fund deficit spending, the US Treasury provides treasury bonds, and both domestic and foreign buyers would be the ones to purchase them. The Chinese government for instance, holds around $2 trillion in United States debt. Not long ago did the US turn into quantitative easing. Reason being is that the US government has produced quite a large amount of debt, that they are unable to find adequate buyers for the treasury bonds.
For those who are unfamiliar with quantitative easing, it is actually when the US Treasury produces bonds and the Federal Reserve “buys” them. In simple words, it is just printing money out of thin air!
This action serves to undermine the value of the currency itself! Many people are so concerned about this, and consequently they made the decision to keep their wealth in precious metals, because of the fact that they will keep their market value irrespective of what occurs with the value of a currency.
Even the Euro, which is actually the second biggest currency around the globe was not able to avoid the bad luck. Several members of the EEC are nonetheless encountering a whole lot of economic complications, even right now. The truth is that Italy, Spain, as well as Greece were unable to flee the tough reality. You will see them in news bulletins frequently, concerning all the problems their financial systems are currently going through. This threatens the existence of the EU and its currency the Euro. So, the Euro isn’t a safe home for your cash either.
Considering the very few steady monetary alternatives that are available today, precious metals are definitely a safe haven to keep your accumulated riches. Though I know that in the end some may disagree, the truth is in the facts and history.