Gold and Silver: Should You Be a Buyer?

I bought a bunch of gold in 2002. Back then, it was selling for about $400 an ounce. Today, an ounce will cost you more than four times that much, as it’s trading at roughly $1,800. That’s a gross profit of about 8% a year. And even if you subtract from that the average inflation rate during those years (about 2.5%), you’d still be making about 6% a year or 350% over 20 years. (I did those calculations quickly in my head. They may be wrong. But not by much.)

A profit of more than 300% over a 20-year period is good, but it’s not going to make you rich. My approach to gold, though, was never to get rich from it, but to use it as (1) a hedge against inflation, and (2) insurance against financial Armageddon. As an inflation hedge, it has already exceeded my expectations. (You can read one of the many essays I wrote about buying gold here.)

If you don’t own gold now, or think you might want to, click here to watch a short, entertaining video by Sean MacIntyre (who has developed a huge international following by expanding on and in some cases revising my ideas about wealth building) on his reasons for buying precious metals right now.

And click here to check out his website, DIY Wealth.