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An Introduction To Precious Metals

Civilizations have been captivated by precious metals for over 5000 years. Nothing has compared to the beauty and allure of precious metals over the ages. Revered by the ancient Egyptians to our Founding Fathers, precious metals since antiquity have always been and will continue to be the standard for real enduring wealth.

Owned by individuals, these rare assets have been used to store wealth, leave an inheritance for generations to come, and keep intact the financial legacies of families the world over.

All modern civilizations have used precious metals as the foundation of trade and currency. Behind all major economic events in modern times, the driving force has come from the stability and value of these rare metals.

The deflationary and inflationary danger of paper money was an economic principal thoroughly understood by our founding fathers. The trust and faith they had in precious metals was so strong that in the US Constitution it was an original declaration.

Astute investors have educated themselves when it comes to the history and formation of our currency. They also put measures in place to make sure that they are buffeted by the unpredictable nature of the world economy. A lot of these investors are doing this by rolling over their retirement plans such as 401(k), 401(a), 403(b), 457, Thrift Savings Plan (TSP) and annuities into a gold IRA otherwise known as Precious Metals IRA. Some of the companies that specialize in this can be found here in this Comparison Chart.

Continental Currency was our country’s first experiment with paper money. It was a major disaster that nearly destroyed this forming nation. During the Revolution, the Continental Currency was issued to fund the war effort. By the end of the war, it was practically worthless as it had depreciated so quickly.

Since the financial turmoil of the Continental Currency the United States was bound to a bimetallism system where the dollar was linked and defined as a specific amount of silver or gold. During this time, you could take $100 gold certificate and exchange it for $100 worth of gold coins.

Until April, 5th, 1933, gold coins circulated with paper currency as real money everyday. After this date, gold bullion was confiscated under the executive order 6102 by the FDR as a measure of national state emergency.

The FDR went even further and issued another executive order 6260 on August 28, 1933 which made it illegal to possess physical gold. Anyone caught holding physical gold was fined up to $10,000 and or 10 years in prison.

Shortly after this, the Gold Reserve Act was enacted which revalued gold versus the dollar. Gold was raised from the official price of $20.67 USD to $35.00 USD per ounce.

US citizens could no longer redeem their gold certificates nor could they own any gold. The injustice grew worse when in 1944, the Bretton Woods System was signed. This allowed foreign nations to redeem US currency for silver or gold but citizens of the United Stated was still excluded from doing so.

Out of this event was birthed the IMF (International Monetary Fund) – a major catalyst for fiat currency nationwide in later days. The Federal Reserve with the inception of the IMF took a hold of the money supply and opened the door to the perpetual devaluation of the US dollar.

It was still a trying task to manipulate the nation’s money supply with the Bretton Woods System in full swing. This changed altogether when President Nixon on August 15th, 1972 end the Bretton Woods exchange and completely removed the gold standard from the US dollar.

The drastic move would now allow the Federal Reserve without any limitations to freely manipulate the nation’s money supply.

The US dollar dropped rapidly as the gold standard was now abandoned. Over a nine year period from April 15th, 1971 to 1981, whilst the dollar plummeted, gold grew in value to over 2400%.

When the US government started minting gold in 1986, this was the first time since the executive order 6102 that US citizens where allowed to purchase gold. The first gold bullion coin that was issued was the American Eagle which is still being minted to this day.

Protecting your assets, savings and purchasing power is more important then ever in the uncertain economic climate that’s happening in the world today.

Gold and silver have always stood the test of time and have never failed civilization whereas paper currency and governments at some point will fall apart.

Why Invest In Precious Metals?

Preserve Wealth

Throughout the ages, precious metals have preserved the wealth of investors. Precious metals are relatively scarce, portable and indestructible.

After the United Stated abandoned the Gold Standard, inflation was now a part of life. In the early part of the last century you could buy a high quality suit including socks, shoes and a belt with a $20 gold certificate or $20 gold coin. Now you can’t even pay the sales tax on the same quality suit with $20 dollar bill whereas a $20 gold coin will buy you the suit and the accessories even to this day! Gold and silver throughout history have held their value whilst other forms of monetary exchange have lost their purchasing power.

Liquidity

Gold, silver and precious metals are one of the most liquid assets to own. They can be used for bartering or as real money all over the world. These practical qualities don’t apply to stocks, bonds or real estate and in the very near future paper money.

Diversification

Even in a regular economic environment, you should diversify your portfolio amongst several assets classes. Assets that are tangible like gold or silver coins can make your portfolio a lot safer. To protect against volatility in other investments, you should keep as much as 10% to 30% allocation to precious metals in your portfolio.

Gold is the only asset that will increase when other investment classes such as stocks, bonds and Treasury Bills decrease.

Protection

For well over 5000 years, precious metals have been considered as monetary assets. Precious metals and rare coins offer protection against instability in financial markets, economic failures and increasing uncertainty in this ever changing and volatile geopolitical world.

If putting safeguards in place to protect your financial future by investing in a gold IRA makes sense, then we would encourage you to have a look at this Comparison Chart of some of the top companies that specialize in gold IRA rollover.