We live in a dynamic, fast-moving world where
change has become a routine part of our daily lives. For example, the
effects of changing government policies, shifting political alliances
and mounting internal and external social pressures can and often do
combine in unforeseen ways to impact the economic health of our
country and that of other nations.
In our uncertain world of the 21st century, the whims and
fancy of a select few can quickly alter the economic security,
stability and order we have come to expect and take for granted in our
free society. In the end, it is the responsibility of each of us,
individually, to be prepared for change . . . recognize change when it
happens . . . and take the steps necessary to adapt to change when it
occurs.
Nowhere is change more prevalent and pronounced than in the world's
financial markets. Prices on stock and bond markets, and on
currency and commodity exchanges, can and do change throughout each
trading day. Periodically, these changes are quite dramatic, resulting
from volatile and unpredictable market conditions. At such times, a
diversified investment portfolio may help protect an investor from the
full effect of unanticipated and potentially disastrous market
movements such as a stock market crash.
Many experts believe that the stock markets, and the mutual funds that
invest in them, are overvalued and potentially at risk for correction
similar to the corrections seen in 1929, 1987 and 2000. Every stock
market investor should consider balancing his market risk with real
precious metals and not just gold stocks, which like all stocks, are
subject to business risk as well as market risk (and can be extremely
volatile at times). Historically, physical gold has been a premier and
desirable financial asset in times of market turmoil. Precious metals
are one of the only financial asset classes in an investment portfolio
that are not simultaneously someone else's liability.
The Prospect Of Inflation.
In an attempt to avoid a recession,
the U.S. government has been forced to inflate the U.S. economy with
an easy monetary policy and increased spending. Precious metals can
offer inflation protection and profit opportunity, as evidenced by
the skyrocketing precious metal prices in the late 1970's when
inflation reached double-digit rates.
Government Debt May Also Spur Inflation.
Despite political jawboning, the colossal national
debt of the US has continued to snowball and now stands at $7 trillion-plus.
Interest payments on this debt now drain the budget of billions of
dollars each month. If history provides any guidance, this escalating
debt could lead to a new wave of inflation, particularly if the
government prints money to pay it off.
Wealth Protection in the 21st Century
Many investors are growing increasingly nervous about what they see in
the world today: Increasing levels of domestic and international
strife, war and terrorism . . . the declining value of the U.S. Dollar
eating away at their nest eggs and their futures . . . stock, bond and
real estate markets that appear chronically overvalued . . . and the
very real possibilities of inflation, deflation, recession, depression
and tougher times ahead.
In such an uncertain environment, it is natural - and highly
appropriate - to seek out strategic investment alternatives in order
to 1) Preserve one's wealth; and, ideally, to 2) Increase one's
wealth. For thousands of years, in good times and bad, precious
metals have offered investors a solid, long-term and tangible way to
hold and protect wealth with relative safety. Unlike paper investments
(like stocks, bonds and currencies) that can and have become worthless
overnight, precious metals have true intrinsic value . . . and, hence,
will always be valuable. What's more, in recent years, precious
metals have also proven to be outstanding short-term trading vehicles,
offering traders periods of outstanding profit potential as metals
prices fluctuate, sometimes dramatically, on world markets.
