WHY GOLD & GOLD STOCKS?
First, gold is a precious and rare metal. It is very difficult to find it in
large quantities. It has unique physical properties that make it extremely
valuable in many industrial applications. It is also extensively used in
jewelry.
But gold is more than just a metal. Gold is money, a medium of exchange and
a store of value that cannot be counterfeit. Over the centuries, it has
maintained its purchasing power.
"Paper money eventually returns to its intrinsic value - zero." — Voltaire (1694-1778)
Paper currencies lose their purchasing power over time. This process is call
monetary inflation. Fiat currency created by central banks is backed only by
the confidence its users have in today's modern financial system. This
confidence erodes with time. In contrary, gold's value (its purchasing
value), in spite of its extreme volatility, remains, on average, unchanged
over time.
Do a Google search on "gold quotes" or read "Gold and Economic Freedom" by
Alan Greenspan to understand what gold represents.
In short, gold is a good store of value for the long term. Gold is presently
in a secular
Gold mining companies exploring for or producing gold enjoy the advantage of
having an end product that will always be in great demand and always have a
bright future.
WHY SILVER, COPPER, NICKEL, LEAD, ZINC, OTHER METALS & MINING STOCKS?
Well first, let's take silver. Although it has a much greater industrial use
than gold, it has long been considered a monetary metal. Thus you buy it as
well as silver stocks for similar reasons that you would buy gold and gold
stocks.
These other metals are basically products of Mother Nature that are
essential in our day-to-day life. They are called commodities. We needed
them in the past, now and will always need them. Unlike other commodities
like grains, pork bellies and beef that man can produce when necessary,
metals are found underground locked up in the crust of the earth. Large
concentrations of these metals which can be mined at a profit are becoming
much harder to find over time. Currently mined or known resources of these
metals are being depleted. The growing demand for products composed of these
metals from an increasing affluent population along with the escalating
costs to find and produce these metals indicates that metal prices should be
higher in the future.
Again, the case is excellent for investing in silver, silver stocks and
other mining stocks, today and in the long term.
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