Why Precious Metals?
Gold & silver maintain their buying power
That New Zealand dollar in your pocket is known as fiat currency - it is not backed by anything such as gold, silver or some other precious metal.
This means that the Reserve Bank, which is a private entity and not part of the government, can just print as much as they want. But when they do this it causes inflation: the value of that dollar goes down as does its buying power and prices you pay for items goes up.
You don't have to be a mathmetician to work out that this is not sustainable over the long term and every fiat currency, ever created, has failed without exception - and there have been over 200 of them.
Sound money - a fancy name for gold and silver, have retained their buying power throughout history no matter what happened to fiat currencies.
Gold & Silver Bullion
One way to preserve your wealth is to convert your fiat currency into precious metals such as gold, silver or platinum. This is a defensive strategy and will protect your wealth from the damage of inflation.
Silver is hugely undervalued at the moment, so now is a good time to buy...and it is going up in price: 14.54% in the 30 days to 3 Apr 2023.
Your Bank Account Savings
Did you know that the money you have in your bank account is not yours? The money in your account becomes a liability to the bank. In order to pay you any interest, they have to be able to loan that money out at a higher rate than what they pay you.
They are only required to keep a small portion of the money on hand. If the withdrawals exceeds the supply on hand - well you probably will be told to "come back tomorrow".
That's right. If your bank goes under - so does any and all money in your account.
As of 3 Apr 2023, a growing number of US Banks have gone under, taking their customer savings with them. This is now starting to spread to the UK and other countries and accelerating.
This would appear to be the beginning of the end of fiat currency world-wide - watch this space!
Reach for the Stars with Silver and Gold
Invest in precious metals and take your portfolio to new heights.