Inflation Hyperinflation Precious Metals to the rescue

Every where you turn these days you seem to hear the cry of inflation. This is probably not good news for the boomer generation as they watch their pizza price soar. Come on who want’s to dish out an extra buck for their pizza. Most Zoomers are not rich. They are living on a fixed income and if inflation rears it’s ugly head this means your pension check is going to be worth less.

If you have a lot of moola in the stock market you might want to think of taking some of that money out if inflation wakes up. Inflation does not like stocks. They usually go down or at least flounder. Dividend stocks which give you that sweet income every month might also lag. So what’s a poor pensioner supposed to do. Well let’s take a look at past inflation scares and cycles. Even if this one coming is only a short transitory spike like the Fed claims. One era to look at was the great financial crisis. Let’s look at Silver for an investment.

The Silver Price in 2005 was 10 dollars an ounce. In the years following there was a massive movement into silver. Prices soared and in 2011 the prices were teetering at around 40 dollars an ounce. Not only did silver give protection against troubled times it also produced a four fold profit. In times of uncertainty silver has proven in the past to be a good choice. Back in the 70 silver soared to over 100 dollars an ounce adjusted for inflation. So where will silver go in the coming inflation scare?

Now I am certainly no fortune teller. I simply look at the past and as we know history has a strange way of repeating. If we are heading into inflation it is time to at least put some of your money into silver.

How to buy Real Silver

The easiest way to get some protection with silver is to buy the real deal. ETFs have no guarantee your money is going to be there when you go to cash in. If you have yourself a little stash of the coins and bars sitting at home under your mattress you will sleep well at night. If the bottom does fall out you can always run down to your local coin shop and cash it in. You might see all kinds of investment opportunities open up for the coming Silver BOOM. Much like what happened to Bitcoin. Now don’t get me wrong, Bitcoin could be a good hedge against the coming inflation scare but can you stuff them in your mattress? I don’t think so. Also the price of Bitcoin is quite dear right now so I wold tread carefully.

Silver seems to be a good hedge. First of all it is super cheap compared to history. Right there it is a reason to buy some coins. Buying online is a safe and easy way to start your silver stack. Just place an order and wait for it to arrive in your mail. Start buying a little each month. Inflation takes years to play out and silver has just broken a major resistance level. Obviously this is a buy signal. As stock markets start to flounder and food prices rise you might want to grab some silver now before it too takes off into the stratosphere.

Conclusion

Gold, Silver, and the Future

Stable supply in the form of limited mining operations, as well as stable demand in the form of continued demand for decoration and coins, means that the price of gold will remain stable in the foreseeable future.

The value of silver generally fluctuates more than gold due to the many industrial applications that tie the white metal to the fortunes of numerous industries. Platinum and palladium, other rare metals that are often invested in as a hedge against inflation, are similarly prone to fluctuation.

Conclusion

Inflation can cut into a portfolio just as much as any other form of risk. The declining value of the dollar can put pressure on stocks, as well as savings accounts and bond holdings. Gold, silver, and other precious metals can be a safe way of avoiding these pitfalls and keeping a wise investor immune from the forces of hyperinflation and inflation. When diversification is the goal for an investor, gold can always be a segment of their portfolio.

If you are considering buying precious metals, browse our gold bullion and Silver options,