You are here: Home » Blog » Silver Coin Blog » Junk Silver Coins » Economic reality in the USA – Sept 2012

Economic reality in the USA – Sept 2012

by Silver Coin Guy on September 29, 2012

Economic reality - Are things looking up?Investment silver is an asset for tough economic times.  Silver coins have been used as a way to preserve wealth in times of economic turbulence…times like we are living in today.

But perhaps we are out of the economic malaise that has plagued the USA, and in fact the rest of the world, since 2007.  After all…

Consumer sentiment is up ( http://on.mktw.net/PfRPrj), which is widely interpreted as a positive sign.  But there are worrisome signs on the horizon –

  • Spending is up .5%
  • Incomes are up .1%
  • The savings rate dropped .4%
People are financing their lifestyle with their savings, or as I like to say, eating their feed corn. There seems to be no sense that something bad might happen.
In times like this, with everyone feeling positive, purchases of precious metals like gold and silver tend to drop.  But is this a smart thing to do?

Invest in Precious Metals, invest in silver coins by clicking here.  It’s as simple as that.

Why you might want to continue to invest in precious metals

I’ve come up with three different ways we can think about precious metals.
  1. You can think of precious metals like a currency and compare how it’s held it’s value over time sitting your safe or bank account.
  2. You can think of precious metals as an investment, like a stock or bond. Has it’s value grown over time.
  3. You can think of silver as something to barter and trade, like any commodity.

Using these three comparisons as benchmarks how have precious metals performed? (And keep in mind that I never claimed silver and gold were “perfect” investments, just investments that make since in times like these.)

Scenario #1, precious metals compared to currency.  the dollar has lost 98% of its value since the creation of the federal reserve in 1913.  how have the precious metals fared?  They have held their value.

Scenario #2, precious metals as an investment vehicle.  Compared to the stock market gains and bond returns both silver and fold have outperformed the investment markets.  best of all, there is no counter-party risk involved with precious metal.

Scenario #3, precious metals for barter and trade.  Silver and gold, the most popular and plentiful precious metals are readily accepted by most people in trade.  Want to buy a car or some land?  Most people will take gold and silver coins, bars or bullion.  It’s as easy as cash and won’t lose it’s value over time.  Sure the market price will fluctuate, but paper money and assets lose a little bit of their value everyday, something most people fail to consider.

Make the smart choice, invest in gold coins and Silver Coins.

Previous post:

Next post: