This weeks showing for the precious metal prices came as a surprise to, probably, nobody. All four metals, gold, silver, platinum and palladium are continuing along the trends that they’ve been going on for awhile now: gradual positive growth with a few healthy spikes now and then. Silver breaking the fourteen-dollar an ounce mark may be the best news, alongside gold having four consecutive days of growth.
All in all, this is a good time to hold precious metal coins, and indeed, precious metals, period. Whether you choose precious metal coins or you prefer bars, they seem to be the strongest way of forming a foundation for your financial independence in light of this recession.
What it basically comes down to in precious metal coins, and this is truly the primary rule when you buy precious metals, is that they will behave in opposite fashion to the value of a dollar.
This means that, when the dollar has a bad day, metals have a good day, and vice versa. This is a very good thing, as it ensures that metal is always there when you need it.
There’s no telling when this recession will end, it may be years from now, but when that does happen, it will be a good idea to sell some of your metals at their peak, but to hold on to some of it, as well. This won’t be the last recession we ever face. The economy has always had its ups and downs for as long as there’s been any such thing as a global economy in the first place. We will always have good years and bad years. In the good years, metals are there as a way to provide yourself a little more support, and in the bad years, they can be a real life saver.
The important thing is that, when you purchase precious metal coins, you’re not simply investing or saving up. Rather, you are protecting yourself and you are planning ahead for the future.
Again, this will not be the last recession we ever face.
When the recession hit in the nineteen seventies, it was followed immediately by a decade of economic comfort, and after that, a decade where the middle class was still healthy, but becoming weaker over time. The problem therein was that people became a little too complacent. Many of us were taking loans that we could never repay for houses or college tuition, we were maxing out credit cards and buying luxury cars we couldn’t afford, so when the twenty first century hit, with its stock crashes and credit crunches, almost nobody was prepared.
Nobody was talking about precious metals during the nineties, as they were at a bit of a low, in light of the strong American dollar and a positive economic outlook all around. Come 2005 or so, we began seeing unprecedented demand for coins and bars, to the point where, more recently, the US Mint has had to discontinue selling their investment grade coins until the precious metal supply can meet consumer demand.
The bottom line is this: Metals may well be the only truly safe bet in modern investing. To look at the big picture, yes, metals have their ups and downs, but metals suffering a major decline during a recession are practically unheard of.
The problem is that many people misread that idea. “So I should only hold metals during a recession, right?” Wrong. It’s always a good idea to hold a significant portion of your savings in metals. It will serve you well during a recession and it will offer you a line of defense during times of positive economic growth.
When this recession does end, and it will eventually, don’t get complacent. Make a profit on your metals, certainly, but cashing in every last ounce is akin to throwing the oars out and drifting when the tide gets calm. No matter the situation, you need to be prepared.
So what it comes down to is that old saying about insurance: It’s better to have it and not need it than it is to need it and not have it. The same goes for metals investing. It’s better to have some savings in metals before they’re worth something than it is to hop on the bandwagon once the spot prices start climbing.