When You Should Buy Gold & Silver – Episode 359

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[00:02] With all of the talk about the economy changing and unemployment numbers rising, a lot of people are turning to conversations around gold and silver. So we’re going to be talking about gold and silver today on the Prosperity Podcast. So Kim, are you there with me and ready to tackle this? Yes, absolutely. So let’s just dig in and I’m going to ask you a question. Why do you think owning gold and silver is so appealing to people in these unbelievable times? Well, I think that one of it can be due to marketing, obviously, and the other has to deal with history. So there’s an actual value to the metal of gold and silver, unlike our fiat currency. So before we went off the gold standard, you know, a quarter had silver in it.

[00:56] And now that same quarter from the 1960s would be worth dollars and dollars and dollars, whereas now a quarter is worth 25 cents. Well, it is interesting to me. This question comes up from our listeners quite a bit and I’ve always had the same I’m even more assured of it right now. And so my answer as it relates to gold and silver and should you buy some is that if it helps you sleep at night, absolutely. And what I would have you do is buy it in fairly small gold coin, silver coin denominations, put them in a safe in your home and be done with it. I know that the issue of physical delivery of said gold and silver has changed. You know, there are stories of people driving down. Maybe you live in Kansas City or somewhere where gold is actually stored.

[01:52] If you drive down to that place, it has a closed sign on the door. And so that kind of gold is not going to help your peace of mind at all. But if a few coins and a safe help you sleep at night and help your peace of mind, then absolutely. Would I buy it as an investment? Probably not, because you always want to ask the question and then what? So if you’re going to buy gold as an investment and then what? It has to go up in value and then you sell it. Did that accomplish what you wanted from the purchase of gold and silver? Now, if you are buying as an investment and you truly believe it’s down and you truly believe it’s going to go up, then full speed ahead. That can qualify for yourself. If not, though, the and then what says you’re not going to sell it because your whole

[02:41] point in buying it was to hold on to some and get comfortable with it. So then I would maybe suggest a different approach. You know, I’ve seen a lot of people. What happens if you look at the historical charts of gold and silver, you tend to see these peaks and valleys and a lot of them go around the election cycles. So during the 2012 election cycle, we saw silver pump up a lot. And what it really comes back to is uncertainty. And people tend and just speak in human nature, when they’re uncertain, they tend to consume more news and they tend to be around more information, which is contrary, is going to actually give them more uncertainty. And so then they have purchased that gold and silver.

[03:29] If I look at my portfolios, I can see I’m up. And then sometimes it’s down. But I purchase gold and silver physical and also, you know, digital that’s stored in locations for just an asset allocation. That’s all it is. So I’m there with you, Kim. What’s interesting to me is the idea of the certainty that people are seeking. And these are principles that we work with, both certainty and uncertainty. And as human beings, we want some level of uncertainty. It’s what keeps our lives exciting. And yet, when we have too much of it, as you’ve indicated, we tend to go, I think, too far the other way. And so there’s a fun story that I’m aware of where there were some kids that had they actually did have some literal gold coins and they had some food

[04:28] and they had some water and Gatorade. And because of the circumstances that they found themselves in due to a natural disaster, it was the water and the Gatorade that were the most valuable of the four things that they had. Water, Gatorade, jerky, specifically, and gold coins. And literally, everything was focused on drink and keeping hydrated for a period of days as they worked through this natural disaster. And so even separate from that story, that has been my suggestion for people for many, many years is to put things in your home that will help you with peace of mind. And if that is a bunch of bottles of water stored in the back of a closet, that’s what came up on the podcast like six months ago, I think I was suggesting that.

[05:22] And somebody really picked up on the back of the closet part. It’s out of the sunlight that way. It was my motive. Then that is, I believe, in many cases, way more valuable than a gold and silver. But that’s to you. Each person has to decide that for themselves. Maybe it’s cans of tuna, maybe it’s bottles of Gatorade, whatever it is for you. Make that decision, take action on that decision, and then cross it off your list. Because continuing to do research and analyze and think about is not helping you. It’s taking an action and then moving on so that you can spend your mental energy focused on something else that you can then take action on, cross off your list and move on again. Absolutely. I think that ties into a recent episode that we did when we talked about

[06:12] the opportunities that we can take during a crisis. Partly, I’ll give a quick story. Years ago, I lived in South America, and I happened to be living in the country of Ecuador. This was in approximately 1998, and the currency had ended up collapsing, so they went through hyperinflation. I was around when they went from their monetary system, which was called the sucre, and they went to the dollar. At that time, banks were shut down. Everything, public services were shut down. It was chaos. Luckily, I had some cash, American dollars with me, but you couldn’t go to the bank and get money. The only people that really were able to continue to move around and operate and live normally were people that had American dollars or people that had some gold and silver.

[07:13] Then you had to take the sucres once the government got afloat and turn those in within a period of time or you missed out. That, I think, is somewhat of the argument for that gold and silver that regardless of what happens to the currency, at least they’ll protect themselves, they’ll hedge. Again, that’s not a complete prosperous thinking and it’s not a way towards wealth. It’s maybe towards protection or sleeping better at night. What an amazing story. There’s just so much that can be learned from that. On that note, I think that one of the things people are pursuing now as a solution to their concerns around dollar and dollars being available is to take a look at the cryptocurrency space.

[08:03] While I’m not advocating this as an investment yet because I think there are still too many unknowns about it, that might be a solution for somebody that wants some peace of mind because there is a chance that cryptocurrency could be what ends up being able to be traded for satellite phone time to call family. Maybe that’s the new currency, right? I know in a lot of the third world countries, what’s most valuable are cell phone minutes and they’re literally trading them like they would anything else. Food or dollars or you name it. Again, when we open our thought to the idea of money just being ideas that are traded back and forth and shared and built upon and sometimes cast aside, it completely changes our perspective.

[08:57] Absolutely does. Well, I think this is a great episode. It’s a different take on gold and silver and it’s a different take on the way that we can look at things. I think this way we’re helping people. What you mentioned is close those open loops. Go do what you need to do. Consider it done. Take action on something else. Great way to put it, Kim. Thank you. It’s so important because our brain can only have… I think some studies are showing seven major issues going on at a time, so closing those files and those open loops is super critical. Thank you for listening to the Prosperity Podcast. To take control of your money and have it work for you, visit us at partnersforprosperity.com. If you liked this episode, make sure you subscribe and leave a review.