Gold and Silver

Why are physical gold and silver good investments?

Gold bars

Disclaimer: In no way, shape, or form is this financial advice. Invest and/or trade at your own risk.

If you want to read my article on hyperinflation, please go here: https://jesuschrististheking.com/what-are-the-chances-of-hyperinflation/

Throughout history, gold and silver have been around whereas every fiat currency has eventually gone to zero. Fiat is basically a currency decreed by the government to have value because they say so. It’s often known as “paper” money. It can be manipulated via money printing or these days, digital printing as well. However, gold and silver really are God’s money. They are much harder to reproduce in order to take advantage of others as there are ways to test for fake silver and gold. They have a real, intrinsic value as they are tangible and hard to reproduce via manipulation seen with money printing tactics and deception. At the same time, they could also only be said to be worth something because others say so. Twigs could technically be a form of currency if people said so.

However, the fact that they have been around for thousands of years and have not disappeared certainly helps with an investor’s psychological beliefs surrounding their necessity and legitimacy; also, gold and silver are mentioned in the Bible hundreds of times which also helps with someone’s psyche when it comes to confidence in the form of real, tangible money.

With regards to practical applications, gold and silver have been used in a wide variety of uses from cups and silverware to industrial and electrical applications.

Let’s say the U.S. goes into hyperinflation which is surely possible. People are likely to resort to some form of currency in addition to food, survival equipment, and other necessities. In order to barter, they will likely refer back to gold and silver which are already in circulation and proven to historically hold their value as opposed to coming up with an entirely new currency. The government, on the other hand, doesn’t like that they cannot monitor and control gold and silver so they could come up with some type of new currency that they can watch over. 

Therefore, as I mentioned on the Survival and Money page (https://jesuschrististheking.com/survival-money/), you could end up with two groups: those who use the government’s currency and those who do not and use gold and silver, for example, in addition to other bartering items. This seems possible during the time of this writing and is one reason as to why I’m not a fan of Bitcoin (the government will want a currency that they can control among other reasons).

If the U.S. dollar somehow doesn’t go into hyperinflation and things change, well someone could go to a local gold and silver dealer and likely trade it in at a higher or lower price for U.S. dollars, or other fiat currency depending on where they live, the dealer, etc.

At the time of this writing, silver is trading around $22 an ounce which is quite ridiculous, in my opinion, given the damage the Fed has done. Though I’m not giving financial advice in any way, shape, or form, I would say the upside is enormous with limited downside. If gold and silver take off as the Fed loses control and the truth is revealed, the prices could easily go parabolic to the upside. What happened during the 1970’s and just after 2010 is just a taste of how high gold and silver prices could go given the conditions today could provide even more fuel for extremely high prices.

Additionally, if we are near the third seal in the book of Revelation, then the denarius will be of value according to Rev. 6.6:

“And I heard what seemed to be a voice in the midst of the four living creatures, saying, ‘A quart of wheat for a denarius, and three quarts of barley for a denarius, and do not harm the oil and wine!’ (English Standard Version). 

God is basically telling people that silver will become of importance. However, there may be other factors such as where you specifically live and obviously when it will happen; maybe this Bible verse is only referring to specific regions.

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