Dan Celia

Financial Issues

October 2014 – Q: Should I buy gold or silver to protect me against the coming economic crisis?

A: Gold and silver will definitely go up in value should we fall into another recession or, worse, a depression. However, I don’t think this will really help you. Of course as your gold or silver increases in value, you will accumulate more worthless dollars. But don’t forget that there are extraordinarily high fees for selling your gold and silver. Plus, there must be a market for it. In other words, to turn it into cash, there must be people buying it at these inflated prices. Here’s the problem: It is not likely that in times of recession or depression, there will be enough buyers out there for it to be advantageous to you to hold it now and sell it then. That’s why as an investment it will go up in value, but that may not help you through an economic downturn.

Your best hedge against a coming crisis will always be proper planning: estate planning and planning for permanent income. You might want to contact the AFA Foundation for help in making a plan to fit your needs.  

To learn more, read an article I wrote titled A Case for Income. You can find it here. It contains important information for anyone who is nearing retirement or already retired.

____________________
Dan Celia has been in financial management for more than 30 years. He works closely with AFA Foundation and can be heard six days a week on AFR Talk (afr.net).

Financial Issues website
Email: dan@financialissues.org
AFA Foundation: 800-326-4543, ext 345