This is a deceptively simple question, but one which requires a very complex answer (if answered fully).  The simple answer is that all monetary systems throughout the world are fiat based, which means their only intrinsic value their paper currency has is the trust that others have in it.  There is nothing of  tangible value that backs any currency.  Governments can create new "money" anytime, and in any quantity that they wish.  History has demonstrated over and over that governments will destroy the purchasing power of the currency through inflation.  That is precisely what is going on now.

Gold (and silver) on the other hand, have been used by civilizations for millenia as money.  Because of this history, whenever governments cross the line and over-inflate their currencies, people turn to gold (and silver) to preserve their wealth.   This has happened countless times in the past in response to government abusing the money, it continues to this day, and there is no reason to believe that it won't continue in the future (the best indicator of future performance is past behavior).

The precious metals markets behave like no other markets in the world. 

Because gold is the ultimate currency, its price responds to a variety of external factors.  Staying informed about these factors will enable you to better position yourself to take advantage of the incredible volatility that these markets produce.

Even though gold is the ultimate currency, and silver is golds little brother, they are relatively tiny markets when compared against the S&P 500 for example.

Large money interests enter and exit the precious metals market at various times, and their moves can cause considerable price movements (in both directions).

If you dont understand the factors that move the price, you are at greater risk of entering a position at the wrong time, only to have the market move violently against you causing you to close the position at a loss.  Or inversely, to exit a position too early and leave considerable profits on the table.

I believe the information I provide is worth far more than I charge.  I leave it to you to decide whether you agree or not.

 I do not provide personal investment advice and I am not a qualified licensed investment advisor. I am an amateur investor.

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