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When we talk about precious metals we usually mean gold,
platinum and another pure metal, fine silver. Silver is one of the original
materials of value mentioned in the Bible, together with other originals
such as precious gemstones that existed from the beginning of time.
This explains part of the attraction associated with these 'non-virtual'
commodities - they existed for a very long time in human history, and
presumably even before. Used throughout all generations and nations they
have been and are one of the preferred ways to display symbols of value and
are used as objects of beauty and style in jewelry. As a form of personal
expression and 'street art'.
Thinking of fashion styles we tend to look at clothing, hair styling and
makeup first. However accessories are a major part of the outfit. Jewelry
one of its coolest forms.
Why is silver jewelry one of the constants that remain throughout history?
What is the real mystery and the secret of silver? It's not only its cool
attraction -- it is one of the commodities that existed before paper money,
and it will retain it's value after currencies are gone.
In a world that goes more virtual by the minute we keep a few valuables that
have their own pre-set value outside our current reality. Currencies will go
virtual, jewelry will not.
To give you an idea about the differences of investments in tangible and
intangible products and how it works out in real life, let me give you an
example that nearly did cost me $25.000 in the past.
During the first oil crisis I lived in New Zealand for a few years and had
to invest my assets in appropriate channels at that time. Because back then
not only oil prices went up, also other commodities such as gold and silver
increased slightly in value and I decided to invest some money in metals.
After locating a company that advertised selling of gold bullion, I went
to their downtown store and asked a clerk to purchase gold for about
$25.000. I never did this kind of investment before and was a bit unsure
about where to keep it save from curious people and for the possible event
of burglars in the house.
Knowing what was on my mind the clerk asked me that memorable question
"would you like to have this in gold options, stocks or physical bullion?"
He went through great lengths to explain me the advantages of "gold papers"
that follow the value of gold at any time, so increase in value if the gold
price further increases. There would be no necessity to actually touch
physical things, and I could cash in the papers at any time.
I almost agreed to his offer, when suddenly a small yet bright thought of
warning flashed my mind. Something that a goldsmith I met before told me
years earlier, he said: "If you ever buy gold, remember the reason why you
buy it, and do not buy virtual gold, but the real thing only".
This thought won in the end because my adviser taught me many basic things
about jewelry and metals, and I highly respected his opinion. Turned out he
was right. Less than 6 months later, the company I bought the bullion from
faced bankruptcy and all their options, shares and other papers lost all of
their value. I still had my physical gold however, that increased in value
by about 10% at that time.
However I keep a small collection of silver and gold jewelry in the same
fresh looking condition as I originally bought it many years ago. These
items never wear out, never go out of style. And never loose their value.
It's the real thing.
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