![]() The only reason the dollar is worth something is because it’s a worldwide accepted form of trade. There aren’t many times you can take a bag of gold chains to the gas station and exchange it for a tank of gas. And like Dave says, “At no time has gold been used as a medium of exchange of a crashed economy since the Roman Empire.” But that’s a myth-because when an economy crashes, people go back to the bartering system. When people are afraid that the economy might crash, they run to invest in gold, believing they’ll be safe financially. And if you look at gold prices, its value is all based off of emotion. That’ll give you an idea of what it’ll do in the future. And if you don’t believe us, just look at history.Īnytime you’re analyzing an investment ( real estate or stock), you should look at its track record of what it’s done in the past over a long period of time. ![]() Unless you want to get into the jewelry-making game, investing your hard-earned dollars into precious metals like gold, silver and platinum is not the best use of your money. “I don’t buy precious metals at all because I like my money-I don’t want to lose it. That stock is tied to the current value of the gold, platinum or silver that you invested in. With ETFs, you buy stock in the precious metal of your choice. Market chaos, inflation, your future-work with a pro to navigate this stuff. Just like when you hold a dollar bill in your hand, you have the security of being able to actually have your investment in the form of gold bars or silver coins in your hand (or stuffed in your safety deposit box). When you buy the precious metal outright, you might feel like you’ve struck gold (literally). Buying an exchange-traded fund (ETF) or a mutual fund with gold in the mix.Buying the gold, silver or platinum outright.There are two main ways to invest in precious metals: Listen up: Commodities and resources like gold, silver and platinum aren’t going to save you from inflation. If you want to be a fancy investor and expand your portfolio, we suggest looking elsewhere. Not to sound like a broken record here, but just like gold and silver, platinum isn’t the investment you’re looking for. Not only that, it’s often used in chemotherapy. But it may surprise you to know that it’s also used to make dental fillings, pacemakers and car parts like converters and spark plugs. Platinum is most commonly used in jewelry. The prices of gold and silver are so unstable (and have been over time) that the only use for them in an economic crisis would be to hope someone would take your silver coins or watch in exchange for a pack of toilet paper or a can of gas. But here’s the truth: Silver (like gold) is not your answer to a financially stable life. ![]() Some people believe silver is often a better investment than gold, hoping its lower price point will get them a better return if the markets ever change for the better. But you probably don’t think of its use in mirrors, dental fillings, batteries or even those touchscreen gloves you got for Christmas. When you think of silver, you probably think of your grandma’s silverware (and the time she paid you to polish every spoon she owned) or your favorite necklace. So, when you decide to invest in gold thinking you’re going to be “one of the smart ones” if the dollar tanks, you may actually have just flushed your money down the toilet. But listen closely: Since the dollar isn’t backed by gold anymore, investing in this precious metal won’t help you if inflation hits. And some people still do this, but instead of burying gold bars in their backyard, they’re buying stocks or mutual funds that invest in gold. 1 Before this, people would buy gold bars as a way to diversify their investment portfolio and give them a safeguard against inflation. dollar hasn’t been able to be converted into gold since President Richard Nixon ended that practice in 1971. Sorry to burst your 24-karat bubble, but gold isn’t worth what you think it is. No wonder we’ve grown up believing gold is the most valuable thing we could have. When you think about the world’s obsession with gold, it’s easy to get caught up in the adventure and mystery-like panning for gold during the gold rush, pirate ships and treasure maps. Let’s dive into the big three: gold, silver and platinum. Throughout history, gold, silver and other precious metals have been highly sought after and considered the most valuable commodities someone could own. But before you invest all your money into precious metals, let’s get the facts straight. When the world seems like it’s going crazy and the news cycle is filled with a constant stream of bad news, you might be tempted to make some dumb financial decisions like go all in for a “better” bartering system based on commodities like gold or silver.
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