If you look back into history, many different currencies were used for trade from animal skins to seashells. Eventually, societies settled on gold and silver which were portable, divisible, and universally recognized.

Years ago our currency, the US dollar, was able to be redeemed in gold. You would simply go to the bank, present your paper money, and be given gold in return. This changed in 1933 under FDR. These days, the currency is backed by promises of the federal government and our politicians instead of gold. Since politicians will not balance a budget, they continue to spend money the country doesn’t have. The federal reserve reacts to this by printing money out of thin air. Since this money is not backed by gold or anything, its simple to do.. a few keystrokes on a government computer.

When money is added to they system, more paper dollars are available to buy the same amount of goods and services, causing the price of what you buy to go up. This is called inflation. The more money printed, the less valuable it is, because more of it is needed to buy goods and services. Every day, the money in your wallet becomes less valuable- unless you buy an asset such as gold, silver, land, real estate, or anything that can hold its value, or possible increase in value.

This money printing is not going to end, in fact it is only going to get worse. Having a portion of net worth in precious metals can help guard against inflation, and the debasement of the US dollars by the politicians who continue to spend without thought. The percentage of your net worth you should keep in precious metals can vary according to your families personal situation, so consult a trusted financial adviser.