Do You Need To Own Bullion?

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Money is the most difficult thing to explain. Conventionally, economists explain it as a medium of exchange because it’s a much better solution than trading, and it also solves the problem within the coincidence of wants. For example, if one person has a boat and the other one has a car, how can they trade to get a single meal if they have nothing else to offer. 

Let’s say that the person that has the boat wants to trade it for the car. If the other side doesn’t accept the proposal, the entire trade deal fails. The second function of money is to be a unit of account. This makes calculations and valuations easy. Click here to read more. 

This solves the problem between the two people because they know the price of both of their assets. The concept of valuation allows them to sell ownership of their asset for a specific purpose. Finally, the last function of money is to serve as a store of value. This means that money will be worth the same in other geographical locations and across long periods of time. 

Why are precious metals the best forms of money? 

Money needs to be reliable, portable, fungible, durable, available, and affordable. Precious metals fulfill all of these criteria, and gold and silver were regarded as the ideal money types. The first coins were found in modern-day Turkey, and they were made in 600 BC. 

They were made from a gold and silver combination that had an owl, which represented wisdom on one side, and the Greek goddess Athena on the other side. The ancient Romans took this concept and expanded it, creating gold, silver, and bronze coins known as aureus, denarius, and sestertius. 

Since gold was the rarest metal, those coins were worth the most. All of these coins had the legendary images of Romulus and Remus on one side and the head of the emperor on the other. Even though precious metals coins weren’t limited to the Mediterranean, that’s the place where they originated from. 

Four hundred years after the progress of Ancient Greece and Rome, bronze coins were introduced to China. If we fast forward more than two thousand years into the future, we can see that the same invention still works. Even though we’re not using precious metals as a native currency, there are still coins in circulation, but their basis has been skewed. 

Do you need to own gold? 

The introduction of precious metals coins skyrocketed the progress of humanity. Suddenly, you could buy labor and direct it toward a specific goal. This led to revolutions in literature, science, philosophy, and finance. All of these fields started to prosper, and they blossomed in the last two millennia. 

However, we always love to improve upon old concepts, and in 1971, the United States of America decided to sever the bond between precious metals and the currency in use, which is the dollar. This move was similar to removing the foundations of one hundred-story building and hoping that it doesn’t collapse. 

Everything that the world had been doing up until that point was due to the fact that the money in circulation had a guarantee of value. Each dollar was backed by gold. When the link was removed, there was no basis on which new dollars could be created into circulation. 

That instantly led to the Federal Reserve printing billions of banknotes and artificially boosting the economy. All it takes is a strong wind or a small earthquake to knock down a building without foundation, and we’re feeling the swing. 

Inflation has hit a record 8 percent this year, which means that we’re incredibly close to reaching double digits. This economic phenomenon has the power to destroy societies and halt progress for years. When the fiat standard was introduced, the financial crisis started becoming more common and worse than before. The only way to be prepared for what’s to come is to have bullion or coins by your side that has withstood the test of time for thousands of years. 

How to create the best portfolio? 

Most investors don’t want to think about gold or silver bullion because they think it’s an outdated relic and won’t have any value in the future. However, they look at the history of company performance before buying a stock. Even the oldest companies in the world have a 200 to 300 history at most. 

Gold, on the other hand, has a history of thousands of years. If you change your approach and think of it like a stock, it’s something that has outlived every company, person, and entity in existence. It’s truly the ultimate resource to have in your portfolio. Even though it doesn’t pay dividends or rent each month, its value and history are more than enough to allocate a small portion of your net worth to it. 

The best portfolio covers all categories and investment vehicles. Real estate, stocks, bonds, cryptocurrencies, and precious metals from Quality Silver Bullion and other investment companies, are all you need to live a stable and wealthy retirement without worrying about their performance. 

Since these are five niches, allocating 20 percent to each of them is more than enough to start. No matter what happens in the market, one of these categories will remain relevant. The Pareto principle states that 20 percent of your actions and investments are responsible for 80 percent of the results. In this case, you’re hitting every category on the dot and expect a multitude of rewards in the future. 

In some cases, compound interest will do the job for you. In other, the instability of the political climate and the state of the economy will raise prices and make the investments worthwhile. Distributing your investments along multiple channels will make you a great investor without the need to pay attention to the markets every day. 

Enter with a dollar-cost averaging strategy, and leave the markets when you’re satisfied with what you have achieved. Usually, that takes decades, but don’t be afraid to take small profits along the way.

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