You know it…EVERYONE knows it…the economy is awful. No matter where you turn, it seems like there is something bad happening in the world of finance. Fortunately, there are time proven remedies and solutions for moments such as this. For example, one of the most common things that investors have done in the past hundred years is to begin buying silver coins to offset risk or loss.
They do this because the coins are made from a precious metal that is considered to be one of the few “real money” assets. For instance, anyone buying silver coins today is going to acquire items that have two kinds of value – intrinsic and extrinsic. The intrinsic value is the fundamental reason for buying silver coins because it comes entirely from the market price for the metal.
The extrinsic value, however, is also one of the main reasons behind the rush of investors buying silver coins. This is because it is the currency value that is fixed to the coins and backed by the Mint or Treasury. For instance, let’s say that you purchase one hundred silver American Eagles. Firstly, they are going to be worth the current market price for an ounce of pure silver. They are also backed up by having the currency value of one dollar each. This means that they will always be worth something, regardless of the behavior of silver in the market.
Can you name any other forms of investment that come with a built-in insurance policy such as this? Can you make a large investment in a specific stock and know with absolute certainty that you will always get something back, even if that investment fails? No! This is one of the main reasons that perceptive investors are buying silver coins.
We cannot overlook the most obvious reason for their purchases, and that is the basic fact that most of the world’s traditional investment vehicles are no longer stable or reliable. This means that the slow and steady pace of increasing value that silver has shown over the decades is working as a safe haven, but the rush to put money in this safe haven is going to continue to drive up the price. Until the world’s economic situation stabilizes (which is not anticipated to happen at any time soon), precious metals such as silver are the smartest, safest, and most reliable way to protect and grow wealth.