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Why Precious Metals

Today, it is easier than ever to make gold and silver part of your of almost any individual size portfolio.  HemaQ’s precious metals experts will walk you through where, what, when why and how to buy and sell precious metals, both efficiently and effectively, aiming to bring you to the closest position to the international market spot prices.  Whether you are considering home storage, domestic or overseas third-party storage, or converting your IRA into precious metals, Hema Q and its team will take the time to understand your individual needs and goals to provide you with sound guidance on buying and selling precious metals to your best interest, avoiding overpaying for it, or buying what you do not need.

For thousands of years, gold and silver have been used as currency.  It is not a coincidence that in the periodic table, Gold (atomic number 79) and Silver (atomic number 47) are really the only two elements that comply with the requirements to work perfectly as a practical clearing instrument for commerce and wealth preservation.  On the other hand, gold’s scarcity and limited availability make it a secure and trusted way to preserve wealth.  Even in today’s financial uncertain world, gold and silver are still among the most solid and steady commodities to buy for preserving your current currency value by mitigating inflation.  It is a reality that today’s central banks manipulate world currency through the controls of money supply and the mechanism of interest rates, which entails printing more fiat paper, and encourage inflation which happens to be the real shadow price of this titanic manipulation and the equivalent of the currency depreciation; however, the value of gold and silver continue to remain steady decade after decade.

At a time when governments worldwide have adopted fiat paper currencies and then debased them to finance reckless spending, precious metals remain the only honest and accountable form of money.

Gold and silver have served as a store of value and unit of exchange since the dawn of civilization due to their inherent properties: rarity, durability, fungibility, divisibility, and portability.

Paper Currencies Increasingly Shaky

We believe the US dollar, the world’s reserve currency, is facing a collapse, and there is no strong candidate to replace it. The Euro, the only other currency with enough liquidity and financial backing to challenge the dollar, now looks very fragile. China, soon to be the world’s largest economy, does not even allow its currency to trade freely in global markets, in addition to their lack of transparency in their real economic data.

In this scenario, only gold is considered a true safe-haven asset. Foreign central banks have already switched from being net-sellers to net-buyers of gold. We believe we are witnessing nothing short of the re-monetization of precious metals, together with the re-backing up of worldwide fiat paper with a real tangible asset.

A Failed Experiment

Many investors are shocked to consider a return of gold as money.  However, it is the phenomenon of the fiat era that is unusual.  The period since 1971, when Nixon closed the gold window, is the only time in human history that currency has not been backed by precious metals. This was not progress, but in fact the result of a series of geopolitical events – namely the historic stability of the (gold-backed) US dollar and the dominance of the US after World War II.

The reason a fiat system was never attempted before is that it would give too much power to whatever group was able to control the printing presses. The US seized that power, and now its abuse of it is driving the global economy into a colossal crisis.

Civilizations have traded and bartered with “tangible” assets since the beginning of humanity in its own core.  Since the unpegging of the US Dollar from a tangible asset like gold, the world has gotten into an unmeasurable financial bubble.

The Global Debt Bomb

The Western world is now facing unprecedented levels of sovereign debt. The worst nations — including Greece, Spain, the UK, and the US — have funded and unfunded liabilities greater than the yearly output of their entire economies. These governments have assumed debts and made promises they simply cannot afford.

It is important to note that when the major banks faced bankruptcy in 2008, Washington bailed them out; but Washington is also bankrupt, and it is bailing itself out in a way that few even notice it.  Since the ailing US economy can hardly afford more tax hikes, and politicians cannot risk cutting entitlements, the federal government is undergoing an inflationary bailout.

Washington is simply printing more and more dollars. This allows it to pay back its bonds with cheaper and cheaper dollars, until its creditors receive the nominal value printed on the front of their bonds. This does not erase the debt, but rather pays it back by stealing purchasing power from every investor, worker, and saver with dollar-denominated assets.

The worst part is that nearly every wealthy Western country in the world is mired in debt, and each one is devaluing its currency along with the US. It is a race to the bottom, and many conservative investors feel there is no safe place to turn. But history provides us with a haven from all government paper — gold.

The Ultimate Insurance Policy

Unfettered access to portable wealth, which is not subject to confiscation, registration, or unwarranted intrusion by government authorities, is the ultimate insurance policy. Physical gold and silver, being the most well-recognized and dependable forms of money throughout history, should be the core of any well-balanced portfolio.

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HemaQ, a distinguished division of The Quantum Group USA, provides transparent and affordable precious metals, specializing in investment-grade certified bullion products and jewelry. Democratizing access to value preservation, we offer honest solutions for long-term investments in gold and silver.

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