Gold and silver investment 2023 | How to make money by gold and silver investment

How to make money by gold and silver investment

Did you already know that gold and silver are one of the oldest forms of currency in the world? These metals have been traded around the world for centuries. Printed “paper” money (Fiat Currency) doesn’t even come close to the value of gold and silver, which in many ways, people still consider as the de facto standard for currency. In the past, gold has always been known as a symbol of the rich and the elite, while silver is also precious but in more practical ways. Gold is seen as jewelry and silver as silverware. Traditionally, gold and silver are signs of money and power. They are versatile enough to be molded into different forms, and their shape gives them beauty that entrances people. In contrast to currency in the form of paper money, you can’t print gold and silver out of thin air, so they are inherently valuable.

The Gold Standard

Historically, the gold standard is what governments used as a comparison of currency. When a government is using the gold standard, it means that they are basing their currency and valuations on a worth equal to an amount in precious metals, namely gold and silver. The US used to use the gold standard. However, in 1971, President Nixon severed the US dollar’s ties with the gold standard. The US Treasury was running out of gold, as more and more people were converting their US dollars back to gold, because they were starting to lose confidence in the “greenback”/US dollar. As a result they were emptying the gold reserve. So, in a bold act of desperation, President Nixon severed the USA’s link with the gold standard and introduced the US dollar as the International currency replacement for it, thus allowing the US to constantly print more and more paper money, generating as much debt as they wanted in the form of currency.

Devaluation of the US Dollar

Over the years since 1971, the US dollar started losing value, and the price of goods started to go up. The US dollar is constatly losing its value to the point that when compared to 40 years ago, the US dollar will only buy a fraction of what it did then. This trend is due to currency’s tendency to lose its value, particularly with the entire world’s currencies hedged against the US dollar. Then the price of gold and silver starts rising at an astronomical rate due to increased demand. As the demand for gold and silver starts increasing, the increased demand spikes up their price even more.

Pro’s and Con’s of Saving Gold and Silver

So, what are the advantages and disadvantages of investing in gold and silver?

Benefits include…

  • preserving your wealth, as anyone can exchange gold for any other currency if something happens to a country’s currency
  • jewelry made of gold or silver can also be easily traded
  • you can find other buyers for your type of currency because gold and silver are a universal currency 

Disadvantages include…

  • not being able to easily liquidate your metals
  • needing to find buyers and…
  • paying high commission rates to gold and silver dealers 
  • even if you gain money through gold, your paper currency still devalues and…
  • you do not earn whatever deposit account interest is paid by a bank.

Before making any investment, ask yourself five essential questions:

  1. Are you looking for quick cash, or are you in this for the long haul?
  2. Are the metals you’re buying genuine?
  3. Are you buying low or high?
  4. Are you buying Commodity Traded “paper” metals or physical bullion?
  5. Have you diversified your portfolios broadly enough?

The Psychology of Prescious Metal Exchange

Now it’s important t take a look at the psychology for any precious metal exchange. A trader’s attitude is crucial; positive psychology is more important than how much you want to invest. Someone with a proper detaqtched attitude can double, triple, or quadruple their money while someone with a negative psychology can lose it all overnight. The key is to be emotionally detached from your investments. It is essential to trade only with money that you can spare, rather than money you depend on for your day to day survival and

  • knowing when to unemotionally exit a trade is essential 
  • if you feel that you have earned enough, it’s better to cut the trade and invest elsewhere 
  • likewise, it’s okay to cut your losses and invest elsewhere.

Now, why not start by diversifying your assets. Do not trust your countries constantly devaluing fiat/paper currency, which fluctuates with world events such as the most recent bank failures and looming financial currency crises. Protect your wealth by investing a little in gold and silver. They are always in demand and limited in supply. Continuously scout around for desperate gold and silver investors who are looking to liquidate their gold and silver for currency. They will be your best targets. Offer low ball offers and see who will take the bait. Remember that a penny saved is a penny earned.