(H/T Gold Silver Worlds)
Analysts and some precious metals’ sellers tend to focus on the “insurance” aspect of owning precious metals. They point out that having some in your possession helps protect your wealth in case of inflation, political unrest, or for use as an “alternate currency” during a natural disaster, war, etc.
Of course, these are all valid reasons for purchasing and holding “the precious metals four” – gold, silver, platinum, and palladium. But the benefits go far beyond the insurance and assurance aspects. It just makes all around good sense. For you see, each of these are in their own way, “good news” metals.
As the developing world’s wealth increases, hundreds of millions of people have more disposable income – money left over after covering life’s basic expenses. For millennia, a significant portion has always been directed and will continue to find its way into precious metals’ ownership.
In Asia, Indians regard gold and silver as “bank accounts in your hand,” dowries for exchange upon marriage, or the raw material for the creation of jewelry having lasting beauty. In China, where the savings rate can be as high as 40% of income, precious metals fulfill the timeless role of asset preservation.
In North America, Eagle and Maple Leaf sales continue to set records. Through September of this year, roughly 26 million American Silver Eagles have been purchased – on track to set an annual record – the most since their introduction in 1986.
When my daughter graduated from high school in 2000, my gift to her was a one-ounce gold Krugerrand – for which I paid $275.
When America’s first pure gold coin, the 24 carat American Buffalo was introduced in 2006, I bought one for $800 for each of my children.
All of these coins are absolutely beautiful. They speak of our nation’s past. They bring a smile to the face of someone who holds them in their palm. They are a store of (increasing) value. They are a “physical reality” by which only the person who owns them can lay claim. They are a direct and enduring link to 5,000 years of history.
Industry Loves These Metals Too!
Governments are mandating phasing out of incandescent bulbs for supposedly more efficient fluorescent lighting. But fluorescents turn on slowly, produce a different quality of light, and still contain mercury – a neurotoxin harmful to both people and the environment.