Hyperinflation solution: Gold and Silver

Here’s a few reasons why Gold and Silver are good solutions for the upcoming financial collapse. This is a very basic overview of a very detailed subject. If what you read interests you – please do more research. I’m not a financial advisory.

Gold and Silver are a global currency.

Because of their natural rarity and value, Gold and Silver are more like a legitimate currency than anything else.   They have been the core of most of civilizations mediums of exchange. Their natural rarity, their ability to withstand decay, their natural beauty and extreme density have all helped them achieve this status. Yes, fiat paper currencies have been operating strong for several years now. But that’s a historic anomaly.  Ours is the only currency that has been separated from Gold or Silver and has lasted longer than 30 years.

When people lose faith in fiat currency – they regain faith in precious metals.

When paper money stops supporting its value in Gold or Silver, it opens itself up to countless problems. While its value seems in good shape for a time – the money is living on a false premise. Paper money has no intrinsic value. It can only work as a medium of exchange as long as people have faith that it is valuable. A currency backed by Gold or Silver links paper money to something that is naturally rare and naturally impossible to fake. If its not backed by Gold or Silver – the money is no long forced to be rare (valued) and can be abused. Our government can print more money. Consistent printing of money devalues the dollars in existence and an abuse of printing always leads to a loss of faith in the value of the exchange.  Gold and Silver have, repeatedly in history, been the safety net from a financial collapse that occurs when people stop treating the paper in their hands as valuable.

Future demand

When people lose faith – they lose it fast. When you compare Gold and Silver to other asset groups they are  massively undervalued. This is because of the crash of the value of Gold and Silver in the 1980's -and the resulting surge of value in the stock market and real estate since that time. People have placed their wealth into stocks and houses the last 20 years – not Gold and Silver. But not anymore.  There is a strong move back into the precious metals market.  Significant economic trouble at home, a real estate collapse and a growing concern over inflation has triggered the public to start the move back into the Gold and Silver asset class. While the demand is growing, its still relatively small compared to the future potential demand.  The new demand will come quick and fast. It will also come from a variety of places. Be sure to have an exit strategy in place when investing – because Gold and Silver will bubble during the financial collapse.

Here are a few of the areas of future (and current) demand.

Industrial (silver especially),Investors taking massive positions,Mutual funds moving into Gold and Silver,the public seeing Gold and Silver as a viable option,and the ‘Cost to mine’ creating a perceived supply shortage.

The biggest factor will be the public moving into “poor man’s Gold” (Silver) as their fears over inflation increase.

Value moves through asset classes

This article is an overview. Wealth through market trends is a detailed idea to comprehend. I will try to make it simple – and I’m filming a quick video to explain the concept in more detail.

In essence: true wealth flows in and out of asset classes on a long term scale. Whole classes (Real Estate, Stocks, Gold, etc…) follow a cycle of four phases as time passes:

1. overvalued 2. crash 3. undervalued 4. valued rationally…. 1. overvalued… (repeat).

Wealth is never destroyed, it is only transferred. When one asset class is overvalued, another is undervalued. When one is collapsing, another is growing. A smart investor compares asset classes to each-other and determines which classes are in what stage. Currently Gold, but especially Silver, are in the “growth” stage – while stocks and real estate are still overvalued (comparatively). This is a strong argument for Gold and Silver even if we weren’t experiencing economic turmoil or hyperinflation possibilities.

False Market suppression

There has been extensive studies done that document the larger banks and central banks have been using their holdings in Gold and Silver to falsely manipulate the market so that the price of both Gold and Silver are artificially low. Their motive? Strong Gold and Silver means a weaker dollar.

This means Gold and Silver are still on “sale” – their ability to artificially suppress the markets works for a short term fix, but if consumer demand continues they won’t be able to keep it up. Just recently JP Morgan took a massive loss attempting to keep the price of Silver down. Though this area requires research – trust me when I say the current Gold and Silver prices are not a reflection of the true value found in this asset class. It is a manipulated low, and the manipulators are losing the battle to suppress the price.

Eliminate extra Risk

In times of economic collapse, it is extremely significant that you hold the goods in your hands. Its big that you have your wealth stored in something material that doesn’t rely on paper and the law to uphold and doesn’t require a third party surviving.

Gold or Silver?

When making the choice between Gold or Silver its important to note the following:

Silver is more undervalued than Gold – so likely has more future growth.

Silver has more industry demand than Gold – so its not only an asset, its a commidity used in products like cellphones, laptops, and batteries.

Silver is known as “the poor man’s Gold”. It’s cheaper to get into. But the rich are investing in it anticipating the middle class running into Silver during a time of collapse – which would drive the prices super high.

Some basic advice

Don’t invest until you learn and have a plan.

So what kind of potential growth are we talking? Some people are expecting Silver to hit 100 – 150 an ounce. (Its in the mid 30's right now). If it just hits a bit above $100 bucks you tripled your investment. Not bad.

But it all depends on if we experience financial collapse.  Gold and Silver are foundational investments – they are not get rich quick plans. It might take our economy five years to collapse. 300% return doesn’t sound as good when it consumes your capital for five years.

My main goal in this article is getting you to think about what will happen to your wealth during this collapse and how you can work to preserve it. If you are thinking Gold and Silver might be good choices and have decided to research it some more – awesome. I feel both (but especially Silver) are huge opportunities and you should consider it in your plans.

Here’s to your future.

~ Jonathan

P.S. I will be doing more articles on this topic and giving links to resources soon. Email me if you have any specific questions on the matter.

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