Silver as an investment

Getting gold back into the system with a market-based interest rate on gold / By Valentin Schmid, The Epoch Times, New York / December 29, 2016

There are people who think the financial system based on the dollar will collapse sooner rather than later. For this event, they are hoarding gold, silver, and sometimes guns and canned food.

“If people lose confidence in the other forms of money, they’ll go to gold,” said James Rickards, author of “The New Case for Gold.”

“Sometimes gold rallies because it’s an inflation hedge, which it is, but gold can also be a deflation hedge. But most importantly gold is money, and when I see the dollar price of gold going up in this environment, it tells me that people are losing confidence in central banks, thinking of gold as money, thinking they want to allocate part of their portfolio not to dollars, or yen, or euros, or yuan, but to gold.” Rickards recommends a 10 percent allocation to physical gold to protect the investor from extreme economic risk.

The problem with this strategy is that hoarding gold outside the financial system in safe-deposit boxes, or by burying it in the back yard, is akin to taking your chips off the poker table and going home. You are not participating in the economic game anymore.

Keith Weiner, CEO of Monetary Metals, wants to fix this. Similar to Rickards, he recognizes the weaknesses in the fiat-based monetary system, like close-to-zero interest rates for savers and too much debt. He also recommends that people hold a certain amount of gold. …

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