Why Invest in Silver and Gold?

Why should I invest in Silver and Gold?

Diversification, profits, hedge against inflation, tangible, inheritance.  Take your choice.

There are many reasons why it is a good idea to invest in Silver and Gold.  Investment in Silver and Gold is often overlooked or dismissed by traditional financial advisors.


Diversification.  Like any other types of investments, spreading your investment dollar among several asset classes is always recommended.  Some will diversify among large, mid, and small capitalization stocks or mutual funds.  Others among equities, bonds, and cash.  Some will buy REITS or actual property.  There are many different investment opportunities.  The one common theme, is that they always say to diversify.  If one asset class goes to pot, then you are hedged by the others not tanking at the same time.  I often hear that you should not have more than 10% of your investments in any particular class.  Precious metals is often inversley related to the equity market, that is to say that when Wall Street goes down, gold and silver goes up.  Now this is NOT a firm rule, and recently the precious metal market has been moving in the same general direction as equities, but that has not always been the historical experience.  Again, diversification means that your eggs are not all in the same basket.

Profits.  It is by no means a sure thing, but many people and corporations have made hefty gains in precious metals, but I don’t believe this is the primary reason for investing in this class.

Hedge against inflation.  What I feel, is that gold and silver allow you to “unlink” from the Dollar.  I often hear that in the 1920’s you could buy a well made men’s suit for a $20 gold piece.  Now, you can still buy a well made men’s suit for the same $20 gold piece.  What changed?  Was it the amount of gold in the Double Eagle?  Was it the suit? Or was is the value of the cash being exchanged?  Another similar example; in the 1920’s you could get a gallon of gas for the value of a silver quarter (and get change back).  Today, same silver quarter, same gallon of gas.  What gives?  Well, the example shows the effects of inflation.  In America, we have been used to an average inflation rate of 3-5% for decades.  That silver quarter that was worth $.25 back in the 20’s still has the same silver content as today.  It is still worth the same!  The only thing that has changed is the value of the paper money we call a Dollar.  By investing in precious metals, you are divesting in dollars, and preserving your wealth.

Tangibile.  Having physical posession of gold and silver has REAL, intrisic, tangible wealth.  It is not just an electronic entry in  some computer.  If held securely and protected (with an alarm systrem?) it just can’t disappear as easily as an adjustment to a journal entry at your financial institution.  If there is an extended power outtage, or closure of the banks or ATM’s, you will always have access to your money.

Inheritance.  If you build up a stash of gold or silver bars & coins, you will have real, tangible wealth that you can pass on to future generations.  Next time a son or daughter, nephew or neice has a birthday, instead of giving them some junk made in China, try giving them a silver dollar.  They will be thrilled, they will begin to learn the true meaning of wealth, and they will appreciate and remember the gift for a lifetime.

So why am I mentioning this in a post for Aloha Alarm, an alarm company in Honolulu, Oahu, Hawaii?  It is because security is more than just a monitored home alarm system.  Security is the peace-of-mind knowing that your family is protected physically, mentally, financially, and spiritually.  A solid plan of investing goes hand in hand with a solid plan of physical security for your home or business.  Protect the ones you love the most.

Mark Plischke
Aloha Alarm
Honolulu, Oahu, Hawaii





One Response to “Why Invest in Silver and Gold?”

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