While most of the world focuses on saving money for their future in a bank account or invest all of their disposable income into shares and property, the rich continue to get richer by wisely investing in precious metals. To discover why the wealthy continue to get richer by choosing to invest heavily into precious metals, simply continue reading. As you may decide to invest more of your own money in precious metals such as gold and silver.
Money depreciates while gold appreciates over time:
One of the key reasons why the wealthy choose to invest in gold and silver is the simple fact that money depreciates over time. While gold does the opposite and actually appreciates over time.
Inflation negatively affects the value of money and the money which ordinary individuals save, loses its value from year to year. As an example, if you decided to save $100,000 in a bank account today, in 10 years time the spending power which you’d have with the same money would be far less than $100,000. So if you don’t want to lose money, it’s essential to find a better way to invest your money, then saving it in an old fashioned, traditional bank account.
One of the best investment classes to invest in, to retain the value of your money over decades is precious metals. As historically precious metals such as gold and silver have significantly outperformed other types of investments such as ordinary shares and ETF funds.
Just be careful to choose a precious metals company wisely and to do your research on Lear Capital problems.
Gold is a tangible good:
Unlike money which the government continues to print at an alarm rate, gold is a tangible good which you can choose to store in a vault or in your home. While the value of the US dollar may plummet in the future as the government has continued to get into debt, gold which is a physical product not will not decrease in price. Even if the share market collapses.
The rich invest some of their profits from gold and silver sales during recessions:
During previous recessions most well off families and individuals sold half of their gold, so that they’d be able to take advantage of cheap share prices and property prices. They then waited till gold eventually dropped back to a stable price, to accumulate their gold and silver stashes once more. As gold during recessions can be worth more than 10 times it’s usual price, you’ll be able to purchase a fair amount of property in the future, for a small investment in gold today.
So if you’d like to accumulate acres of land at a cheap price which you’ll be able to sell when land prices increase again, it’s well worth using gold to fund your future purchases. Alternatively you may choose to keep the rental properties which you plan to purchase, to continue bringing in a valuable revenue stream.
Now that you’ve discovered the wealthy classes’ secret money making technique. It’s well worth taking control of your finance future by accumulating gold as part of your investment portfolio.