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Why are Precious Metals a
Safe Haven During Crisis?

Crises tend to wipe away the purchase power of currencies.

Of course, one has to distinguish between an economic crisis and a currency crisis - but either way, you can end up with either your assets devaluing and/or your income diminishing.

Gold and silver products

Gold and silver perform well during times of crisis

For centuries, people revered precious metals, attributing them value - consider them elements of wealth.

Can silver, gold and other precious metal holdings grant you a safe haven, should your country get slammed by a severe crisis?

Precious Metals During Times of Crisis

The current global economic crisis is worsening. While at the seems, you will think solutions are arising, if you study the situation a little more, you will observe the emerging threats.

As mentioned, the economic crisis concept is one thing and a currency crisis is a different issue.

There is a strong possibility that the Western World (and probably other countries around the World) will suffer currency crises sometime in the future - probably rather in the medium-run and in the long-tun.

By the time the crisis hits, it will be to late to prepare for it financially and much of your wealth (like your savings, your liquid assets) will perish through currency devaluation.

Weimar Germany, post World War II Hungary and many of the Central- and Eastern European states have experiences some sort of inflation. Some even hyperinflation.

We won't go into the details of each country's situation...

But it's worth mentioning that the most recent economic crises occurred in Cyprus, Greece, Venezuela, the Ukraine, Argentina, Iran, Turkey...
Some of these have lead to currency crises (Argentina, Venezuela, for instance).

While some nations struggle with inflation, Japan struggles with deflation and the country is devaluing its currency in order to create a better environment for paying debt and for exports. So, they're intentionally devaluing their currency.

During hyperinflation the currency loses so much of its value that prices skyrocket from one day to the other.

In Zimbabwe they still had 1 dollar bills in 2007, but in 2008 they already required hundred trillion dollar banknotes!

Just to but a single bread, Zimbabweans hoarded bucket-loads of paper banknote stacks.

This could happen to you: hundreds of thousands of dollars might be worth a Snickers bar!

Normally, you should regard precious metal investments rather as savings and means of protection against currency debasement.

Profit-making is a secondary or even tertiary thing to worry about.

The priority is wealth protection.

And while fiat money can devalue easily, your gold, silver and other precious metals will more likely compensate the downtrend. Not just because of their intrinsic value, but also because people tend to rush to them during times of crisis, pushing their price up.

Even if gold's price dips, you needn't worry, it's a long-term investment. Think about 5, 10, 20, even longer periods of time. For life, even!

There is a possibility that a major global economic collapse will occur, we can only hope it will not be the case.
Although, there are concrete signs pointing out that this will happen - and will hit the Western World, especially the USA and the Western European countries.

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