I have been helping clients for 30 years saving for retirement. It is not an easy task and I show battle scars from 1987, 1990, 2000, 2008. I also have to sleep at night knowing that anything can happen at any time and my client’s assets are entrusted to my care. With the *US debt and *money supply increasing under the last administrations our economy has trouble looming.
Gold and silver have been valued for as long as they have been available and their value has remained throughout history.
For example in 2300 BC a ship could be purchased with 3 to 16 grams of gold, that would equal $123 to $656 dollars today, although buying lambs may not be a common activity today a young lamb can still be purchased for around $160 dollars.
During the Roman empire legionaries would receive 3000 denarius (or its equivalent in land) after 20 years of service, the original denarius was about 4 grams of gold. This would roughly translate to $492000, $24600 a year after taxes, which is still a normal income for public sector jobs.
If we examine this we can see that despite the temporary rise and falls, or attempts to manipulate the economy, gold and silver tend to always return to their stable value.
Currently the US has the strongest currency in the world but this can change. If the US were to lose its reserve currency status this would be catastrophic. Our economy would be in an immediate upheaval. My motto is to plan for the worst and hope for the best. This way you will not be caught off guard.
We now have a President who is outside the political cast. His own party did not want him to become president and he seems to be learning the ropes. The truth is no one can predict this president’s next four years and its eventual outcome. There are a lot of expectations and his time is limited.
While gold and silver have been very volatile you can tell it is just not about the FED and interest rates but having some solid insurance. The US is not the rest of the world and we have it awfully good. Go to China and see where the truth goes. For this reason we are keeping 10% in gold and silver holdings. This can be either in physical gold and silver. It can also be invested in solid mining stocks with proven management and solid track records.
We are holding gold and silver for the long term knowing that the price will eventually rise.
1. US Economy 2-27-17 National Debt under Obama
2. Seeking Alpha 12-2-2016 Money supply conundrum