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Gold and Silver has a natural intrinsic value because it is rare and highly sought after.
Gold and Silver resists inflation because the amount of gold and silver is not increasing. The amount of gold and silver on earth is constant. Some gold and silver is mined and circulates above ground while some are not mined yet and left in the bedrock. The total amount is unchanged. Paper money comes and goes while gold and silver remains. No paper currency has survived more than a few decades, while the value of gold and silver has been consistent over thousands of years. Gold and silver are the asset classes that have historically fared best in times of high uncertainty and high inflation. In a time where assets like stocks, bonds or real estate are associated with high risk or uncertainty appears to gold and silver as one of the best options to protect and insure against one crashing financial, banking and monetary system. Some of the reasons to buy gold and silver: • Gold and silver is an investment that can serve as an insurance in uncertain times. • Gold and silver can act as a hedge in each portfolio for better risk-adjusted return • Gold and silver protect against inflation and the erosion of the value of money • Gold and silver retains its purchasing power over time • There are many indications that the value of gold and silver will rise in the future, while other asset classes like stocks likely to be a bad deal. • Demand is rising and while production is stationary or falling. • Gold and silver have been used since ancient times, and may continue to be used as a liquid asset value preservation and money. • Especially silver has industrial uses in areas such as alternative energy or IT products, which supports the high value. • Owning physical gold and silver is no counter party risk. You do not rely on any bank, securities broker, commodity exchange or certificate issuers.
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 Invest for Peak Oil?
I get many questions about how to invest for peak oil, and then refers to capital investments and not personal preparation and resilience. On the latter point, I get off and the emails from readers who need additional coaching and advice based on their own circumstances. Certainly nice to have such confidence, but it's basically a question that is impossible to answer correctly on. But that is only an illusion and naive dream that one person can duck peak oil by profit from the phenomenon. One should also distinguish between shorter-term investments and long-term here. For what may work in the short term, odds are it will not work in the long term. Several crises Peak oil is just one of the crises that we must come, let's call it the energy crisis. We have a debt crisis, financial crisis and the food crisis to name a few. There will be alternating deflation and lack of excessive price increases. Differences As we all saw during the financial crisis, there is a difference in the industrial commodities driven by the economy and, for example, gold. Despite the lack of it is the economy that determine the price of oil. This means that you can not protect against peak oil by investing in oil and sit still in the boat. For the price of oil and the oil companies will be slaughtered when the energy crisis and the accompanying energy and oil prices once again break the world economy. |
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