Home > Gold and Silver Bullion

Gold and Silver Bullion

Bullion compared to fiat currency

Published: 01-08-2013 00:00

Gold and Silver Bullion

Gold and Silver Bullion

Gold and silver bullion investors are often facing difficult decisions such as whether to choose to buy physical bullion or buy paper bullion in form of certificates. If you choose to buy physical bullion, the question of how to store your bullion arises.

BullionStar recommends you to always be in control of your gold and silver bullion holdings and thus eliminate all middle-men between yourself and your assets i.e. your bullion.

Gold and silver bullion is often talked down by mainstream media and by banks. The reason for this is that bullion performs well in adverse economic climates. The banks and the media are often owned by interests that want to portray a more positive picture of the economic situation than what reality would dictate.

If you hold bullion such as gold bars, gold coins, silver bars or silver coins, you own a physical asset that have been successful in retaining value for thousands of years. History is on your side.

Fiat Currencies

Currencies with no physical backing such as our current currencies whether it be the US Dollar, UK Pound or Euro have a poor historical record. Currencies without backing are called fiat-currencies after the latin word “fiat” meaning “let it be”. The name refers to the fact that today’s currencies are created by government decree out of thin air without any backing by anything valuable whatsoever. The only perceivable backing is trust in the issuing country’s government. Today’s currencies only have a value as long as people perceive them to have a value. Fiat-currencies have been very unsuccessful in the history and have failed every time they’ve been tried.

Gold and Silver Bullion vs. Fiat Currencies

Bullion has persistently retained and even increased purchasing value during thousands of years. Every time fiat-currencies have been tried, gold and silver have resurfaced as money after the fiat-currencies failed through hyperinflation, destruction, war or through the introduction of new currency units.

In the current climate of rampant inflation, governments and central banks try to inflate away their debt by issuing new money. The current monetary system is on the verge of destructing under the record high debt levels. The major currencies like the US Dollar and UK Pound have already lost about 98 % of their purchasing value during the last 100 years. When we face the next financial crises, fiat currencies such as the Dollar, Euro and Pound will likely become worthless. You would then want to hold bullion as it retains value over time.  

By holding bullion you can insure not only against currency destruction but also against the fragile financial system as a whole. People in eastern countries like China and India understand this whereas westerners have increasingly forgotten about the favorable characteristics of gold and silver bullion over the last decades.

By investing at least a proportion of your assets in gold and silver bullion, you can be at peace and sleep well at night. Be smart – be sound –be a bullion investor.