You are not alone if you are concerned about the state of the economy. While many people accept the news about advancing stock prices as a sign of economic health, others understand that this is just due to the inflation that is making all the boats rise. These earnings do not do many average investors any good. They are not making enough to outpace inflation. Essentially, they are losing the purchasing power of their wealth with every passing day.
The dollar is weakening and no one seems interested in stopping this phenomenon. If you want to protect yourself from a potentially disastrous inflation rate and the complete loss of your savings and investments, you need to reconsider your options. If you want to follow in the footsteps of some of the most famous and successful investors from around the world, you will invest in gold, silver and platinum assets.
The Value of the US Dollar
Once upon a time, the dollar was tied to gold. Due to this, the value of the metal remained incredibly stable for centuries in the United States. However, in 1971, President Nixon’s administration orchestrated the departure of the US dollar from the gold standard. While the government always had the right to print money in one way or another, this gave the feds even more freedom to manipulate the currency. The 1970s were characterized by inflation and rising prices of precious metal.
This inflation was stalled by a changing economy in the next few decades but it resumed again at the beginning of the 21st century. It became very noticeable after the market crash in 2008. Since then, gold prices have skyrocketed. In 2001, this metallic commodity was worth less than $300 per ounce. Now it sells for more than $1,600. An ounce of silver went from $4 to more than $30 in the same time period. Platinum has also risen considerably in value during this last decade.
What to Do Now
If you want to protect your wealth, there is only one place to put it now. You should invest in assets made from precious metals. These assets have outperformed most stocks. The best part is that they will continue to outperform stocks as long as inflation is underway because they are natural hedges against inflation. Stocks make minor and insignificant gains against inflation when you put things into the correct perspective.
You can invest in such assets in a variety of ways. Many investors recommend physical purchase and delivery. This puts the wealth right in your hands rather than on your computer screen as a list of names and digits. Others recommend that you invest less directly by purchasing shares in mining companies or in exchange-traded funds (ETFs).
However you react to these changes in finance and investing, remember to move your money into something real. These metals are not going to disappear in a bankruptcy or suffer endless multiplication at the hands of the government.