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Why Invest Now?
Three Good Reasons to Own Precious Metals Now:
1. Precious Metals Have Been a Solid Hedge Against A Declining U.S. Dollar. The value of the U.S. Dollar declined more than 30% from 2001 through 2004, plunging 5% in just a few weeks. For a long list of reasons, including massive increases in U.S. government deficits totaling trillions of dollars, the cost of a prolonged war against terrorism and a massive trade imbalance, this trend may be just the beginning. This means U.S. Dollars may well be worth less and less on an ongoing basis. This also means that investments pegged to the U.S. Dollar could be worth less and less every day. Gold, silver and platinum, however, are held and traded throughout the world . . . and their true value (that is, their purchasing power) is not solely or directly dependent on the falling fortunes of the U.S. Dollar. Precious metals, therefore, can be a form of protection against a falling U.S. Dollar. As demonstrated during 2003 and 2004, when the value of the U.S. Dollar declined, gold and silver prices and the value of precious metals expressed in dollars increased.
2. Precious Metals Have Been a Proven Safe-Haven in Times of War, Political Strife and Uncertainty. Today's financial markets are increasingly at risk from terrorism, political instability and war. As we saw so clearly after the 9/11 tragedy, financial markets can be closed down, and remain closed, for extended periods of time. As terrorism incidents continue to increase around the world, it is not unreasonable to expect further (and potentially more severe) disruptions in financial markets, banking and commerce in the future. When hostilities break out, investors naturally gravitate toward the assets they can trust. And today, even in our high-tech driven 21st century, the asset class investors around the world rely on in times of trouble is gold and silver. Precious metals have always been, and likely will continue to be, a valued form of "wealth insurance" in good times and bad.
3. Precious Metals Can Offer Outstanding Price Appreciation and Profit Potential. After the infamous stock market "bubble" debacle in early 2000 wiped out trillions of dollars of investor equity, the major stock indices took years to return close to their previous highs. Gold and silver prices, on the other hand, have increased dramatically - more than 40% - during that same time period. This means precious metals can produce impressive investment returns even when (and sometimes, especially when) returns from stock, bond and other paper investments decline in value or evaporate completely. 4 Bullions, Inc. can help. Our leveraged approach to bullion investing can be a powerfully tool during periods of rapidly changing precious metals prices. Many financial experts have predicted and continue to forecast rising gold, silver and platinum prices in the years ahead.
Leveraged Bullion is a Better Alternative
The purchase of leveraged bullion uses the same logic found in real estate investment opportunities, where you buy a house you believe will increase in value over the next several years. Most investors would make a small down payment on the house, and take a mortgage for the balance of the purchase. In this manner, you have only put up a small fraction of the asset’s value, yet you will enjoy all of its appreciation and profit when sold.
Why invest in precious metals?
We live in a dynamic, fast-moving world where change has become a routine part of our daily lives. For example, the effects of changing government policies, shifting political alliances and mounting internal and external social pressures can and often do combine in unforeseen ways to impact the economic health of our country and that of other nations.
In the uncertain world of the 21st century, the whims and fancy of a select few can quickly alter the economic security, stability and order we have come to expect and take for granted in our free society. In the end, it is the responsibility of each of us, individually, to be prepared for change . . . recognize change when it happens . . . and take the steps necessary to adapt to change when it occurs.
Precious metals are often thought of as a stand-alone asset class with gold receiving most of the attention. Gold is widely thought of as a “hard currency” and a commodity that derives intrinsic value from its relative scarcity. It has withstood the pressures of time including fiscal and monetary policies, and has repeatedly demonstrated its effectiveness as a hedge against periods of monetary inflation.
The long-term outlook for precious metals continues to be favorable due in large part to the expected continued weakness in the U.S. dollar. The weakness in the U.S. dollar is perpetuated by record high current account and budget deficits that are not expected to subside in the near-term.
Investment experts have long-recommend portfolio diversification, and that 10% to 20% (and sometimes more) of an investor's assets should be devoted to tangible assets such as gold, silver and platinum bullion. That's simply prudent asset diversification strategy. In today's uncertain political and economic environment, there are many (and very sound) reasons to consider investing in precious metals now.
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