I just have to start by saying my first thoughts go out to everyone affected by the horrific attack in Las Vegas this week. It was indeed “an act of pure evil.” When an event like this occurs it is very hard to believe what we are seeing. I pray all those injured and bereaved will - somehow – recover to a point where life can feel it has goodness in it again. Heroically, there were many accounts of selfless bravery amid the horror.
The second event which must be acknowledged, but for entirely different reasons, is the Spanish referendum: “Catalonia goes to the polls in an incredible moment for democracy.” (The Guardian) The irony of this is not lost on all who voted to leave the E.U. 16 long months ago and waiting. I'll expand on this point in the next Monthly Update but suffice to say, this will categorically affect the economic and social ill-health of the euro-zone. And in a free market, we would expect that to, in turn, raise the price of Gold and Silver.
So, with this theme of Democracy and Freedom foremost in our minds, let’s look at how Investing in Physical Gold and Silver can be for everyone, regardless of your budget:
1) Equal Need
Everyone has a need to protect their hard earned cash. We all naturally understand this. It’s why we don’t leave our wallets or purses on the pub table or why we lock our doors at night, if we have any sense. So it is therefore also true that we all have an equal need to protect not just our cash but the VALUE of our cash. If I said to you I would look after your £10 for you, then when you came to get it back I only gave you £9.50 you would understandably be cross, because an injustice has occurred; you have incurred a loss, regardless of my motive.
Leaving too much of one’s cash in the bank has exactly the same consequence. “How does inflation affect savings? Let’s say you have £100 in a savings account that pays a 1% interest rate. After a year, you will have £101 in your account. During this period, if inflation runs 2%, you would have to have £102 to make up for the impact of higher prices. Since you will only have £101 in your account, you have actually lost some purchasing power. If your savings don’t grow to reflect this rise in prices over time, the effect will be as though you are actually losing money.” (Investopedia)
- If the Interest rate on your savings account has been 0% for several years
- Or/and you haven’t been given a pay rise for a year or several!
- Yet inflation is around 2%
- Then you’re losing cash by leaving your “money” in the bank
- This basic investing rule is well known to many of our readers.
Over the last 10 years or so, Physical Gold has held its VALUE against inflation:
“Many people believe that Gold is a good investment. So far they were right. Short term Gold has rallied as much as 618% in the last 10 years.” These figures were from 2003 – 2013: more recent statistics are harder to pin down. The following graphic from This Is Money “indicates just how far away we are from normal.” And that was written a few years ago before UK interest rates were cut even further to 0.25%:
Gold will not make one rich in times of high or hyperinflation but it will ensure you will probably get back the same amount of “currency” you put in. Interest rates are about to rise. Historically speaking, it is fair to say it is always a good time to buy Physical Gold and Silver if you are prepared to hold onto it for several years.
People on the right and the left of the political spectrum hate unfairness. “That’s not fair” is one of the first phrases an ego-centric child will learn in protestation. Have you ever read some financial guru waxing lyrical about a great investment to which he has access, but to which you don’t without an expensive financial advisor?
The truly great fact about investing in Physical Gold and Silver is the customer’s equal accessibility to online bullion dealers. After a little research, most of our readers will be in a good position to find out what they want to buy and order bullion through a preferred dealer. You don’t have to go through a third party or even pay an 'expert' to advise you on investing in Gold and Silver, although you may also choose to.
3) Wide Choice of Prices and Products
One thing I like about the concept of investing in Physical Gold and Silver is the extremely wide price range and therefore the diverse socio-economic group of clients such products attracts. That really can’t be said of many investment opportunities. For a start, Silver prices are currently 1/76 the price of Gold (Kitco), so if you would really like to own some precious metal but Gold is out of your price range at the moment, then Silver is such an accessible, and equally beautiful, investment metal. Obviously, this price difference is well known within the Gold and Silver jewellery shops but buying some pure bullion Gold or Silver is a much more cost-effective way to purchase these precious metals. Prices start around the £20 mark in Silver and for Gold prices, bars can be purchased, and stored, with no upper limit.
So you see, investing in Physical Gold and Silver really can be for everyone.
For a friendly chat about possibly jumping in and becoming an owner of some physical Gold and / or Silver investment coins or bars, call or email Bleyer on 01769 618618. Alternatively, if you are at work and cannot chat now just email [email protected] with your number and a good time to call you and one of the team will get back to you when it’s more convenient. Bleyer’s calls are no-obligation calls where you can ask the questions you need.