Gold and Silver Are Volatile – Do Not Invest
Gold and silver are volatile and you would be risking your money if you were investing in them and thus – do not invest. Unless, you are even a slight student of the GFC. With even a slight knowledge of the causes of the financial crisis, you could turn the volume down on those assertions that the metals are volatile to a level near zero. Gold Finger Prints These precious metals are safe investments, and here is why.
Rooted into the System
We are going to identify why the two precious metals are safe investments, although before moving forward, we must know this primary point – gold and silver are hedges against the GFC and their gains are reflections of global growth itself.
In a word, we are not basing gold and silver gains on market sentiment or hope-based forecasts of growth. We know that gold and silver gains are intimately rooted into developments of the global financial system and the continuation of the GFC.
We are not basing gold and silver gains on unfounded investor psychology or a hot tip and are not looking for a quick profit.
Simply know this, as the GFC worsens, gold and silver improve. Also, as the GFC worsens, gold and silver survive.
Know that it is not about a quick profit or a sudden trend, it is about the global financial crisis itself.
The Causes of the Financial Crisis
Gold and silver are safe investments because as the GFC worsens and money is being lost all over, a significant percentage of that money is simply being transferred to gold and silver.
We are looking into one main cause of the financial crisis and showing how gold and silver grow in direct relation to this cause.
The cause is – inflation.
I was speaking with a CFP recently and when I mentioned investing in gold and silver he should his head and gave off an air of nervousness, saying, “No, way too risky.”
Sure, gold and silver can be volatile and bounce around – typically – although these current economic times are not typical, right? When I mentioned the idea of investing in the precious metals mainly as a response to developments in the GFC, particularly inflation, he simply repeated his affirmation.
I suppose he was not well educated on the role of inflation in the GFC and its importance with relation to investing in gold and silver.
Considering he may not be alone in not knowing the massive importance of inflation right now, let us look into a few pressing points.
Inflation and Spending
Many of the most threatening causes of the GFC relate to spending – spending too much, spending too little – governments, businesses, and people.