Silver versus the Dollar

Rate this post

We all need dollars to live in the United States. Still, the dollar has lost much of its purchasing power over the last 10 years as the FED has again decided to pump large amounts of fiat dollars into the US economy. This does not bode well for buying groceries and other products where real dollars are needed. According to The Trading Deck gold and silver are set to rise, as a weaker dollar is usually followed by a rise in gold and silver prices.

According to The Daily Reckoning we can all return our own finances back to the time when money was backed by gold, even if our government won’t. There is sound argument for this, because when we compare the dollar to gold over the last 100 years we find the dollar has lost most of its value. Of course, since gold is trading at over $1700 per ounce, many investors are turning to modestly priced silver instead. Currently, silver trades at just over $34 per ounce and is more affordable than gold. You can verify the silver spot with the Monex silver prices chart when needed.

The Daily reckoning states that because of the forced debasement of the dollar by the FED the buying of silver has become an urgent matter. Gold and silver protect us against inflation, a volatile stock market, and a declining dollar. They go on to say that we should not trust the fiat dollar. After all, a flat currency is only worth what the government tells us it is worth. There is certainly little confidence in that realization. Yet, most people have no idea the government is intentionally weakening the dollar as a way to stabilize the down economy.

The spot price of silver or gold for that matter does not rely on decisions by governments or central banks. Of course, their actions do have some influence over precious metal spot prices. Yet, even if the dollar has no value at all, gold and silver always have inherent worth.

According to The Daily Reckoning we need gold or silver bullion to survive if the economy completely collapses. There is merit for this argument, because flat currency based economies have failed before in South America. High unemployment, a totally worthless currency, and hyper-inflation are the result. Whether you agree with this assessment regarding flat currencies or not, one thing is clear. The economy is sluggish, the dollar has declined, and stocks remain a mixed bag. Yet, gold and silver are rising in value. This is a fact.

Precious metals have long been used as a safe haven against inflation and a weakened currency. It is well documented that gold and silver can be used successfully as a financial safe haven. Is silver better than the dollar? There is no definitive answer because dollars are needed on a daily basis to survive in the US. Yet, it is prudent to back fiat dollars with silver or gold. You can buy gold and silver bullion from precious metal dealers. One dealer, stands tall over the rest, because they have decades of experience in silver and gold bullion investing.