If you’re someone that’s new to the economy, then the current state of the world will not make a lot of sense to you. Every single country in the world is in debt. How can that be possible? For example, the United States is close to 30 trillion dollars in debt to other countries.
Other states have the same relationship with America. Furthermore, if you take all the cash that’s circulating in the world at the moment, there’s not enough to repay all of that debt. Then where is all that money, and where can it come from? Click on this link for more info.
That’s an intricate question, and the answer is even more confusing. That money is going to exist and is going to be repaid in the future. Let’s look at an example from daily life which can make things a bit simpler. When you want to buy a new house, you oftentimes don’t have the money upfront.
This means that you need to go to the bank to borrow a couple hundred thousand dollars. Well, the bank doesn’t have that money too. However, the government agrees with the bank that it can lend you an amount if you can repay it in the future.
That’s where things start to get confusing. When your pen strikes the piece of paper with your signature, you’re the person that’s bringing in new money into the world. You have partial ownership of a house at that moment, and the bank loans you money that you’ll give back over the course of 20 to 30 years.
This means that when the time of your loan ends, you will have brought all of that money into the world. That also includes interest, which counts as profit for the bank. That process, on a large enough scale, is the situation that the world is currently facing. There is too much debt and not enough money to pay for it all.
What happens when everyone is in debt?
There’s a simple thing that the government does when everyone is in debt. They start printing more money. Today, inflation is on the way, and the entire financial world is aware of it. You can go to https://www.metal-res.com/reviews/noble-gold/ for more info. The governments are spending like crazy, and their budget is supported by the people that are paying taxes.
What’s even worse, all of the money they spend can be repaid by increasing taxes, which is always an option, or by borrowing from other countries. The only thing that can keep you safe in times of inflation is investing in gold or silver.
These two metals have been the backbone of a stable investment portfolio for more than ten thousand years. If you’re someone who has a few bullions, there’s nothing to worry about. On the other hand, if your first thought when hearing gold is about a ring or a necklace, it’s time to change up your priorities and start accumulating something that’s going to bring you a lot of profits in the future.
Hard money assets like precious metals give you a lot of financial protection from a variety of risks. There’s one simple reason why that’s true. There’s always going to be a finite amount of gold or silver.
There’s a finite quantity above ground, and there’s also a limited supply that’s left on the earth. Sure, you can be futuristic and say that there’s going to be a day when we start mining asteroids, and those metals are going to become common. That theory is too far into the future. The next crisis won’t take that long.
Why should you focus on silver instead of gold?
At the moment, silver is bound to overtake gold as the best precious metal on the planet. That’s because it works as a hybrid between the world of industrialization and investing. There is a lot of demand in the world of electronics for computers, plasma displays, and tablets.
It’s one of the most conductive elements, and it kills bacteria just by touching it. This means that the field of medicine is on the lookout for it. When there are so many industries looking for it and not enough silver to go around, then the price is bound to increase in the future.