The Eternal Love with Gold & Silver

Gold and silver – a timeless wealth

Wealth presents itself to us today in several forms, one which has long endured the golden test of time is gold and silver. The pure value of these 2 precious metals has been resilient through age, with the practice of using gold and silver as money dating back to some 4,000 years ago.
This timeless form of wealth offers investors reliability and security, by preserving purchasing power and granting stable financial ability to ride out volatile markets, more aptly so in situations today where international governments incline to produce unprecedented amounts of fiat currency through massive printing, which inevitably devalues the paper currency.

Survivability
While the value of paper currency can be affected by supply, precious metals like gold and silver are a hedge against inflation and depreciation as they cannot be produced or printed as quickly as compared to fiat currency, exhibiting an innate ability to conserve intrinsic value. The fact today remains that gold and silver have been tried, tested and proven to be the sole enduring form of money throughout history. In retrospect, countries which initially preferred fiat currency as an alternative reverted to precious metals for its significant financial stability – trading silver and gold for everyday and larger transactions respectively.
By nature or nurture, gold and silver is money. According to Section 10 of the United States’ constitution, “No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.” Section 10 recognizes volatility of the U.S. Dollar in paper currency, and thereby acknowledges the capability of gold and silver to protect its value.

Financial security
Prior to US domination of paper currency, China traded on a Silver Standard and for most other countries, a Gold Standard. Back then, the price of an ounce of Gold in the US rose only a mere 74 cents (from approximately USD20.58 to USD21.32) across 100 years during the Gold Standard, proving its security and remarkable ability to withstand inflation.
Of course, gold and silver prices these days are relatively higher. Rapid inflation rates caused by much dependence and circulation of paper currency are conversely resulting in its devaluation and the substantial rising prices of commodities, including gold and silver. The problem of over-circulation of currency derives partially from a current lifestyle tendency to purchase in credit, as every new loan application authorizes the bank to print yet more currency – leading to yet higher devaluation of the paper dollar. More is less when printing more currency ironically makes it easier to obtain and less valuable for the many more people who now own it. Therefore, paradoxically, no one really owns money anymore – since inflation from over supply reduces the paper dollar’s value and its supply rests not within our control.
On the other hand, when one invests in gold and silver, one genuinely owns it, as the investor can be positive that they cannot be produced easily on demand. And so indeed, that gold and silver are a timeless wealth and a practical, worthwhile investment.

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Joshua is a bullion hobbyist who is interested in our current daily economics, especially about how high inflation can greatly impact our lives. He is currently a student and has been running a private website since mid 2008, offering to import in several popular types of physical silver for investors in Singapore. Joshua's ideal is to provide the local investors with well known silver collection at a cheaper rate in order to boost a high bullion traffic flow in Singapore, and hopefully in time will match the traffic in the US market. Most importantly, Joshua hopes to spread the knowledge of how fiat currency works and hope that the general public are able to protect themselves in some way or another, with realistic expectations when investing in Precious Metals.

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