What’s Your Exposure?

Bullion Vault

Just holding cash still leaves you exposed to financial and inflation risk…

IT’S A WELL-KNOWN TRUISM that every investor needs to start with savings,writes David Morgan of Silver-Investor.com. But what if those “savings” give the investor too much exposure to risk?

What investors or people in general need in this financial environment is savings that don’t deteriorate. We are in an environment now where the idea of making money, which is kind of the preamble to being American, is going away. In other words, in today’s environment, he who loses the least wins, and the way that you do that is to hold savings that don’t devalue over time.

There really are only two currencies able to do this – Gold and silver.

I remember starting my quest in silver in the mid 1960s. Silver was the coin of the realm here in America, through 1964. Then in 1965, coins were minted but they did not contain silver. (Just to be accurate about this, there were some exceptions with the 50-cent piece.)

The futures market back in the late ’60s and early ’70s had two silver markets, actually. There was the Bullion market that we still have, and there was also a coin bag market. The bag market consisted of “junk silver” as it was referred to, which is US coinage that is 90% silver.

And I remember people asking questions such as, how can you make money by buying money?

In other words, the link between the Dollar and silver had been cut, but people didn’t even understand it, because it hadn’t drifted that far – they didn’t get it. Paper money, silver money, what the heck is the difference?

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