Fiat Currency vs Gold and Silver

For thousands of years and throughout many civilizations silver and gold coin was used for money. In today's economic climate, as food and gas prices go up while wages fall or remain stagnant, and the dollar weakens, preserving wealth and purchasing power is vital. Gold and silver coin offer a safety net in rough times. Precious metal prices in the last few years have increased substantially and is predicted to go much higher. Take a look at these gold charts and silver charts for various time spans to see how prices have gradually increased. Prices are in Troy ounces

Well, that's true. But should the dollar collapse wouldn't be better to be safe than sorry? Of course stocking up on food and other necessities is important. No one really knows how a failure of the U.S. dollar will affect our country. States might secede from the Union and write their own laws. Some businesses may choose to accept gold or silver as money. There is a general consensus that massive inflation will occur. The point I'm trying to make is don't assume that some things are unlikely to happen. Be prepared for any scenario.

At different times in history paper money was backed by gold. Thus, the amount of paper bills printed was restricted to the amount of gold reserves, allowing just enough to be in circulation. Each bill could be traded for its equivalent in gold. Paper was just a receipt for the actual money, not the money itself. In 1971, the dollar was completely removed from the gold standard, and we entered the age of fiat. With no restrictions, unlimited amounts of money can now be printed which makes the dollar become more and more worthless. In case of a total collapse of the dollar, real wealth is needed for people's survival. Many now are already purchasing metals in the event massive inflation should occur.

There are various ways to invest in precious metals such as mining stocks, ETFs, and futures contracts, but this site deals with buying physical coin. I am not a professional investor, just giving you some basic information about coin buying. That's one of the best things about it. It's not rocket science. You don't have to know about the stock market or be an investment professional to purchase physical metals. Anybody can do it. And many are!!

Many Say, "You Can't Eat Gold & Silver"

Brief History of Money

As you can see from the charts growth is not linear. There are going to be short-term dips along the way. That's why when evaluating precious metals you have to look at long-term performance. The data shows that gold and silver prices rose significantly over time. Now is the time to purchase before prices become un-affordable. Most already can't buy gold, but silver is still very reasonable.

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Fiat currency is money with no intrinsic value and is not backed by anything having any value, such as a precious metal. It's value depends strictly on the confidence of the public. Pretty much all paper money in the world today is fiat. The word fiat literally means "Let it be done" in Latin; in other words, it's a decree. In relation to currency it simply means that a government has ordered that something is declared legal tender for use as money.