THE LOGIC and WISDOM of PRECIOUS METALS a Guide for Investors and Buyers
Total Page:16
File Type:pdf, Size:1020Kb
THE LOGIC AND WISDOM OF PRECIOUS METALS a guide for investors and buyers clear, logical purchase processes that uphold everyone’s best interests • satisfying, expedient transactions that build relationships and trust THE LOGIC AND WISDOM OF PRECIOUS METALS a guide for investors and buyers Our mission is to be your trusted source for precious metals. We have a long-term, well-capitalized business model. We maintain strong relationships with the worlds’ mints and other suppliers to help our customers through stability and change. Our customers find us reliable and responsive: your order will ship within five days of payment clearance from our distribution center in Calgary, Canada. INCLUDING 3 Gold is REAL Money 5 A Time for Gold 7 An Even Greater Time for Silver 8 The Wisdom of Diversifying Beyond “Account” Investments 9 Forms and Pricing of Precious Metals for Investment 12 Security, Privacy, Authenticity, Storage 14 Purchase Processes 15 Next Steps 15 Learn More 16 Who We Are We lOOk fOrWard tO conneCting With yOu • Call (877) 646 5303 • Visit silVergOldbull.com • Write [email protected] THE LOGIC AND WISDOM Gold is REAL Money OF PRECIOUS METALS throughout history, no paper have you ever wondered where the a guide for investors and buyers currency has survived the test of credit card company or the bank time. Paper currencies have always gets the money to give you to buy been inflated until they eventually a house or groceries? they openly become worthless. the purchasing acknowledge that they do not have power of the us dollar has declined that money before you spend it. by 98% since 1913 and, unfortunately, they do not use deposits from savers the situation is similar for all other (if here is anyone left trying to currencies. People bought homes save money in a bank). instead, you in 1913 for a few thousand dollars spending the money allows them to – or a few hundred ounces of gold. type it into existence. it is surprising. now people spend hundreds of not only can governments create thousands or millions on a home or money out of thin air by printing or the same few hundred ounces of typing it, banks can too. in fact, gold. Why? Whether it be for war or most of the currency in existence just excessive spending, governments was not created by central banks and central banks can never resist but by regular, everyday commercial printing currency – or these days banks. they are not supposed to “typing it into existence” – to pay for make too much, but the only thing debts. No one can print gold. really stopping them is convention and some oversight from colleagues. there is also the threat that people will catch on and decide to trade one currency is money inflated currency for a better form that has lost its ability of money. yet for the first time in to store value history, all the currencies are inflating at once. We lOOk fOrWard tO conneCting With yOu • Call (877) 646 5303 • Visit silVergOldbull.com • Write [email protected] 3 gold is the only currency which has a currency-dependent form is at risk no liability attached to it. While all of losing it all. anyone who holds paper currencies now come from physical precious metals can benefit debt, the value of gold comes from from the largest wealth transfer in the natural limits on its supply. no history. matter what collapses, nothing can make your physical gold wink out gold has at all times represented real of existence the way savings and wealth as well as being a medium of investments can. exchange. “Old money” has always maintained a portion of its wealth in gold because it is one of the safest and most attractive investments for the supply of storing and preserving wealth. physical gold is finite Our way of expressing this is to as long as it is pure, its “build your wealth in ounces”. value cannot be diluted gold has been real money for several thousand years. When paper money fails, people who own gold still have a type of money which holds its value when banks are bankrupt. iceland is a recent example of how paper currency can lose its value overnight. With the massive debt levels and money printing in all countries, including the USA, Canada and the uk, the risk of a default everywhere is high. anyone who holds wealth in We lOOk fOrWard tO conneCting With yOu • Call (877) 646 5303 • Visit silVergOldbull.com • Write [email protected] 4 A Time for Gold Low Interest: A Problem for Savers High Currency Supply Global Entanglements the risk of storing wealth in any Currency supplies are increasing the world monetary system used kind of account – 401ks, rrsP’s, exponentially. Central banks and to be backed by gold. if you had mutual funds, stocks, bonds or governments of the world subscribe enough currency, there was a way savings accounts – is dwindling to the belief that they should for you to redeem it for gold. if you value. as savers became investors, encourage the creation of massive felt your currency was losing its they learned that they have to amounts of their currencies for purchasing power to inflation, you earn enough on their account-type economic stability and growth. the could exchange it for another more investments to compensate for amount of gold and silver that exists stable currency in a neighboring inflation. for some time, it has felt in the real world is much more stable country or for gold or silver. in the like the necessities are getting more than the amount of currency that mid 1900s, the nations of the world expensive despite positive news exists electronically. gold is a more agreed to tie their currencies’ value reports to the contrary. it feels like reliable point of comparison for to the us dollar. Why? after their war our accounts are losing value faster value than currencies when currency spending, no nation had a significant than their increases can compensate. supplies are high and volatile. amount of gold left. they didn’t want We are not Wall street speculators. each other’s worthless currency Our dreams are to retire well or own Traditional investments however, they did want to trade with a business – to be with, enjoy and haven’t turned out as each other. in contrast, the us dollar help our friends and family. We want people thought. was backed by gold. the us had more fulfilling lives. We want to feel accumulated the biggest share of the safe in the face of an unknown future. 401ks, RRSP’s, Mutual world’s investment gold during World storing wealth securely is the way Funds, Stocks, Savings War ii. tying to gold through the us we can choose the time and place to Accounts – wherever we dollar was a compromise that helped invest in what matters: people. When try to accumulate and nations feel confident about doing the purchasing power of account- store our wealth, people business together again. until quite type investments is eroding in a low lose value to inflation recently, it has been necessary to use interest economy, people turn to while incurring fees the us dollar to buy oil. even after gold. and the increased risk the us disconnected the dollar from gold in the early 1970s, every country of an unexpected loss. still needed the us dollar to buy oil. We lOOk fOrWard tO conneCting With yOu • Call (877) 646 5303 • Visit silVergOldbull.com • Write [email protected] 5 this is where we get the phrase artificial economy. this makes “the us dollar has been the world’s predicting its daily movements reserve currency” and the term both impossible and moot. Owning “petrodollar”. unfortunately, we are gold for the longer term is a way to profoundly effected by that which disentangle from unfavorable global we do not influence. respectively, changes. russia, China, india, brazil, south africa and others are developing ways to trade for oil and to do other Price Manipulation business easily without the use of the us dollar. it is easy to make a decision about buying precious metals without BRICS necessarily being convinced about stands for Brazil, Russia, price manipulation. Why? India, China and South if there is a manipulation (and there Africa which are probably is), it favors buyers of industrialising countries, precious metals. some argue that distinguished by large, precious metal prices are artificially fastgrowing economies suppressed. Others argue that they with significant are not meaningfully manipulated. but few argue that precious metal influence (3 billion prices are higher than they should be. people and $16 trillion the range is from prices being too annual GDP) low to being at expected levels. that’s it seems likely that the us dollar why one can be curious about is about to lose popularity and all whether precious metal prices are the currencies tied to it will have artificially suppressed and still decide their value questioned. gold offers to invest in them. at worst, they are a basis for storing and comparing unfettered. at best, their value will value when no one knows what will get an extra boost at the end of any happen next. the world economy is manipulation. so entangled that it is arguably an We lOOk fOrWard tO conneCting With yOu • Call (877) 646 5303 • Visit silVergOldbull.com • Write [email protected] 6 An Even Greater Time for Silver of these factors will drive the price of for much of history, it took roughly silver up. 16 ounces of silver to by one ounce of gold.