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RE: Important things

in Reflections7 months ago

I am intrigued about the reasons why people buy gold and silver. Yours is pretty common and I can understand that. Preparing investments for future generations is always good. I have a friend whose father collected old currency coins. They were able to sell them for a good amount when they needed the money. I am curious though if they are worth it more than investing in stocks that pay out dividends. Gold, Silver, and Coins increase in value thru inflation and other collector's interest, but compounding dividends seems more powerful.

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It's simply an investment strategy; silver and gold prices have traditionally increased and so people acquire it for the potential gains. In my case, it's that and a means to hold cash without actually holding cash and the benefit of an increasing value, not decreasing.

A person should have seven streams of income, that's what will help a person attain financial independence and so I buy gold and silver as one of those "incomes" - Not that I sell any at this stage of course. Putting money in banks and hoping for viable dividends is misplaced hope in today's society.

I see. Thanks for the detailed answer. I don't think I have 7 steams, so I need to work on more of them.