Speaking of central banks, some of the world's most prominent central banks have been purchasing tonnes and tonnes of gold over the past three years, particularly after the BIS (Bank of International Settlements) designated alocated gold as a Tier 1 asset for central banks. This means that gold is the ultimate form of collateral, as good - if not better - than cash, banknotes, and government-sponsored bonds, notes, and bills.

Central banks store gold in their own vaults and many market observers and economists believe that there could soon be a return to a gold standard and an end to floating fiat currencies, which has been the standard for the past 50+ years.

Gold and silver have long been viewed as exceptionally good insurance or a hedge against inflation, long-standing stores of value (purchasing power), and generational wealth. When considering gold or silver as investments, individuals should consider the following:

• portfolio allocation (percentage of assets in gold/silver)
• bullion type (coins, bars, rounds, etc.)
• purpose (value, hedge, income, growth, savings)
• security (store at home, bank, or private vault)

Most importantly, when buying gold or silver, one should be looking only for bullion (bars, rounds, coins) at prices near the current spot price and be assured of reasonable delivery terms. As the expression goes, "if you don't hold it, you don't own it," meaning, one wants to buy actual bullion, measured in ounces or kilos, not jewelry or "paper gold" ETFs like GLD or SILV, , numismatics (collectible coins), or mining stocks. Those are derivative plays, decidedly NOT what purchasing gold and silver bullion entails.

Perhaps the most provident reason to invest or save in gold and silver is its lack of counter-party risk. In other words, a holder of gold or silver has the asset unencumbered by liens, margins, lease, loan or service requirements. The asset is completely the property of the holder. With stocks or bonds, there's always another party on the other end. Stocks are subject to market conditions, the company's management, and the whims of brokers and dealers. Bonds or fixed-income assets are purchased from governments or corporate entities, and the risk of default is always present.

With gold and silver, there is no other party, making precious metals the hardest of "hard" assets, known primarily as "hard money."

As the world seems to be teetering on the precipice of major conflict between superpowers and the purchasing power of currencies like dollars, euros, yen, and pounds continue to be questioned, gold and silver allow individuals freedom from risk and worry in stressful times.

Granted, as currencies are debased by Western central banks at what seems to be an accelerating pace, while gold and silver may provide inflation protection and peace of mind, they are still at the mercy of international cartels and are not generally accepted for payment for goods and services, which are primarily handled with fiat currency, but, while it's still necessary to transact in accepted currencies, gold and silver in one's possession acts as a backstop against devastating cataclysmic events, and, with proper foresight and careful planning, can at times be employed as currency, or at least as a partial payment device.

As more people become aware of the casualty of conducting their lives within the framework of the fractional reserve debt-based banking system in use today, gold and silver will be increasingly useful in commerce, a fact well-known by governments and central banks.

With gold hitting record after record price in 2024 and silver outpacing it in terms of percentage return, it's in everybody's interest to at least consider allocating some savings to gold or silver and educate oneself on the virtues of honest money.

For individuals, gold and silver can readily be purchased online on ebay with minimum risk. Be sure to check a seller's reputation via his or her feedback scores, though the safest method is to buy from the vast number of dealers who are regular sellers, such as Bullion Exchanges, Scottsdale Mint, Apmex, Nadir, Pamp Suisse, Perth Mint, and many more.

Here's a brief list of some of the best dealers on the internet, many of which offer free shipping over certain dollar amounts. Prices are generally in line with current spot quotes, plus premiums, with discounts for multiple or larger purchases. These are mong the most reputable dealers in the world.

• Scottsdale Mint
• Pinehurst Coins
• Bullion Exchanges
• APMEX
• Provident Metals
• SD Bullion
• JM Bullion

The 2024 In Gold We Trust report is available for free download from the idleguy.com library.

And don't forget what's known as "junk silver," U.S. coins minted before 1965 which are 90% silver content. A list with current melt prices of these dimes, quarters, half-dollars and dollars is available at Coinflation.com.

Disclaimer: This article is not to be construed as investment advice or recommendation to purchase any of the assets described herein. All investments involve risk. Downtown Magazine Inc. and idleguy.com are not investment advisors and are held harmless from any claims resulting from use of the information provided herein or anywhere else on idleguy.com or dtmagazine.com.

Chris Martenson of Peak Prosperity covers a wide range of economic and political issues with Ed Dowd. Two pretty tuned-in guys. Worth watching.

Disclaimer: Information disseminated on this site should not be construed as investment advice. Downtown Magazine Inc., Money Daily and it's owners, affiliates and/or employees are not investment advisors and do not offer specific investment advice. All investments have risk. You should consult a professional investment advisor or stock broker or use your individual judgement when making investment decisions. By viewing this site, you hold harmless Downtown Magazine Inc., Money Daily, its owners, affiliates and employees against any and all liability. Copyright 2025, Downtown Magazine Inc., all rights reserved.