The first lesson I learned about wealth creation – the process of investing in different assets to generate a stable source of income – is that what we know as money is not real money but currency, which when not being backed by either gold or silver does not store value in and of itself as Mike Maloney writes in his book Guide to Invest in Gold & Silver: Protect Your Financial Future. How can a piece of paper hold more value than a Monopoly note then? Fiat currencies, what we wrongly call money, only have value when there is an order of the government saying so. They are meant to lose value over time so that your chances of building wealth are diminished. The more fiat is printed and spent by the government, the less purchasing power you have because there is more fiat circulating and competing for the same amount of goods and services. In other words, this is why prices rise, inflation surfaces, and debt keeps increasing.
History has shown that the only way to solve this problem is to either have our fiat currencies backed by assets such as precious metals, or let them die. As you may have guessed, we have been jumping from crisis to crisis by applying the same problem-reaction-solution. A crash in the economy leads to conflict and general dissatisfaction, which in turn increases the circulation of fake money and debt. The rich get richer and the poor get poorer. It’s time we learn the basics about the history of money though and the main message I want to share in this post is that there is a tendency for both gold and silver be reevaluated and gain purchasing power over inflated currencies. As such, you can build and preserve wealth by investing in precious metals such as gold and silver. This was the very first precious advice I received on starting an investment portfolio and this is where I would also recommend you to start with if you are looking forward to building an investment portfolio.
According to Bullionstar, universal money must be durable, easily divisible, portable, available in limited supply, homogeneous, and difficult to counterfeit. What we have commonly known as money doesn’t fulfill all these criteria, whereas Gold, for instances, satisfies all these conditions as well as the three functions of real money: it’s exchangeable, it holds stored value and it is a unit of economic transaction. Knowing this, I started investing in precious metals using Bullionstar and I’m very pleased with their services so far. It’s easy to see what products they have available and place orders. Afterwards, you can either store your bullion (precious metals in the form of bars, ingots, or coins by the way) with them or you can request a delivery to your door.
The part I like the most about investing with BullionStar is that they send you a picture and a detailed description of your bullion order once everything is settled. In your account dashboard you then have access to your bullion portfolio and you can track details such as average buy price, market value as well as current price and change. You have also the options of buying more bullion, withdrawing what you have or even sell it. It’s a very user friendly and straightforward system. Another possibility I find very useful is that you can set up your own market alerts for gold, silver, platinum and palladium. Once you set it up, you will received an email and/or a text notification to let you know that the market has reached your alert price.
Precious metals are not the only asset you should invest on to create and preserve wealth but I believe it’s the most important one to start with. If we can learn anything from history is that gold and silver always prevailed over thousands and thousands of fiat currencies. It’s a wise investment decision and a step toward a more financially independent life. To learn more about this topic and expand your financial education, please consider watching Mike Maloney’s documentary series Hidden Secrets of Money. That’s how I started to learn more about how our financial system works and how we can and must seek financial freedom. You can watch it for free on Mike Maloney’s YouTube channel.