Traditional “paper investments” like stocks and bonds have performed poorly in the last few years. Even more tangible, long-term traditional investments like real estate have fallen prey to global economic factors like government-manipulated interest rates, inflation, and devaluation of the dollar. Investors everywhere are now abandoning their strategy of profit sharing and equity building through stocks, bonds, and real estate, and seeking to invest in precious metals.
Precious metals have historically shown to perform in the opposite direction of printed money, or “fiat currency”. Fiat currency is merely a promissory note that is issued by governments. Historically, fiat currencies have been backed by gold until massive overprinting of the currency drives the value of it down, or renders it virtually worthless. A prime example of such fiat currency is the post World War I German Marc, which many of us remember from pictures in our history books, was burned in stoves, or carried in wheelbarrows. A few fortunate German citizens who chose to invest in precious metals (specifically, silver coins), managed to avoid destitution.
Today, the U.S. dollar is the currency used by all countries as their main reserve currency. Massive overprinting of dollars by our Treasury Department (over 40% in the past three years), has devalued the dollar to the point where investors worldwide are turning to precious metals as a means of preserving their wealth.
There are many options to consider for those who invest in precious metals. It is paramount for each individual to conduct his/her own research to determine his or her own, specific financial needs.