The Value of Gold and Silver

Everyone knows that gold (COMEX:GCZ13) and silver (COMEX:SIZ13) have value, but few people understand their real value. Some people say that the current price of gold and silver is too high after rising 12 years. Is that true? If we know the real value of gold and silver, we will have a clear answer to the question. In this article, I will decode the three main components of the value of gold and silver: Monetary value, commercial value and cultural value. Then we will know if it is worth to buy gold and silver at the current price and what to buy. This article is for all people no matter whether you own gold and silver or not.

1. Gold and silver have monetary value

The principle to estimate the monetary value of gold and silver is based on the fact that gold and silver are money. Many people account paper currency as money. That is wrong. Paper currency is just a kind of fiat currency. “The average life expectancy for a fiat currency is twenty-seven years” (Chris Mack, president of Trade Placer). Gold and silver are real money and have been used as money for 5,000 years by all countries. You can easily learn the difference between money and currency on the internet. I don’t need to reiterate here. Just remember that a currency loses its purchasing power as the currency issuer, the central bank, prints more currency. But money (such as gold and silver) will never lose its purchasing power though it may fluctuate during some short periods. No one can print one ounce of gold or silver.

MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet