Hello All,
So it seems more and more of us are getting into "alternative" currencies, whether they are precious metals ( silver, gold, platinum, and even copper) to digital or Crypto-currencies, like our beloved Steem, and as off today, Bitcoin has rallied up in an unprecedented manner reaching $898.
So the purpose of this article is to elucidate the "logic" behind this interest in "Alternative Currencies".
Why do we do this? why are we looking at moving out money around? putting our eggs in different baskets?, well the answer is simple: Trust, or the lack of it thereof. (lack of trust in paper money).
To address the issue head on one has only to compare the VARIABLE value of printed money, to the CONSTANT value of precious metals (we'll touch on Digital Currency later). Because you need to understand that for example Gold doesn't go up or down in value, Gold is Gold is Gold. One Once of Gold is One Once of Gold, for ever an never Changes, but what happens is the value of the printed money that you use to buy that ounce of Gold increases and decreases on a daily basis, that shows you how unstable the value of printed money is. So while yesterday you needed $33 to buy an ounce of Gold, today you need $35, but to morrow may be $31 or $40, who knows. So you see the perception is that Gold is going up or is going down, but that is not the case, because that ounce of gold, was an ounce yesterday and will be an ounce tomorrow, but the acquisitive value of your cash fluctuates all the time, that is what happens in times of crisis, the value of money totally collapses, but that ounce of Gold is still an ounce of gold, only in a time when cash collapses, you will need hundreds, thousands or more to buy that same unchanged ounce of Gold, or Silver. This may sound like an exaggeration, but then I'll urge you to do a little research about economic collapse in Zimbabwe, where at the worst peak of their crisis you needed a whole wheel barrow of cash to buy a loaf of bread, and people used to walk around with these crazy amounts of extremely devalued printed notes.
Anyone that has been paying attention to international news knows that the world is on the brink of an imminent economic collapse. One fun game to play is to look at the foreign debt of all countries around the world, soon you realize that ALL countries are up to their necks in debt, ALL of them, so the question is, who is lending the money? if ALL countries are in debt, who they owe it to?
Silver and Gold have been kept artificially low in price for a long time, and this is good for us little guys, because it means we can (as much as we can afford) to buy and keep some of it as of today an once of Silver is around $18.
So with Silver and Gold the name of the game is not to buy, with the hope that WTSHF ( When The Shit Hits The Fan) Silver and Gold will go through the roof and we'll be rich. No. The name of the game is to consolidate the value of your fluctuating value printed money, so if you have some spare printed paper ( cash) exchange it for some Silver or Gold. That at least insures that those $18 that you exchanged for an once of Silver will remain $18, even if the system crashes. Of course this is "nutshell" breakdown of the process and there are a few caveats, but basically, you are CONSOLIDATING in Silver or CONSOLIDATING in Gold the value of your printed variable paper money.
There is also the added plus, that you have this Silver or Gold in your possession, under your mattress or something like that because as off today most western countries have introduced legislation to freeze peoples bank accounts in case of an economic collapse, giving governments the right to extract from peoples accounts up to a 20% (this changes country to country, find out about this in your own country) to bail out the banks!? ..how do you like that one?
As we all become more aware of the reality we live in, mainly through the internet, we have come to realize, the unhinged casino that is the "financial system" where money is printed willy-nilly to keep the bubble inflated, but we all know that can't go on forever.
So for me Silver and Gold are not a means to become rich over night, simply is a way to insure your hard earned printed paper, suddenly is not worth anything at all. Crypto-currencies on the other hand, I see as a "Post apocalyptic" source of wealth. I firmly believe that Crypto-currencies are the currencies of the future, when there will be no printed cash around, coming near you very, very soon. So if you get in there and stack up a good pile of Crypto-currencies, you'll be we'll positioned by then, but again, this I see as a looooooooooooooooooooong time investment. You need to hoard your Crypto-currencies and keep them for a time when they will come "in to their own realm"
There are many interesting facts and also caveats about the dynamics of saving in the form of Silver and Gold, many ways to play with the perceived value of this metals, and even playing with the value of their ratios to get free (in a long time strategy exchange) Silver and Gold, but we'll talk about those in later articles.
Please let me know your thoughts, or any questions you may have. Happy saving !
@Anarcharos