Friday, 5 March 2010

Why invest your money in precious metals

To put it simply all things go in cycles.
Not a single investment whether it be stock, antiques, gold, houses, etc are the best or a good investment all the time.
The easiest way to see what the best investment is at any one time is to do research & look at history to see what you should have invested in.

Now to put this into context with precious metals, the first thing to understand is the worlds currencies are paper money. They are not backed by real investments / assets anymore (See gold standard)


If you collected all the money that existed in the world each year, you wouls always end up with more money.
This means that as the years go by, the values of everything increase, as there is more money in existance.

This is inflation.
As you will have heard on the news, due to the credit crunch many countries are now forced to create new
money (Quantitive easing etc) to help ease the crisis in the financial markets, but means that the values of these currencys will fall as investor confidence dissapears & finds itself into more stable and REAL assets.

1 comment:

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